Element Financial reported that record origination levels of $689.3million contributed to revenue of $57.9 million, operating income of $14.9 million on an after-tax basis for the twelve month period ended December 31, 2012. Element said Q4 origination volume was $233.7 million made up of Element Finance @ $110.4 million (47%), Element Capital @ $52.5 million (23%) and Element Fleet @ $70.8 million (30%).

Element noted that it closed its acquisition of CoActiv Capital Partners late in Q4 2012. As a result, the origination volumes, revenue and operating income referenced above only include results from CoActiv’s operations for 15 business days for the month of December.

Element said total assets increased by 36% over the immediately previous quarter to $1.5 billion. The company said credit losses and delinquencies “remain very low.”

The company also announced that it established the Element Equipment Finance Fund as a funding vehicle to complement the company’s existing securitization and syndication arrangements. The Fund will be capitalized with equity from Element and debt from Element’s institutional funding partners and will specifically focus on secured equipment financing transactions in the $1.5 to $25 million range. With target leverage for the Fund in the range of 70 % to 80%, Element believes it can significantly increase returns on the capital it contributes to this funding vehicle.

“To fully benefit from Element Capital’s pipeline, I am pleased to report that Element has commenced the process to fund its first $500 million funding vehicle to finance transactions in the $1.5 million to $25.0 million range,” said Steven Hudson, Element’s chairman and CEO. “Together with our own additional financial resources and with institutional support, we expect this new fund will provide Element Capital with increased profitability that is currently available for Element Finance’s mid ticket business,” added Hudson.

“Element has deep roots in the development and management of North American vendor finance programs and we are seeing evidence of strong demand for new equipment financings across our chosen market segments,” noted Mr. Hudson. “With the full impact of the key acquisitions concluded during 2012, Element should be in a strong position to generate sizable origination growth in 2013,” said Mr. Hudson. “In the large-ticket segment, Element Capital has a robust pipeline currently in the range of $1.2 billion and we are also seeing particularly strong demand from established credit worthy accounts for secured equipment financings in the $1.5 million to $25 million range,” noted Hudson.

To read the full Element Financial news release click here.