Monday
Nov092009
Equipment Leasing
Equipment leasing is an investment strategy where investors purchase industrial equipment, such as freight cars, ocean liners, truck trailers, containers, and much more. This equipment is then leased to companies that use this equipment in their everyday business. In today's environment, many investment portfolios hold traditional investments such as stocks and bonds. Alternative investments such as equipment leasing can provide additional diversification to a traditionally invested portfolio, which may help to smooth out portfolio volatility. Additionally, when structured as a flow-through investment, equipment leasing can provide valuable tax benefits through depreciation expenses, which can help offset taxable lease revenue.
Equipment leasing investments are subject to unique risks. These risks may include the absence of a public market for these securities, lack of an operating history, limited transferability and lack of liquidity, payment of significant fees to the equipment leasing sponsor and/or their affiliates, and potential conflicts of interest. These investments are not suitable for all investors. Refer to the applicable Prospectus or Offering Memorandum for a more detailed discussion of risks and suitability standards in your state. Investors should perform their own investigations before considering any investment.
