Element Fleet secures CAD $500M in lease receivables deal

TORONTO & NEW YORK - Element Fleet Management Corp. (TSX:EFN), a global leader in automotive fleet management, has forged a strategic funding partnership with Blackstone (NYSE:BX) Credit & Insurance, involving a portfolio of Canadian fleet lease receivables valued at approximately CAD $500 million. This collaboration is expected to bolster Element’s funding profile and support its growth trajectory.

The transaction, which was announced earlier today, allows Element to benefit from off-balance sheet funding, thereby diversifying its financial resources and underlining the robustness of its asset origination platform. Heath Valkenburg, Incoming EVP & Chief Financial Officer at Element, emphasized the importance of this move in aiding the company’s expansion and service delivery to clients.

Aneek Mamik, Head of Financial Services for Asset Based Finance at Blackstone Credit & Insurance, highlighted the transaction as a demonstration of Blackstone’s ability to support various sectors through asset-based finance.

Element Fleet Management, renowned as the world’s largest publicly traded pure-play automotive fleet manager, offers a comprehensive range of services aimed at enhancing fleet performance. These include vehicle procurement, maintenance, route optimization, risk management, and fleet electrification guidance, among others. The company’s focus on sustainable and intelligent mobility solutions extends across North America, Australia, and New Zealand.

Blackstone Credit & Insurance, part of Blackstone, is a major credit investor with a diverse portfolio that includes private investment grade, asset-based lending, and various other credit-related investments. They are committed to providing capital that enables businesses to grow and strengthen.

The forward-looking statements in the press release reflect Element’s anticipation of a continued partnership with Blackstone and its aspirations for growth. However, these statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ. For deeper insights into Blackstone’s financial metrics and growth potential, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed financial health indicators that help evaluate investment opportunities more effectively.

This strategic funding relationship is a significant step for Element Fleet Management as it seeks to enhance its funding mechanisms and maintain its position as a leader in the fleet management industry. The information for this article is based on a press release statement.

In other recent news, Blackstone Inc. reported impressive earnings for the fourth quarter of 2024, with earnings per share (EPS) of $1.69, surpassing analyst expectations of $1.43. The company’s revenue also exceeded forecasts, reaching $4.15 billion compared to the anticipated $3.78 billion. Meanwhile, private equity firm Genstar Capital is in discussions to acquire a controlling stake in First Eagle Investment Management, potentially valuing the company at over $4 billion. Additionally, Blackstone is considering the sale of Olympus Energy, which could be valued at up to $2 billion.

Analyst firms have also adjusted their outlook on Blackstone. BMO Capital Markets raised its price target for Blackstone to $163, maintaining a Market Perform rating, citing increased business activity in the latter half of 2025. Similarly, Keefe, Bruyette & Woods increased their price target to $177, following Blackstone’s earnings beat, which was driven by higher Fee-Related Earnings and increased net realizations. Despite these positive developments, Blackstone’s management expressed caution about the timing of a recovery in the Real Estate segment, which they expect to gain momentum later in the year.

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