David Wiener shares a practical, execution-focused guide to using buy desk origination as a lowrisk proof of concept for entering the U.S. equipment finance market and building credibility with syndication partners.
As a U.S. company looking for alternative investment avenues or an executive guiding a non-U.S.-based financial firm, you might be sensing that the moment is right to enter the U.S. equipment finance market. The indicators are compelling. You’ve watched the $1.2 trillion industry penetrating 40% of the fixed capital formation of the world’s largest economy, which over the years has demonstrated resilience through multiple economic cycles. Investing in the U.S. equipment finance industry offers a cogent opportunity that aligns squarely with your firm’s capabilities and long-term vision. In short, it feels like the right strategic fit.
For new entrants without an established operation, adopting a third-party buy desk origination strategy is a perfectly valid entry vehicle. This option is most suitable as it offers the lowest fixed cost approach with substantial runway for scalability. It provides a holistic ‘insiders’ view to the U.S. equipment finance market: transaction structures and terms, equipment types and industries, plus scope of credit quality and general market pricing.
Buy desk origination is a well-established, highly regarded channel to procure and grow an equipment finance portfolio. Many firms actively participate in third-party indirect business as buyers of equipment finance transactions. According to the 2025 Monitor 100, $22 billion was originated through intermediary channels — 11% of all new business volume.
INDIRECT THIRD-PARTY EQUIPMENT FINANCE ORIGINATIONS ARE SUBSTANTIAL
Of the 53 banks of the Monitor 100, 43 operate a buy desk, further substantiating the market acceptance and maturity of this origination channel. Among the top 100 equipment finance companies, 64 originated some new business through third-party channels. On average, they each funded over $350 million in indirectly originated business. For those 64 firms that do originate through third parties, this represents over 20% of their total annual volume. (Figure 1)
In 2009, through the trough of the Great Recession when credit access was at a premium, the majority of Monitor 100 companies reported that they originated a portion of their new business volume through a buy desk channel (albeit a smaller percentage). This highlights that indirect originators viewed syndication sources as essential customers and partners — even during the Great Recession. (Figure 2)
WHERE DO YOU START?
A successful syndication strategy to grow a portfolio begins with preparation. Before capital is committed or transactions are pursued, firms must answer seven foundational questions:
- Why do you want to consider launching a buy desk to enter the U.S. market?
- Do you have all the requisite processes identified to operate a third-party origination platform successfully and in compliance with all federal and state laws?
- Do you have the infrastructure resources — internal or contracted — to operate successfully within the U.S. market
- Is your firm ready to fund equipment finance transactions?
- Do you have a clearly defined strike zone that you can articulate to those originating transactions for your consideration?
- Is your value proposition compelling and differentiated to interested sellers?
- Do you have a go-to-market origination strategy to identify syndication partners that can provide suitable transactions to fund?
ANSWERING ‘THE WHY’
At first glance, the rationale for entering the U.S. equipment finance market through a buy-desk may seem self evident. But has your firm examined the opportunity deeply enough to confirm that the potential for success aligns with its capabilities?
While the U.S. equipment finance industry has demonstrated long-term resilience and stability, timing matters. Is the current economic climate conducive to an investment of this scale for your organization? Will this new offering serve the expectations of your parent firm or their investors?
A clear, well-supported answer to “why” is the essential starting point for any new market entrant.
BUY DESK READINESS TO FUND TRANSACTIONS
Funding readiness hinges on a thorough assessment of processes and infrastructure.
Key questions include:
• Is sufficient capital available to support targeted volumes?
• Are credit analysis and decisioning capabilities in place?
• Do you have a sales and marketing plan and an origination strategy?
Operational readiness is equally critical. New entrants must be prepared with the following functions in place: documentation, accounting, billing and collections, tax reconciliation and remittance and asset remarketing.
Fortunately for new entrants, full process maturity is not required on day one. Entering a new market always encompasses dealing with a cultural gap, whether that refers to a company culture or if it becomes idiosyncratic when the market entrant is not a U.S. business. “Process adolescence” is often sufficient. Outsourcing key functions — originating, credit analysis, booking, funding and servicing transactions — is common and practical in the early stages. As origination volumes grow, selected functions can be brought in-house and scaled over time. But you must align all of these aids with the culture of your business.
However, new entrants must be aware that the number one way to be ostracized in the syndications market is to commit to funding a deal and then, in the eleventh hour, back out. That may occur, for example, because legal counsel is not on standby to address a last-minute document amendment, or a decision maker is not available to authorize funding the day of equipment delivery. In day-today reality, there is no tolerance extended to new entrants who pull out at the last minute due to cultural gaps or misunderstandings.
A COMPETITIVE “STRIKE ZONE” Equally important is knowing your strike zone (KYSZ) in Figure 3. Establishing and articulating a well-defined suite of transaction parameters is critical in the pre-launch phase. Those parameters include:
• Acceptable product types and transaction structures
• Minimum and maximum ticket sizes
• Target terms and pricing
• Risk appetite
• Industries you are willing to finance — and those you will exclude
• Equipment types preferred and those of no interest
For true leases, many new entrants lack a tax base that enables them to offer competitive pricing. These realities must be addressed explicitly when defining your strike zone.
Ultimately, a strike zone must be executable and competitive in the marketplace. Without that balance, success will be difficult to achieve. For a detailed list of considerations involved in defining an effective strike zone, refer to the Buy-Side Originations Pre-Launch Considerations exhibit. (Figure 3)
A COMPELLING VALUE PROPOSITION
What defines a compelling value proposition as a third-party originator in equipment finance? At its core, it is the equipment financing funder’s ability to be a reliable, efficient and well-aligned partner. Key factors include the speed and consistency of credit decisioning, proactive and transparent communication, sufficient credit capacity to underwrite prospective lessees and borrowers, and close alignment with the profile of transactions that the originator sources.
That alignment extends beyond credit metrics to include transaction structures, ticket sizes and the types and uses of equipment being financed. When these elements are in sync, friction is reduced and
execution improves.
As a rule, originators prefer to work with funding partners they know and trust — those who have demonstrated the ability to approve and fund transactions quickly and reliably. A clearly articulated, competitive value proposition is often the difference between being invited into a transaction and being excluded altogether.
A Winning Go-to-Market Strategy
An effective go-to-market strategy for new entrants builds directly on the foundational elements already discussed: a well-defined rationale for market entry, readiness to fund transactions, a clearly articulated strike zone and a compelling value proposition.
In simple terms, you must be fully prepared to honor the standard of care expected within the equipment finance syndications process. This includes swift responsiveness to transaction pricing, review, underwriting, documentation and funding — having done the necessary planning, analysis and coordination in advance. Execution readiness matters as much as strategic intent. (Figure 4)
Still, as the accompanying case study illustrates, new entrants originating transactions utilizing a buy-desk are often best served by engaging the guidance of an experienced advisory firm with a proven track record supporting market entry. The right advisor can provide critical guidance across the entire launch process: refining strategy, establishing viable processes, selecting and overseeing outsourced service providers, shaping a differentiated value proposition and identifying and onboarding transaction origination sources that are well aligned with the new entrant’s capabilities and objectives.
Buy Side Competition to the New Entrant: Established Incumbent Indirect Buyers
Ideally, the offering of a new entrant will be most compelling if it can meet a need that is unserved or underserved by sell-side syndicators. While coming up to speed in the U.S. market, a buy-side neophyte may not be able to offer this.
Generally, active sell-side syndicators are wary of new buy-side entrants. Established firms that originate business indirectly are the trusted go-to firms to whom syndicators present candidate transaction opportunities. Syndicators already have assignment and agency contracts in place. The effort to involve counsel to negotiate such contracts with new entrants must be somehow justified. Seasoned syndicators know the transaction appetite of the buyers with whom they regularly do business. That history gives incumbent buyers a significant advantage. New players are unknown to the market and may not have developed the buy-side “lungs” to be on pace to approve, document and fund transactions offered at the generally expected speed within the syndication market. Most syndicators can recall instances when a new market entrant stumbles and fails to deliver on a promised approval or funding. This then reflects adversely on the syndicator’s relationship with the lessee / borrower, and is, in effect, a self-inflicted wound on the part of the new entrant.
Establishing Market Credibility as a New Entrant
In the U.S. equipment finance market, credibility is the gating factor for successful syndication. Even a well-capitalized, well- prepared new entrant will struggle to access quality transaction flow without first earning the confidence of experienced originators and sell-side syndicators. This market is relationship-driven, execution-oriented and shaped by long institutional memory. Credibility is not asserted; it is demonstrated.
Understanding the Syndicator’s Perspective
Sell-side syndicators are not merely intermediaries — they are stewards of long-standing client relationships. When a syndicator presents a transaction to a buyer, they are implicitly staking their reputation with the lessee or borrower on that buyer’s ability to execute. A delayed credit decision, last-minute re-trade or failure to fund reflects not only on the buyer but directly on the syndicator.
As a result, syndication flow tends to concentrate with known counterparties that demonstrate:
- Proven execution capability
- Predictable credit decisioning
- Established documentation processes
- A demonstrated willingness to fund on agreed terms
New entrants, by definition, lack this history and must therefore take deliberate steps to reduce perceived execution risk.
In practice, credibility is earned through execution rather than aspiration. Syndicators look for a short set of signals: recognized counterparties that reduce perceived risk, certainty of funding and decision authority, a narrowly defined and consistently applied strike zone, and early evidence of flexibility where required to ensure clean execution. New entrants that deliver on these fundamentals earn repeat access; those that stumble are quickly sidelined.
Early transactions carry disproportionate weight. Reliability, responsiveness and the absence of late-stage surprises matter more than volume or stated ambition. Over time, consistent performance converts initial access into preferred-counterparty status, improving both deal flow and economics. In a relationship- driven market with long memory, credibility becomes a durable competitive advantage — and one that is difficult to recover once lost.
Case Study
A South American investment fund with extensive experience in equipment finance approached our firm, The Alta Group, to explore the launch of an operating leasing fund composed of U.S.-originated equipment leasing transactions. The client’s initial goal was to fully understand the U.S. market and to explore the legal, tax, compliance and organizational considerations required to operate successfully.
Building on that foundation, the firm’s executives sought to assess, or “dimension,” the overall market opportunity and identify target geographies aligned with their core strengths and experience, particularly regions with significant Hispanic populations. They also aimed to develop a clear understanding of key market participants, industries served and the competitive landscape. In parallel, the firm wanted to define its value proposition in the U.S. market, grounded in its expertise across specific equipment types and industries, while identifying current and projected demand for operating leases.
Our mandate was to design a framework to help the client achieve these objectives. Based on our discussions, we recommended a phased approach that would culminate in a clearly articulated investment thesis for entering the U.S. equipment finance market, a high-level operational plan and a roadmap for continued advisory support after the fund’s launch.
The Importance of Drilling Deeper
After the client engaged us, we developed a comprehensive investment thesis to serve as the foundation for the client’s U.S. market entry. At its core, the thesis addressed the central question: Why enter the U.S. equipment finance market? We worked closely with the client to assess its current market position, business and customer mix, and long-term goals for establishing a U.S. presence.
The resulting analysis encompassed:
- Dimensioning the market, including overall size, trends, key participants, equipment categories, credit performance and industry financing metrics, as well as an assessment of potential competitors
- Evaluating market entry strategies and business model options, supported by high-level pro-forma financial metrics and staffing considerations
- Developing a recommended business model and a detailed set of actionable next steps
The second phase focused on developing implementation standards, which recommended infrastructure requirements, a specified staffing plan, systems and outsourcing options and other business launch needs. With legal and cultural distinctions in countries where they currently operated, Alta played a key role in translating what was customary and appropriate in the U.S. market. When both the client and Alta were satisfied that the firm’s requisite processes were established and capable, the client was ready to be introduced to the U.S. market.
Absent relationships with suitable originators and lacking a physical presence in the U.S., Alta scheduled in-person meetings with suitable originators. Over 20 months, Alta facilitated over 50 introductions — a select subset of which led to formal confidentiality agreements. This enabled the client to consider 40 candidate transactions. Throughout this proof-of-concept phase, Alta acted as a sounding board on transaction pricing and business aspects of assignment and agency contracts for over $10 million in true lease transactions ultimately funded.
For institutions considering entry into the U.S. equipment finance market, buy-desk syndication offers a pragmatic and flexible starting point. It enables capital deployment while allowing new entrants to learn market norms, refine credit appetite and establish operational rhythms in a measured way.
That opportunity, however, comes with expectations. The syndication market places a premium on execution certainty, transparency and trust. Firms that recognize syndication as both an investment strategy and a credibility-building exercise are better positioned to succeed. With the right preparation, discipline and guidance, a buy-desk approach can evolve from proof of concept into a scalable, long-term participation strategy. •
Bridging Cultures: The LESCANT Model
One of the key factors in this project was the ability to bridge between a top management based in South America with different business culture and their business counterparts in the United States. Typically, in a systematic way, Alta tests the LESCANT model that always impacts cross cultural transactions.
The LESCANT model is a framework designed to facilitate effective cross-cultural negotiations by highlighting seven key dimensions that often influence international business interactions. LESCANT stands for Language, Environment, Social Organization, Context, Authority, Nonverbal Communication and Time. Each component addresses a specific aspect of culture that can affect understanding, trust and outcomes during negotiations. For example, differences in language can lead to misunderstandings, while contrasting approaches to authority may impact decision-making processes. By systematically considering each dimension, negotiators can better anticipate and address cultural challenges, fostering more productive and respectful exchanges. This is exactly what Alta does. Having been in the business in different geographies for almost half a century, Alta has learned several lessons that confirm the well-known statement by Peter Drucker: “Culture eats strategy for breakfast.” Areas such as credit analysis are impacted by the cognitive biases based on how business work in the country of origin, and not in the country of destination. There are several issues about access to technology, time management (“Mañana” in Spanish does not necessary means “tomorrow,” It means “just not today”) and several other areas. This has a direct impact on expectations. The bargaining process is also different. Anglo-Saxon, German and other Northern European cultures that influenced the U.S. generally expect that people do not negotiate around pricing. In other cultures, however, bargaining is a normal and expected practice, such as in Chinese and Japanese cultures, Arabic cultures and certainly in Latin American cultures.
Linking such bridges has been and was part of Alta’s role in this project. The long-term game provides that once the parties learn and become familiar with each other, these gaps tend to close and at such moment, is the time for Alta to migrate away.
David Wiener has extensive syndications / buy-sell experience within equipment finance. He has managed or collaborated with capital markets staff, collectively closing over $50 billion in portfolios and transactions. He has created full capital markets syndication capabilities for three of the top 10 U.S. vendor leasing organizations. Over his 15 years as a managing director at The Alta Group, Wiener has guided numerous U.S. and international clients seeking to create a viable syndication strategy.
Wiener is a leading authority on equipment finance data and demographics analysis. He served on the ELFA Research Committee for 25 years – 15 years as chairman. He was the inaugural recipient of the ELFA Michael J Fleming Distinguished Service Award for his volunteer service to the industry.