Executive Vice President &
Head of Equipment Finance
Trustmark
President
Canon Financial Services
CEO North Mill Equipment Finance
CEO
PEAC Solutions
In an unpredictable landscape, top equipment finance executives talk talent, technology and the leadership mindset needed to thrive through disruption.
As 2025 progresses, equipment finance leaders are dealing with a fast-changing environment. Uncertainty around tariffs, shifting regulations and new technologies like AI are pushing companies to adapt quickly while staying focused on long-term success. In this roundtable, executives from Trustmark, Canon Financial Services, North Mill Equipment Finance and PEAC Solutions share how they’re managing today’s economic and political challenges, using AI to improve operations and preparing for the future of the industry. From changes in market share and the rise of private credit to talent development and automation, these CEOs offer practical insights on how companies can stay strong and move forward in uncertain times.
How are the current U.S. tariffs impacting your company’s cost structure, asset pricing or customer demand? Are you seeing these effects impact your 2025 strategy?
JOE HINES: Given the uncertainties of tariffs and their impacts, it has been hard to predict what client behaviors will be throughout the year. We have seen an uptick in buying and financing activity in late Q1 and Q2 so far. However, it is unknown how much of this is pulling forward future purchases due to fears of tariffs, projects coming back online that may have stalled last year or just regular maintenance CAPEX.
DOMINIC JANNEY: Following the announcement of the tariffs, some customers and dealers accelerated their purchases and financing requests to lock in current pricing before the tariff-related increases took effect. Others chose to delay their purchasing and financing decisions as they evaluated the potential timing, scope and impact of the tariffs on their business. DAVID LEE: Aside from developing contingency plans, we have not yet been materially impacted by the volatility stemming from tariff-related uncertainties. A majority of our originations year-to-date in 2025 have been to the medical, franchise, livery, IT and construction industries and generally, none of our originations have been secured by newly manufactured imports. Regarding heavy duty capital equipment, the vast majority of our lending and leasing activity is for used equipment where we have not yet seen notable increases in pricing, like we did in 2021, due to threatened tariffs. Year to date, our origination volume is more than double for the comparable period in 2024.
In late 2023 (a decision we wish we had made a year earlier), we proactively curtailed origination activity in the freight and logistics sectors — including long- and short-haul trucks and trailers — reducing their share of originations by over half. In anticipation of potential tariff impacts, we raised rates, ceased lending to lower-tier credits and startups in freight-related segments and eliminated prefunding for imported equipment.
BILL STEPHENSON: It is difficult to project how the current U.S. tariff strategy will play out in the coming year. As we have seen in recent months, this uncertainty has contributed to market volatility and heavily weighed on consumer and business sentiment.
That aside, we have a clear strategy at PEAC Solutions in terms of what we hope to achieve in the coming one to three years, as well as the major steps that we need to take to realize those strategic goals. Even in these uncertain times, I don’t see those “north stars” changing significantly.
The discussions with my leadership team are more about the ‘calibration’ of tactical plans for 2025, as we contend with the effects of these uncertain market conditions on our vendor partners and their customers. Difficult times for sure … but in our industry these are the moments when a financial services company can shine and provide real value.
When customers start stockpiling cash and are seeking to defer investments, the offering of term finance, creative payment structures, or ‘pay per use’ programs can be a real game changer.
What are the top two or three ways the current political environment — especially shifts in the Trump administration, regulatory rollbacks or geopolitical tension — are affecting your ability to plan or invest?
HINES: There are a number of questions still up in the air on what all changes this administration may make. Regulatory rollbacks, enhanced tax and investment incentives, etc. should be positive for our industry, but whether those will happen, or when, makes it difficult to adequately plan at this point. We are thinking our way through various scenarios internally and how we can react or respond when appropriate.
JANNEY: Shifts in the political environment and potential policy changes under the Trump administration could have several impacts on our business. Proposed government funding cuts — particularly in healthcare, education and social services — may affect customers operating in those sectors. Reductions in regulatory requirements could lower operational costs for many businesses, potentially boosting profitability and encouraging new investment.
Additionally, continued strength in the overall economy would support the credit performance of our existing portfolio, contributing to more stable asset quality.
LEE: While tariff threats have created pockets of uncertainty — particularly in freight-related sectors — the anticipated regulatory rollback, especially in energy, has accelerated capital investment in the oil and natural gas sectors. Additionally, the massive energy demands resulting from data center expansion to support AI are expected to drive increased activity in construction and technology-related equipment financing.
A robust energy sector has strong downstream effects. According to a 2017 PwC study, each direct job in oil and gas supported an additional 2.7 jobs across the U.S. economy in 2015, for a total employment multiplier of 3.7.
STEPHENSON: I have a “Top Two,” with the U.S. tariff strategy out in front and geopolitical tension and global supply chain issues coming in a distant second.
You have to consider that despite a hold being placed on the most severe tariffs earlier this year, there is still an additional 10% universal tariff on most imports. For context, the average tariff on all imports was around 2.5% at the end of 2024, so this is a ‘four x’ increase. Both manufacturers and customers are feeling the impact, whether via shrinking profit margins or price increases and this is dampening demand.
And while it appears that inflation is starting to ease, escalating trade frictions and geopolitical uncertainty continue to impact the global supply chain, as well as product availability and price. All of these issues have contributed to manufacturers contending with deferred or cancelled orders, while others have even suspended their forward guidance.
Given these conditions, I see several players in our industry already taking a more conservative approach to investment and spending. On the contrary, I think this is the time to be proactive and invest in the people, skills and technologies that will position your company for future success. So, whether it is developing the next generation of leaders or testing various AI use cases, we always have an eye on the future and remain committed to realizing our strategic goals.
Given today’s heightened uncertainty, how are you guiding your organization to remain agile and resilient? What practices or mindsets are helping you lead through ambiguity?
HINES: We remain nimble, and we are still a growing group that can pivot as needed through change. Our go-to-market strategy has not changed since we launched in 2022, and we continue to evaluate opportunities with a focus on both risk and returns that are consistent with our overall objectives.
JANNEY: To help our organization remain agile and resilient in today’s environment of heightened uncertainty, I focus on maintaining clear and consistent communication across all levels of the business. We foster a culture of openness where employees feel empowered to ask questions, share concerns and offer ideas. This open dialogue helps ensure alignment and trust, even in times of change.
Equally important, we encourage our team members to take initiative — not just in decision-making, but also in identifying opportunities for process and system improvements. By promoting ownership and continuous improvement, we build a more adaptable organization that can respond effectively to challenges and lead through ambiguity with confidence.
LEE: To borrow one of my favorite clichés, stability is an illusion — the only constant is change. We’ve been fortunate to build an organization of ambitious, indefatigable and relentless professionals who are committed to excellence in service to all stakeholders.
Many of our team members have endured the NMEF recapitalization, a merger, a prior employer’s bankruptcy and COVID. As a result, today’s uncertainty feels relatively tame by comparison. Collaboration, accountability and a commitment to continuous improvement are baked into our culture — and have proven essential to our resilience.
STEPHENSON: Throughout my career, I have subscribed to the same motto, and I have always reinforced it with my leadership team, “let’s focus on what we can directly influence and control.”
When market conditions are challenging and fluid, you have to filter out the noise and remember to maintain a disciplined approach. Sure, some course corrections may be necessary to safely navigate through the storm, but you should not lose sight of the core principles and values that have contributed to your company’s success.
Remembering what you do well and continuing to execute on those fundamentals, even in the midst of adversity, will keep you moving forward in a safe and sustainable way. Most importantly, you have to regularly check in with your team. Make sure they remember these same principles and are taking steps to cascade and reinforce them with their own teams.
How are you leveraging artificial intelligence or automation in your operations or customer experience? Are there particular AI use cases showing strong ROI or efficiency gains?
HINES: We utilize automation through our processes and continue to look for new methods that will allow us speed to market while also balancing efficiencies and accuracy.
JANNEY: We’re leveraging artificial intelligence in several areas of our operations, with a strong focus on increasing efficiency and scalability, including the expansion of document processing capabilities. This provides the flexibility to adapt as our dealers’ needs evolve over time, helping to deliver measurable improvements in both speed and accuracy.
LEE: Beyond commonly used tools like ChatGPT and Copilot, NMEF has invested heavily in machine learning to enhance credit adjudication. We are preparing to auto-adjudicate specific asset classes in the small-ticket segment.
We are also developing AI tools to:
- Audit loan and lease documents for compliance
- Generate interest statements and payoff quotes
- Automate early-stage delinquency outreach
- Continuously scan our proprietary software code for enhancements based on usage
A recent milestone was the launch of our smart chatbot “Millie,” which helps referral partners and relationship managers navigate NMEF’s credit policies, documentation requirements, asset eligibility and application procedures using natural language queries.
STEPHENSON: I think our industry is still in the fledgling stages of understanding how we can apply and leverage these new technologies. Today, it appears that most AI development in the financial services sector is focused on two areas. The first is the use of AI and predictive analytics to further optimize credit decisioning, fraud detection and prevention. The second is taking place on company websites and in the customer service centers with AI chatbots providing responsive, low-cost support, at least for basic inquiries. PEAC Solutions has been no different in pursuing these same types of solutions.
While most of these initial deployments have been focused on cost-savings, I believe this is only the tip of the iceberg. The real value will come from applications and solutions that not only reduce costs but act as force-multipliers, particularly in the marketing and commercial space, where providing more complex, consultative support, including pricing and structuring recommendations, can help create new business, drive repeat business and enhance margins.
But we should not lose sight of the fact that these are “tools.” Many of these tools can operate autonomously, but they will generate maximum value in the hands of our workforce and customers. Our industry, and particularly vendor finance, has always been and will continue to be a people business. The desire to speak with an expert remains important to customers, particularly when dealing with larger and more complex equipment types and acquisition options. A personal touch and more tailored support remain highly valued, and no matter how advanced some of this technology becomes, I don’t see that changing.
Private equity has become a growing presence in equipment finance. How do you see PE ownership shaping the future of the industry? What long-term shifts — positive or negative — do you think it will drive in business models, competition or culture?
HINES: PE businesses continue to grow in the industry and have taken some market share from the historical bank owned EF production. I think the PE presence in the industry will force competitors to focus on speed to market and evaluate their current procedures and turnaround times. The objective, of course, is to have speed to market but not give up on the accuracies and well-balanced decisions on opportunities.
JANNEY: Private equity investment has contributed to increased consolidation within our independent dealer network, reshaping how we engage with partners and structure our programs. Additionally, PE-driven consolidation in key customer segments — such as healthcare — has led to noticeable shifts in the credit profiles of our applicants and customers. These changes present opportunities. As private equity continues to influence the industry, we anticipate further transformation in how companies compete, deliver value and maintain cultural alignment.
LEE: The term “private equity” is somewhat of a misnomer in the equipment finance space. Traditional PE funds — with single draw structures — are generally mismatched for the revolving capital needs of most EF platforms. Instead, private credit fund managers have become the dominant source of equity capital at both the platform and flow program levels.
The private credit market has grown from ~$500 billion in 2015 to over $2 trillion today. While many of these fund managers have ties to traditional PE names (Apollo, KKR, Blackstone, Ares), the capital entering the EF space has primarily come from private credit strategies and their affiliated insurance platforms or business development companies (BDCs). In fact, these fund managers have meaningful stakes in half of the top 20 Monitor Top Private Independents.
As banks continue to retreat from longer duration lending, this influx — combined with a strong securitization market — has fueled the explosive growth of independent EF platforms in recent years. Well capitalized EF platforms with strong management teams are able to recruit top tier talent with the allure of a growing and winning culture with the added attraction of potential equity upside.
STEPHENSON: I believe that I also commented on this topic in last year’s ‘Top Independents’ edition of the Monitor. The presence of private equity really boils down to one key issue: commitment. Our industry has never been about short-term returns, particularly in vendor finance. If you are focused on growing a healthy portfolio and a sustainable business model with a strong ‘through the cycle’ ROE, you have to be in it for the long haul.
Sure, there are some players in the market today that are more short-term, opportunistic and deal focused. That type of short-term approach contrasts greatly to what I have experienced with our parent company, HPS Investment Partners. They truly believe in the equipment finance market and are committed to the long-term success of PEAC Solutions.
Our performance in recent years is indicative of their commitment to growing our share and presence in the U.S. market. PEAC Solutions closed the 2024 business year with $1.49 billion in new business volume. This was nearly a threefold increase from the $509 million that we funded in 2022. We are also immensely proud to have been recognized by Monitor as one of the three largest independent lessors in the U.S. market in both 2023 and 2024.
What emerging trends or shifts do you foresee having the most significant impact on the equipment finance industry in the next five years, and how is your organization preparing for them?
HINES: I think there will continue to be an ongoing push to evaluate processes, procedures and speed to market from a competitive standpoint. Technology will play a big role in that for organizations. From a personnel standpoint I think it will be important for leaders to develop new talent and prepare for eventual succession planning for all roles. We need to continue to make sure the EF industry plays a vital role in the financing spectrum and that we have the right people, in the right seats, as we prepare for the future.
JANNEY: One of the most significant trends we anticipate shaping the equipment finance industry over the next five years is the continued advancement of artificial intelligence. We believe AI has strong potential to enhance automation, boost productivity and drive greater operational efficiency. Our organization has begun exploring and adopting new technologies to try to stay ahead of this curve and unlock new opportunities for innovation.
At the same time, we recognize that economic conditions will continue to play a critical role in influencing customer behavior, credit performance and overall industry growth. Staying agile, closely monitoring market shifts and maintaining strong risk management practices remain essential to how we prepare for both technological and economic changes ahead.
LEE: One of the most significant tailwinds for independents like NMEF is the ongoing decline in banks’ share of the equipment finance market. At $1.34 trillion annually, even a 1% shift away from banks represents $13.4 billion in volume — an enormous opportunity for independents.
We’ve seen a similar trend in private credit: banks’ share of middle-market loans dropped from over 70% in 1995 to roughly 10% today. I expect a comparable trajectory in EF. Rather than fund these loans directly, banks are increasingly supporting private credit and EF vehicles through revolving lines and term loans — an efficient use of floating-rate, short-duration, deposit-funded capital.
On the technology front, AI will continue to transform our operating model. From credit decisioning to servicing and collections, automation will meaningfully reduce operating costs. These gains will enable independents to compete even more aggressively on pricing, accelerating the shift of market share away from banks and captives.
STEPHENSON: One very important element is the development of the next generation of leaders for our industry. We are at a demographic ‘tipping point’ with most of the original pioneers already retired and many other seasoned leaders planning to retire in the next five years. It is important that we continue to infuse our industry with young, smart professionals who can bring new ideas and innovations and help us continue to thrive in a rapidly changing marketplace. Both succession planning and leadership development are key focus areas at PEAC Solutions. •
