AFC summer podcast special: spotlight on captives

The second of Asset Finance Connect’s special summer episodes of the European Equipment Finance podcast series, sponsored by Alfa and hosted by Richard O’Donohue, is now available.

This special “mash-up” edition shines a light on captives – exploring their relevance, challenges, and future role within European equipment finance.

Available now on AssetFinanceConnect.com and major streaming platforms including Apple, Amazon, YouTube, and Spotify.

Captives under pressure

Rising costs have pushed some captives to withdraw from the market, and the episode begins by examining how they can adapt.

Dr. Klaus Strenge of zeb consulting pointed to solutions such as leveraging OEM infrastructure, outsourcing non-core functions, and using joint venture or white-label models in smaller markets.

His colleague Kerttu Alpass added that funding diversification is essential in today’s climate, whether through bond issuance, customer deposits for those with banking licences, or other creative approaches.

The power of partnerships

Throughout the podcast, one word kept resurfacing: partnerships.

Mathilde Saint-Pol Cousteix, Managing Director of Econocom France, explained how independents and captives complement each other – with captives bringing the strength of a brand, while independents add agility, responsiveness, and a sales-driven mindset.

The theme continued with Bengayi Kumbula, founder and CEO of InnoVent, who described how his company has grown from its South African base into the Middle East, becoming a sought-after partner for global OEMs in regions often underserved by finance providers.

Ian Robertson from Invigors then discussed how alternative finance players are entering the market, looking for scalable opportunities in niches such as sale-and-leaseback and transition assets.

For captives, these emerging players represent potential allies in areas they might not traditionally cover.

Finally, Chantal Voncken of Cisco Systems Capital reminded listeners that partnerships are ultimately about people. Dedicated and well-integrated teams make the difference between success and failure, and without careful succession planning, even the most promising collaborations can falter.

An evolving role

Taken together, these conversations suggest that captives remain highly relevant – but their role is evolving. They must be more cost-efficient, more imaginative in their funding strategies, and more open to collaboration, whether with independents, funds, or alternative asset managers. Above all, they must invest in the right people to nurture long-term partnerships.

Looking ahead

This was the second instalment in AFC’s three-part summer series. The first explored the impact of artificial intelligence, while the upcoming final episode will turn to sustainability – another pressing issue for the industry.

You can catch the captives special summer episode and the full back catalogue of AFC’s European Equipment Finance Podcast via AssetFinanceConnect.com or stream on Apple, Amazon, YouTube, and Spotify.