Three Chicago-based investors, affiliates of Allstate, Duchossois Capital Management and CC Industries, Inc., announced March 4, 2016 formation of a new freight railcar leasing company, Riverside Rail.
The investor group has acquired 2,032 railcars, consisting of a mix of covered hoppers, coal cars, mill gondolas, boxcars and centerbeam flat cars. BMO Harris Bank led a credit facility for the railcar acquisition, and Vedder Price served as legal counsel to Riverside Rail. Terms of the transaction were not disclosed.
“The investor group believes railcar leasing represents an attractive long-term investment and seeks to grow this initial railcar investment into a larger railcar leasing fleet,” the company said. “Riverside Rail plans to build a full-service leasing and management services company over the next several years.”
The Allstate Corp. is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households through auto, home, life and other insurance. Duchossois Capital Management (DCM) is a private investment firm owned by the Duchossois family that invests across various stages of a company’s development from growth stage to later stage to make investments in public and private companies and private investment funds, and to partner with funds and other families in co-investment opportunities. CC Industries, Inc. operates under the umbrella of Henry Crown and Company as its holding and management vehicle for investments in privately held operating businesses.