CHAMP moves in to operating lease finance industry

The Sydney-based private equity firm has acquired two equipment finance companies for A$150m.

CHAMP Private Equity has acquired Integrated Asset Management (IAM) as wells as a majority stake in Alleasing for a combined sum of A$150 million ($102.5 million).

Headquartered in Sydney, Alleasing operates in Australia and New Zealand specialising in small ticket operating leases in all sectors except the automotive and consumer sectors. It has about A$1.3 billion in funded assets for more than 23,000 clients.

Operating in the same sectors as Alleasing, IAM has a portfolio of A$120 million in assets across more than 2,000 clients.

CHAMP intends to merge IAM’s operations into Alleasing’s, and will partner the principals of IAM and Alleasing management to develop and grow the business, said John Haddock, director of CHAMP. This is the firm’s first investment into the operating lease finance space.

The private equity firm originally agreed to acquire Alleasing in September for approximately A$145 million. However, when Alleasing’s parent company, Allco Finance Group went into receivership this November, the transaction was reviewed and the sale price was re-negotiated. The eventual sale price was approximately A$135 million, said Hugh Lander, chief executive officer of Alleasing.

The investment was made out of CHAMP II Funds, which closed in 2005 on A$950 million. The fund focuses on management buyouts of companies with enterprise values that are above A$100 million. It typically invests above A$30 million per deal.