From Heavy CapEx to Asset-Light Models in the Investment Goods Sector – Breaking with Traditional Structures
Across the investment goods sector – particularly in rail, energy, vehicle and machinery industries – a fundamental shift is underway: moving away from pure ownership of capital-intensive assets towards usage-based and service-driven business models.
Asset-light does not mean doing without investment goods. Instead, it means paying for performance and usage, rather than holding the asset on the balance sheet. After a defined usage period, assets are often returned to the manufacturer or leasing provider.
Why this shift is happening now
- Greater operational flexibility: To remain competitive, companies must continuously modernise their production assets, preserve liquidity and avoid long-term capital lock-up. At the same time, flexibility is becoming increasingly important to align costs with fluctuating demand.
- Capital availability & investor interest: Private and institutional investors have substantial capital available and are seeking long-term, stable investment opportunities. This creates favourable conditions for innovative and flexible financing structures in the investment goods sector.
- Changing risk allocation: Customers increasingly want to avoid bearing technical risks associated with investment goods alone. Manufacturers and suppliers are therefore assuming greater responsibility for availability, performance and maintenance.
- Digital technologies: Sensors, remote monitoring and data-driven maintenance enable continuous tracking of asset usage and performance, making usage-based models technically feasible at scale.
- Climate targets & energy transition: To adopt modern and sustainable technologies without large upfront investments, customers are increasingly turning to usage-based solutions such as Energy as a Service.
Implications for financing and contractual structures
- Reduced upfront capital requirements: Operators no longer need to fully finance capital-intensive assets. Refinancing is typically provided by private and institutional investors as well as banks.
- Transfer of technical risks: Manufacturers or suppliers increasingly assume responsibility for operation, maintenance and availability.
- Service as a core contractual element: Contracts focus on clearly defined performance metrics rather than pure delivery obligations.
- Residual value risk as a key lever: Who bears the residual value risk (lessor, customer or financier) has a decisive impact on financing structure, accounting treatment and contract design.
How manufacturers and suppliers are repositioning themselves
To successfully leverage this shift, manufacturers and suppliers are expanding their business models with the following elements:
- Leasing models: Investment goods are leased rather than sold. Innovative structures such as seasonal or progressive lease payments, pay-per-use models or comprehensive servitization approaches allow for tailored and flexible customer solutions.
- Service contracts: Manufacturers and suppliers guarantee availability, performance or energy output over long contract terms.
- Digital platforms: Real-time data, predictive maintenance and remote servicing increase asset availability and operational efficiency.
Opportunities and risks for manufacturers and suppliers
Opportunities
- Clear differentiation from competitors
- Access to new customer segments (e.g. customers with limited capital or fluctuating utilisation levels)
- Development of a secondary equipment fleet with attractive residual values, opening additional markets
- Stronger customer relationships and additional revenue through service and maintenance offerings
- Predictable, recurring revenues over the full lifecycle of assets
Risks
- Long-term technical and contractual commitments
- Increasingly complex contractual structures
- Need to build new capabilities in financing, contract management and service delivery
How AIL Structured Finance supports you
AIL Structured Finance is an experienced partner in implementing asset-light models, particularly in the rail and energy sectors. Our capabilities include:
- Project structuring: Development of tailored leasing and financing structures, including business plans and lease rate models
- Refinancing: Structuring and arranging refinancing solutions with debt and equity partners
- SPV management: Establishment, management and administration of leasing special purpose vehicles (SPVs)
- Lease calculation: Calculation of realistic and attractive lease rates and cash flows for manufacturers, customers and investors
With our expertise, we help clients fully realise the benefits of asset-light models while effectively managing associated risks.