A deal that is indicative of a turn in tide for the shipping sector, Shearman Sterling, Latham & Watkins and K&L Gates have all play a role in advising one of the biggest shipping-related private equity financing deals to date.

Private equity heavyweight The Carlyle Group has partnered up with Hong Kong-based Tiger Group Investments, shipping lessor Seaspan Corporation and the Washington Family in a landmark US$5bn joint venture aimed to capitalise on surging demand in the sector. Gerry Wang, CEO of Seaspan - one of the world’s largest containership owners - will lead the venture, along with Graham Porter, Seaspan’s managing director.

The new entity will work to acquire more than US$5bn in container, dry bulk, tanker vessels and other shipping assets. It will commence business immediately and expects to deploy up to US$900m in equity capital during the next five years – focusing on major shipping segments primarily strategic to the China, Taiwan, Hong Kong and Macau markets. In particular, the new company will target Chinese shipbuilders, lenders and state-owned companies.

The Shearman & Sterling team led by Hong Kong M&A partner Paul Strecker, represented the Tiger Group whilst Latham & Watkins, a long-standing counsel of Carlyle, advised the firm on the deal. The Latham team was led by corporate partner Daniel Lennon, and tax partner Cheryl Coe, both based in Washington D.C..

K&L Gates advised the Washington Family with corporate partner Stephan Coonrod taking the lead.

Other signs of a shipping revival include an order of at least 10 new jumbo containers by Denmark’s Maersk Line last month. 

Tiger Group Investments is an Asian-based private investment firm, focused primarily on the maritime sector. The group has investments in Seaspan Corp, Greathorse Shipping Holdings, SeaTiger Capital, Seabridge Marine and two ship managers. As of 31 January 2011, Tiger Group Investments managed assets in excess of US$7bn.

The Carlyle Group is a global alternative asset manager with more than US$97.7bn under management.ALB

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