In an increasingly global economy, The Alta Group’s asset management practice is truly global in nature, benefiting manufacturers and lessors alike as they address a variety of strategic and operational challenges.
The asset management expertise of Alta, for example, is giving an independent equipment lessor in Asia Pacific the confidence to expand into new markets. It is assuring a bank-owned lessor in the U.S. that its asset management operations are sustainable, primed for growth, and meet financial oversight requirements. It also is providing a global captive with a clear roadmap for a world-class asset management execution capability, helping differentiate the captive from competitors.
Different companies have different asset management challenges and objectives. To help all businesses achieve their goals, Alta draws on its global experience in leasing and its ability to provide not only strategic advice but also the tactical support necessary to get the job done.
“We have sat at an executive level in leasing and asset management companies, and understand their core issues,” notes Ian Robertson, global asset management practice leader of Alta, who is based in Europe. “We know where the money’s to be made, and we have the deep industry knowledge that is relevant to the client. Carl Chrappa, for example, has unrivalled, broad-ranging asset management experience gained over decades in the industry along with direct access to Alta’s unique asset valuations databases.”
The global asset management team always seeks to blend the most appropriate talent to each engagement and combine the regional experts such as Chrappa in North America and Juan Dodds in Latin America with the most appropriate functional specialists. In addition, the asset management practice also teams up with Alta’s management consulting experts, as many projects have larger strategic implications and/or specific process or systems ramifications.
The following are three recent examples of asset management work.
Independent Lessor Diversifies Financing
An independent lessor in Asia Pacific engaged Alta for a residual-based market entry and expansion strategy to diversify its equipment financing. Working with the company’s equipment financing leadership, Chrappa and Robertson provided the expertise for the engagement, with Valerie L. Gerard serving as engagement manager. Gerard leads the management consulting practice.
“This engagement spanned everything from asset class selection deploying our proprietary screening and selection methodology, through local market evaluation. Following the selection of the asset classes, we provided the company with databases and the framework from which to establish what their residual appetite should be,” Robertson says.
In addition, Alta led the company through the implementation requirements needed to establish and run a sustainable and successful asset management and remarketing function. This included organizational requirements, governance, oversight structures, policies, controls, and proactive asset risk management requirements, along with the implications for systems, processes, and resources, he adds.
“The project covered strategic market positioning and development through to the practicalities and tactics of day-to-day organizational delivery, providing the client with the risk management framework necessary to ensure long-lasting commercial success,” Robertson says.
Diversification of equipment financing was one factor contributing to the company’s success in 2015, according to its latest annual report.
Bank Lessor Fortifies Risk Management
The leadership of a bank-owned leasing company in the U.S. turned to Alta for a comprehensive review of their asset risk management activities, including governance models, risk oversight structures, operational policies, and residual-setting methodologies used in their disparate asset classes, Robertson says. In addition to Robertson’s review of the company, Alta CEO John C. Deane contributed competitive marketing intelligence, with Gerard managing the engagement.
“Alta also undertook a functional review of the asset management domain, focusing upon resources, processes, systems, monitoring, and controls, and did a deep dive into asset impairment review policies and processes,” Robertson adds.
“This provided the company assurance about the robustness of the methodologies deployed and processes in place – not only to satisfy financial oversight and control requirements, but also for effective and proactive portfolio management.”
Captive Lessor Focuses on Development
Appreciating the increasing strategic importance of asset management to its commercial success, a major global captive engaged Alta to review and benchmark its asset management function, addressing all aspects from its risk management approach through to its use of systems. Using Alta’s proprietary evaluation framework and methodology, several significant development areas were identified that were subsequently validated in a cross-industry “double-blind” benchmarking exercise. Ian Robertson and local U.S. Alta asset management resources provided the subject matter expertise and led the functional evaluation, with Gerard designing the benchmarking protocols.
“Alta practitioners were able to use their experience to quickly highlight attention areas along with a clear prioritized action plan which the client has subsequently implemented,” Robertson notes. “In many ways this was a typical Alta engagement, with the client accessing Alta’s specialized industry expertise to point the way, then cost effectively implementing the recommendations using their own resources.”
“An executive with the leasing company told us that our work not only helped their team improve operations, it provided the insight needed for continued improvements,” he says.
For More Information
For more information on Alta’s asset management consulting services contact: (U.S. and Canada) Carl Chrappa at +1 727 796 7733, firstname.lastname@example.org; (Europe) Ian Robertson at +41 791 530 155, email@example.com; (Latin America) Juan Dodds at +54 911 5327 0583 (Argentina), +1 239 344 7944 (US), firstname.lastname@example.org.