Equipment Share

– EquipmentShare, a construction equipment rental firm, faces fraud allegations from ousted board member Neil Chheda, who claims founders misused company funds for personal gain, triggering a 5-7% plunge in its $1 billion private bonds issued via banks like Goldman Sachs and JPMorgan.

– Bloomberg’s October 24, 2025, article verifies the bond crash but omits bank names, a point the post critiques; ongoing lawsuits, including Schlacks Family vs Neil Chheda filed in 2024, highlight disputes over share transfers and fiduciary breaches.

– The event signals broader private credit vulnerabilities, with $1.7 trillion in U.S. outstanding per Federal Reserve data, where non-public ownership obscures risks to institutional investors like pension funds.

kristen shaughnessy

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$1 Billion In Bonds Crash as Company is Accused of Fraud, Sparking Same Private Debt Fear.

EquipmentShare rents construction equipment with smart tracking tech

Bloomberg reports that Romulus Capital co-founder Neil Chheda, an early investor with a 23% stake, was kicked off pic.x.com/RgJTOF9Mxm

10/25/25, 6:54 AM

$1 Billion In Bonds Crash as Company is Accused of Fraud, Sparking Same Private Debt Fear.

EquipmentShare rents construction equipment with smart tracking tech

Bloomberg reports that Romulus Capital co-founder Neil Chheda, an early investor with a 23% stake, was kicked off EquipmentShare’s board after accusing the Schlacks family of using company cash for personal perks and insider deals. The company denies the allegations.

EquipmentShare’s $1B bonds crashed in value.

Filings show EquipmentShare borrowed $1B in bonds this year (May + Sep) through Goldman, Wells Fargo, Citi, JPM, Capital One to grow.

A $3B loan from Capital One helps buy equipment.

(Why Doesn’t Bloomberg Name The Big Banks Involved?)

So this is how it worked

-EquipmentShare needed cash and borrowed $1B by selling private bonds that are due in 2028

-Big banks ran the sale (Goldman, Wells Fargo, Citi, JPM, Capital One)

-Only big money players (like hedge funds, insurance companies, pension funds) were allowed to buy the bonds. Not retail, directly.

-So there is no public record of who owns the bonds.

-Only the banks know who is impacted

So it’s another private credit red flag/isolated event and another headline by Bloomberg that seems to downplay the escalating concerns about private credit.

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