MidOcean Partners, an alternative asset manager specializing in middle-market private equity, alternative credit and structured capital, led a $197.5 million structured equity investment in OWN Equipment Fund I, a newly formed special-purpose vehicle. The equity investment supported a $797.5 million sale-leaseback transaction with EquipmentShare, a construction equipment rental company.

As part of the transaction, OWN Equipment Fund I acquired a diversified fleet of construction equipment, valued at over $750 million, from EquipmentShare. The equipment was fully leased back to EquipmentShare under a highly structured lease.

“We are thrilled to partner with EquipmentShare as the company continues its impressive trajectory of innovation and value creation,” Teddy Tawil, managing director and co-head of opportunistic credit at MidOcean, said. “EquipmentShare is a best-in-class operator that continues to transform the rental equipment industry.”

“This is a highly structured sale-leaseback transaction with a world-class company and represents a further expansion of MidOcean’s bespoke capital solutions capabilities within the asset-based finance market. EquipmentShare is well-positioned for continued success and market share growth,” Dana Carey, chief investment officer of MidOcean Credit said.