Singapore: Pierfront Capital invests $30m in NYSE-listed KNOT Offshore Partners

Hilda-Knutsen, a ship in the KNOP portfolio. Credit: KNOT Offshore Partners

Singapore-based Pierfront Capital Mezzanine Fund Pte. Ltd. (Pierfront Capital) has closed a $30 million investment in KNOT Offshore Partners LP (KNOP). It acted as the anchor investor for the $30-million follow-on placement of Series A Preferred Units for KNOP.

Formed in February 2013 and listed on the NYSE, KNOP is a limited partnership sponsored by Knutsen NYK Offshore Tankers AS, an operator of shuttle tankers, jointly owned by TS Shipping Invest AS, and Nippon Yusen Kaisha (NYK).

Pierfront Capital is a specialist investor focused on providing junior debt, mezzanine and structured equity to projects, assets and companies primarily in the infrastructure and real asset sectors and operates from Singapore with a global geographic remit.

The KNOP transaction is the third investment completed by Pierfront Capital in the last twelve months, following its $25 million investment in PT Merdeka Copper Gold Tbk, a major gold and copper project in Indonesia and its earlier $33 million investment in Greenko Ventures Limited, the investment holding company and key shareholding entity in Greenko Energy Holdings.

Greenko Energy Holdings is a major player in the Indian clean energy space. It owns and operates clean energy projects in India, with an operating portfolio of 2.5 GW of wind, hydropower, solar and biomass assets within India.

Pierfront Capital and Clifford Capital are related Temasek Holdings portfolio companies and can provide borrowers with complete senior and junior debt financing solutions.

As of the investment closing, KNOP owned and operated a modern fleet of 13 shuttle tankers, each equipped with the latest advanced technology, including dynamic positioning and offshore systems, ensuring safe and efficient offloading from offshore installations, in the most challenging of locations and weather conditions.

All vessels operate under long-term charters with major oil and gas companies engaged in offshore productions, such as Shell, ExxonMobil, Statoil, Transpetro and ENI.

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