PRINT THIS PAGE Private equity drives growth of securitisation in the UK31/08/2004. Source: AltAssets. 
 The private equity sector is driving the growth of securitisation in the UK and the future development of this form of finance is likely to depend on private equity groups using them as a partial exit from their investments, according to a report by JC Rathbone.
Securitisation allows companies to remove assets from their balance sheets by repackaging them as securities, with interest payments serviced from the cash-flows on the assets.
Securitisation is a relatively new and expensive form of financing but this report shows that it has already spread to a wide range of sectors, becoming a principal form of finance in the healthcare, leisure, transport and utility sectors. The most common issue to date has been securitisations on rental income from pubs, such as the Punch Taverns chain. Almost all pub portfolios have now been securitised.
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