New lessor heralds refreshing air of entrepreneurship

He said: “Most investments will be in specialist segments of the leasing market such as agriculture, energy, environmental, manufacturing, materials handling, medical, modular accommodation and technology and transport.

“We do not intend to invest in large single assets such as aircraft, or the high-volume, low margin segment of the leasing market, such as photocopier and automotive leasing.”

Roberts’ co-founder partner is Jeremiah Silkowski, chief executive of SQN Capital Management (SQNCM) an independent asset manager which was established in the US in 2007. SQNCM’s principals and directors have wide experience in structuring asset-based financing both throughout the US and the European Union.

Roberts, a widely-experienced lessor, is currently managing director of UK-based Summit Asset Management. Since 1972 he has held a series of senior positions in the banking and asset finance industry both in the UK and Italy, Germany and the US.

Prior to joining The Summit Group he held managing directorships of three international finance companies owned respectively by Chemical Bank of New York (now JP Morgan Chase), HSBC and, latterly, Kleinwort Benson (now Dresdner Kleinwort Wasserstein). He joined The Summit Group in 1991 to consolidate its leasing and asset finance activities and in that time has built a specialized finance and managed-equipment services group.

He explained: “We will target transaction sizes below £20m but, generally, the average transaction size is expected to be £3m to £6m. Whilst there is no minimum lease term, it is typical for the initial lease term to be three to 10 years – depending on the asset.”

It is intended that the company will primarily acquire assets directly and function as the lessor under equipment lease contracts. The assets held by the company will be leased to a third party and will be subject to either a direct finance (cash flow) lease or an operating lease.

The company already has a number of vendor programmes in its chosen sectors as well as its own direct sales force. Staff numbers currently are seven and Roberts is seeking to recruit another three experienced heads in the near term.

Roberts stressed that SQN Asset Finance is particularly strong in structured and project financing for corporates with “good business cases”.

Already active with US companies seeking to invest in the UK (and vice versa) Roberts is happy to look at international opportunities while remaining predominately UK based. The initial capital of £150m is likely to be shortly followed by a further £100m and the intent is to grow the asset base to £300m in three years’ time.

It is anticipated that the new operation will add an invigorating air of entrepreneurship to a UK asset finance industry which, in the post-recessionary environment, is struggling under the threat of increasing commoditization.