Former Equifax Executives Launch PrivateCap, a New Funding Source for Equipment Finance

PrivateCap has officially launched as a new funding platform designed to unlock fresh capital for the equipment finance industry by connecting institutional investors with originators focused on small and mid-market leases and loans. Founded by industry veterans Bill Phelan and Barry Ripes, PrivateCap aims to help independent finance companies diversify their funding sources amidst an evolving capital landscape, emphasizing a shift from public to private markets.

“Capital markets are shifting across the world, making this the opportune time to launch PrivateCap,” Barry Ripes, president of PrivateCap, says. “Our decades of experience conducting credit analysis on mid-market and small ticket leases and loans uniquely qualifies us to connect originators to institutional investors.”

Bringing Private Capital to an Evolving Market

Phelan and Ripes, both long-standing figures in the industry, established PrivateCap to address a significant challenge for equipment finance companies: the limitations of traditional funding sources. As banks confront higher capital costs and reduce their exposures, independent finance companies, especially those focused on smaller transactions, have fewer, often costly options, such as warehouse facilities or the asset-backed securities (ABS) market. PrivateCap introduces a streamlined solution, providing originators with a consistent funding pathway and opening new avenues for private capital in equipment finance.

“There’s been a sea change in the capital markets,” Bill Phelan, CEO of PrivateCap, says, explaining the need for this solution. “Bank deposits have dropped in seven of the last nine quarters, and the funding landscape is moving toward private capital sources. Our mission is to bridge this gap, bringing these private capital sources to the equipment finance industry, especially for small and mid-sized companies.”

With PrivateCap, Phelan and Ripes envision a new asset class — one focused on smaller ticket leases and loans in the equipment finance sector. This approach reflects their long-term commitment to reshaping industry funding. “We’re not looking to be a one-hit wonder,” Phelan says. “Our goal is to put up ‘platinum records’ for the next decade and establish a consistent, reliable source of capital that grows with the industry.”

A Targeted Approach to Private Funding

While ABS has long been a source of capital, Phelan points out its limitations: “Only about 10% of the industry accesses the ABS market. It’s a long, complicated process, often taking years for originators to qualify. We’re here to provide a faster, more accessible solution,” he says. Through PrivateCap’s fund-based structure, originators can access private capital without the prolonged qualification required for ABS, offering immediate, reliable funding to fuel their growth.

The founders’ extensive experience in credit analysis allows PrivateCap to assess smaller ticket leases and loans with a refined lens. Ripes emphasizes the importance of catering to underserved segments, particularly transactions under $1 million: “The opportunity is in these smaller leases and loans. They’re essential-use equipment for the lessee, which makes them a solid risk. However, the market has traditionally pulled back from this segment, leaving originators in need of capital. We’re here to fill that gap.”

Streamlined Processes and Technology-Driven Solutions

At the heart of PrivateCap’s offering is a robust technology platform designed for efficiency and precision. “Fast and efficient assessment is essential for this market,” Phelan says. “We’ve invested significantly in technology, enabling us to analyze portfolios down to the contract level, at scale, and at speed. This combination of technology and deep industry experience lets us evaluate leases and loans effectively and bring private capital to originators when they need it most.”

This approach not only creates a faster path to funding but also makes the experience frictionless for originators, who can rely on PrivateCap as a consistent capital source. “We’re not limited to specific equipment types,” Ripes says. “Our focus is on essential-use equipment, but our investment policy is flexible, allowing us to evaluate diverse assets and risk-reward structures across industries. This diversification is key to building a resilient portfolio that attracts institutional investors.”

Creating a Lasting Impact

Looking ahead, Phelan and Ripes aim to establish multiple funds within the next five years, scaling PrivateCap’s impact. “Our goal is to be on Fund Five within five years,” Phelan says. “This isn’t a short-term venture. We’re building a long-term business that provides consistent capital to the equipment finance industry, supporting growth and stability.”

Phelan and Ripes see PrivateCap as more than a funding source; it’s a partner for originators in an increasingly complex financing landscape. “We believe every originator’s funding strategy should be a three-legged stool: ABS, warehouse credit, and now private capital through PrivateCap,” Phelan says. “We’re here to help originators tell their stories to private capital sources, from asset managers to neo-banks to private equity. This approach diversifies their funding base, helping them remain resilient.”

“This industry is close to our hearts, Ripes says. “We’ve spent over two decades working with lenders and originators, and with PrivateCap, we’re able to bring in more capital and create a funding strategy that’s not only consistent but also transformative for the equipment finance sector. We’re excited to embark on this journey and help the industry adapt to a new era of private capital.”

With a vision to revolutionize equipment finance, PrivateCap’s launch marks a milestone in connecting institutional capital to small and mid-market financing. By providing a reliable, efficient funding alternative, PrivateCap is set to play a pivotal role in the industry’s future.