An asset finance arm of UK/South Africa-listed Investec has entered a venture with a UK firm specialising in prestige, sports and luxury vehicles to provide financing to individuals and companies.

The venture between Investec Asset Finance and London Asset Finance combines LAF and its dealership connections with Investec’s services in managing assets and providing high net worth individuals with bespoke financing.

“Investec believes this new venture has significant growth potential in a sector that has seen a general contraction in participating lenders,” the bank said in a statement yesterday.

The move is part of a strategy in which Investec is continuing to try and distinguish itself as a specialist player. Almost exactly a year ago, Investec Specialist Private Bank, part of the Investec group, launched a lending facility for closed-ended fund managers in the UK. Two years ago, the same firm launched a banking service for wealthy individuals working in the music and entertainment industry.

As some banks have tightened availability of credit in the current difficult economic environment, there is a gap for bespoke financing solutions, Investec said.

“Following a dramatic contraction of the number of lenders and available funds in the high-value vehicles market we see a real opportunity to fill a gap that has developed over the last two to three years,” said Mike Francis, managing director of Investec Asset Finance.

The venture with London Asset Finance expands Investec’s presence in the vehicle financing sector; in December 2010 it acquired the contract hire operations of Birmingham-based Masterlease UK, one of the UK's biggest vehicle leasing specialists.