Houlihan Lokey presented its latest Equipment-as-a-Service Market Update.

Here are some key takeaways from this edition of the report:

• Despite a smaller count for EaaS transactions, disclosed volume was up significantly, indicating a willingness to spend on the part of buyers.
• Private equity dry powder, which has been at record levels throughout the year, is showing signs of deployment as funds are more willing to pay premium valuations for worthwhile investments.
• Despite the positive performance throughout the year, the risk of recession highlighted the importance of downside protection to many funds. Acquisitions by infrastructure funds have seen a surge brought on by elevated fundraising and are illustrated by Stonepeak’s $7.4 billion acquisition of Textainer.
• Publicly traded EaaS companies have similarly taken the time to utilize cash on acquisitions, with Herc Rentals and H&E Equipment Services both making large acquisitions in the quarter and Sunbelt showing no signs of delaying bolt-on acquisitions as part of its “Sunbelt 3.0” initiative.
• The equipment-as-a-service team covers a wide range of business models, including traditional equipment rental, specialty equipment rental, route-based equipment services, transportation equipment leasing, vehicle fleet management, equipment dealerships, asset pooling services, and infrastructure and municipal equipment services.