First up, December 2009:
"Somali sea gangs lure investors at pirate lair"
From Reuters:
In Somalia's main pirate lair of Haradheere, the sea gangs have set up a cooperative to fund their hijackings offshore, a sort of stock exchange meets criminal syndicate. Heavily armed pirates from the lawless Horn of Africa nation have terrorized shipping lanes in the Indian Ocean and strategic Gulf of Aden, which links Europe to Asia through the Red Sea.
The gangs have made tens of millions of dollars from ransoms and a deployment by foreign navies in the area has only appeared to drive the attackers to hunt further from shore.
It is a lucrative business that has drawn financiers from the Somali diaspora and other nations -- and now the gangs in Haradheere have set up an exchange to manage their investments.
One wealthy former pirate named Mohammed took Reuters around the small facility and said it had proved to be an important way for the pirates to win support from the local community for their operations, despite the dangers involved.
"Four months ago, during the monsoon rains, we decided to set up this stock exchange. We started with 15 'maritime companies' and now we are hosting 72. Ten of them have so far been successful at hijacking," Mohammed said....MORE
And July 2013:
Who said a grenade launcher could not be a perfect financial asset?"
A new form of finance on the coast of Somalia.
I particularly enjoyed this part:
Piracy investor Sahra Ibrahim, a 22-year-old divorcee, was lined up with others waiting for her cut of a ransom pay-out after one of the gangs freed a Spanish tuna fishing vessel.
“I am waiting for my share after I contributed a rocket-propelled grenade for the operation,” she said, adding that she got the weapon from her ex-husband in alimony.
“I am really happy and lucky. I have made $75,000 in only 38 days since I joined the ‘company’.”
And finally, November 2008:
The WSJ's Deal Journal has a comparison of Piracy and Private Equity:
...Geographical investment thesis
Private equity: Bullish on China.
Piracy: Opportunities on the coast of Africa.
Start-up costs
Piracy: Gun, boats, a handful of men, rocket-propelled grenades.
Private equity: Office on Park Avenue.
Jargon
Private equity: “Internal rate of return,” called IRR.
Piracy: Eerily similar: “Aaar.”>>>MUCH MORE
Earlier:
Questions The World Is Asking: "What Happened to Captain Kidd’s Treasure?"
