First Citizens Bank and Sixth Street are launching Sixty-First Commercial Finance, an equipment finance joint venture targeting middle- to large-ticket transactions.
The joint venture will also target lower credit profiles with transactions in the $5 million to $100 million range. The traditional equipment finance business at First Citizens also goes up to $100 million, but can also go above, while serving middle-market and large-cap business, according to the bank’s website.. This will open the door for new clients at both the JV and the larger bank, Kevin Ronan, managing director and group head at First Citizens commercial equipment finance division, told Equipment Finance News.
“We looked at it more of an additive for the bank to be able to sell traditional bank products to a whole new channel, a whole new spectrum of credit profiles that we typically wouldn’t go after,” Ronan said. “We chose Sixth Street because of their scale and because their very good reputation in the marketplace as a partner for us.”
First Citizen’s sees vibrant market
The equipment finance market looks vibrant for new lenders, Ronan said.
“There’s a massive amount of building infrastructure and building construction, and that type of activity going on in this country that you probably wouldn’t normally see if you’re here in New York,” he said.
“If you go across the country, there’s just factories being built, there’s just warehouses being built, there’s roads and bridges. There’s a lot of activity that requires the capital equipment that we’re going to finance the lease,” Ronan said.
Raleigh, N.C.-based First Citizen’s Bank will oversee the joint venture in addition to the traditional capital equipment finance division the bank acquired with its purchase of CIT Group in 2022.
The main difference between the new JV and the legacy equipment finance division, directed by Harold Ray, is the go-to-market strategy, Ronan said.
The legacy division’s “go-to-market is really through dealers and vendors, whereas [the JV has] a direct sales force, so we’re direct to the customer,” he said. “That’s the key difference, as well as we’re larger tickets, so size and how we go to market.”
Ray is a past speaker at the annual Equipment Finance Connect event. The next EFC takes place at the JW Marriott Nashville on May 14-15, 2025, is the only event for both equipment dealers and finance providers. Learn more and register here.
