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 LLC, a newly formed special-purpose vehicle. The equity investment supported a $797.5 million sale-leaseback transaction (the “Transaction”) with EquipmentShare.com Inc., a leading construction equipment rental company.

As part of the Transaction, OWN Equipment Fund I LLC 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.

Founded in 2015, EquipmentShare is one of the fastest-growing integrated equipment rental and equipment asset management companies in the United States. Today, its geographic footprint includes more than 270 locations in 43 states across the country.

“We are thrilled to partner with EquipmentShare as the company continues its impressive trajectory of innovation and value creation,” said Teddy Tawil, Managing Director and Co-Head of Opportunistic Credit at MidOcean. “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,” said Dana Carey, Chief Investment Officer of MidOcean Credit.

The investment in OWN Equipment Fund I LLC marks another transaction for MidOcean in the asset-based finance space and its second transaction with EquipmentShare.