In Continued Sustainability Shift, Alshair Fiyaz Family Office Offloads Suezmax Oil Tanker
published : 14 Oct 2021 at 10:19
The family office of global entrepreneur Alshair Fiyaz sold its final shipping asset.
The Suezmax oil tanker, Cap Diamant, in a September 14 move that took advantage of increased oil prices while advancing the family office’s progress toward a carbon-negative target.
ALFI Investments, Fiyaz’ family office, had purchased the tanker in April 2020 from Euronav NV back when the WTI oil benchmark hit a record low of -$37.63 per barrel. The traditional storage overflow brought on by the pandemic presented the opportunity for Fiyaz to use the Cap Diamant as storage off the western coast of Africa.
With oil prices climbing back into robust numbers in recent months, ALFI Investments determined mid-September to be a fortuitous moment to offload the asset, continuing its shift toward green investments in accordance with environmental, social, and governance (ESG) considerations much like fellow high-wealth family offices around the world.
ALFI Investments has plans to redeploy capital acquired by the sale into further sustainable investments, with the ultimate goal of expanding its portfolio into more green or “carbon-negative” opportunities while maintaining solid investment returns.
Prior to this deal, ALFI Investments opened a holding company that targets sustainable investments in timberland, tropical wood, and biofuels. Among the holding company’s portfolio is a venture to replenish natural resources through reforestation products and the conversion of waste from wood harvesting into biofuel that can then power renewable electricity generators used to cut wood. Alshair Fiyaz’s family office also played a key role in the development of Bellakvarter in Copenhagen, a Danish urban community project built using sustainable materials and powered by renewable energy.
Within the next three-to-five years, Alshair Fiyaz aims to replace all fossil fuel holdings from his portfolio with sustainable investments, while continuing to pursue acquisitions that will both provide outstanding returns while conforming to ESG standards.