Clarus Capital closed its inaugural asset backed securitization (ABS), CLARUS 2024-1. The ABS issuance is secured by a portfolio of commercial equipment leases and loans originated by Clarus with an aggregate securitization value of over $280 million spanning a diverse set of industries. The senior securities of the issuance earned the highest possible short-term and long-term ratings from Moody’s and Kroll Bond Rating Agency (KBRA).
“Our first equipment finance securitization marks a significant milestone for Clarus. This strategic financing provides long-term, cost-efficient funding and serves as a strong foundation for the firm’s continued growth,” Mike Eisenstein, CFO of Clarus, said. “Our issuance was met with significant demand from a broad base of sophisticated institutional investors, with total subscriptions exceeding $1 billion. Clarus intends to issue on a regular cadence, and we look forward to establishing a programmatic securitization shelf in the market. We appreciate the continued support of our sponsor, BharCap Partners, and our strategic partners at Delaware Life, a subsidiary of Group 1001.
“Clarus’ strong credit portfolio and disciplined approach to underwriting was well received and attracted a diversified ABS investor base,” Steve O’Leary, CEO of Clarus, said. “Our investment management team, led by chief investment officer Jeff Greene, applies a thoughtful, methodical approach to structuring and underwriting, ensuring a carefully constructed, healthy investment portfolio. Mike Eisenstein, Clarus’ CFO, and Dan Crowley, Clarus’ controller, have built a sound, scalable servicing and financial operations platform designed to support our continued growth. Clarus remains committed to modernizing the equipment finance product for our private equity sponsor clients, delivering innovative private credit solutions that align with their investment objectives.”
“This transaction is a testament to the Clarus team’s demonstrated track record in private credit. The strength and diversity of our portfolio and our institutionalized corporate infrastructure continue to position us as a leader in the market,” Tim Conway, chairman of Clarus, said. “Our partnership with Wells Fargo Securities on this financing is a natural extension of the strong relationship our executive team has maintained with them over multiple decades, and we look forward to continuing this collaborative success in the future.”
“In just three years, Clarus has solidified its position as a leader in the large ticket equipment finance sector,” Bharath Srikrishnan, board member of Clarus and founder and managing partner of BharCap, said. “This strategic financing will help drive Clarus’ future growth.”
“Clarus’ inaugural equipment ABS issuance is a significant achievement, reflecting the strength and maturity of the business as well as the rigorous discipline applied to underwriting investments,” Matt Paster, Group 1001 senior managing director of Investment Management and board member of Clarus, said. “This securitization positions Clarus for long-term growth and continued market expansion.
With an impressive, growing base of sponsor clients and proven access to capital, Clarus is well-equipped to lead in this sector, and we look forward to further collaboration with this exceptional team.”
Wells Fargo Securities served as the sole structuring agent and bookrunner. Clarus will continue to service the assets, with U.S. Bank designated as backup servicer, administrator and custodian. Moore & Van Allen provided legal counsel to Clarus, Chapman and Cutler represented Wells Fargo Securities, and BDO USA performed the audit services.
