Equipment leasing company seeking $10-20 million of debt to grow its business

Industry

Financial Services

Company Type

Equipment

Location

Utah

Size

$10,000,000-$20,000,000

Investment Type

Debt

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Helping Great Companies Grow

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
dedicated overview
Helping Great Companies Grow

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
Helping Great Companies Grow

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
Helping Great Companies Grow

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

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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