- 1NMEF completed its acquisition of substantially all of Midland States Bancorp's equipment finance portfolio.
- 2Oaktree-managed funds partnered on the deal; Orion First will service the portfolio.
- 3NMEF's gross receivables under management now approach $3 billion.
North Mill Equipment Finance LLC (NMEF) has completed its acquisition of substantially all of the equipment finance portfolio of Midland States Bancorp, Inc. (Nasdaq: MSBI), the Norwalk, Connecticut-based lender announced on December 3, 2025. The headline figure is $502 million.
The purchase pushes NMEF's gross receivables under management to nearly $3 billion.
How the deal was structured
NMEF partnered with funds managed by Oaktree Capital Management, L.P. on the transaction. Orion First, a Concord company, will service the Midland portfolio.
Mark Bonanno, NMEF's President and Chief Revenue Officer, said combining the portfolio with the company's existing funding channels allowed it to capture both gain-on-sale income and recurring servicing revenue. NMEF Chairman and CEO David C. Lee said that closing the Midland deal and the earlier Pawnee acquisition in 2025 made it an exceptional year for the firm.
From Oaktree's side, Managing Director Rana Mitra said the funds want to support the next phase of growth for NMEF's FMV platform. Portfolio Manager Brendan Beer, who works on Oaktree's Asset-Backed Finance and Structured Credit strategy, described NMEF as a high-quality originator and servicer. NMEF Executive Vice President and COO Tom Lyle said some former Midland employees are joining NMEF.
Advisers and financing
- Stephens Inc. advised Midland; Macquarie Capital advised NMEF on its partnership with Oaktree.
- The Oaktree funds got their debt financing from Truist Bank and Deutsche Bank AG, New York Branch.
- Legal counsel: Barack Ferrazzano Kirschbaum & Nagelberg LLP for Midland, Moore & Van Allen PLLC for NMEF, Gibson, Dunn & Crutcher LLP for Oaktree, and Morgan Lewis and Bockius LLP for the banks.
Completing the acquisitions of both the Midland portfolio and Pawnee in 2025 is a remarkable accomplishment
About the companies
NMEF works with third-party referral sources to finance small to mid-ticket commercial equipment leases and loans from $15,000 to $3,000,000, and up to $5,000,000 for investment-grade opportunities. It accepts A to C credit qualities across categories including medical, construction, franchise, technology, vocational, manufacturing and material handling equipment. An affiliate of InterVest Capital Partners owns a majority stake. Its offices include Norwalk, Irvine, Fort Collins, Plymouth (MN), Voorhees (NJ) and Murray (UT). Affiliate BriteCap Financial LLC, based in Las Vegas, has offered working capital loans to small businesses since 2003. More at nmef.com and britecap.com.
Oaktree reports $203 billion in assets under management as of March 31, 2025, more than 1,200 employees and offices in 25 cities. See oaktreecapital.com.
Source reporting: deBanked.
