Atalaya Capital Management, an alternative asset manager focused on asset-backed private credit and special opportunities, completed the securitization of equipment leasing assets from its Atalaya Equipment Leasing Fund I (AELF). The ABS issuance was oversubscribed and improved expected returns for the fund’s investors.

AELF is an approximately $300 million fund dedicated to originating and acquiring leases typically backed by equipment. Atalaya’s equipment leasing effort has a history of financing equipment for both small middle-market companies as well as much larger counterparties. Atalaya believes equipment leasing provides a similar return proposition compared with many corporate credit strategies but with substantially less risk due to its asset-backed nature and faster repayment schedule. AELF invests across industries and equipment types.

The ABS issuance, which priced at a weighted average yield of 1.64%, achieved a AAA-rated structure for the senior-most tranche of the securitization.

“We are excited to have closed our inaugural equipment leasing ABS transaction,” Rana Mitra, head of Atalaya’s equipment leasing strategy, said. “This issuance is a testament to the growth of our dedicated platform and hard work by our team, and we are thrilled to have been able to bolster returns for our fund investors through this transaction. Importantly, this transaction allows us to broaden the leasing solutions we can provide for our counterparties. We look forward to future issuances and furthering our relationships within the equipment leasing and ABS market.”