Founded to expand MidCap’s product offerings, MidCap Equipment Finance has cemented its place in the middle-market lending space by focusing on transactions in the $5 million to $15 million range. While larger players have shifted their attention to $20 million-plus deals, MidCap has found its sweet spot. With strong capital markets expertise, MidCap often partners with other market participants on transactions that are either too small or too big for its own book.
MidCap’s ability to run lean has been a major advantage. By leveraging the infrastructure of MidCap Business Credit, the equipment finance division operates efficiently, sharing back-office operations, finance and HR. This synergy allows for better service, greater flexibility and a seamless customer experience.
TECHNOLOGY AND EFFICIENCY AT THE CORE
From the outset, MidCap embraced a clean slate approach to technology, implementing systems that automate processing and streamline operations. Shah acknowledges that while their core systems are strong, enhancing the marketing function with AI, CRM tools and other digital innovations could further position the company ahead of competitors.
THE COMPETITIVE LANDSCAPE AND MARKET SHIFTS
The equipment finance industry is evolving rapidly. The opening of the ABS (asset backed securities) market for large ticket equipment finance companies, coupled with increased private credit investments into new platforms led by seasoned management teams, has made the space more competitive. While some new platforms are aggressively deploying capital in larger deals, MidCap
continues to focus on risk-adjusted returns within its niche.
Interest rate shifts have also played a role in recent adjustments. With rates coming down in 2024, MidCap has adapted to maintain its competitiveness while ensuring sustainable, disciplined growth.
LOOKING AHEAD: 2025 AND BEYOND
Shah is optimistic about 2025’s equipment finance market, citing political efforts to strengthen U.S. manufacturing as a major driver for capital expenditures and equipment financing demand. However, geopolitical risks remain a concern, reinforcing the need for consistent underwriting standards and disciplined pricing strategies.
RECOGNITION AND FUTURE OUTLOOK
MidCap Equipment Finance’s inclusion in Monitor’s Top 30 Private Independents ranking is a testament to its success and growing influence. “We appreciate the recognition from Monitor and the work they do in covering our industry,” Shah says.
With a strong leadership team, a clear market strategy and a commitment to efficiency and customer service, MidCap Equipment Finance is poised to continue its ascent in the competitive world of equipment finance. •
“The growth we have experienced comes from a team of seasoned investment professionals who have worked together for many years. Our clients see it too — we have many examples of repeat financing opportunities with the same customers because they like how we operate and deliver on our commitments.”
~Saurin Shah, President, MidCap Equipment Finance
