Bain Capital makes first move into China leasing market

Boston-based private equity specialist Bain Capital has acquired an 80% stake in Chinese equipment leasing firm Lionbridge Financial Leasing (China) Co Ltd, heralding its first investment in China’s financial services sector.

Lionbridge provides leasing of medical, agricultural and manufacturing equipment to small and mid-sized companies. It has 174 offices covering 22 provinces in China, and had 3 billion yuan in leased assets as of June 30.

Announcing the deal, worth an estimated 1 billion yuan, Bain Capital managing director Jonathan Zhu said: “This investment marks Bain Capital’s entry into China’s financial services sector and our efforts to capture business opportunities in the under-served SME sector, where there is a large unmet financing demand.”

China’s financial leasing sector has grown nearly 40-fold in the last few years, from RMB8 billion in 2006 to 3 trillion yuan in 2014, making the country one of the world’s biggest leasing markets, according to the announcement.

Bain Capital said its aim was to help Lionbridge strengthen its market position, enter new sectors, further develop its unique business model and establish online financing platforms.