The new owner of Red Funnel says it aims to deliver a reliable, efficient service that Islanders and visitors deserve.
As first reported by Island Echo earlier today, the cross-Solent operator has been purchased for an undisclosed sum by private equity firm Njord Partners.
Njord Partners was established in 2013 and manages capital in excess of €1billion. The company describes itself as being a provider of ‘flexible debt and equity solutions to companies facing complex situations’, and is dedicated to an ‘uncompromising pursuit of capital preservation’ and delivering ‘superior risk-weight returns to investors’.
Commenting on the acquisition, Jakob Kjellberg, Founding Partner at Njord Partners, has said:
“Red Funnel is a vital part of the Isle of Wight’s economy and community—a true backbone of the Solent and South UK region. This is a great company with a proud history and a dedicated management team at its core.
“We are excited to support Red Funnel’s next chapter, restoring its financial health and empowering its people to deliver the reliable, efficient service that islanders and visitors deserve.”
The news of another private equity firm with its hands on Red Funnel will not be welcome news for many, including the Island’s political leaders.
Conservative MP Joe Robertson, Labour MP Richard Quigley and Alliance Council Leader Phil Jordan had written to Maritime Minister Keir Mather asking him to step in on a proposed sale of Red Funnel, stating that a sale to a private equity group would ‘only be bad for the Island’.
The trio have said that private equity ownership and the introduction of dynamic ticketing on car ferries were a turning point for the deterioration of services and price hikes in recent years.
Island Echo has approached Njord Partners for further information on its plans for Red Funnel…
And so it begins….. again!. How many times will equity companies be allowed to suck the profits from our ferries, divvy them out to shareholders and other failing companies before renaging on any promises to the Island and claiming poverty.
They may promise an efficient and reliable service but we want to hear the words cheaper service as well a word of warning private equity firms got hold off veterinary services and look what happened to the prices there
Did they include cheap too by any chance?
Once private equity is involved there is only one way the prices will go and that is up
“Dynamic ticketing”? Sounds like management consultant psycho-babble for putting the prices up. We shall see.
I fancy their definition of ‘efficient ‘ will vary from that of the users.
In other words Red Funnel has gone bust. I see the word investors is top of the list, won’t be any “value for money” for ferry users that’s for sure.
‘Reliable and efficient service’ … absolutely no mention of it being affordable. It’s whole business model is designed to make money for investors at to the detriment of travellers who pay cross the Solent