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The Essential Guide to
Equipment Finance

Clarus Capital’s Equipment Finance Guide is designed to help management teams and private equity sponsors unlock flexible, cost-effective capital solutions.

Whether you're expanding operations, refreshing capex, or navigating liquidity needs, equipment finance offers a strategic alternative to traditional debt. Click the button below to view Clarus Capital's Essential Guide to Equipment Finance

 Click here to view the Guide

Key Highlights
Use Cases

Equipment Finance’s Role in a Portfolio Company’s Financing Lifecycle

  • Acceleration

    Finance the purchase of new capex to expand capacity or geographic footprint, add product lines, support new contract wins, etc. to drive growth without the need for additional equity or company cash

  • Preservation

    Finance ongoing maintenance, refresh or deferred capex while fully preserving other sources of operating liquidity

  • Transition

    Monetize value of existing equipment base to generate additional liquidity for working capital or other needs as the business works through a transitional period
Value Proposition

A Highly Accretive, Flexible Tool in the Sponsor Finance Toolkit

  • Cost Effective

    Attractively priced typically below senior credit facilities, with no upfront fees

  • Capital Efficient

    Up to 100% advance rate of cost on new or recently purchased equipment

  • Flexibility

    Covenant-lite, customizable terms and structure, and portable in a change of control

  • Seamless Process

    No senior credit facility amendment or consents required, fits within capital lease or other pre-wired credit agreement baskets
Market Landscape

Growth of Non-Bank Direct Lending Equipment Finance Solution

  • Non-Bank Direct Lenders (e.g., Clarus Capital)

    Purpose built finance companies with the scale and sophistication to provide reliable and customized financing solutions direct to sponsors and their portfolio companies

  • Commercial Banks

    Balance sheet capacity for sponsor-backed deals often constrained by regulatory underwriting standards

  • Brokers

    Capital-lite intermediaries — increasing all-in cost via syndication and/or other added fees
Diverse Applications

Expanding the Definition of “Equipment” to Apply to a Wide Range of Core Private Equity Sectors

  • Transportation, Distribution, & Logistics
  • IT Services & Digital Infrastructure
  • Business & Environmental Services
  • Industrial & Manufacturing
  • Aerospace & Defense
  • Food & Beverage
  • Industrial Services
  • Recycle & Waste Services
  • Consumer Products & Packaging
  • Healthcare Services
  • Chemicals
  • Medical Devices & Products

Recent Transactions

$30,000,000

Capital Lease

to finance imagery and IT equipment to support strategic growth initiatives

for a

Sponsor-backed Healthcare Company

$30,000,000

Loan

to finance IT equipment to support the onboarding of new and existing customers

for a

Sponsor-backed IT Service Provider

$40,000,000

Capital Lease

to finance injection molding, automation & extrusion equipment

for a

Sponsor-backed Specialty Packaging Manufacturer

$55,000,000

Loan Facility

to finance IT infrastructure assets to optimize core business operations & expand market share

for a

Global Public Data Services Provider

$30,000,000

Capital Lease

to finance facility infrastructure assets and machinery required for new contracts

for a

Sponsor-backed Engine 
Parts Manufacturer

$10,000,000

Loan Facility

to finance IT infrastructure assets to optimize core business operations & expand market share

for a

Sponsor-backed Industrial Recycling Company

$25,000,000

Loan Facility

to finance an upgrade fleet to service new and existing multi-year contracts

for a

Privately Held Waste Transportation Provider

$40,000,000

Capital Lease

to finance a filling line to support geographical expansion and existing contracts

for a

Sponsor-backed Specialty Bottling Company

Key Contacts

Jake Skivington

Managing Director

jskivington@claruscap.com

Pat McAuliffe

Managing Director

pmcauliffe@claruscap.com

Zamane Bodini

Director

zbodini@claruscap.com

About Clarus

Founded in 2021, Clarus Capital specializes in financing essential use assets for sponsor owned, leveraged middle market companies across a wide variety of industries. Clarus’ unique team blends decades of middle market buyout and equipment financing experience, most recently executing $14B+ of transactions over 15+ years as founders and managers of NewStar Financial.
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