ATEL 16 Reports Stable Operations as It Advances Through Liquidation Phase
The equipment leasing fund continues cash distributions while winding down its investment portfolio.
March 20, 2025
ATEL 16, LLC is moving steadily through its liquidation phase, keeping investor distributions on track while managing its lease portfolio. The fund, launched in 2012, completed its investment period in 2015 and has since focused on maximizing returns as it winds down operations.
For the year ending December 31, 2024, ATEL 16 reported net income of $162,000, a shift from the $61,000 net loss in 2023. The improvement came as operating expenses declined, offsetting a modest drop in leasing revenue. Total operating revenues slipped 4% to $2.21 million, with operating lease revenue accounting for $2.19 million. Gains on warrant valuations helped balance out lower lease income and asset sales.
Portfolio Updates and Asset Sales
The fund’s diversified equipment portfolio spans aviation, transportation, manufacturing, and utilities—industries that rely on long-life, essential-use assets. As of December 2024, ATEL 16’s net investment in leased equipment stood at $4.15 million, down from $5.23 million the year before. The decline reflects ongoing lease maturities and asset sales.
- $57,000 in leased assets sold during the year
- $290,000 in non-recourse debt repaid
- $1.16 million in cash held at year-end, down from $3.24 million in 2023
Investor Distributions Stay Consistent
Investor distributions remained steady, with $2.99 million paid out in 2024, aligning with prior years. Since inception, the fund has distributed $29.5 million to unitholders.
ATEL 16’s strategy remains the same: maintain capital efficiency while managing remaining lease agreements. As the fund progresses through liquidation, further asset sales and cash distributions are expected.
Market Conditions and Risk Management
Equipment leasing is a competitive market, influenced by factors like interest rates, inflation, and shifts in demand. ATEL 16 has worked to mitigate risk by leasing to high-credit counterparties and focusing on durable asset classes.
Cybersecurity remains a focus. Following the departure of its Chief Information Officer in 2023, the company brought in a third-party security consultant and strengthened its IT infrastructure. These efforts support business continuity as ATEL 16 moves through its final operating years.
What’s Next?
ATEL 16 remains on course to maximize investor returns while responsibly managing asset sales and lease transitions. With a fully deployed and gradually liquidating portfolio, the fund is positioned to meet its final commitments while maintaining financial discipline.
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