Blackstone has expanded its asset-based finance offering via a strategic funding partnership with Element Fleet Management.
Under the agreement, Blackstone will fund a portfolio of Canadian fleet lease receivables valued at around C$500m (£274.5m).
Toronto-listed Element is the largest publicly traded, pure-play automotive fleet manager in the world. Blackstone said that the firm will benefit from substantial off-balance sheet treatment, diversifying its funding profile and supporting its continued growth.
Read more: Blackstone to sell First Eagle Investment Management
“We are pleased to provide Element with capital that helps them better support their client base with a valuable financing tool for companies around the globe,” said Aneek Mamik, head of financial services for asset-based finance at Blackstone Credit and Insurance. “This transaction shows how we can support diverse sectors of the real economy through our asset-based finance efforts – where we have strong momentum and a unique platform.”
Read more: Blackstone’s private credit unit returned 15.7pc last year
Heath Valkenburg, incoming EVP and chief financial officer at Element, said the strategic partnership will support the company’s growth objectives.
“This strategic relationship with Blackstone enhances our ability to serve our clients and capitalize on emerging opportunities in the market,” he added.
Read more: Blackstone adds KKR and Ares veterans to debt team
