The $1.9 Billion Illusion: How Onset Financial’s
Partnership with First Brands Unraveled

A Partnership Built on Growth—and Hidden Risk

By Marshall Goldberg, Leasing News Legal Editor
Glass & Goldberg, A Law Corporation

What began as a bold growth story has become one of 2025’s most instructive cautionary tales in private credit.  When Utah-based Onset Financial partnered with First Brands Group, LLC (FBG), the Cleveland manufacturer behind several well-known auto parts, the arrangement looked like a textbook example of financial innovation.  Onset provided the liquidity fuel for First Brands’ aggressive expansion, funding inventory and receivables through a sophisticated asset-based facility.  At its height, that facility reached nearly $1.9 billion, making Onset one of First Brands’ most important financial partners, and, effectively, its shadow bank.  But what powered growth also concealed vulnerability.  The off-balance-sheet nature of the financing kept leverage out of view until the structure buckled under its own weight.

From Engine to Emergency Brake
Over the past decade, First Brands executed more than 15 acquisitions, mostly financed through debt and inventory-based credit.  As economic conditions tightened in 2025, warning lights began flashing: supplier payments slowed, credit spreads widened, and investors began questioning how the company had managed to sustain such rapid growth with so little visible debt.  By September 2025, Onset declared a default and accelerated the facility, roughly $1.9 billion owed, sending shockwaves through the capital structure.  Within weeks, First Brands filed for Chapter 11 bankruptcy with over $10 billion in liabilities, including Onset’s claim.  The company’s collapse quickly spread beyond its own creditors, Banks, Collateralized Loan Obligations (“CLOs”), and business development companies, some indirectly tied to the exposure through secondary financing, absorbed hundreds of millions in paper losses.

Lessons from the Breakdown
The Onset–First Brands episode offers a timely look at the shadow side of private credit and supply-chain finance, where complex funding structures can obscure real leverage.

Key takeaways for lenders and investors include:
• Transparency beats creativity. Off-balance-sheet financing can improve optics but invites instability when liquidity tightens.
• Private credit risk is contagious. More than 500 funds and institutional lenders saw knock-on effects from the collapse.
• Due diligence is the new differentiator. Rapid-growth stories built on synthetic liquidity often lack the guardrails traditional lenders enforce.

Regulators have already flagged the case as an example of the growing need for oversight in non-bank credit markets.

The Road Ahead
In bankruptcy, Onset Financial remains a leading secured creditor, challenging certain terms of First Brands’ $1.1 billion debtor-in-possession (DIP) financing and seeking to preserve its priority position.  Meanwhile, First Brands aims to reorganize and continue operations, but with its reputation and capital access severely diminished.  For Onset, the case is both a financial test and a public trial of confidence in private credit’s risk discipline.

Final Thought
The partnership once celebrated for its “creative liquidity” has become a textbook reminder: in finance, innovation without transparency is just leverage by another name.

Marshall Goldberg
Glass & Goldberg, A Law Corporation
22917 Burbank Blvd.
Woodland Hills, CA 91367-4203
(818) 474-1532 Direct
(818) 888-2220 Main
(818) 888-2229 Facsimile
mgoldberg@glassgoldberg.com
www.glassgoldberg.com

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New Hires/Promotions in the Leasing Business
and Related Industries

Doug Alverson was hired as AVP, Equipment Financing & Leasing, Scale Bank, Edina, Minnesota. He is located in Cottage Grove, Minnesota. Previously he was Business Development Officer, Bremer Bank (March, 2023 - September, 2025). He joined Wells Fargo Equipment Finance, Inc. September, 2025,  as Credit Analyst, promoted Account Manager (January, 2017 - March, 2023). He began his career at Wells Fargo, September, 2004, Client Service Consultant, promoted Commercial Relationship Associated (June, 2006 - September, 2014).
https://www.linkedin.com/in/doug-alverson-b03b82a/

Sean Scampato was hired as Vice President of Sales, Equipment Finance, Landscape, Florida. He is located in Greater Tampa Bay Area. Previously, he was Principal, Equipment Finance Technology Solutions (July, 2025 - October, 2025); Head of Sales & Marketing, Founding Sales Excutive, Leasepath (August, 2017 - July, 2025). Full Bio:
https://www.linkedin.com/in/seanscampton/details/experience/
https://www.linkedin.com/in/seanscampton/

Brian Titus was hired as Direct Capital Strategist, Orange Funding, St. George, Utah, where he is also located. He was an Officiant, Outland Officiant, Part-Time (July, 2018 - Present);  National Account Executive, Captech Financial (February, 2022 - October, 2025). Full Bio:
https://www.linkedin.com/in/brian-titus-882a69132/details/experience/
https://www.linkedin.com/in/brian-titus-882a69132/

Leasing and Finance Help Wanted
Balboa Capital
We Are Growing Our Senior Sales Team Now

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Common Mistakes to Avoid in Your Career
The Ultimate Hire by Ken Lubin, ZRG Partners

Your career is a lifelong journey that requires careful navigation. While there is no single "right" path, there are some common pitfalls you'll want to avoid along the way. Making missteps can derail your progress or leave you stuck in an unsatisfying job. Be mindful of these common career mistakes as you chart your own course:

Job Hopping Too Frequently: It's tempting to jump ship at the first sign of trouble or boredom in your job. However, switching roles too often can damage your resume. Recruiters may see you as unstable or unable to commit. Try to stick with each role for at least a year or two to build your skills and show you can thrive in one workplace. Frequent job changes suggest you may have trouble dealing with workplace challenges or collaborating with colleagues.

Not Networking Enough: Many people find their next job or career break through connections, not just formal applications. But nearly half of workers say they spend only 1 hour or less per week networking. That's not enough to build solid relationships. Carve out time each week to catch up with colleagues, attend industry events, and expand your circle. Nurture both strong ties (close friends) and weak ties (casual acquaintances) to maximize your reach.

Not Seeking Mentors: Mentors provide insider knowledge you can't get from books. They can give candid feedback to enhance your skills. Mentors explain unwritten workplace rules and help you navigate office politics. Without guidance, you could miss out on key promotions or stretch assignments to showcase your abilities. Experienced mentors know how things really work behind the scenes. Seek them out starting early in your career.

Ignoring Your Own Needs: It's easy to get caught up in ambition and say "yes" to every project. But burning out won't do your career any favors. Learn to set boundaries and advocate for your own needs, too. Make sure your workload is sustainable. Take regular vacations to recharge. Don't hesitate to speak up when things get unreasonable. You'll be far more productive with good work-life balance.

By being mindful of these pitfalls, you can avoid some common career setbacks. Don't job hop recklessly, isolate yourself from networks, neglect mentors, or ignore your personal needs. Making smart strategic choices will help your long-term career growth.

Ken Lubin
Managing Director
ZRG Partners, LLC
Americas I EMEA I Asia Pacific
C: 508-733-4789
https://www.linkedin.com/in/klubin
www.kenlubin 

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##### Press Release ############################

CLFP Foundation Celebrates 40 Years of Excellence and
Honors Lia Wax, CLFP with the Cindy Spurdle Award of Excellence

The Certified Lease & Finance Professional (CLFP) Foundation proudly celebrated CLFP Day 2025 on October 8th, marking a monumental 40 years of the CLFP designation and 25 years of the CLFP Foundation. This year’s virtual celebration and in-person events throughout the country brought together hundreds of industry professionals to honor the remarkable achievements, growth, and dedication that continue to define the CLFP community.

With over 1,700 active CLFPs and Associates worldwide, the Foundation reflected on a year of record accomplishments, including the launch of the Canadian CLFP designation (CCLFP), expansion of the University of North Texas CLFP Student Certificate program, and celebrated new members, all milestones emphasizing the Foundation’s commitment to professional development and industry excellence.

A highlight of the event was the presentation of the Cindy Spurdle Award of Excellence, which honors a CLFP in Good Standing who has demonstrated exceptional leadership and significant contributions to the industry and Foundation. This year’s award recipient was Lia Wax, CLFP, VP of Operations at Financial Pacific Leasing. This award recognized Lia’s outstanding leadership and service to the Foundation and the equipment finance industry. Lia has served in nearly every capacity within the CLFP Foundation from Board President to instructor, mentor, and remains a constant advocate for continued education and inclusion in the industry.

“Receiving this award is an incredible honor,” said Wax. “I’ve been a champion for the CLFP Foundation from the very beginning because I believe so strongly in its mission. To have my contributions acknowledged in this way is truly humbling.”

For Lia, the most rewarding part of her CLFP Journey has been teaching and inspiring others. “Anytime I get to teach, that’s where I feel most at home,” she shared. “Having the opportunity to teach documentation at my alma mater, the University of North Texas, during the program’s first semester was a full-circle moment I’ll always cherish.” Wax credits her success and sense of belonging in the industry to the CLFP community: “It was like gaining a second family overnight. There’s an immediate connection and mutual respect among CLFPs. It’s a bond built on shared learning and dedication.”

Wax’s philosophy “to always say yes” epitomizes the award’s spirit. Whether teaching, mentoring, or serving on committees, her unwavering commitment continues to strengthen and elevate the Foundation.

As the CLFP Foundation celebrates its milestone anniversary, it remains focused on the future while empowering professionals, fostering connection, and building a brighter commercial equipment finance industry, one individual at a time.

The CLFP designation represents the highest standard of professionalism in the commercial equipment finance industry. It identifies individuals who demonstrate exceptional competence, integrity, and a commitment to lifelong learning. Today, Certified Lease & Finance Professionals and Associates can be found across the United States (including Puerto Rico), Canada, India, Pakistan, Africa, New Zealand and Australia. To learn more, visit http://www.CLFPFoundation.org.

Melissa (Mel) Vinson, CLFP,
VP of Marketing & Development, Portland, Oregon

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LTi Technology Solutions Promotes Lisa Holland to Vice President of Finance
& Accounting, Strengthening Financial Strategy for Continued Growth

LTi Technology Solutions (LTi), a global leader in equipment  finance software, is pleased to announce the promotion of Lisa Holland to Vice President of Finance & Accounting. In this expanded leadership role, Holland will oversee all aspects of the company’s financial strategy, planning, and analysis, helping to guide LTi’s continued growth, profitability, and expansion across North America and the UK.

Since joining LTi more than five years ago, Holland has demonstrated exceptional leadership,  deep financial expertise, and an unwavering commitment to operational excellence. During her  tenure, she has led significant advancements in streamlining core financial operations, enhancing  forecasting and reporting capabilities, and delivering data-driven insights that have helped shape  corporate decision-making and long-term business priorities. Her efforts have built a more agile,  efficient finance organization that directly supports LTi’s mission to deliver innovative technology  that transforms the equipment finance industry.

“Lisa’s promotion is a direct reflection of the measurable impact she’s had on LTi’s business,” said  Jeff Van Slyke, President & CEO of LTi Technology Solutions. “Her leadership has strengthened  how we operate by optimizing financial systems and enhancing predictive analytics to deliver  insights that guide smarter strategic decisions. The initiatives she’s led have improved efficiency,  increased profitability, and built a financial foundation that positions LTI for sustained growth.  Under her leadership, our finance organization will continue to be a powerful catalyst for our  future.”

As Vice President, Holland will continue to work closely with LTi’s executive leadership team to  align financial strategy with business innovation, enabling LTi to scale operations, deepen client  partnership, and deliver measurable value in an evolving market.

“I am honored to step into this expanded role at LTi and continue contributing to LTi’s growth  and long-term success,” said Lisa Holland, VP of Finance & Accounting. “Finance plays a critical role in how we innovate and deliver for our clients. My focus remains on building financial  strategies that enable smarter decisions, generating insights that fuel performance, and fostering  collaboration across teams to ensure we are driving impact at every level of the business.”

Holland’s promotion reflects LTis continued investment in leadership excellence and its  commitment to building a highly experienced executive team that can guide the company  through its next phase of innovation and market leadership. As the equipment finance industry  continues to evolve, LTi’s strong financial stewardship and strategic vision will remain key to  delivering technology solutions that enable clients to scale, adapt, and grow with confidence.

About LTi Technology Solutions
For more than 35 years, LTi Technology Solutions has been a trusted partner delivering full  lifecycle lease and loan finance solutions for equipment finance companies, captives,  independents, and banks across the U.S., UK, and Canada. Headquartered in Omaha, NE, LTi  empowers clients with the ASPIRE platform, a highly configurable system designed to streamline  the transaction lifecycle, enhance compliance, and accelerate growth at scale.
Backed by comprehensive interfaces and flexible architecture, ASPIRE enables organizations to  digitally transform operations, optimize decision-making, and increase efficiency across every  stage of the asset lifecycle.

With a proven legacy of innovation and client trust, LTi Technology Solutions continues to lead  the equipment finance industry through its commitment to Precision, Performance, and  Partnership.

For more information, call (800) 531-5086 or visit www.ltisolutions.com.

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Industries Hiring and Firing the Most Employees

Key Takeaways

• The Education & Health Services industry has been hiring the most employees over the last year.
• In contrast, the federal government has seen the biggest reduction in the number of employees.

Hiring trends can serve as an early signal of where the U.S. economy is heading next. By looking at which industries are adding—or cutting—the most jobs, we get a clearer picture of where business confidence is rising, and where it’s slipping.

This graphic was created in partnership with Terzo for our Markets in a Minute series, which features quick economic insights for executives. It zooms out to see the longer-term change in employees across industries from August 2024 to August 2025.

 

News Briefs

San Francisco Homicide Rate Lowest in 70 Years
https://www.sfchronicle.com/crime/article/homicides-data-sf-record-low-21086889.php

Judge temporarily blocks the Trump administration
from firing workers during the government shutdown
https://www.mercurynews.com/2025/10/15/government-shutdown-layoffs-block/

Jeep Maker Stellantis Plans $13 Billion Investment
    to Boost U.S. Manufacturing
https://www.wsj.com/business/autos/jeep-maker-stellantis-plans-13-billion-investment-to-boost-u-s-manufacturing-75dee147?mod=business_lead_pos2

Soon You’ll Be Able to Shop Walmart in ChatGPT.
    Here’s Why It Matters
https://www.wsj.com/business/retail/chatgpt-walmart-shopping-3e411e83?mod=business_lead_pos4

America Is Heavily Reliant on China
  for Raw Materials in Medicines
https://www.nytimes.com/2025/10/15/health/us-drugs-china-production.html

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Trump’s Trade War With China Catches
     the World in Its Crossfire
https://www.nytimes.com/2025/10/14/business/economy/us-china-trade-tariffs-global-economy.html

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Sports Briefs---

George Kittle’s return to 49ers not only uplifting
    but ‘needed’ after Fred Warner exit
https://www.eastbaytimes.com/2025/10/15/george-kittles-return-to-49ers-not-only-uplifting-but-needed-after-fred-warner-exit/

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California News Briefs---

U.S. Coast Guard operation run in Calif. seizes
     100,000 pounds of cocaine
https://www.sfgate.com/bayarea/article/us-coast-guard-california-seizes-cocaine-21102745.php

For BART, another tough travel day of
    canceled routes, long delays
https://www.eastbaytimes.com/2025/10/15/bart-travel-rough-day-cancelled-routes-long-delays/

Irvine Co. has new plan for apartments,
    with 12,000 units brewing statewide
https://www.eastbaytimes.com/2025/10/15/irvine-co-has-different-plan-for-apartments/

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Gimme that Wine

 

http://www.youtube.com/watch?v=EJnQoi8DSE8

These Napa wineries lost millions in a wildfire.
   Can they find someone to blame — and pay for it?
https://www.sfchronicle.com/food/wine/article/pickett-fire-winery-napa-21086699.php

California’s Wine Industry Is in Crisis
Changing drinking habits, falling prices, tariffs
 and the weather are forcing winemakers to do
   the unthinkable: rip up the vine
https://www.wsj.com/articles/californias-wine-industry-is-in-crisis-4f246efb?st=JRGiGC&reflink=article_email_share

Rita Di Lello Appointed Vice President,
  US Sales at J. Lohr Vineyards & Wines
https://www.winebusiness.com/news/article/309311

Pink Chardonnay joins Champagne’s list of
    authorized grape varieties
https://www.thedrinksbusiness.com/2025/10/pink-chardonnay-joins-champagnes-list-of-authorised-grape-varieties/