Information on the Target

Leascorp, founded in 2014 and headquartered in Nantes, is a specialized player in the digitized brokerage of leasing contracts. The company was co-founded by Nicolas Remy and Nicolas Hamon, both experienced sales leaders from Avenao and Leasecom. Their vision was to create a solution that simplifies and streamlines leasing financing through digitalization, enabling distributor partners to facilitate the sale of their products and services while optimizing leasing funding from partner refinanceurs.

Leascorp's innovative platform, Apliz, connects equipment distributors with leasing refinanceurs, allowing end clients to access the best available financing solutions. The company has successfully diversified beyond software financing to include point-of-sale systems, office equipment, light industrial equipment, mobile homes, and has launched a subsidiary, Fiimat, focusing on financing intangible assets such as websites. With over 30 employees and a growing portfolio of nearly 90 distributor partners and nine refinanceurs, Leascorp has demonstrated an impressive average annual growth rate of over 38% since its inception.

Industry Overview in France

The French leasing market is experiencing substantial growth, currently valued at approximately €38 billion. Out of this total, around €6 billion is specifically attributed to sectors targeted by Leascorp. This expansion reflects increasing awareness among businesses regarding the advantages of leasing, such as flexibility and improved cash flow management.

Leasing is becoming an essential financial tool for companies in various sectors, including retail, manufacturing, and technology, as it allows businesses to acquire equipment without significant upfront costs. The integration of technological advancements into leasing operations is further enhancing efficiency and attractiveness, as demonstrated by platforms like Apliz.

Additionally, the market's shift towards circular economy principles is influencing the leasing sector. Companies are recognizing the importance of sustainable practices, such as reusing and recycling equipment, aligning perfectly with leasing models that promote equipment longevity.

Furthermore, French businesses are increasingly digitalizing their financial operations, prompting demand for tailored and seamless leasing solutions that can integrate within existing workflows. This presents an ideal environment for Leascorp, whose digital brokerage model addresses these emerging needs within the leasing landscape.

The Rationale Behind the Deal

LBO France's minority investment in Leascorp is motivated by the company's impressive historical performance, innovative solution, and strong management team. The decision to invest aligns with LBO France’s strategy of supporting companies with disruptive models in high-growth markets.

This partnership aims to strengthen Leascorp's position within the leasing market while enhancing its service offerings and expanding into new geographic territories in France. The additional resources and expertise from LBO France are expected to accelerate Leascorp’s growth trajectory and help solidify its status as a leader in leasing services.

Information About the Investor

LBO France is a pioneering private equity group in France and a distinguished multi-specialist investment platform with operations in private equity, real estate, venture capital, and public markets. The firm has expanded its activities across Europe, notably with its subsidiary in Italy, Polis Fondi SGR, and operations in Africa via CGF Bourse. LBO France is wholly owned by its management team and has been a proponent of sustainable investment practices.

They are recognized for their strategic investments in high-potential businesses, providing both capital and operational support to facilitate their growth. By entering the capital of Leascorp, LBO France aims to leverage its extensive experience in fostering dynamic companies to optimize Leascorp's strategic direction and market reach.

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In terms of evaluating this investment, it appears that LBO France's acquisition of a minority stake in Leascorp is a promising move. Leascorp operates in a robustly growing sector within the French economy, which is particularly appealing as economic conditions continue to favor leasing models. The company's commitment to digitalization and sustainable practices aligns well with current market trends, suggesting its offerings will resonate with potential clients.

The strong performance indicators of Leascorp, such as its significant annual growth and expanding partnerships, affirm its viability as a strong investment opportunity. Furthermore, the experienced leadership team, dedicated to the company’s mission, enhances its likelihood of sustained success.

Additionally, the backing from a reputable investment firm like LBO France provides Leascorp with not only financial support but also strategic guidance, which can effectively bolster their competitive edge and operational efficiency. This partnership could catalyze enhanced growth and innovation within Leascorp’s service offerings.

In summary, if executed strategically, this investment holds the potential to further solidify Leascorp’s market presence and significantly enhance its value proposition in the leasing industry, making it a commendable investment for LBO France.

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