LCM scoops ING UK leasing portfolio – exclusive

The sale comes more than two years after the Dutch bank decided to run-off the portfolio of asset-backed loans and had awarded the servicing contract to London-based LCM Partners.

LCM Partners has agreed to buy a €320 million portfolio of leasing assets from Dutch lender ING for close to par value, PDI understands. 

The portfolio includes more than 20,000 performing small equipment and auto loans with an average life of around two-and-a-half to three years. 

The agreement was signed in the first half of 2015 and is set to complete this month after LCM makes the second of a two-part payment for the portfolio. 

LCM Partners declined to comment on the deal. 

A spokeswoman for ING was unable to comment on the asset sale, but confirmed that the initial process in 2011-12 was deemed unfeasible due to market conditions at the time. 

The bank announced in October 2012 that its UK leasing unit would not write any more business and the sale, which had failed to produce a buyer, was dropped. 

LCM Partners’ servicing arm won the tender to service the assets as they were wound down before buying the portfolio for close to par value, a source close to the deal said. The London-based distressed and performing credit investor will hold the assets in its new LCM Partners Credit Opportunities Fund. 

ING launched a restructuring programme in the wake of the 2008 financial crisis, which included the divestment of a large number of business lines as it sought to repay a €10 billion capital injection by the Dutch government. The planned sale and then rundown of the UK leasing business was part of the overall restructuring plan.

LCM Partners is led by chief executive Paul Burdell and is seeking up to €1.5 billion via separately managaged accounts and the firm’s first fund under its own brand. It has invested in non-performing and performing credit assets for more than 10 years.