Equipment leasing company seeking $10-20 million of debt to grow its business
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Overview
- Dedicated Funding, LLC provides equipment leasing solutions for businesses and other entities
- Seeking $10-20 million of debt to fund the equipment portfolio and support new originations
- capitalized with $2.5 million of management equity
- flexible on size and structure with debt provider
- Seeking funding for a range of credit quality, including A, B and C-rated credits
- Debt provider can hold the leases or sell to other financial institutions, provided Dedicated can continue to originate new business
- Transactions range from $10,000 to $250,000
- Provides the market an experienced professional staff – not burdened by the weight of banking regulations
- Led by Grant Finch, Kyle Winther and Drew Roberts
- successfully managed equipment financing platforms through several business cycles
- originated, underwritten and closed thousands of transactions
- led equipment finance teams at several financial institutions
- estimates that it has leased/financed approximately $10 billion of various types of equipment
Opportunity
- According to the Equipment Leasing and Finance Association (ELFA), in 2015 U.S. businesses, nonprofits, and government agencies invested an estimated $1.6 trillion in plant, equipment, and software
- Approximately 67%, or $1.061 trillion, of that investment was financed through loans, leases, and lines of credit
- ELFA reports that banks financed 55% of all equipment needs in the US, leaving 45% for non-bank financing opportunities
- Dedicated’s target market – $10,000 to $250,000 – is underserved by the banks and has a total volume of $371 billion, representing 35% of the total US market for equipment financing
Solution/Strategy
- Dedicated will use its deep relationships to market through four distribution channels designed to create diverse portfolios by geography, industry and asset type
- bank referrals of potential customers that do not meet bank transaction size minimums
- vendors/dealerships – provides steadiest stream of high quality opportunities and most value to Dedicated
- strategic relationship with a Fintech provider of W/C loans
- well-established, high quality brokers
- Dedicated will originate, document, and then aggregate these transactions into portfolios for sale to banks and other funding sources
- reduces default risk to Dedicated
- portfolios will range in size from $5 million to $10 million
- servicing rights may be retained
- portfolios will be sold on a non-recourse basis
- Dedicated expects to sell the first portfolio within 90 to 120 days of commencing operations, and every 30 to 90 days thereafter
- Portfolio ramp-ups will require Dedicated to hold transactions three to four months before sale
- 2% loan loss reserve will be created to protect against losses
Management
Grant Finch
Chief Executive Officer
(801) 474-3232
grant.finch@nbfcap.com
- Founder and owner of NBF Capital, LLC
- Vice President and Syndications Manager at Transportation Alliance Bank, Wells Fargo Equipment Finance, and First Security Leasing Company
- Bachelor’s Degree in Management from University of Idaho
Andrew Roberts
Executive VP and Chief Operating Officer
(857) 206-6464
- Managing Partner, Burton Roberts and Meredith, a bank consulting firm
- CFO Concillium Group, an international tax planning firm
- Vice President, Compliance and Operations, First Security Bank Trust and Capital Markets
- B.A. Finance; Juris Doctorate