Jon Fales, the producer and host of The Alta Group’s Podcast series, recently interviewed Rafael Castillo-Triana, CEO of Alta’s LAR Region, about current shifts in equipment leasing and capital investment there. Castillo-Triana notes in the conversation that many U.S. multinationals are being replaced by European companies “that are eating America’s lunch left behind.” He also points to a rise in Latin American Independents providing operating leases and gaining an advantage over banks with decreased appetite while facing more regulation.

Beyond the indigenous lessors, the second largest group of players are from Europe. “We see, for example, Spanish banks like Santander, BBVA; French banks like BNP Paribas and Societe Generale, and we are watching the expansion of German banks and some from the U.K.,” says Castillo-Triana.

One can read the full transcript or listen to the 30-minute podcast to learn more about key trends based on the in-depth research that resulted in the annual Alta LAR 100 Report recently published. 

Podcast-trends-latin-america transcript

For example, Castillo-Triana talks about urbanization in various countries. With government assistance, for example, in Chile, Columbia, and Peru, lessors are moving into commercial real estate leasing –offices, buildings, industrial plants, shopping malls, and also, they are entering home finance.

“Households at the beginning were a little bit difficult,” he says “because it seems to be more consumption-type financing than investment. But, overall and especially with the support of the governments and economic policy in these countries, …you’ll find that they have been growing very fast and that is creating an interesting profile.” Castillo-Triana also notes that this is growing in Europe. “It’s an area of innovation. It’s a little bit tricky from a standpoint of credit risk management. But it’s certainly something that we anticipate, will keep growing…”

While noting the influence of Brexit in England and President Trump’s “Make America Great” message, Castillo-Triana says it still takes a global village to get capital to underserved regions and build economies.

China is the source of much equipment and investment through bank ownership with two on the LAR 100 list. The report ranks the largest equipment financing companies in Latin America. and has been published now for 15 years.

The report’s data and what it means to the global industry also was discussed at Alta’s recent Latin American conference in Miami Nov. 8-10 with presentations in both English and Spanish and a workshop on coping with new accounting rules in Europe and the U.S. For additional background contact rcastillotriana@thealtagroup.com.

The Alta podcast series is available on Apple podcast, Google Play, Stitcher, TuneIn, and on our website.