Red Funnel, a ferry operator whose roots trace back to 1820, has been acquired by UK investment firm Njord Partners as of late September 2025. Previously held by a consortium of British and Canadian pension funds since the 1990s, the firm enters a new chapter under private equity ownership.
In their announcement, both Red Funnel and Njord acknowledged that financial pressures had weighed heavily on the operator over recent years. Njord cited “significant indebtedness” as having constrained Red Funnel’s capacity to invest in infrastructure and service improvements. Locals and elected officials, for their part, have expressed concerns over elevated fares and service reliability, referring to the ferry link as a lifeline for the Isle of Wight.
The challenges extend beyond operating capital. In 2024, Red Funnel acquired the Hythe Ferry service—a short crossing across Southampton Water—but months later it became apparent that essential repairs were required at the Hythe pier berth. Service was suspended in August 2024 and remains halted as of the last update in August 2025.
Fran Collins, Red Funnel’s CEO, characterized the Njord acquisition as opening a “new chapter,” giving the company stronger footing to pursue its long-term objectives. Njord has emphasized its experience in maritime and hospitality sectors, and noted that its portfolio includes companies such as Ambassador Cruise Line and Geoquip Marine.
For more than 164 years, Red Funnel has operated crossings across the Solent, linking the Isle of Wight and Southampton. Its fleet includes purpose-built Ro-Pax ferries and high-speed Red Jet catamarans. The operator conducts over 30,000 sailings annually—approximately 11,800 by its vehicle ferries and 18,600 via its fast passenger vessels. In recent years, it has carried over 2.3 million passengers and over 857,000 vehicles to East Cowes, alongside more than a million high-speed passengers to West Cowes.
In the Isle of Wight ferry market, competitors include Wightlink (operating from Lymington and Portsmouth) and Hovertravel (offering passenger-only service). Local interests also attempted to establish a rival, Vectis Ferries, and made a bid for Red Funnel with plans for a high-frequency service, but the effort was unsuccessful.
Njord has pledged to restore Red Funnel’s financial stability and operational capability. However, concerns persist among Isle of Wight MPs and community watchers that the ferry network may be treated as a profit center rather than a public service.