BMO Transfers 75% of C$14.5 Billion Transportation and Supplier Finance Portfolio

Key Facts

Stonepeak completed its acquisition of BMO Financial Group’s transportation finance and supplier finance units and then launched the independent company Longview Capital Solutions, according to a Stonepeak statement published on October 25, 2026. At closing, the transaction transferred about 75% of the combined loan and lease portfolio, valued at C$11 billion, according to the transaction’s press release summary. The portfolio in the United States and Canada totaled about C$14.5 billion as of March 31, 2026, according to BMO’s filing with the U.S. Securities and Exchange Commission. The remaining balances are expected to transfer in the first quarter of fiscal 2027, subject to customary conditions. Completion of the acquisition means most of the business has moved to the new company, while BMO retains an economic interest through a minority stake.

The two units comprise specialized commercial asset financing businesses. The transportation finance unit primarily finances trucks and trailers through dealer-managed relationships, according to BMO’s filing. The supplier finance unit finances equipment through original equipment manufacturers and their dealer networks. The portfolio includes loans and leases related to these activities in the United States and Canada. BMO valued it at about C$14.5 billion as of March 31, 2026, before transferring most of it to Stonepeak.

The transaction structure provides for cash consideration and an additional payment contingent on achieving future performance targets, according to BMO’s investor presentation. Available disclosures did not specify the cash consideration. BMO will invest part of the proceeds in a non-voting equity stake of about 19.9% in the new entity. Through this stake, the group retains an economic interest in the business after completing the acquisition. BMO said the sale supports improved capital efficiency and a focus on its core markets, which it described as having deep customer relationships and long-term growth opportunities.

When it announced the agreement in May 2026, BMO had expected the transaction to add about 28 basis points to its Common Equity Tier 1 capital ratio at closing. The bank linked this to an expected reduction of about C$10 billion in risk-weighted assets. This remains a pre-completion estimate, not a final result announced at closing. BMO also said the transaction was expected to contribute about 30 basis points toward its return-on-equity targets, without describing that as a realized impact. The transaction had been expected to close in the fourth quarter of fiscal 2026, subject to regulatory approvals and customary conditions, according to the investor presentation.

BMO recorded a C$1.092 billion pretax charge and a C$962 million after-tax charge related to the sale in the third quarter of 2026, most of it related to goodwill. The charge was included in a reported C$1.151 billion loss for Corporate Services in the same quarter, according to the results statement filed with the U.S. Securities and Exchange Commission. At the group level, reported net income was C$1.75 billion, down 25% from C$2.33 billion in the same period a year earlier. Adjusted net income, by contrast, reached C$2.859 billion, up 19% year over year. Adjusted earnings per share rose to C$3.96 from C$3.23 in the third quarter of 2025.

In the results statement, Chief Executive Darryl White said, "We continue to redeploy capital and invest in areas that can deliver sustainable, long-term value for our shareholders." White linked this approach to profitable lending growth and investment in talent, technology and artificial intelligence, alongside returning capital through dividends and share repurchases. The transaction is consistent with BMO’s stated focus on its core markets and improving capital efficiency. The group is scheduled to report fourth-quarter 2026 results on December 2, 2026, according to its investor financial information calendar. The remaining portfolio balances are also expected to transfer in the first quarter of fiscal 2027, subject to customary conditions.