Gordon Brothers Expands Equipment Finance Capabilities with $1.5bn Joint Venture

Gordon Brothers has entered a $1.5bn joint venture with Davidson Kempner Capital Management to enhance its commercial equipment finance capabilities. The collaboration aims to provide tailored financing solutions across key sectors such as construction, manufacturing, and transportation. Gordon Brothers now offers a range of customised equipment financing solutions, including equipment loans and capital leases. The business provides structured, asset-focused leasing and lending solutions to companies facing operational or market challenges.

Gordon Brothers, a global asset management firm, has entered a $1.5 billion joint venture with Davidson Kempner Capital Management LP (Davidson Kempner) and secured a supporting lender finance facility with Wells Fargo Capital Finance (Wells Fargo). This strategic collaboration aims to bolster Gordon Brothers' commercial equipment finance capabilities, providing tailored financing solutions to middle-market and large corporate companies across key sectors such as construction, manufacturing, and transportation [1].

The increased capital base enables Gordon Brothers to offer a comprehensive suite of customized equipment financing solutions, including equipment loans, capital leases, and terminal rental adjustment clause (TRAC) and fair market value (FMV) leases. These offerings are designed to serve a broad range of clients, including middle-market and large corporate commercial companies, independent lessors, captive finance organizations, and bank-owned equipment financing groups [1].

The new mid-ticket Commercial Equipment Finance offering complements Gordon Brothers' existing Structured Equipment Finance business, which provides structured, asset-focused leasing and lending solutions to companies facing operational or market challenges. The collaboration with Davidson Kempner and Wells Fargo further positions Gordon Brothers as a leading provider of asset-based solutions in the industry [1].

"We're proud to partner with two highly experienced and strategically aligned financial institutions in Davidson Kempner and Wells Fargo to deliver flexible and reliable equipment financing solutions to our clients," said Bobby Campbell, Head of Commercial Equipment Finance at Gordon Brothers. "This partnership further cements our firm as the most complete asset-based solution provider in the industry" [1].

Stewart Hayes, Managing Director at Wells Fargo Capital Finance, echoed this sentiment, stating that working with Bobby and his team was a natural fit for the Lender Finance team, who have a history of successfully launching specialty finance platforms [1].

Gordon Brothers, with its 120-year history, is known for maximizing liquidity through realizable asset value and providing solutions across asset services, lending, financing, and trading. The firm has deep expertise in retail, commercial, industrial, brands, and real estate, with a global presence in over 30 offices [1].

Davidson Kempner, with over 40 years of experience, manages more than $35 billion in assets under management and employs over 500 professionals across seven offices worldwide [1].

Wells Fargo, with approximately $2.0 trillion in assets, is a leading financial services company offering a diversified set of banking, investment, and mortgage products and services, as well as consumer and commercial finance [1].

References:
[1] https://www.gordonbrothers.com/press-release/gordon-brothers-propels-commercial-equipment-finance-with-1-5b-joint-venture/