Aldermore has stepped up activity in the
vendor market and is also targeting the construction sector as part
of its expansion strategy.
The UK lender’s asset finance division has
signed a cooperation agreement with US forklift manufacturer
Crown Equipment Corporation. Further agreements are expected to
follow during the course of 2011.
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Aldermore’s head of asset finance George
Ashworth said: “Our initial strategy has been to work with selected
brokers, but at the same time we want to build a vendor proposition
in our core markets.”
Ashworth listed materials handling,
construction and the professions as Aldermore’s three areas of
specialisation. The lessor is currently recruiting construction
experts, repeating what it did last year when it hired a
team of materials handling specialists led by Andrew
Woodward.
Ashworth said: “Materials handling and
construction share some similarities – in many cases there is a
common vendor, and the assets are subject to a relatively low rate
of technological obsolescence. But at the front end, we want to
demonstrate industry and asset knowledge, and to be able to talk to
clients in a language that they understand. Our core philosophy is
that expertise applied drives value.”
Manufacturers of equipment for doctors,
dentists and opticians are being targeted in the professions
sector.
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By GlobalDataAs well as organic growth, Aldermore has an
eye for acquisitions. In 2010 it
acquired the Heritable Asset Finance book, which contained an
element of professions business.
“We have sought to build on that opportunity.
Buying the Heritable portfolio also provided an income stream
whilst we invested in people and infrastructure,” Ashworth
said.
Brokers will remain an important channel.
Ashworth said: “Brokers have to forge and maintain relationships
with funders, and to do that they need a clear proposition and an
understanding of the value that they bring to any client
relationship.”
Aldermore advanced more than £100m in new
business originations in 2010. Ashworth said the financial
performance for the year exceeded margin expectations.
The only delinquencies were legacy ones linked
to the portfolios of Heritable and the Ruffler Bank. Aldermore was
formed in 2009 through the merger of Ruffler Bank and Base
Commercial Mortgages, following private equity fund Anacap’s
acquisition of both.
Aldermore’s asset finance team of 45 is
located in Reading. It also has six regional offices involved in
invoice discounting, which it hopes may offer opportunities for
cross-selling. By the end of 2011 the asset finance team is
expected to number 60.
