The Monitor 101+ companies expanded their ranks to 41 players and achieved a 49.2% gain in portfolio size and a 51.5% increase in new business volume while forecasting an optimistic outlook for year-end 2023.
Rita E. Garwood, Editor in Chief, Monitor
The Monitor 101+ companies returned for a fourth installment, boasting double digit year-over-year growth in both assets and new business volume. The group grew to 41 companies, up from 35 last year, and included 22 Independents, 17 U.S. Bank Affiliates and two Captives. Collectively, the group amassed $4,998.8 million in net assets, an increase of 49.2% from the previous year and $4,680.4 million in new business volume, a gain of 51.5% on a year-over-year basis.
The Top Five
The top five Monitor 101+ companies consisted of one newcomer, two previous Monitor 100 companies and two previous Monitor 101+ companies.
JB&B Capital, a U.S. Bank Affiliate, joined the rankings for the first time this year at No. 101 with a portfolio of $307.2 million, up 43.6% from $214 million in 2021.
TimePayment, an Independent that ranked No. 94 in the Monitor 100 last year, weighed in at No. 102 with $258.3 million in net assets, down $17 million (6.2%) from $275.3 million the previous year. For context, TimePayment’s net assets would have been enough to make the Monitor 100 list last year.
Coming in at No. 103 was Falcon Equipment Finance, which ranked No. 100 last year, with a portfolio of $256.4 million, which increased by $40.6 million (18.8%) from 2021, once again demonstrating how tight the competition can be in Monitor’s annual rankings.
Holding steady at No. 104 was First Foundation Bank’s Equipment Finance department with $242.8 million in net assets, up $49 million (25.3%) from $193.8 million on a year-over-year basis.
UniFi Equipment Finance provided another example of how increasing the size of a company’s portfolio did not necessarily translate into a rise in the rankings. Ranked No. 105, UniFi added $49 million to its net assets for a grand total of $233.5 million, up 15.4% from 2021.
Segment Overview — Net Assets
Last year, the Monitor 101+ was dominated by Independents, but this year saw an influx of U.S. Bank Affiliates to the ranking. Although the Independents are still greater in number, the 17 banks now contribute nearly half (49%) of the Monitor 101’s total portfolio, or $2,449.2 million. The Monitor 101+ banks grew their collective portfolios by $785.9 million (47.2%) in 2022. Of the banks, 15 reported increases of $799.76 million and two reported declines of $13.9 million.
The 22 Independents continued to contribute a large slice of the Monitor 101+ pie, 43.1% to be precise, with a collective $2,152.3 million in net assets, up $796.1 million (58.7%) from 2021. Nineteen Independents posted yearover- year gains of $820.7 million and three reported declines totaling $24.6 million.
The two Captives contributed 7.9% of the collective Monitor 101+ portfolio, or $397.3 million. Both Captives experienced year-overyear growth equal to $67.1 million, up 20.3% from the previous year.
Top Five ENI Gainers
Alliance Funding Group, ranked No. 106, achieved the highest dollar gain of the Monitor 101+ group, reporting an increase of $142.2 million, which brought the Independent’s net assets to $228.3 million and propelled it 12 spots up the ranking from No. 118.
The runner-up in portfolio size dollar gains was newcomer 1st Equipment Finance. This U.S. Bank Affiliate ranked No. 122 with a reported increase of $132.3 million from $7.5 million reported in 2021.
No. 101-ranked JB&B Capital reported the third largest dollar gain of $93.2 million, which elevated its net assets to $307.2 million.
Clarus Capital, ranked No. 119, amassed $80.3 million in portfolio growth, ending 2022 with a portfolio of $128 million, which raised the Independent’s rank from No. 125 the previous year.
Honor Capital had the fifth largest dollar gain of $75.4 million, which raised the Independent’s ranking to No. 121 from No. 129 and increased the Independent’s net assets to $106.9 million by year-end 2022.
Top Five Percentage Gainers
1st Equipment Finance, ranked No. 122, achieved a quadruple digit percentage gain of 1288%, which brought the U.S. Bank Affiliate’s net assets to $104.1 million.
Newcomer MMP Capital, ranked No. 133, reported a year-over-year percentage increase of 464.5%, which increased the Independent’s portfolio to $42.9 million, up from $7.6 million in 2021.
No. 121-ranked Honour Capital, No. 132-ranked Regents Capital and No. 119-ranked Clarus Capital rose up the ranking from No. 129, No. 133 and No. 125, respectively, after reporting triple digit percentage gains.
Eight companies joined the $100 million club this year, including:
Alliance Funding Group, ranked No. 106 with $228.3 million in net assets, up from $86.1 million
Meridian Equipment Finance, ranked No. 114 with $162.6 million in net assets, up from $92.9 million
Apex Commercial Capital, ranked No. 117 with $132.3 million in net assets
Wingspire Equipment Finance, ranked No. 118 with $130.2 million in net assets, up from $62.9 million
Clarus Capital, ranked No. 119 with $128 million in net assets, up from $47.7 million
Central Bank of St. Louis, ranked No. 120 with $118.2 million in net assets, up from $92.9 million
Honour Capital, ranked No. 121 with $106.9 million in net assets, up from $31.5 million
1st Equipment Finance, ranked No. 122 with $104.1 million in net assets, up from $7.5 million
YE 2021 ENI Forecast
Monitor asked each Monitor 101+ company to provide a forecast for ending net investment at the end of 2023 for their businesses. Although one company opted out of the forecast, the remaining 40 companies provided an optimistic outlook. Of the group, 33 companies expected to grow their portfolios, 10 planned to stay around the same size and one foresaw a decline in its net assets.
Calculated on an average weighted basis, the forecast for the group was 30.6%, which would bring next year’s Monitor 101+ collective portfolio to $6,526.9 million.
New Business Volume
The Monitor 101+ companies recorded $4,680.4 million in new business volume, an increase of $1,590.2 million (51.5%) from $3,090.1 million the previous year. Of the group, 37 companies posted increases totaling $1,705.3 million and four reported declines equal to $115.1 million.
The Top Five — NBV
Leading the pack in originations was No. 101-ranked Wingspire Equipment Finance, with $437.1 million in new business volume, up 23.8% from $353.1 million the previous year.
Alliance Funding Group held steady at the No. 102 rank with $386 million in originations, an increase of $123.1 million (46.8%) from $262.9 million in 2021.
New to the ranking this year, MMP Capital snagged the No. 103 spot with $297 million in total originations, up $90 million (43.5%) on a year-over-year basis.
Sany Capital improved its ranking to No. 104 from No. 106 on the power of a $109.8 million (87.5%) increase from $125.5 million in originations recorded in 2021.
Honor Capital catapulted itself from No. 105 to No. 116, ending 2022 with $194.5 million in new business volume, up $115.5 million (146.3%) on a year-over-year basis.
Segment Performance — Volume
While the U.S. Bank Affiliates dominated the collective Monitor 101+ portfolio, the 22 Independents ruled the new business volume ranking, contributing 59.1% of total Monitor 101+ originations. As a group, the Independents originated $2,767.2 million in 2022, up 43.3% year over year, with 19 posting increases in new business volume of $944.47 million and three recording declines of $108.8 million.
The 17 U.S. Bank Affiliates provided 33.1% of the Monitor 101+ total volume, with the group amassing $1,550 million in originations, up $614.9 million (65.7%) from $935.2 million the previous year. Sixteen banks recorded originations increases of $621.2 million and one bank posted a decline in volume of $6.3 million.
The two Captives contributed 7.8% or $363.1 million of total Monitor 101+ originations, with both companies reporting increases.
1st Equipment Finance, ranked No. 120 and new to the ranking this year, posted a 1288% increase in new business volume, brining its total to $104.1 million. Apex Commercial Capital, ranked No. 123, recorded an increase of 155.6%, raising its originations to $95.6 million. Honour Capital, ranked No. 105, achieved an increase of 146.3% and Reliant Capital, ranked No. 108, upsized its volume by 101.3%.
Each year, we ask Monitor 101+ participants to provide an overview of the challenges they faced in the preceding year. The following are a sample of the responses:
U.S. Bank Affiliate: In 2022, businesses faced two significant challenges: supply chain issues and rising interest rates. The COVID-19 pandemic disrupted global supply chains, causing delays, shortages and price hikes. Companies needed to find innovative ways to mitigate these challenges and ensure a reliable supply of goods and services. At the same time, many central banks raised interest rates to curb inflation, which increased borrowing costs and impacted business profitability.
Captive: The continued disruption in the supply chain was the largest obstacle in 2022 along with rising interest rates. I think both of these issues will begin to go away slowly during the second half of 2023.
Independent: 1) Obtaining effective sales talent. 2) Vendor and customer shortage of personnel needed to deploy and extract technology. 3) Government red tape and lack of understanding the contractual difference between a master procurement contract and a master lease contract.
U.S. Bank Affiliate: Finding quality credit and salespeople in this tight labor market proved challenging. Although we were successful in hiring good candidates, it took longer than anticipated.
Independent: Adjusting pricing fast enough to stay in line with cost of funds increase. Underwriting recession risk.
U.S. Bank Affiliate: Equipment demand, technology constraints, rapid rate increases compressing margin and new business development.
Independent: Lack of new equipment, rising interest rates, uncertainty about the economy.
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