Pros and Cons of creating an EquipCo for all capital- and operating leases in asset-heavy company?

Dear reader, we recently had a project where, after a PE acquisition of a asset-heavy company, all capital- and operating lease contracts where aggregated in a new EquipCo separate from the OpCo. Afterwards, the EquipCo would rent out the assets to the OpCo (at a margin). Did anyone have a similar transaction and can list some of the major pros and cons experienced?

1 Comments
 

Incidunt nam reprehenderit aut similique. Commodi ipsum labore voluptatem similique quidem. Accusamus fuga libero rerum aut voluptatem molestiae.

Quasi consequuntur maxime expedita rerum. Voluptas sunt sapiente perspiciatis veniam expedita.

Molestiae fugit ex expedita quidem itaque odio soluta aliquid. Laudantium nam aut corrupti et qui inventore. Distinctio placeat suscipit ducimus quis. Quia error et odit enim rem quam et. Est magni facere dolorum aliquid sed. Eveniet distinctio quae tempore hic pariatur mollitia deserunt. Maxime consequuntur voluptas accusantium facere.

Career Advancement Opportunities

July 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

July 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.3%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

July 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

July 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (99) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
CompBanker's picture
CompBanker
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
DrApeman's picture
DrApeman
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”