Elevex Capital's $1B Deal Signals Major Shift in Equipment Finance

WESTLAKE, Ohio – January 13, 2026 – In a move poised to reshape the commercial equipment finance landscape, independent lender Elevex Capital has secured a $1 billion forward flow agreement with TPG, one of the world's leading alternative asset management firms. The landmark deal provides the Ohio-based company with a massive infusion of capital, empowering it to fund larger transactions and directly challenge established lenders in a market increasingly abandoned by traditional banks.

This partnership marks a significant milestone for Elevex, a firm launched just last year, and highlights a broader transformation in business lending where private capital is stepping in to fill critical funding gaps.

A New Contender Steps Up

The $1 billion agreement with TPG is structured as a "forward flow" partnership. This arrangement allows Elevex to originate mid- and large-ticket equipment financing deals and then sell them to TPG at a consistent and scalable pace. For Elevex, this ensures a reliable source of take-out capital and enhanced liquidity, enabling it to operate with greater agility and confidence in the market.

"Our agreement with TPG positions Elevex as a long-term capital partner to entrepreneurs and operators, enabling us to support more businesses through their next stage of growth," said Jeffry D. Elliott, CEO of Elevex.

Launched in 2025 and backed by the Houston-based private equity firm Sallyport, Elevex has quickly moved to establish itself as a key player. This capital injection elevates it from a promising newcomer to a formidable competitor capable of handling substantial financing needs across industries like transportation, aviation, manufacturing, and energy. The backing from Sallyport, which specializes in scaling high-growth companies, provided the initial market validation.

"This exciting new partnership shows that Elevex is market-validated and will serve as one of very few true small-to-large ticket independent finance platforms," commented Ryan Howard, Co-Founder and Managing Partner of Sallyport. "The team is ready to fund deals and eager to take advantage of this tremendous opportunity."

Filling the Void Left by Banks

The timing of the Elevex-TPG deal is no coincidence. It comes as a growing number of traditional banks are retreating from the equipment leasing sector, creating a significant market void. Industry data starkly illustrates this trend. The 2024 Monitor 100 report, a key industry benchmark, revealed that nearly 60% of U.S. bank affiliates scaled back their equipment finance originations in 2023—a level of pullback not seen since the Great Recession.

This retrenchment is driven by several factors, including heightened regulatory scrutiny following the regional bank failures of 2023, increased risk aversion, and a strategic shift by banks to focus on core commercial and industrial assets. As interest rates have risen, banks have prioritized deposit-gathering and become more conservative in their capital allocation, making equipment finance a less attractive segment for many. Some major players, like Santander Bank, have exited the business entirely.

Elevex is explicitly targeting this gap. "As more banks exit the leasing market, we are well-positioned to fill the void and compete with larger lenders more effectively in the broader equipment finance market," Elliott stated. For businesses, this means a crucial alternative source of funding is now available and significantly capitalized.

The Strategic Play for Alternative Asset Managers

From TPG's perspective, the partnership is a strategic move to tap into the robust and growing equipment finance market through a specialized, high-quality originator. With global equipment finance services projected to grow from $1.2 trillion in 2022 to over $3.1 trillion by 2032, the sector represents a vast opportunity. By partnering with Elevex, TPG gains differentiated access to a steady stream of equipment financing transactions without needing to build an origination infrastructure from the ground up.

This reflects a dominant trend in capital markets: the rise of private credit. Alternative asset managers are increasingly deploying capital in areas where traditional lenders have pulled back, providing essential liquidity and generating returns for their investors.

"We are proud to partner with Elevex to provide equipment financing that enables businesses nationwide to acquire mission-critical assets and drive growth," said Aaron Ong, Partner in Asset Based Finance at TPG. "This partnership reflects our focus on working with high-quality originators to deliver scalable, dependable capital solutions amid bank retrenchment."

Technology as the Differentiator

Elevex's strategy isn't just about having capital; it's about deploying it more intelligently and efficiently than the competition. The company's competitive edge lies in its proprietary, tech-enabled origination engine. Built on a Salesforce-native platform, the system leverages artificial intelligence and machine learning to automate workflows, streamline underwriting, and accelerate due diligence.

This technology allows Elevex to offer a financing experience that stands in sharp contrast to the often slow and bureaucratic processes of traditional banks. The company promises decisions in minutes for financing up to $1 million, a speed that is critical for businesses needing to acquire assets quickly to seize opportunities.

Beyond speed, Elevex emphasizes "payment innovation." Instead of rigid monthly payment schedules, it offers flexible structures tailored to a business's specific cash flow. These can include seasonal payments for agricultural businesses, usage-based models for transportation assets, or milestone payments tied to project completion. This asset-centric approach, which combines deep knowledge of equipment value with modern data analytics, enables more creative and supportive financing solutions.

Fueling Growth for American Businesses

Ultimately, the most significant impact of this $1 billion partnership will be felt by the businesses that can now access the capital they need to grow. The Equipment Leasing and Finance Association (ELFA) forecasts a strong 2025, with a significant percentage of businesses planning to increase their investment in new equipment and software.

With banks becoming more selective, independent lenders like Elevex are becoming indispensable. The infusion of capital from TPG allows Elevex to serve a broader segment of the market, from small businesses needing a single piece of equipment to larger corporations undertaking major capital projects. By offering a fully digital platform with real-time approvals and flexible terms, Elevex is removing the traditional hurdles to financing.

This enhanced access to capital empowers companies to invest in productivity-enhancing technology, expand their operational capacity, and compete more effectively in the global market. As businesses increasingly favor leasing and other OpEx models to preserve cash and manage financial uncertainty, the flexible and responsive solutions offered by well-capitalized independent financiers will be more critical than ever. BayCrest Partners, which served as the placement agent for the transaction, played a key role in structuring and executing a partnership that promises to fuel this next wave of business investment.