Baring Vostok Capital Partners has acquired a 100 per cent stake in Russian leasing company DeltaLeasing from fellow private equity firm Delta Capital Management.
The deal delivered an IRR on exit of 40 per cent for Delta Capital Management. Financial details of the transaction were not disclosed.
DeltaLeasing was founded by Delta Capital Management in 1999 and has built a high quality portfolio of over 800 leasing transactions across a broad range of industries. It has provided equipment, corporate fleet and real estate leasing products to small and medium sized businesses through its seven branches covering 27 Russian regions.
DeltaLeasing has partnered with and attracted debt financing from leading financial institutions such as EBRD, IFC and EXIM BANK of the US.
“Delta Leasing is a great example of achieving above market returns for private equity in Russia and the fact that this market is liquid for investors,” said James Cook, senior vice president of Delta Capital and chairman of DeltaLeasing. “Delta Capital was one of the first pioneers in the leasing market in Russia and we will continue to pioneer and grow the financial services market over the next several years through our strategic investments in DeltaBank, DeltaCredit and DeltaLease Far East.”
Delta Capital Management is focused on identifying and investing in emerging growth companies in Russia through its US Russia Investment Fund. The fund focuses on high growth consumer sectors such as financial services, consumer products and services and TMT. Established in 1994, the fund has invested over $250m in 41 companies and achieved 12 exits.
Baring Vostok was also founded in 1994 to manage a $160m direct investment fund sponsored by ING Asset Management. The firm now has assets of more than $400m under management and is part of Baring Private Equity Partners, which has announced plans to buy itself out from ING.