Private Equity Playbook: Unlocking Capital Efficiency Through Equipment Financing

In today’s deal environment, speed and capital discipline are paramount. For PE-backed platforms, equipment investments are often critical to scaling operations or fulfilling customer contracts. But while CapEx decisions are heavily scrutinized, equipment financing is frequently left to local operators—resulting in fragmented terms, suboptimal cost structures, and diluted purchasing leverage.

The Hidden Drag of Decentralized Financing

Disparate financing strategies across portcos introduce real friction:

• No volume leverage: Individual deals leave pricing power on the table

• Inconsistent terms: Opaque fees, off-market buyout clauses, and mismatched durations

• Working capital leakage: Cash tied up in depreciating assets instead of growth levers

• Slow execution: Delays driven by lender onboarding, redundant diligence, and variable underwriting standards

This fragmentation erodes capital efficiency and makes it difficult for sponsors to track and manage equipment spending across the portfolio.

Why Leasing Aligns With Value Creation

Leasing can be an accelerant when deployed strategically:

• Preserve capital for higher-return uses: Redirect equity toward product, talent, or M&A

• Accelerate deployment: Pre-negotiated terms and centralized credit reduce friction

• Create comparability: Uniform terms simplify KPI tracking and board reporting

• De-risk the exit: Avoid excess assets complicating diligence or ballooning working capital true-ups

Financing That Scales From Deal to Exit

Sponsors can unlock meaningful value with a unified leasing strategy:

• Negotiate portfolio-wide terms upfront: Capture volume discounts, standardize docs

• Consolidate vendor relationships: Reduce noise and tighten service SLAs

• Enable real-time capital visibility: Improve forecasting and covenant compliance

• Shorten time-to-execution: Empower portcos to act quickly within a defined framework

How CoreTech Supports PE Sponsors

CoreTech partners with private equity firms to build scalable, post-close leasing strategies that improve execution and reduce drag. Our platform offers:

• Flexible underwriting for complex or recently acquired entities

• Tools like Lease Analyzer to benchmark and compare structures

• Core C.A.R.E. support model for ongoing oversight and performance tracking

Whether you're professionalizing a founder-led company or scaling a multi-site platform, CoreTech helps institutionalize equipment financing to support your investment thesis.

Contact us at info@coretechleasing.com to learn how leasing can support faster, smarter capital deployment.