Atalaya launches first equipment leasing fund

Atalaya Capital Managment is getting deeper into the equipment leasing business.

The New York-based credit manager has raised $146.9 million toward the up to $175 million it is seeking for the strategy’s debut commingled vehicle, Atalaya Equipment Leasing Fund I, according to Securities and Exchange Commission filings.

The firm, which declined to comment, has invested in those types of transactions through its specialty finance fund series. Its most recent vehicle, Atalaya Asset Income Fund IV, was “substantially oversubscribed” and hit its $900 million hard-cap. The pool of capital is targeting a 10 percent net internal rate of return.

“It’s different, it’s not straight-down-the-fairway direct lending,” Atalaya founding partner and chief executive Ivan Zinn previously told Private Debt Investor. “It seems like people have their one to three corporate direct lending managers, and now they’re saying we like the return stream [from direct lending], but we want to diversify. It’s the first derivative away from corporate direct lending.”

Atalaya is also in market with its latest corporate special situations fund, Atalaya Special Opportunities Fund VII, which has a $950 million hard-cap. Fund VI hit its $800 million hard-cap and has returned a 1.15x total value paid in multiple and a net internal rate of return of 10.1 percent.

Founded by Zinn in 2006, Atalaya also invests in real estate, in addition to specialty finance and corporate credit. In June 2017, the firm sold a passive, non-controlling stake to Dyal Capital Partners.