Businesses large and small are increasingly focused on the cost of their capital and the efficiency with which they use it.  This moves them away from asset ownership and towards rental, providing them with access to the latest equipment on a ‘when and where needed’ basis.

At 3i, we see the business rental market as an attractive sector that provides excellent investment opportunities.  Successful operators are those who:

• Justify premium pricing:  By providing a level of service or knowledge that others do not match.
• Are hard to copy:  As a result of a unique distribution network, unrivalled scale or a close relationship with the equipment manufacturer.
• Achieve high levels of utilisation:  Driven by strong management and IT systems.

Operators who add value through the quality and uniqueness of their service attract repeat business from sophisticated clients.  This places them in a far more attractive market than those rental companies that have no differentiating angle and are forced to compete on price.

The rental market is relatively mature in northern Europe, while remaining immature and highly fragmented in southern Europe.  This provides many opportunities for us to work with successful operators in France, Germany and the UK who wish to migrate their models internationally either organically or through acquisition.