M&A: PrivateCap enters equipment finance capital markets

Mergers, acquisitions and startups in the equipment industry picked up in October as companies adjust to a changing capital markets landscape. 

PrivateCap launches equipment finance funding source 

Chicago-based investment management firm PrivateCap has launched a new capital source for the equipment finance industry by connecting institutional investors with originators focused on small- and mid-market leases, according to an Oct. 28 release 

The firm was founded by Bill Phelan and Barry Ripes, who both have experience in equipment finance and backgrounds in private and public ventures, and it aims to capitalize on the recent shift from public to private capital, Barry Ripes, president and co-founder of PrivateCap, told Equipment Finance News. 

“What we’re doing is buying portfolios and putting them into funds, but basically bringing a new source of capital into the market,” he said. “That really continues our business, our mission, of providing capital to small and medium sized businesses.” 

With traditional banking capital costs on the rise, PrivateCap offers an alternative through a cost-efficient process for assessing smaller transaction leases and loans, according to the Oct. 28 release. Former leaders at PayNet and Equifax, Phelan and Ripes are bringing their expertise to PrivateCap’s mission to reshape funding strategies for originators and introduce equipment finance as a viable asset class to institutional investors, Ripes said. 

Holt Truck Centers acquires Kyrish Truck Centers 

San Antonio-based transportation dealer Holt Truck Centers acquired Houston-based transportation dealer Kyrish Truck Centers for an undisclosed amount, according to an Oct. 14 release from Holt Truck Centers. 

With the acquisition, Holt has 35 locations, making it the third-largest International Motors dealership in the United States. 

Holt Truck Centers operates in Oklahoma and Texas as an authorized dealer for International, IC Bus and Idealease, according to the release. Kyrish Truck Centers operated as a family-owned dealership since 1976, selling medium-, heavy- and severe-service-duty trucks, and IC Buses. 

All 550 Kyrish Truck Center employees will become Holt Truck Center employees and remain in their current locations, according to the release. 

Atlantic Union acquires Sandy Spring for $1.6B 

Richmond, Va.-based Atlantic Union Bankshares and Olney, Md.-based Sandy Spring Bancorp announced a merger agreement, with Atlantic Union acquiring Sandy Spring in an all-stock capital markets transaction valued at approximately $1.6 billion, according to an Oct. 21 press release.  

The merger will create the largest regional bank in the lower Mid-Atlantic region, expanding Atlantic Union’s presence in northern Virginia and Maryland and adding 53 branch locations, the release stated  

Atlantic Union Equipment Finance, a subsidiary of Atlantic Union Bancshares, had total assets of $1.2 billion and new business volume of $638 million in 2023, according to the 2024 Monitor 100, which lists the 100 largest equipment finance firms by total assets. The merger enhances Atlantic Union’s long-term vision of establishing a leading Mid-Atlantic banking franchise and builds on both institutions’ community-focused approach, according to the release.  

Each Sandy Spring share will convert to 0.900 shares of Atlantic Union, valuing each Sandy Spring share at $34.93. 

Post-merger, the bank will have assets of $39.2 billion, deposits of $32 billion and loans totaling $29.8 billion, according to the release. The deal, approved by the companies’ boards, is expected to close by the third quarter of 2025, pending regulatory and shareholder approvals. 

Kapitus buys Ten Oaks Commercial Capital 

Independent financier Kapitus, a New York-based leader in small- and medium-sized business financing, has acquired Coeur d’Alene, Idaho-based Ten Oaks Commercial Capital, and intends to launch a new equipment finance division, complementing its existing small business loan and revenue-based financing offerings, according to an Oct. 25 press release.  

Kapitus also aims to provide flexible, affordable capital markets financing options for businesses in essential sectors like construction, manufacturing, hospitality and healthcare.  

As equipment financing options have dwindled due to stricter lending standards and industry consolidation, Kapitus’ new division will help business owners acquire equipment needed to stay competitive, according to the release. 

Along with adding Ten Oaks’ partnerships with equipment dealers and manufacturers, Kapitus is introducing the Equipment Provider Partner Program to strengthen vendor relationships and improve access to financing, according to the release.  

Kapitus plans to leverage Ten Oaks’ origination capabilities and begin funding transactions directly on its balance sheet by early 2025. 

Eagle Power Turf & Tractor acquires Mid-State Equipment, rebrands 

Eagle Power Turf and Tractor has acquired Pennington, N.J.-based Mid-State Equipment, expanding its presence into New Jersey, according to an Oct. 24 LinkedIn post by Doylestown, Pa.-based Eagle Power. In conjunction with the acquisition, Eagle Power is rebranding as Eagle Power Kubota.  

In addition, the acquisition, completed in October, allows Eagle Power to build on Mid-State’s customer service legacy and more than 30 years of operations, according to the post. Eagle Power now operates three Kubota dealerships across Pennsylvania and New Jersey.