GE’s Spanish leasing portfolio goes to Incus

Spanish SME lender Incus Capital has purchased a portfolio of Spanish equipment leasing assets from GE Capital. The deal was signed last week and includes a bundle of loans with outstanding payment balances totalling €35 million, PDI understands. 

The asset sale – which represented an ending net investment of less than €35 million for GE – leaves the remaining employees in GE Capital’s leasing unit winding down some non-performing loans and other remaining assets. The unit is not writing new business, a source familiar with the situation said. 

The deal boosts private debt manager Incus Capital’s leasing strategy which it launched in 2014. 

“We are delighted to have been selected to complete this transaction by GE Capital, the financial services unit of one of the most respected global conglomerates. This portfolio complements our Spanish Leasing strategy implemented in 2014. We thank GE for their trust and look forward in continuing to work with them,” said Andrew Newton, founding partner of Incus Capital.

Around 80 percent of the portfolio relates to medical equipment leases with the remaining 20 percent covering a spread of other sectors. 

Incus Capital declined to comment on the purchase price of the portfolio but the firm targets returns of around 20 percent, PDI understands. 

KPMG provided Incus with tax and legal advice on the transaction. LB Oprent advised on the leasing assets.
Incus’ leasing business is one of five core lending strategies pursued by the firm which has launched fundraising for its second vehicle. The other four platforms are non-performing loans, special situations, real estate debt and receivables financing.

The Madrid-headquartered manager focuses on providing credit to small- to medium-sized businesses in Spain and Portugal. The firm has an office in Lisbon and was founded in 2012. It has raised more than €500 million in assets under management. 

The portfolio sale is part of General Electric’s decision to return around $90 billion to shareholders by disposing of the bulk of its GE Capital business. Last week, it announced the $4.8 billion sale of its commercial lending and leasing business in Japan to Sumitomo Mitsui Finance and Leasing. 

Since the industrial conglomerate announced it would shed its mid-market financing business in April, disposals to date amount to roughly $154 billion.