In a rapidly evolving capital landscape, a new player has emerged to revolutionize the equipment finance industry. PrivateCap, founded by industry veterans Bill Phelan and Barry Ripes, is poised to bridge the gap between institutional investors and originators focused on small and mid-market leases and loans. This innovative platform aims to provide a consistent and reliable source of private capital, empowering independent finance companies to diversify their funding sources and adapt to the shifting market dynamics.

Bridging the Funding Gap in Equipment Finance

Addressing the Limitations of Traditional Funding Sources

As banks confront higher capital costs and reduce their exposures, independent finance companies, particularly those focused on smaller transactions, have found themselves with fewer, often costly options, such as warehouse facilities or the asset-backed securities (ABS) market. PrivateCap's founders recognized this challenge and set out to provide a streamlined solution, connecting originators with a consistent pathway to private capital.

Introducing a New Asset Class in Equipment Finance

Phelan and Ripes envision PrivateCap as a platform that will establish a new asset class focused on smaller ticket leases and loans in the equipment finance sector. This strategic approach reflects their long-term commitment to reshaping industry funding, with the goal of becoming a reliable and consistent source of capital that grows alongside the industry.

Catering to Underserved Segments

The founders' extensive experience in credit analysis allows PrivateCap to assess smaller ticket leases and loans with a refined lens. By focusing on essential-use equipment for the lessee, which they consider a solid risk, PrivateCap aims to fill the gap left by the market's traditional pullback from this segment, providing much-needed capital to originators.

Streamlining the Funding Process

At the heart of PrivateCap's offering is a robust technology platform designed for efficiency and precision. By investing significantly in technology, the company can analyze portfolios down to the contract level, at scale, and at speed, enabling a faster path to funding for originators. This combination of technology and deep industry experience allows PrivateCap to evaluate leases and loans effectively and bring private capital to originators when they need it most.

Diversifying Funding Strategies

PrivateCap's flexible investment policy, which allows for the evaluation of diverse assets and risk-reward structures across industries, is a key aspect of its approach. This diversification is crucial in building a resilient portfolio that attracts institutional investors, providing originators with a reliable and consistent capital source.

Establishing a Long-Term Presence

Looking ahead, Phelan and Ripes aim to scale PrivateCap's impact by establishing multiple funds within the next five years. Their vision is to become a long-term partner for originators, helping them navigate the increasingly complex financing landscape and diversify their funding strategies. By providing a reliable source of private capital, PrivateCap aims to support the growth and stability of the equipment finance industry.

Transforming the Industry's Funding Landscape

PrivateCap's launch marks a significant milestone in the equipment finance industry, as it introduces a new funding alternative that connects institutional capital to small and mid-market financing. By offering a reliable, efficient, and diversified funding solution, PrivateCap is poised to play a pivotal role in the industry's future, empowering originators to adapt and thrive in the evolving capital markets.