A Disciplined Approach to Equipment Finance
Consistent strategy, structured for diversification, downside protection, and long-term portfolio value.
Why Equipment Finance
Equipment finance offers investors exposure to essential-use, mission-critical assets… the kind of equipment businesses depend on to operate, not defer. Backed by tangible, operationally essential collateral, equipment finance investments deliver a risk-return profile differentiated from traditional fixed income and equity allocations.
Our Investment Proposition
Our team’s approach to portfolio diversification mitigates risk and strengthens overall investment returns, resulting in a compelling value proposition. By leveraging its deep industry expertise, market insights, and longstanding relationships, the team is well positioned to deliver attractive, risk-adjusted returns for investors.
DIVERSIFICATION
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The portfolio approach provides meaningful diversification to traditional public and private corporate debt allocations.
Equipment Finance has historically demonstrated lower correlation to other asset classes.
Strategy employs a global, multi-product, multi-asset, multi-industry approach, with concentration limits across all metrics.
Geographic and jurisdictional diversification across North America and Europe.
DOWNSIDE PROTECTION
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Backed primarily by long-lived, essential use, commodity assets that generate contractual cash flows independent of the owner.
In the event of default, equipment can be repossessed and sold or leased to another operator.
Solid track record of higher recoveries during market downturns and recessions.
Since the Global Financial Crisis, the equipment finance industry's net charge-offs have been lower than those of corporate loans.
Equipment ABS outperforms all other asset classes except US Treasuries.
INFLATION PROTECTION
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Target equipment types generate positive inflation-adjusted cash flows over time.
Asset values tend to increase as new equipment costs escalate.
Rising inflation typically results in meaningful residual value upside over time.
Long-term growth potential with increased demand from ongoing urbanization and population growth.
Market cyclicality provides an opportunity to maximize investment returns and minimize overall risk.
PORTFOLIO MANAGEMENT
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Portfolio risk is diversified and managed across product, term, select equipment, industry, and jurisdiction limits, mitigating risk across market cycles.
Target concentration limits drive capital allocation discipline.
Consistent portfolio performance, coupled with industry acumen and experience, provides a proactive portfolio management structure to minimize risk and maximize cash flow throughout market cycles.
Portfolio balanced and managed to preserve liquidity and optimize returns.
Adherence to ASC 842/360 financial accounting and reporting standards.
100+ YEARS OF COLLECTIVE INDUSTRY EXPERIENCE IN:
Operating Leases
Capital Leases
Loans
Project Finance
Specialty Finance
Equipment Valuations
Restructuring
Consulting & Advisory
Equipment Sales
Inventory Management
Operating Leases Capital Leases Loans Project Finance Specialty Finance Equipment Valuations Restructuring Consulting & Advisory Equipment Sales Inventory Management
Clear and Consistent Strategy
Equipment finance fund strategy driven by a deliberate balance of disciplined risk management, targeted return enhancement, and thoughtful diversification, positioning the portfolio to perform across market cycles.
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Originate leases and secured loans in the global transportation and equipment finance markets with an initial targeted transaction size predominantly between $10-$75 million.
Transactions are collateralized primarily by long-lived, essential-use, income-producing assets.
Diverse industries and equipment.
Engineer and construct a diversified portfolio leveraging key direct and indirect relationships with sponsors, banks, and other specialty finance institutions, emphasizing primary as well as secondary purchases.
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Proprietary deal flow by leveraging deal team reputation, differentiated sourcing pipelines and extensive networks.
Execute and manage complex transactions through the team’s experienced, specialized, sector-specific originators.
In-house equipment management and financial engineering acumen, combined with deep operational and portfolio management expertise.
Target opportunities beyond traditional bank and investment-grade markets by leveraging deep client relationships, specialized asset and industry expertise, and creative structuring solutions
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Highly experienced team with extensive track records in originations, financial engineering & structuring, portfolio & equipment management, turn-around, work-out, restructuring, and liquidation.
Each partner has 30+ years of experience in equipment leasing and asset finance with bank-held, captive, independent leasing companies and asset management funds.
Proven track record through economic and industry cycles. The team originated, funded, and managed billions in global assets.
Extensive expertise in structuring and syndicating equipment leases and asset-secured transactions.
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Focused on middle-market and large obligors, delivering strong risk-adjusted returns.
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