At a Glance

• Private equity is consolidating equipment dealers across categories. When three of your independent dealers become one sponsor-owned platform, your concentration math changes overnight.
• The risk does not show up in any single credit decision. It accumulates between credit decisions, in ownership changes you may never be told about.
• A rolled-up dealer is a different counterparty: centralized purchasing, harder rate negotiation, faster growth on leverage, and an exit clock that has nothing to do with your portfolio.
• Survey data shows most vendor programs do not track the ultimate ownership of their dealers, which means most cannot see the concentration forming.

The Concentration You Did Not Underwrite