Sygnus Deneb Investments Limited has completed its fourth investment, acquiring a 35 per cent stake in Caribbean Maritime Investments (CMI) on February 15.

CMI is a Sint Maarten holding company which has three wholly owned subsidiaries: International Marine Management (IMM), FKG Marine, and Dockside Management. The company was co-founded by Norina Edelman and Fabrice Maitre. IMM is domiciled in Guadeloupe, while the other companies are based in Sint Maarten.

“This investment in CMI is aligned with Sygnus Deneb’s strategy of providing growth capital in key growth industries as we continue to expand our regional footprint. The CMI team has demonstrated their capability in the yacht refit and repair business over the past 15 years and we are excited to partner with them as they seek to grow and expand their business,” said Dr Ike Johnson, chief operating officer, co-founder and head of private equity and Mergers & Acquisitions (M&A) at Sygnus Capital Limited.

This investment follows Aruba Wine & Dine in 2020, CS&T Group Limited, and Chukka Caribbean Holdings Limited in 2022. While the Sygnus principals did not disclose the value of its investment in CMI, the private equity investment company has a pipeline of more than US$100 million ($15.2 billion) in opportunities. It is currently looking at other industries, such as food retail, oil and gas, petroleum distribution, and fast-food retail.

Sygnus Deneb received one seat on IMM’s board, similar to prior investments.

“CMI’s strategic partnership with Sygnus will allow our continued growth and development in the Caribbean and will enable us to realise our dream of being an internationally competitive option for superyacht refit and repair,” co-founder and CEO Edelman stated, outlining plans to expand into new territories in the coming months.

CMI plans to utilise the capital to broaden its reach and offerings in the Caribbean and Latin America with an aim to be a fully integrated maritime solutions provider. Its founders have experience in the European market for refit and repair.

The company’s Sint Maarten operation works to its advantage, given the duty-free status and absence of taxes or import duties for spare equipment or provisions from the United States of America and Europe. Europe is the primary hub for refit and repair, along with other facilities for yachts. IMM launched a 45-metre floating dock in Guadeloupe in 2012 and a 180-metre dry dock for yachts in the same country.

“This investment provides exposure to an industry that is less sensitive to economic shocks and inflationary pressures and also has a great growth trajectory. CMI is also a part of an ecosystem of related businesses that drive each other and will benefit from both revenue and geographical diversification,” said assistant vice-president for private equity and M&A at Sygnus Capital Stephen Wright.

“It is forecasted that inflation will remain elevated for some time and that if there is a recession it would be small. For this reason Deneb is seeking to invest in companies that are less sensitive to inflationary pressures and economic shocks. We ensure that our portfolio is well diversified from a revenue, industry, and geographic perspective,” Johnson closed on the outlook for private equity amid recessionary fears and elevated interest rates.