Railpool adds to string of train leasing deals

HSH Nordbank and KfW IPEX-Bank have sold their interests in the German rail leasing business to Oaktree Capital Management.

German banks HSH Nordbank and KfW IPEX-Bank have sold their respective 50 percent stakes in Railpool to Oaktree Capital Management, the Los Angeles-based alternative asset investment firm. The purchase price was undisclosed.

Railpool was founded as a joint venture by the two banks in 2008. It leases rail vehicles, locomotives and multiple units (with or without full service) to rail operators in Europe.

“We plan significant investments in new, innovative vehicles, the expansion of our excellent team as well as the internationalisation of our business,” said Torsten Lehnert, co-head of Munich-based Railpool, in a statement following the deal.

“As we continue to offer our customers modern, interoperable locomotives with an attractive full-service package, we are very pleased to welcome Oaktree as an excellent partner, who will support us strategically and financially in our plans going forward,” he added.

Oaktree, which invests in a range of different asset classes including distressed debt and real estate, had more than $86 billion under management at the end of March this year.

Europe’s rail leasing sector has seen a string of deals, the most recent being AMP Capital increasing its stake in Luxembourg-based Alpha Trains from 15 percent to 20.9 percent earlier this week.

Other deals have been struck by Pamplona Capital Management, DIF and Kohlberg Kravis Roberts. In addition, the private owners of UK rail leasing firm Porterbrook recently said they were considering selling their stakes.