BMO Offloads $10.6B Truck Finance Portfolio to Stonepeak

Bank of Montreal has agreed to sell its truck and equipment financing business to New York-based alternative asset manager Stonepeak in a deal valued at approximately C$14.5 billion ($10.6 billion). The transaction is expected to close in the fourth fiscal quarter, with BMO recording a net after-tax charge of about C$900 million in Q3. Key Details Stonepeak will acquire the portfolio through cash consideration plus an earnout tied to performance targets. BMO plans to use a portion of the proceeds to invest in a roughly 19.9% stake in the new entity, maintaining a minority interest in the business. The deal allows BMO to retain some upside while exiting the operation. Why It Matters This sale represents a strategic capital relief move for the Canadian bank, which has been repositioning its balance sheet by divesting non-core U.S. loan portfolios. Industry analysts view the deal positively, noting it should improve BMO's return on equity and allow the bank to focus on higher-growth lending segments. Background The financing unit traces its roots to GE Capital's transportation finance business, which BMO acquired in 2015. Stonepeak, which manages approximately $88 billion in assets, focuses on transportation and logistics, digital infrastructure, energy, and real estate sectors. The sale follows BMO's 2023 divestment of recreational vehicle loans to a KKR-led group.