On 31 July 2014, STAR closed the STAR Finance Partnership LP, a specialist alternative investment partnership focused on asset-backed financing for SMEs.
The Partnership’s strategy is to consolidate a number of independent asset finance providers across the UK and provide a significant alternative source of finance for SMEs, the engine room of the UK economy. The strategy represents a natural extension to STAR’s long-standing track record of investing in and arranging financing for asset-based businesses.
Since inception, the Partnership has acquired three successful and well established specialist asset finance companies: Kennet Equipment Leasing Limited, Ignition Credit PLC and AH Corporate Finance. In 2015, the group will arrange over £90m in financing for UK SMEs, often providing funding to growing businesses that are not adequately supported by their banks.
Why does the STAR asset finance initiative fit STAR’s investment strategy?
- Asset-backed financing provides highly attractive risk adjusted returns through the business cycle
- The market of specialist asset finance providers is highly fragmented offering an opportunity to build a group of significant size through acquisitions and organic growth
- The investment provides multiple ways to create value