Gordon Brothers closes $265M equipment finance ABS
ABS deal backed by 471 commercial equipment finance loans, leases
Gordon Brothers closed its inaugural $265 million equipment finance asset-backed securitization, creating a new funding channel for its growing commercial equipment finance business.
The transaction included five tranches of fixed-rate notes rated by Morningstar DBRS, according to an Aug. 10 release from Gordon Brothers. The highest-rated securities received a AAA rating, signaling the rating agency views them as very low risk for default.
The notes are backed by 471 commercial equipment finance loans and leases across 223 borrowers with an aggregate value of about $286 million, according to Gordon Brothers’ release. The transaction achieved a 93.2% advance rate through the BBB-rated notes.
The asset-backed securitization comes 13 months after Gordon Brothers’ Commercial Equipment Finance business began originating transactions, according to the release. The Boston-based firm launched the business in late 2024 and formed a $1.5 billion joint venture with Davidson Kempner Capital Management in April 2025 to support equipment finance originations and expansion.
Wells Fargo Securities served as sole lead on the asset-backed securitization, which drew bids from 22 investors and was more than 2.4 times oversubscribed, according to the release. The ABS broadens Gordon Brothers’ access to institutional capital and supports its expansion in equipment finance, asset-based lending and private credit.
Gordon Brothers Commercial Equipment Finance is the commercial equipment lending and leasing business within Gordon Brothers, the Boston-based global asset advisory, lending and trading firm, according to the release.
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