We identify and execute transactions where we see long-term value, short-term dislocations, and/or superior risk-reward balance. Our core strategy is to accelerate the decarbonisation of the shipping industry, through the use of and investment in fuel-efficient vessels, future propulsion fuels combined with superior operational, technical and commercial asset management.
We raised our first fund in 2019, Dee4 Capital Fund I K/S (Fund I), which final closed at $72 million. The last asset in Fund I (Dee4 Larch, 2016-built MR product tanker under Danish flag) was sold in June 2024. Fund I returned a net IRR of 26% to investors since inception in 2019. The average hold period for the seven vessels in Fund I was approximately three years.
In addition, we have completed Co-investments to date with equity commitments of approximately $105 million.
We raised our second fund in 2024, Dee4 Capital Fund II K/S (Fund II), which first closed in March at $92 million. In June 2024, investors were drawn for 22% of their committed capital for the first investment, which was the arms’ length acquisition of Dee4 Larch from Fund I. Dee4 Larch has been chartered-out to Weco Tankers A/S for three years. Final closing for Fund II is to take place before end March 2025.
