Red Funnel: Historic Solent Ferry Company Acquired by Private Equity Firm

Red Funnel, a historic ferry operator established in 1820, has been acquired by Njord Partners, a UK investment firm, as of late September 2025. The company had previously been owned by a consortium of British and Canadian pension funds since the 1990s and now enters a new chapter under private equity ownership.

Both Red Funnel and Njord acknowledged that the operator faced significant financial challenges, particularly due to "significant indebtedness." This situation has limited their ability to invest in necessary infrastructure and service improvements. Community leaders and local residents have raised concerns regarding high fares and the reliability of services, viewing the ferry link as a critical connection for the Isle of Wight.

The recent acquisition comes after Red Funnel’s purchase of the Hythe Ferry service in 2024, which encountered operational issues due to necessary repairs at the pier berth. Service for this ferry has been suspended since August 2024 and remains halted as of August 2025.

CEO Fran Collins described the acquisition by Njord as a pivotal moment, enabling Red Funnel to strengthen its operational and financial foundations. Njord has pledged to leverage its experience in the maritime and hospitality sectors to navigate the challenges ahead. The firm’s portfolio also includes other companies such as Ambassador Cruise Line and Geoquip Marine.

For over 164 years, Red Funnel has provided vital ferry services across the Solent, connecting the Isle of Wight and Southampton with a fleet of specialized ferries and high-speed catamarans. Annually, the company operates over 30,000 sailings, carrying more than 2.3 million passengers and over 857,000 vehicles to East Cowes, in addition to over one million high-speed passengers to West Cowes.

In the competitive Isle of Wight ferry market, Red Funnel faces rivals such as Wightlink, which operates from Lymington and Portsmouth, and Hovertravel, providing a passenger-only service. Efforts by local interests to establish a competitor, Vectis Ferries, which aimed to introduce a high-frequency service, were unsuccessful.

While Njord has committed to revitalizing Red Funnel’s financial standing and operational functionality, concerns linger among local MPs and community observers regarding the potential prioritization of profitability over service to the public.

Set sail on a voyage of discovery with CruiseShip.net – your ultimate destination for all things cruising! Explore the latest news, insightful reviews, and thrilling cruising adventures from around the globe. Whether you’re a seasoned cruiser or a first-time traveler, CruiseShip.net is your go-to source for expert advice, insider tips, and inspiring stories to fuel your wanderlust. Embark on a journey like no other with CruiseShip.net – where every wave brings new excitement and endless possibilities on the high seas.