Invest in equipment leasing
Diversify your investment portfolio and secure steady returns by participating in equipment financing. We provide essential equipment and machinery leasing services to prominent corporations.
19.6 %
Historical returns
15 %
Maximum allocation
How equipment financing works
Large companies require machinery
Businesses prefer to lease
Flexible repayment plans for machinery finance
Equipment leasing industry market share analysis
Steady growth in equipment leasing
Equipment financing advantages
Predictable cash flow
Companies that lease assets such as equipment typically make monthly or quarterly payments, and around 40% of the total investment capital is recovered within the first year.
Secured with collateral
We enter into a Purchase Money Security Interest (PMSI) agreements where Hedonova retains ownership of the equipment. This makes recovery easier in case of defaults.
Low correlation
This industry is uncorrelated to financial markets. Payments from major corporations remain consistent even during periods of economic downturn, ensuring a steady revenue stream.
Tax benefits
The annual depreciation on the equipment is an expense that can be used to reduce the fund's taxability. Consequently, this leads to an increase in net returns.
Featured portfolio holdings
Bumrungrad International
We have leased MRI, CT, and PET scan machines to Bumrungrad International, renowned as one of Southeast Asia's largest private hospitals.
Shriram Transport commercial trucks
We have leased commercial trucks to Shriram Transport Finance, India's largest non-bank financial institution specializing in asset financing.
Thyrocare
We have secured a lease agreement with Thyrocare, a prominent multinational network of diagnostic and preventive care laboratories, which opts for multi-year leases.
Samsung maritime assets
We have entered a 54-month lease to provide containers, a common practice among shipping companies, who often lease ships, tankers, containers, and hydraulic equipment.
Invest in a diverse portfolio of alternative assets
Risk management
Liquidity
The leased equipment is typically tailored for specific companies, making it difficult to lease to another firm in the event of a default, leading to repossession.
Defaults
The companies that lease equipment may fail to make monthly lease payments. Security deposits typically cover one-time defaults.
Ownership
In some frontier markets, ownership laws can be ambiguous, especially concerning equipment held by special-purpose vehicles and owned by investors like Hedonova.
Equipment malfunctions
Equipment malfunctions usually need to be written off or replaced, which can incur significant costs. Most types of leased equipment are insured.