NORTHGATE CAPITAL ACQUIRES A MINORITY STAKE IN ABC LEASING

Published: 18/February/2016

In February 2016, Northgate Capital completed the investment of $200 million pesos in ABC Leasing, with an option to inject additional $100 million pesos in the next eighteen months. ABC Leasing is a leasing company in rapid expansion with a focus on automotive financing for SMEs and individuals with professional activities, and it also offers leasing of industrial machinery and equipment. ABC Leasing has a nationwide presence and has established a strong recognition in the western region of Mexico.

Northgate’s participation in ABC Leasing will boost the development of the company through an expansion plan that includes the opening of regional offices, development of commercial alliances and implementation of other initiatives that will strengthen the company's position across the country. The capitalization in the company also provides greater financial strength that ABC Leasing will draw upon to diversify its funding sources and optimize financing costs.

"We definitely believe that the arrival of Northgate Capital as a partner of ABC Leasing will give the company the support and strength to continue growing aggressively in the coming years," said Luis A. Arrieta, founder and President of ABC Leasing. "It is very important for us to have an institutional partner that strengthens decision making and our corporate governance. We are pleased to partner with Northgate Capital with whom we share a vision of leadership and growth."

"The company has demonstrated resilience in times of crisis, with sustained growth, and always with a clear leadership and business strategy. We are sure that this investment will be a success story," said Alfredo Alfaro, Managing Director of Northgate Capital.

 

"There is a great opportunity to penetrate the leasing sector in Mexico. Leasing is a product that optimizes the financial position of companies and reduces the risk of obsolescence of assets. ABC Leasing is in the right market and at the right time to take a leading position in the SME segment in Mexico," said Gabriel Mizrahi, Director of Northgate Capital.

About ABC Leasing

Founded in 2004 in Guadalajara, Jalisco, ABC Leasing is an independent provider of leasing solutions in Mexico with a portfolio of almost $2,000 million pesos. ABC Leasing has two business lines: PROCAAR, consisting of new car leasing, and Corporate, which offers leasing of industrial machinery and equipment. In addition, the company has developed a Vendor program, through which it provides leasing solutions packaged with value-added services. For more information, please visit www.abcleasing.com.mx

About Northgate Capital

Founded in 2001, Northgate Capital is a global private equity fund manager with more than five billion dollars in committed capital. With offices in six countries, Northgate has built a platform of more than 35 investment professionals in Europe, North America, Latin America and Asia. For more information, please visit www.northgate.com.