Atalaya Capital Management, an alternative asset manager focused on asset-backed private credit and special opportunities, announced the securitization of equipment leasing assets from its Atalaya Equipment Leasing Fund I (AELF). The ABS issuance was significantly oversubscribed and meaningfully improved expected returns for the fund’s investors.

AELF is an approximately $300 million fund dedicated to originating and acquiring leases typically backed by mission-critical equipment. Atalaya’s equipment leasing effort has a long history of financing equipment for both small-middle market companies as well as much larger, well-known counterparties. Atalaya believes that equipment leasing provides a similar return proposition compared to many corporate credit strategies, but with substantially less risk due to the asset-backed nature and a much faster repayment schedule. AELF invests across industries and equipment types, offering diversification for investors seeking asset-based strategies with current income.

The ABS issuance, which priced at a weighted average yield of 1.64 percent, achieved a AAA-rated structure for the senior-most tranche of the securitization.

“We are excited to have closed our inaugural equipment leasing ABS transaction,” said Rana Mitra, head of Atalaya’s equipment leasing strategy. “This issuance is a testament to the growth of our dedicated platform and hard work by our team, and we are thrilled to have been able to bolster returns for our fund investors through this transaction. Importantly, this transaction allows us to broaden the leasing solutions we can provide for our counterparties. We look forward to future issuances and furthering our relationships within the equipment leasing and ABS market.”

Atalaya Capital Management is a privately held, SEC-registered, alternative investment advisory firm. Atalaya primarily focuses on making private credit and special opportunities investments in three principal asset classes – financial assets, real estate, and corporate. Founded in 2006, Atalaya is headquartered in New York City and has more than $6 billion in assets under management.

Atalaya Leasing, a wholly owned subsidiary of Atalaya Capital Management, sources leasing investments across various industries and equipment types, providing public and private companies with access to capital and flexible financing options for growth, replacement capital expenditures or liquidity through monetization of existing assets. Atalaya Leasing also partners with financial institutions to service a complete range of verticals and lease structures.