Historic Solent Ferry Company Red Funnel Acquired by Private Equity: What This Means for the Future

Red Funnel, a ferry operator established in 1820, has been purchased by UK investment firm Njord Partners as of late September 2025. Before this acquisition, the company was under the ownership of a consortium made up of British and Canadian pension funds since the 1990s.

Both Red Funnel and Njord have recognized that the ferry operator has faced significant financial pressures in recent years, highlighting “significant indebtedness” as a key challenge that has restricted investment in infrastructure and service upgrades. Locals and elected officials have voiced concerns regarding increased fares and the reliability of the ferry service, which they consider a critical link for the Isle of Wight.

The troubles did not end with financial constraints. In 2024, Red Funnel added the Hythe Ferry service—intended for short crossings across Southampton Water—but soon after, it became clear that essential repairs at the Hythe pier berth were necessary. By August 2024, service was suspended and had not resumed as of August 2025.

Fran Collins, the CEO of Red Funnel, described the acquisition by Njord as paving the way for a "new chapter" that would provide better support for the company’s long-term goals. Njord has highlighted its background in the maritime and hospitality industries, mentioning its ownership of companies like Ambassador Cruise Line and Geoquip Marine.

For over 164 years, Red Funnel has facilitated ferry crossings between the Isle of Wight and Southampton, operating a fleet comprising Ro-Pax ferries and high-speed Red Jet catamarans with over 30,000 sailings each year. Recent figures reveal that Red Funnel transported more than 2.3 million passengers and over 857,000 vehicles to East Cowes, in addition to a million high-speed passengers to West Cowes.

In terms of competition in the Isle of Wight ferry market, Wightlink operates services from Lymington and Portsmouth, while Hovertravel offers a passenger-only service. A local initiative aimed at creating a rival to Red Funnel called Vectis Ferries sought to introduce a high-frequency service but ultimately failed.

Njord is committed to restoring Red Funnel’s financial health and operational efficiency. However, some Isle of Wight MPs and community advocates remain wary that the ferry service may prioritize profit over its essential role in public transportation.

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