Key Equipment Finance has ceased to write new business in Europe and will wind down its entire European operation.
The US-based company, which is owned by financial services firm KeyCorp, stopped accepting leasing business in any of its European markets in January this year.
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The company’s website lists European operations in 29 countries although it began servicing European business from five central offices in the UK, France, Germany, Italy and Spain in early 2011.
Adam Warner, president of Key Equipment Finance, said: "Key Equipment Finance (KEF) continually reviews its business to ensure that it is focused on Key’s core relationship model and maximizing return on capital.
"Continued uncertainty in the European economy; coupled with regulatory complexity have made it increasingly difficult for KEF to operate its European platform given its limited scale and connectivity to other Key businesses.
"As a result, KEF has made the difficult decision to discontinue its European leasing operations. This is a strategic decision, consistent with KEF’s commitment to allocate its capital to higher risk-adjusted returns and to focus on its core domestic business."
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By GlobalDataThe decision will leave the equipment lessor operating in the US, Canada, Mexico and Brazil.
According to the company’s website, Key Equipment Finance manages a $8.5bn (6.2bn) portfolio.
