Tennenbaum Capital forms JV with equipment leasing firm

The Los Angeles lender will be investing in equipment leasing through loans originated by 36th Street Capital.  

36th Street Capital Partners, a New York-based firm that provides financing solutions to the equipment leasing industry, has formed a joint venture (JV) with Tennenbaum Capital Partners (TCP). The transaction will see Los Angeles-based Tennenbaum invest with 36th Street Capital, which will then originate equipment leasing and financing deals through banks and independent financing firms, 36th Street Capital said in a statement.

The size of Tennenbaum’s investment or its terms weren’t disclosed. According to the firms’ statement, the JV gives 36th Street extra working capital, while it provides access to the equipment leasing space for Tennenbaum. JVs like these among US lenders have been on the rise this year.

“We are excited about our partnership with 36th Street Capital, which provides TCP exposure to the equipment leasing sector,” Rajneesh Vig, managing partner at TCP, said in a statement. “We have been evaluating opportunities to participate in this market for some time given its size and the attractive risk/return attributes it offers. 36th Street Capital's team has extensive experience in the sector, a strong network of relationships and a unique origination strategy,” he added.

“Demand for alternative capital solutions in the equipment leasing sector is increasing and TCP's investment will help us capitalize on our growing pipeline of opportunities, while also helping our clients better serve their customers,” commented Kiran Kapur, chief executive at 36th Street Capital.

Tennenbaum Capital is an alternative investment firm focused on performing credit and special situations investments in mid-market companies. TCP manages private institutional funds, as well as a publicly-traded business development company, TCP Capital Corp (TCPC). The firm has $6 billion in assets under management. TCP is headquartered in Los Angeles, with additional offices in New York and San Francisco.

36th Street Capital was founded by former bankers Kapur and Mark Horan. Kapur previously worked at CIT while Horan was with Merrill Lynch. The 36th Street team has managed investment portfolios in excess of $3 billion in equipment cost.