Stonepeak Acquires BMO Transportation and Vendor Finance

Stonepeak, a prominent alternative investment firm with approximately $88 billion in assets under management, has agreed to acquire the transportation and vendor finance divisions of BMO Financial Group. This strategic move signals Stonepeak's continued commitment to the transportation and logistics asset leasing sector, an area where it has previously deployed significant capital.

The acquired business, operating as BMO Transportation and Vendor Finance, is a substantial player in North America, specializing in customized financing for a diverse range of transportation assets. This includes commercial trucks, trailers, and specialized equipment crucial for agriculture and construction industries. With over 700 employees and operations spanning the United States and Canada, the business is recognized as a leading lender in the commercial truck and trailer segment.

As part of the agreement, BMO Financial Group will retain a 19.9% minority stake in the divested units, indicating a continued belief in the future growth prospects of the business. Gary Kempinski, who currently leads the Transportation Finance & Vendor Finance division at BMO, is slated to continue at the helm of the newly independent entity. This continuity is expected to ensure a smooth transition and leverage existing leadership expertise.

Stonepeak's investment aligns with its established investment thesis in transportation-focused asset leasing. The firm has a notable track record, having previously invested in nine similar platforms, collectively representing nearly $28 billion in enterprise value at the time of their respective acquisitions. Notable past investments include Textainer, a global leader in container leasing, Air Transport Services Group, a major cargo aircraft lessor, and TRAC Intermodal, the largest marine chassis provider in the U.S.

This transaction is supported by substantial financing. PGIM, the global asset management arm of Prudential Financial, Inc., is providing asset-based financing, while Bank of America is acting as the lead financing arranger for the bank financing component. The deal is anticipated to finalize in the fourth quarter of 2026, pending standard regulatory approvals.

The acquisition underscores a broader trend of private equity firms increasing their exposure to essential infrastructure and specialized financial services. The transportation finance sector, in particular, benefits from consistent demand driven by e-commerce growth and supply chain dynamics. By integrating this business into its portfolio, Stonepeak aims to capitalize on its operational expertise and capital resources to drive further expansion and enhance service offerings for a growing commercial customer base.