Why fund managers like Bhagwan Marine's move into higher-margin Riverside
A founder-led marine services operator has added a complementary, less capital-intensive business through the Riverside acquisition, funded by a placement and debt.
28 Feb 2026 · 3 min read
In short
Bhagwan Marine operates a fleet of around 100 vessels supporting offshore oil and gas facilities and decommissioning work in Australia.
In February 2026 the company acquired Riverside, a complementary marine operator with roughly double Bhagwan's EBITDA margins, according to DMX Asset Management.
DMX Asset Management valued Bhagwan at around 10 times current earnings at its entry point, with double-digit growth expected over coming years.
Marine services provider Bhagwan Marine has drawn interest from small-cap managers for its exposure to offshore oil and gas decommissioning work, a pipeline Asymmetric Asset Management described in its November 2025 Monthly Report as large and growing as ageing assets reach the end of their lifecycle.
A founder-led operator adding scale through acquisition
The more significant recent development came in February 2026, when DMX Asset Management detailed Bhagwan's acquisition of fellow family-owned operator Riverside, funded through a well-supported placement. DMX noted Riverside runs a less capital-intensive model than Bhagwan's own fleet, emphasising the operation and management of other operators' vessels, including the sole commercial ferry service to Magnetic Island, and generates roughly double Bhagwan's EBITDA margins.
Riverside is a good fit for Bhagwan as it provides complementary services, fills some geographic gaps, and, in our estimation, is a fundamentally better business with a less capital intensive model.
— DMX Asset Management, Monthly Report, February 2026
DMX also pointed to the deal structure as a positive: Riverside's vendors took part of their consideration in Bhagwan equity alongside an earn-out, while the founder added further cash via the capital raise, taking debt to EBITDA from around zero to roughly one times. At its entry point, DMX valued Bhagwan at around 10 times current earnings with double-digit growth expected over the next few years.
What managers are watching next
Asymmetric Asset Management flagged Bhagwan's negative attribution in November 2025 as a smaller position within its fund after a sharp share price fall on no news, followed soon after by a five-year contract announcement for a recently acquired vessel. With the Riverside integration now underway, DMX expects the combined group's balance sheet capacity to eventually support tuck-in acquisitions and organic fleet expansion, alongside potential capital management initiatives including buy-backs.
Questions
What does Bhagwan Marine do?
Bhagwan Marine is a marine transport and solutions provider operating a fleet of around 100 vessels, including tugboats, barges and support vessels, primarily serving Australia's offshore oil and gas, resources and construction industries.
Why did Bhagwan Marine acquire Riverside?
According to DMX Asset Management, Bhagwan Marine acquired Riverside because it is a complementary, less capital-intensive business that generates roughly double Bhagwan's EBITDA margins and fills geographic gaps in its service offering.
What is the growth opportunity fund managers see in Bhagwan Marine?
Asymmetric Asset Management points to a large and growing pipeline of offshore oil and gas decommissioning work as assets reach the end of their operating lifecycle, alongside new vessel contracts and the recently completed Riverside acquisition.
3 managers, 6 comments, with each manager's latest recorded position.
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