Target Information
The target of this investment deal is LLC Leasing Company 'Evrotaym,' which is part of the Insight investment group. Established in Belarus, 'Evrotaym' has recently demonstrated impressive progress by moving from 11th to 8th place in the overall ranking of leasing organizations in Belarus, as compiled by the Belarusian Leasing Association. The company has excelled particularly in several segments, securing the 3rd position in the ranking for the total value of passenger vehicles leased to legal entities, and 6th among companies offering freight transport leasing services. In the consumer leasing sector, 'Evrotaym' ranks 7th among its peers, showcasing its diversified service offerings.
As of April 2024, the Insight investment group acquired an 80% stake in 'Evrotaym,' with the remaining 20% retained by its founder and director, Maxim Rad'kov. The company's leasing portfolio is valued at $51 million, and it has shown proficiency in attracting bank financing to support its business growth initiatives.
Industry Overview in Belarus
The leasing industry in Belarus has been evolving steadily, with significant contributions from about 25 leasing organizations that participated in the 2023 ranking. These participants collectively represent approximately 89% of the new business volume and 92% of the overall leasing portfolio in the country. The Belarusian Leasing Association has been conducting these reviews since 2010, providing reliable and comprehensive information about the state of the leasing market.
In recent years, the Belarusian leasing market has witnessed growing demand across various sectors, including consumer and commercial leasing. This trend can be attributed to increasing financial awareness among businesses and individuals, coupled with evolving market dynamics that favor leasing over outright purchases. As a result, leasing is becoming an increasingly popular financial solution for both personal and business needs.
Furthermore, the Belarusian government's initiatives to stimulate the economy and promote investment are expected to positively impact the leasing sector. The favorable regulatory environment and improving economic prospects are likely to enhance the sustainability and profitability of leasing companies in Belarus.
Rationale Behind the Deal…