Joel Holsinger and Eric Miller sit down with ABF Journal to discuss the recent launch of Ansley Park Capital, the new large-ticket equipment finance company of Ares Management
ABF Journal – June 13, 2024 – This spring, Ares Management, a global alternative investment manager, announced the launch of Ansley Park Capital, a new large-ticket equipment finance company. This venture signifies Ares’ strategic expansion into the equipment finance space, a sector the firm has been closely monitoring and preparing to enter.
The Rationale Behind the Move
Joel Holsinger, a senior partner at Ares, explained the rationale behind this strategic move. “If you look broadly at what we call alternative credit, it’s really asset-based credit. So everything is portfolios: it’s portfolios of loans, it’s portfolios of receivables, it’s portfolios of leases, and we invest across that entire spectrum.” Holsinger asserts that Ares’ extensive experience in asset-based credit and the current economic environment made this an opportune time to enter the market.
“We believe we have the largest pool of capital on the unrated side that allows us to strategically or on a relative value basis invest across areas that we view as interesting,” Holsinger says. “Equipment leasing is an area that we have a lot of experience with historically.” Holsinger says this deep reservoir of capital, combined with strategic investment opportunities, positions Ares to capitalize on the emerging trends in the equipment finance industry.
A Synergistic Partnership
Eric Miller, whose team made the switch to Ansley Park from BciCapital, shares his enthusiasm for the partnership: “Ares is a leader in the private credit space with one of the largest alternative credit platforms investing in asset-based credit strategies. We align culturally with the team, and we saw great potential in a collaboration. We’re very excited about it.” Miller’s comments underscore the cultural and strategic alignment between Ares and the newly integrated team, which bodes well for the future of Ansley Park.
Holsinger notes that the Ares and Ansley Park management teams realized just how many pre-existing relationships and familiarity existed between the teams when they first met. Holsinger and Miller expect this deep-rooted network within the industry to facilitate seamless integration and robust operational synergy.
Strategic Timing and Market Opportunity
The timing of the launch is particularly strategic, considering the current economic landscape and recent upheavals in the banking sector. Holsinger notes the significant changes that have taken place post-regional bank crisis and the resulting shifts in market dynamics. “Banks obviously are revisiting the way they approach the market after the regional bank crisis and even prior because of the rate increases that they were seeing.” These market conditions have created unique opportunities for entities like Ansley Park to fill the emerging gaps.
Holsinger notes that these shifts have opened up the market for alternative lenders. “What you see is banks pulling back from certain lending activities, creating a void that can be filled by alternative credit providers like us. This is especially true in the equipment finance sector, where the need for substantial capital investment is critical.” This insight reflects Ares’ ability to adapt to market dynamics and leverage its strengths to seize new opportunities.
Ansley Park’s Market Position and Strategy
Ansley Park Capital is focused on large-ticket equipment finance, targeting transactions that involve significant capital investments. This focus aligns with Ares’ broader strategy to leverage its substantial capital reserves and experience in asset-based credit. By targeting large-ticket transactions, Ansley Park aims to expand its niche in the equipment finance market that demands high-value, bespoke financing solutions.
“We believe that the changing dynamics in our industry combined with the experience of both Ares as well as our own team, uniquely position us for great success. There’s so much to look forward to. As a management team, we’ve always prided ourselves on providing our clients with custom tailored solutions for their individual needs, and with Ares as our partner it now feels as though our opportunity is limitless” said Miller. This excitement is shared across the team, reflecting the confidence in their combined capabilities and the market opportunities ahead.
Future Prospects and Industry Impact
The launch of Ansley Park Capital marks a significant milestone for Ares Management, extending its footprint into the equipment finance sector with a strong foundation. The venture is expected to benefit from Ares’ vast experience and capital strength, coupled with the specialized knowledge and industry connections of the Ansley Park team.
Looking ahead, Holsinger is optimistic about the impact Ansley Park will have. “With our resources and the experience of the Ansley Park team, we believe that we are well-positioned to offer innovative financing solutions that meet the evolving needs of our clients. This move not only diversifies our portfolio but also enhances our ability to provide comprehensive financial services.”
The launch of Ansley Park Capital is a well-calculated move by Ares Management into the equipment finance sector. With a strong team, significant capital backing and a strategic market entry, Ansley Park Capital is poised to make a significant impact in the industry. As the economic landscape continues to evolve, this new venture is expected to play a pivotal role in shaping the future of equipment finance, offering tailored solutions that meet the complex needs of businesses and investors alike.
Seasoned Professionals Zilong Wang and Michael Gay Will Support Attainment of Company’s Short- and Long-term Goals
Issued on Business Wire: https://www.businesswire.com/news/home/20240508155783/en/Ansley-Park-Capital-Bolsters-Leadership-Team-with-Key-Appointments
NEW YORK – May 14, 2024 – Ansley Park Capital (“Ansley Park”), a leading lending and specialty finance platform providing flexible financing solutions for essential-use, large-ticket equipment, announced today the appointment of two seasoned professionals to its leadership team: Zilong Wang as Senior Managing Director, Head of Sponsor Coverage Underwriting; and Michael Gay as Senior Managing Director, Head of Sponsor Coverage.
With an illustrious career spanning roles at Barclays and Goldman Sachs, Wang brings extensive expertise in leveraged finance credit risk. Prior to joining Ansley Park, Wang served in key credit risk roles within Barclays’ Leveraged Finance Division and Goldman Sachs’ Risk Division. Wang’s return to the team marks a significant milestone, having previously been part of the group during its tenure at CIT.
“I am thrilled to be welcoming Zilong back to our team,” commented Eric Miller, President and Chief Executive Officer of Ansley Park Capital. “His industry knowledge, combined with his deep understanding of our organization’s culture, makes him an invaluable asset, as we continue to grow and serve our clients.”
“I am very excited to back working with Eric and the team, it’s an amazing group, now with even ever greater capabilities. I look forward to leveraging our firm’s expertise and capabilities to provide tailored credit solution to meet our sponsor client need,” said Wang.
Gay brings more than three decades of experience in the equipment finance industry, with notable leadership roles at Stonebriar Commercial Finance, NXT Capital, GE Capital, and Bank of America. His expertise in sponsor finance and large-ticket equipment financing will bolster Ansley Park’s capabilities in delivering tailored financing solutions.
“Michael’s appointment represents the final piece of the puzzle in strengthening our leadership team,” commented Miller. “His track record of providing certainty of execution to sponsor relationships aligns perfectly with our commitment to delivering exceptional service and value to our clients. I have known Michael for more than 20 years, and I am incredibly excited to have the opportunity to work with him again.”
“I’m tremendously excited to join Ansley Park and reconnect with former colleagues who share the same commitment to provide P.E. sponsors and their portfolio companies with best-in-class financing solutions and service. Additionally, with the backing of our shareholder, our platform can leverage significant funding capabilities and credibility. I look forward to leading the Sponsor team and establishing Ansley Park as the premier equipment financing platform for sponsor owned companies,” said Gay.
In expressing his excitement about the future of Ansley Park, Miller emphasized the significant contributions that both Zilong and Michael will make towards achieving the company’s short- and long-term goals, enhancing its position as a trusted partner in providing innovative financing solutions to businesses across diverse industries.
“I am incredibly optimistic about our company’s growth trajectory. The addition of Zilong and Michael underscores our commitment to excellence and positions us for continued success in meeting the evolving needs of our clients,” concluded Miller.
About Ansley Park Capital
Ansley Park Capital is a lending and specialty finance platform focused on delivering flexible and customized financing solutions for essential-use, large-ticket equipment and machinery across a multitude of asset types and industries. At Ansley Park Capital, we tap into the responsiveness, flexibility, and creativity of a highly experienced team with unmatched access across the equipment financing industry to serve a broad community of borrowers to meet their individual needs with full product capabilities. Our approach to working with our clients is simple: we strive to understand our customers, take the time to underwrite their business, and provide tailored financing solutions for the unique circumstances they need to grow their businesses today and well into the future. For more information, please visit AnsleyPark.Capital.
A recent joint podcast from Monitor and ABF Journal featured an interview with Eric Miller, Ansley’s Park Capital’s President and CEO, and Joel Holsinger, Partner and Co-head of Ares Alternative Credit, about the opportunities Ares sees in the equipment finance sector and how the firm plans to approach the market.
Ares Management, one of the largest players in the asset and investment management space, announced its foray into the equipment finance space, as funds managed by its alternative credit strategy launched Ansley Park Capital, a new entity designed to deliver financing solutions in the large-ticket sector.
Source: https://www.abfjournal.com/abfj-podcast-series
Q&A with Eric Miller from Ansley Park Capital, by Rita E. Garwood, Monitor Daily, March 2024
Eric Miller shares his take on the current state of equipment finance and the mutually reliant relationship between banks and non-banks in the space. He outlines the go-to-market strategy of the new venture he is leading for Ares Capital Management, Ansley Park Capital, and provides his outlook on the future market composition of the industry.
Eric Miller is leading Ansley Park Capital, backed by funds managed by the alternative credit strategy of alternative investment manager Ares Management. Monitor editor in chief, Rita Garwood, sat down with Miller to discuss the current state of the equipment finance marketplace, as banks are pulling back from the space while private credit gains ground, the mutually reliant relationship between banks and non-banks in the industry and the go-to-market strategy of the new venture Miller is leading.
You’ve worked for many banks with equipment finance businesses in the past. Can you share your perspective on what’s happening in the banking industry as far as its interest in and involvement with the equipment finance industry today?
Most of my experience is non-bank. I spent a couple of years at Wells Fargo equipment finance early in my career but joined GE Capital in 2003. Back then, the equipment finance space was mostly non-bank; you had GE Capital, CIT, Transamerica, Merrill Lynch Capital and Heller Financial, to name a few. The independents’ dominance pivoted post the Great Financial Crisis in 2008.
It’s not a coincidence that the Fed’s monetary policies at the time, including quantitative easing, led to increased money supply, which in turn drove an increase in deposit dollars for the banks. As a result, banks increased their loan originations and grew different platforms, including the assets associated with our industry. During this time, equipment finance began to be viewed as a business as opposed to being a product for their bank customers. GE Capital had already purchased most of the other independent players in the market, so the banks didn’t really have much non-bank competition.
The main premise of a bank is to collect deposits and re-invest those deposits in their community, so it’s no great surprise to see what’s happening today. I expect the current industry dynamics to continue for many years to come. Due to recent economic events, many banks are reconsidering what types of loans they want to originate. The reality is equipment financing doesn’t drive deposit growth or treasury management. So why is it that a bank might decide to stay active in this market? Going forward, it’s likely going to once again be viewed as a product that is available to customers, not a business.
We are already seeing the significant void that’s being created in the marketplace, with several banks either having exited the equipment finance sector or shifting their strategies and approaches. While I believe this trend will continue, I expect this void to be filled by private capital. My view is not that the banks are exiting or shifting because they don’t like our industry, but rather that our industry really isn’t core to what most banks are trying to accomplish. The reality is it all comes down to business and financial strategy for both the banks and private capital.
In your opinion, how will Basel III impact banks and the equipment finance industry?
While Basel III is likely to impact bank participation in a number of traditional asset classes, it is not yet known if there are clear implications for how banks will approach direct originations of equipment loans and leases. A potentially larger consideration for banks today is how they view their direct equipment originations platforms in the context of driving long term sticky customer deposits from their equipment finance borrowers and lessees. To the extent banks are unable to generate acceptable levels of strategic customer deposits, it is possible that certain banks may decide to pull back from direct equipment finance originations, creating significant white space for well capitalized independent lessors like Ansley Park.
What are you seeing in the capital markets today? Are banks reluctant to buy paper? Are non-banks stepping up to fill the void, or is the market drying up?
The short answer is yes, yes and no. Many banks have pulled back their capital markets participation over the last year and we are seeing more deals getting funded by the independents than we were seeing previously. Some banks have drawn back to their footprints, while others are currently acting as brokers and selling most, if not all of their originations. I believe this will all take a while to normalize, years perhaps. All these changes create significant opportunities in the market for non-bank participants.
You recently launched Ansley Park Capital with the backing of Ares Management, a strong non-bank player. Can you outline your go-to-market strategy for this new business?
Ansley Park is owned by funds managed by Ares Management Corporation’s Alternative Credit strategy with $400 million of committed equity capital which we expect will enable us to originate over $3 billion in equipment loans and leases over time. Ares is a global asset manager with $419 billion of assets under management across credit, private equity, real assets and other businesses. Notably, Ares stands as one of the foremost providers of private credit to middle-market borrowers. With the support of Ares’s significant institutional expertise and broad presence in private credit, and backed with $400 million of committed equity capital, Ansley Park is uniquely positioned to successfully execute its go-to-market strategy across three primary channels:
When you look at the current state of the market, how are banks and non-banks working together? Do you expect this to continue or evolve in the future?
Great question, Rita. Banks and private credit providers are mutually reliant on each other. It’s a partnership that’s always existed and one that I expect to deepen even further. In our specific case, while we have a great capital partner, we also have a great bank partner that’s providing us with a significant warehouse facility that allows greater efficiency for our capital. On the flip side, we can help a bank with loan originations for their customer base in areas that may not be core or strategic for them.
Imagine the equipment finance industry in five years. How do you anticipate the landscape of banks, independents and captives to compare to today’s market composition?
I don’t have a strong view on the captives. They exist for a completely different strategic purpose, and I don’t expect there to be much change for them. As it relates to the banks and the independents, I wouldn’t be surprised to see them having an equal participation in the market. I don’t think it will go back to where it was in 2003 when I joined GE Capital, but it will be somewhere between where we were back then and where we were pre-COVID.
Continuing that future vision, how do you expect to see the equipment finance capital markets functioning in five years?
The capital markets in our industry have become incredibly efficient. Some parts are more efficient than others, but it’s a pretty fluid and liquid market, which I expect to continue without significant change.
Is there anything else that you would like to add to this discussion? Anything important that we’ve missed?
Throughout my career, I’ve found that the only consistent theme has been change. It’s going to happen; don’t fight it; accept it. Maybe the best thing you can do is instead of moving with the momentum, try to be part of the course correction. Welcome the change and figure out how to use it for your benefit as opposed to allowing it to create anxiety. If someone told me 20 to 25 years ago that the banks would dominate equipment finance originations, I wouldn’t have believed it. No one can say with certainty what our industry will look like 20 years from now, but it’s quite possible that things will look more like 2003 than 2023. Either way, I expect the equipment finance industry to be bigger and better than ever.
Eric Miller is president and chief executive officer of Ansley Park Capital where he is responsible for the strategy of the business as well as managing its day-to-day activities. He is an accomplished industry veteran with experience in building & leading high performing commercial finance platforms focused on sourcing, structuring, underwriting and executing middle market and large corporate financing transactions across a wide array of credit products across a diverse group of industry sectors.
Prior to launching Ansley Park Capital with backing from the funds managed by Ares Management Corporation’s Alternative Credit strategy, Miller held the position of chief executive officer at BciCapital, the nationally respected specialty lending subsidiary of City National Bank of Florida, where he led the company’s equipment finance business.
Before his tenure at BciCapital, Miller served as president of CIT Asset Finance, where he provided oversight for CIT’s large ticket asset-backed Commercial Finance platforms. His responsibilities included managing key business units such as capital equipment finance, commercial aviation finance, maritime finance, logistics finance, and franchise finance.
Miller’s dedication to excellence and his ability to navigate complex financial landscapes have positioned Ansley Park Capital to become a leading independent equipment finance company. Under his leadership, the company delivers innovative financing solutions and value to its clients across various sectors.