BMO Financial Group is selling its transportation and vendor finance businesses to Stonepeak, freeing up capital as the bank tightens its focus on core markets and the alternative asset manager picks up a C$14.5 billion equipment-finance platform spanning the U.S.

The transportation finance arm specializes in truck and trailer financing, predominantly through dealer-managed relationships, while the vendor finance unit provides equipment financing.

As of March 31, 2026, the combined loan and lease portfolio totaled about C$14.5 billion.

Stonepeak, a New York-based infrastructure and real assets investor with approximately $88 billion in assets under management, targets transport and logistics among its core sectors.

BMO will retain a 19.9% equity stake in the new entity and receives cash consideration plus an earnout tied to future performance.

The bank expects to book a roughly C$0.9 billion after-tax charge, mostly from goodwill, in the third quarter of 2026.

BMO Capital Markets and BofA Securities served as financial advisors to BMO, with Sullivan & Cromwell LLP and Osler, Hoskin & Harcourt LLP as legal counsel.

Skadden, Arps, Slate, Meagher & Flom LLP and Blake, Cassels & Graydon LLP advised Stonepeak.

The transaction is expected to close in the fourth quarter of fiscal 2026, subject to regulatory approvals.