As 97 percent of high-wealth family offices have begun integrating environmental, social, and governance (ESG) considerations into their investment activities, entrepreneur Alshair Fiyaz’s ALFI Investments has been taking a lead, most recently divesting its final stake in oil shipping on Sept. 14, through the sale of its Suezmax tanker, Cap Diamant.
ALFI Investments cited its objective of restructuring its portfolio toward a composition of “carbon-negative” assets that still produce solid returns, as the reason for offloading the Cap Diamant. The ship presented an investment opportunity at the time of its purchase in April 2020 from Belgian company Euronav NV, when oil traded at an all-time low. The Cap Diamant was bought to store excess crude oil off of the coast of West Africa. But a recent rebound in oil prices and a dip in charter rates made September 2021 a convenient moment for Alshair Fiyaz to sell the Suezmax tanker.
While Alshair Fiyaz’s family office does not rule out future acquisitions in the shipping industry, any upcoming opportunities must be green or “carbon-negative”, in-line with its ESG considerations.
Alshair Fiyaz’s previous forays into shipping include the 2004 acquisition of a fleet of dry-bulk carrier ships used for charter and the purchase of a majority share of Global Oceanic Carriers, an AIM-listed company that was eventually sold to Newport Holdings Limited in 2008 after comprehensive restructuring.
The family office intends to reallocate proceeds from the sale of the Cap Diamant into further green and “carbon-negative” investments for its portfolio, as well as to research new targets for its recently created sustainable timber and biofuels holding company, which builds on its experience from constructing Bellakvarter, Denmark’s urban eco-friendly community in Copenhagen