Control Risks’ due diligence, specialist screening, and targeted analysis gave a global private equity firm a full awareness of their exposure before acquiring a fleet of vessels.
Our client, a global private equity firm, wanted to investigate the sanctions risk exposure of an Asian ship owner prior to acquiring the company. The subject had a fleet of almost 100 vessels with offices across three Asian countries. The client needed a specialist approach that combined business intelligence with specific maritime expertise to determine whether the ship owners had engaged in any covert sanctions evasion activity.
Due diligence and screening
Our business intelligence team in Asia conducted a reputation-focused due diligence investigation into the target company’s entities across Asia. Our team also investigated the profile and relationships of the family that owned the company, focusing on a generational shift in ownership, which was partly why the company was up for sale.
This initial investigation informed the second phase of work, in which our specialist maritime analysts screened the entire fleet for any evidence of sanctions evasion activity. Our maritime analysts used a subscription database to collect and analyse five years of ship movement and ownership data across the fleet. Using their combined expertise, our maritime analysts separated suspicious movement behaviour that could be legitimately explained from high-risk activities indicative of actual sanctions evasion.
A targeted analysis
The findings for 10% of the fleet were initially high-risk. To establish definitively whether this portion of the fleet was higher risk, the team conducted an enhanced investigation, which included bringing on an expanded pool of our maritime experts and carrying out further checks. After completing this comprehensive second phase of investigation and analysis, our team deemed the initially concerning portion of the fleet not to be of higher risk.
Our approach ensured that the client could pursue their opportunity with a full awareness of their exposure.