Historic UK Red Funnel Ferries Sold to Private Equity Firm

 

One of the most historic names in ferry operations, the UK’s Red Funnel, which traces its origins to 1820, reported that as of the end of September, the firm was sold to the UK-based investment firm Njord Partners. While the firm has been owned by a consortium of British and Canadian pension funds since the early 1990s, there are still concerns over maintaining the service, which is called a “lifeline” for the Isle of Wight.

In announcing the acquisition, the firms admitted that Red Funnel has faced “challenges” over the past five years. Njord said “significant indebtedness has severely limited Red Funnel’s ability to invest,” while residents and the representing members of parliament talk of “inflated prices,” saying the islanders are facing “extortionate fares for an unreliable service.”

Further compounding the challenges for Red Funnel was its 2024 acquisition of the Hythe Ferry, a short service crossing Southampton waterway between Hythe and Southampton Town Quay. Just months after the service was acquired, it surfaced that “essential repair works were required on the Hythe Ferry berth at the pier.“ Service was suspended in August 2024 and remains sidelined with the last update in August 2025.

The CEO of Red Funnel, Fran Collins, called the acquisition by Njord a “new chapter” for the company. Njord Partners, they said, gives them “the confidence and platform to support our ambitious future plans.” 

Njord Partners highlights its “strong track record investing in, and supporting, growth at UK businesses, helping companies excel by strengthening their operations, improving products and services, and delivering for customers and communities.” The company says it “has particular expertise in the hospitality and maritime sectors,” with portfolio companies including Ambassador Cruise Line, Geoquip Marine, and the Valiant Pub Company.

Red Funnel was formed in 1863 and for over 164 years has provided transportation crossing the Solent, connecting the Isle of Wight with Southampton. The company has purpose-built Ro-Pax ferries and also introduced the Red Jet Hi-Speed passenger catamarans. It operates year-round with over 30,000 sailings, including 18,600 on the Red Jets and 11,800 with the passenger vehicle ferries. It reports transporting over 2.3 million passengers and over 857,000 vehicles to East Cowes and another 1.1 million passengers to West Cowes on the high-speed ferries. The company also operates Red Funnel Holidays to promote trips to the Isle of Wight. 

Wightlink is a competitor operating routes from Lymington and Portsmouth to the Isle, while Hovertravel offers only passenger service from the Portsmouth area. A group of Isle of Wight businessmen, however, also launched Vectis Ferries and made an unsuccessful bid for Red Funnel. They had committed to an every-30-minute service and proposed smaller, aluminum ferries built by the Wight Shipyard.

Njord says it is committed to restoring financial health to Red Funnel. The Isle of Wight’s two MPs, BBC reports, however, fear the service will be treated as “a cash machine” for private equity.