£50 million investment for Kennet Equipment Leasing as small business demand grows

The financing facility is provided by Commerzbank backed by a guarantee from the European Investment Fund (EIF). The facility will enable Kennet and the STAR Asset Finance Group to further extend financing to existing and new customers and provide a vital source of financing to small and medium-sized businesses in the UK.

Commenting on the announcement, Steve Swift, managing director of Kennet, said: “For 25 years Kennet has been arranging financing for small and medium-sized companies. Today’s development marks another significant step in the development of Kennet as this facility provides us with the ability to significantly expand our lending activities to existing and new SME customers.

“We appreciate the trust that Commerzbank and EIF have put in Kennet and are looking forward to continue serving the UK community of small and medium-sized businesses.”

Philipp Gensch, investment director at STAR Capital Partners told Asset Finance International that Kennet specialises in funding a wide range of soft assets ranging from garage equipment to cleaning equipment.

He said: “Individual financings range from £250 to £250,000 per transaction with an average deal size of around £10,000.”

Gensch explained that the company employs around 70 staff and sources new business exclusively on a direct sales basis.

The other asset finance company that comes under STAR Asset Finance Group’s jurisdiction is Ignition Credit which, from its base in Cornwall, focuses on the provision of funding for harder assets – predominantly plant & machinery and classic cars.

Neil Aiken, head of structured capital markets, Commerzbank corporates & markets, added: “Commerzbank has a strong track record in financing SMEs and creating innovative financing facilities that enable companies to grow. The facility that we were able to structure for Kennet in partnership with EIF meets both objectives.

“It allows us to support a growing company, while at the same time provide much needed financing to UK SMEs, one of the key drivers of the UK economy.”

George Passaris, head of securitisation of EIF, said: “EIF is the leading developer of risk financing for entrepreneurship and innovation across the EU with a strong focus on helping and supporting SMEs through their development stages. We are very pleased to have provided a guarantee and participated in the structuring of this highly innovative facility for Kennet which has a strong catalytic effect towards additional financing for UK SMEs.”

Kennet has been arranging financing for SMEs for 25 years. Since inception, the company has arranged over £500 million in equipment financing for small and medium-sized companies across the UK. The company has a strong reputation for customer service and has been recognised through various industry awards. Kennet arranges financing for all business-essential assets throughout many industries.

Kennet is a subsidiary of STAR Asset Finance Limited, a platform established and managed by STAR Capital Partners, to consolidate independent asset finance providers across the UK. A unique element of the strategy is “to provide owners of asset finance businesses with the opportunity to take an equity participation in the longer term growth and value creation associated with a much larger asset finance entity which has balance sheet strength, critical mass and economies of scale”.

With its second fund now fully invested, STAR is currently fundraising for its third fund.

For more information, please see their website: https://www.kennet-leasing.co.uk/