Njord Partners, a London-based private equity manager, has acquired Red Funnel, the ferry operator that has been serving the UK's Isle of Wight for over 164 years.
Njord Partners said that, over the past five years, Red Funnel has faced challenges, in particular significant indebtedness, which has severely limited the company's ability to invest.
"Our priority is to ensure Red Funnel operates sustainably and responsibly for decades to come, delivering high-quality, reliable, and friendly services across the Solent," said Fran Collins, CEO of Red Funnel.
Red Funnel's acquisition by Njord Partners has drawn criticism from some local officials, including Isle of Wight East MP Joe Robertson.
"This is a bad day for the Island [i.e., Isle of Wight, ed]," Robertson said in a social media post in the hours after the deal was confirmed on Monday, September 29. "Yet another sale to a private equity group who exist for the 'uncompromising pursuit of capital preservation' for foreign investors – their words not mine."
Robertson wrote that the parties behind the transaction, "have not even had the courtesy of contacting local elected representatives to hear concerns on behalf of Islanders," before proceeding.
"While cross-Solent ferry connections are treated purely as a revenue generator for investors in an unregulated framework, Island residents and visitors will continue to pay over-inflated prices," added Robertson. "The government must step in. Enough is enough."
Vectis Ferries, a consortium that also includes local maritime experts and former Red Funnel executives, had earlier submitted a £100 million (US$130 million) bid to take over Red Funnel's operations, but this was ultimately rejected in favour of the offer by Njord Partners.
Vectis had told local news outlet Island Echo that coming under the control of another short-term investor would be detrimental for Red Funnel, as it would not properly address some of the operator's issues such as an outdated fleet and poor reliability.
