RIVE Private Investment, through its newly established company RIVE Rail Leasing, dedicated to locomotives operational leases in Western Europe, has completed the acquisition of a fleet of 31 diesel-hydraulic locomotives (mostly for shunting operations).
With respect to this transaction, RIVE Private Investment has partnered with two Tier-1 operating partners: German rail asset-management company Northrail and French railcar lessor Millet.
The transaction consists in the purchase by RIVE Rail Leasing from Mitsui Rail Capital Europe (a major European lessor of rolling stock assets) of a portfolio of 31 best in class heavy freight and shunting locomotives, for a total value of c. €48 Million, including the senior debt provided by Frankfurt-based KfW IPEX Bank. The locomotives are 25 G1206, 3 G2000 and 3 G1000, built by Vossloh, (the main manufacturer of diesel freight/shunting locos in Europe), currently leased for short-term periods to 13 operators Europe. Especially appreciated by operators, short-term leasing offers a flexible and cost-efficient solution to adapt their capacity to their effective needs. Indeed, contracts concluded with their own clients are usually of a short-term nature as well (less than 2 years).
Northrail and Millet will act as lease managers and remarketing agents on the whole portfolio, under the supervision of RIVE Private Investment. Northrail will be responsible for the asset management of all locomotives located outside of France (Germany, Switzerland, Luxembourg, Netherlands, etc.). Millet, a long-term business partner of RIVE Private Investment, a railcar lessor and expert of the rail sector in France, will carry out the asset management of the locomotives located in France.
About RIVE Private Investment
RIVE Private Investment is an independent private equity company founded in 2013. RIVE Private Investment develops flexible, opportunistic and defensive investment solutions specifically for institutional investors and family offices.
RIVE Private Investment targets opportunities mainly across Europe and North America, focusing on three defensive sectors, namely infrastructure investments, asset finance and private debt. RIVE Private Investment benefits from the talent and expertise of internal investment professionals based in four European countries.
In the asset finance sector, RIVE Private Investment’s team has financed close to €300 Million assets (aircraft, helicopters, engines, railcars, locomotives).
Northrail Gmbh (”Northrail“), owned by Paribus Capital Group, was set up in 2008 and is based in Hamburg. Northrail is a leading German asset-manager of rail vehicles. Northrail provides asset-management services to investors investing into rail-assets, such as sourcing assets, supervising the manufacturing process of new-built vehicles, assuming the hand-over and return of assets, performing the remarketing, re-leasing and sales and handling the whole maintenance and repair process of the assets (the latter only in case of full-service leases).
Including the new portfolio taken over from MRCE, Northrail manages over 110 locomotives as well as 90 passenger wagons (www.northrail.eu).
Millet is a family-owned group founded in 1898 and providing leasing and logistic services to the European rail industry. The group owns and manages a fleet of 5 160 railcars and 12 diesel locomotives. Millet is the 5th largest private freight railcars operator in Europe.