PORTFOLIO COMPANY
EQUIPMENT FINANCING

Unlock Your portfolio company’s growth potential with
specialized equipment acquisition financing.

WHY PORTFOLIO COMPANIES SHOULD CONSIDER EQUIPMENT FINANCING

Sponsor-backed companies needing access to operational equipment should prioritize equipment financing as a significant part of their growth strategy. Equipment financing, particularly with the right commercial finance lender, provides sponsor-backed companies with a promising avenue to acquire necessary equipment, such as vehicles, specialized machinery, and IT equipment, without the upfront significant investment typically needed to purchase these assets. This can optimize the company’s investment power and operational cash flow. Additionally, equipment financing can be an important source of liquidity to fuel growth and higher valuation for private equity firms and their portfolio companies.

HOW EQUIPMENT FINANCING HELPS GROWING PORTFOLIO COMPANIES

Equipment financing is a crucial tool for sponsor-backed companies looking to capitalize on the benefits that often come with newly acquired equipment, like increased revenue and productivity, without depleting their cash reserves. By avoiding the substantial cash outflow of a direct purchase or utilization of credit lines, portfolio companies are strategically positioned to allocate their funds to other initiatives that can bolster growth and strengthen their financial position.

Another pivotal component of equipment financing is the ability to leverage owned assets to increase working capital, otherwise known as a sale-leaseback. Using the equity that is tied up in existing equipment as collateral allows borrowers to utilize their fixed assets in a way that turns them into liquid cash equivalents. This is particularly advantageous for companies that want to maintain flexibility and seize growth opportunities without taking on significant debt.

WHY CHOOSE WINGSPIRE EQUIPMENT FINANCE?

Celebrated as a leading provider of equipment financing solutions for portfolio companies, Wingspire Equipment Finance has garnered trust from over a thousand middle-market companies in the U.S. and Canada. We are industry and equipment agnostic, which allows us to create custom financing structures that fit the specific needs of portfolio companies. Our team has strong expertise in private equity-backed equipment financing. This blend of specialized knowledge, customized leasing solutions, and the flexibility to accommodate a broad spectrum of credit profiles cements our status as a preferred financing partner for sponsor-backed companies seeking fast, reliable funding.

FINANCING STRUCTURES TAILORED FOR PORTFOLIO COMPANIES:

  • Capital Lease
  • Operating Lease
  • Fair Market Value (FMV)
  • Equipment Finance Agreement (EFA)

PORTFOLIO COMPANY BORROWER PROFILE:

TRANSACTION SIZE

$5MM-$100MM+

CREDIT PROFILE

CCC+ to BB-

ANNUAL REVENUE

$100MM+

MINIMUM EBITDA

$10MM

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THE BENEFITS OF EQUIPMENT LEASING
FOR SPONSOR-BACKED COMPANIES

Equipment leasing offers many advantages for portfolio companies looking to acquire
equipment without making a large upfront CapEx investment. Some of the key benefits include:

LOWERS OVERALL EQUIPMENT COSTS

With equipment leasing, portfolio companies can secure fixed-rate financing, ensuring payments for the equipment purchase will remain the same throughout the financing term. Plus, equipment lines of credit do not have non-utilization fees.

OPTIMIZES LIQUIDITY MANAGEMENT

Equipment leasing strategically empowers portfolio companies to conserve their capital, including existing lines of credit, for other operational uses. This financial flexibility allows the capital to be directed towards other debt obligations or short-term investing.

FLEXIBLE END OF TERM OPTIONS

Depending on the financing structure chosen, portfolio companies have various options at the end of the lease term. Typically, the end-of-term options include purchasing the equipment, returning the asset, or renewing the lease agreement.

100% FINANCING STRUCTURE OPTIONS

Leasing typically does not require a down payment, and it allows portfolio companies to include soft costs associated with the equipment purchase. Costs such as installation, software, training, and delivery can be included in the financing structure.

A LEADER IN EQUIPMENT ACQUISITION FINANCING

Backed by funds managed by Blue Owl Capital (NYSE: OWL), a leading asset manager with over $315B in AUM, Wingspire Equipment Finance goes beyond traditional banking and loan structures by providing tailored commercial equipment financing solutions for sponsor-backed companies. We work with a wide array of industries and borrower credit spectrums. With a unique pairing of specialized solutions and the guidance of a leadership team with profound expertise with private equity firms and their portfolio companies, we emerge as the preferred lender for middle market companies seeking reliable equipment financing.

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