Stonepeak takes over C$14.5bn BMO finance portfolio as Longview launches

Stonepeak has completed its acquisition of BMO Financial Group’s transportation and vendor finance businesses, transferring approximately C$11bn (US$7.9bn) of loans and leases into a newly established specialist finance platform called Longview Capital Solutions.

The transaction covers a combined commercial lending and leasing portfolio estimated at C$14.5bn (US$10.4bn), with around 75 per cent transferred at closing. The remaining balances are expected to move during the first quarter of BMO’s 2027 financial year, subject to customary conditions.

BMO has retained a 19.9 per cent minority interest in the Stonepeak-managed business, allowing the Canadian bank to participate in its future performance while reducing the capital required to support the portfolio directly.

The bank expects the transaction to improve its common equity Tier 1 capital ratio by approximately 23 basis points in the fourth quarter of its 2026 financial year.

Longview will operate as an independent commercial equipment finance provider across the United States and Canada, concentrating on transportation, vendor finance and equipment lending.

Its activities include financing commercial trucks and trailers, construction machinery, agricultural equipment, healthcare assets and technology infrastructure.

The acquisition represents a substantial transfer of specialist commercial lending assets from a major banking institution to an investment-backed financing platform.

For BMO, the transaction releases capital from businesses that require substantial balance-sheet resources, allowing management to redirect funding towards other corporate banking and lending priorities.

For Stonepeak, the transaction provides an established origination platform with existing commercial borrower relationships and connections to equipment manufacturers and dealers.

The acquisition financing was originally described as including asset-based funding from PGIM and bank financing arranged by Bank of America.

Although ownership has transferred, the operational transition will be gradual. BMO will continue servicing and originating loans on behalf of Longview under transitional arrangements intended to maintain continuity for customers.

Existing borrower agreements and servicing relationships are not expected to experience material immediate changes.

The transaction illustrates the increasing role of institutional investors in financing commercial equipment portfolios traditionally held on bank balance sheets.

It also shows how a bank can retain exposure to a specialist lending business through a minority investment while transferring most of the direct lending assets and associated capital requirements.

The C$14.5bn figure represents the estimated combined loan and lease portfolio, not the purchase price paid by Stonepeak. The full sale consideration has not been disclosed.