Element Fleet Management and Blackstone Announce Strategic Funding Relationship
Element Fleet Management (TSX:EFN) and Blackstone Credit & Insurance have established a strategic funding relationship involving a CAD $500 million portfolio of Canadian fleet lease receivables. The partnership enables Element, the world's largest publicly traded pure-play automotive fleet manager, to achieve significant off-balance sheet treatment while optimizing its funding profile.
The arrangement validates Element's asset origination platform quality and supports the company's growth objectives. Heath Valkenburg, Incoming EVP & Chief Financial Officer at Element, emphasized their commitment to optimizing funding strategies, while Aneek Mamik, Head of Financial Services for Asset Based Finance at Blackstone, highlighted their capability to support the real economy through asset-based finance initiatives.
Element Fleet Management (TSX:EFN) e Blackstone Credit & Insurance hanno stabilito una relazione strategica di finanziamento che coinvolge un portafoglio di 500 milioni di CAD di crediti da leasing di flotte canadesi. Questa partnership consente a Element, il più grande gestore di flotte automotive quotato in borsa al mondo, di ottenere un trattamento significativo fuori bilancio ottimizzando il proprio profilo di finanziamento.
L'accordo convalida la qualità della piattaforma di origine attivi di Element e supporta gli obiettivi di crescita dell'azienda. Heath Valkenburg, nuovo EVP e Chief Financial Officer di Element, ha sottolineato il loro impegno nell'ottimizzazione delle strategie di finanziamento, mentre Aneek Mamik, Responsabile dei Servizi Finanziari per il Finanziamento Basato su Attivi di Blackstone, ha evidenziato la loro capacità di supportare l'economia reale attraverso iniziative di finanziamento basate su attivi.
Element Fleet Management (TSX:EFN) y Blackstone Credit & Insurance han establecido una relación estratégica de financiamiento que involucra una cartera de 500 millones de CAD en cuentas por cobrar de arrendamiento de flotas canadienses. Esta asociación permite a Element, el mayor administrador de flotas automotrices cotizado en bolsa del mundo, lograr un tratamiento significativo fuera del balance mientras optimiza su perfil de financiamiento.
El acuerdo valida la calidad de la plataforma de originación de activos de Element y apoya los objetivos de crecimiento de la empresa. Heath Valkenburg, nuevo EVP y Chief Financial Officer de Element, enfatizó su compromiso con la optimización de las estrategias de financiamiento, mientras que Aneek Mamik, Jefe de Servicios Financieros para Finanzas Basadas en Activos en Blackstone, destacó su capacidad para apoyar la economía real a través de iniciativas de financiamiento basadas en activos.
Element Fleet Management (TSX:EFN)와 Blackstone Credit & Insurance는 5억 캐나다 달러 규모의 캐나다 플릿 리스 수익 포트폴리오를 포함하는 전략적 자금 조달 관계를 구축했습니다. 이 파트너십은 세계 최대의 상장 순수 자동차 플릿 관리자인 Element가 자산을 최적화하며 오프-밸런스 시트 처리를 달성할 수 있게 합니다.
이 계약은 Element의 자산 발생 플랫폼 품질을 검증하고 회사의 성장 목표를 지원합니다. Heath Valkenburg, Element의 새로운 EVP 겸 최고 재무 책임자는 자금 조달 전략 최적화에 대한 그들의 의지를 강조했으며, Aneek Mamik, Blackstone의 자산 기반 금융 서비스 책임자는 자산 기반 금융 이니셔티브를 통해 실물 경제를 지원할 수 있는 능력을 강조했습니다.
Element Fleet Management (TSX:EFN) et Blackstone Credit & Insurance ont établi une relation stratégique de financement impliquant un portefeuille de 500 millions CAD de créances de location de flottes canadiennes. Ce partenariat permet à Element, le plus grand gestionnaire de flottes automobiles coté en bourse au monde, d'atteindre un traitement significatif hors bilan tout en optimisant son profil de financement.
Cette entente valide la qualité de la plateforme d'origine d'actifs d'Element et soutient les objectifs de croissance de l'entreprise. Heath Valkenburg, nouveau EVP et directeur financier d'Element, a souligné leur engagement à optimiser les stratégies de financement, tandis qu'Aneek Mamik, responsable des services financiers pour le financement basé sur les actifs chez Blackstone, a mis en avant leur capacité à soutenir l'économie réelle grâce à des initiatives de financement basées sur les actifs.
Element Fleet Management (TSX:EFN) und Blackstone Credit & Insurance haben eine strategische Finanzierungsbeziehung etabliert, die ein Portfolio von 500 Millionen CAD an kanadischen Flottenleasing-Forderungen umfasst. Diese Partnerschaft ermöglicht es Element, dem weltweit größten börsennotierten reinen Automobilflottenmanager, eine signifikante Off-Balance-Sheet-Behandlung zu erreichen, während das Finanzierungsprofil optimiert wird.
Die Vereinbarung bestätigt die Qualität der Asset-Origination-Plattform von Element und unterstützt die Wachstumsziele des Unternehmens. Heath Valkenburg, neuer EVP und Chief Financial Officer von Element, betonte ihr Engagement zur Optimierung der Finanzierungsstrategien, während Aneek Mamik, Leiter der Finanzdienstleistungen für Asset-Based Finance bei Blackstone, die Fähigkeit hervorhob, die reale Wirtschaft durch assetbasierte Finanzierungsinitiativen zu unterstützen.
- Strategic CAD $500M funding secured from Blackstone
- Achieves substantial off-balance sheet treatment
- Diversifies and optimizes funding profile
- Validates high-quality asset origination platform
- None.
Insights
Element Fleet Management's new CAD $500 million funding arrangement with Blackstone represents a strategic financial engineering move with significant implications for both companies. For Element, the off-balance sheet treatment delivers immediate benefits by potentially improving key financial ratios like debt-to-EBITDA and return on assets, effectively creating additional lending capacity without the corresponding balance sheet burden.
This transaction likely reduces Element's weighted average cost of capital while maintaining the economic benefits of their lease portfolio. The deal validates Element's underwriting quality, as Blackstone's due diligence process would have thoroughly vetted the portfolio before committing capital. For context, Element manages over $18 billion in assets, making this transaction material but not transformative to their overall funding mix.
For Blackstone, this represents a calculated deployment into asset-based finance, a segment they've been strategically expanding. Fleet leases are particularly attractive in the current environment as they offer relatively stable cash flows backed by essential business assets with predictable depreciation curves and strong residual values in today's supply-constrained vehicle market.
The timing suggests both opportunistic capital deployment by Blackstone and a proactive funding diversification strategy by Element amid evolving credit market conditions. By establishing this relationship now, Element positions itself for potential follow-on transactions as it pursues growth opportunities in the fleet management space, where electrification and fleet optimization services are driving increased demand.
This transaction demonstrates sophisticated capital markets execution that should benefit shareholders of both companies through optimized capital allocation and enhanced financial flexibility.
Initial transaction includes approximately CAD
Through this strategic arrangement, Element benefits from substantial off-balance sheet treatment, diversifying and optimizing its funding profile while validating the high quality of its asset origination platform and supporting the company’s continued growth.
“Element is committed to optimizing our funding strategies to support our growth objectives,” said Heath Valkenburg, Incoming EVP & Chief Financial Officer at Element. “This strategic relationship with Blackstone enhances our ability to serve our clients and capitalize on emerging opportunities in the market.”
“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 & 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.”
About Blackstone Credit & Insurance
Blackstone Credit & Insurance (“BXCI”) is one of the world’s leading credit investors. Our investments span the credit markets, including private investment grade, asset-based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending, and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by providing companies with the capital needed to strengthen and grow their businesses.
About Element Fleet Management
Element Fleet Management (TSX: EFN) is the largest publicly traded pure-play automotive fleet manager in the world. As a Purpose-driven company, we provide a full range of sustainable and intelligent mobility solutions to optimize and enhance fleet performance for our clients across
This press release contains certain forward-looking statements and forward-looking information regarding Element, its business and the fleet industry, which are based upon Element’s current expectations, estimates, projections, assumptions and beliefs. In some cases, words such as “plan”, “expect”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “could”, “predict”, “project”, “model”, “forecast”, “will”, “potential”, “target, “by”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements and forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. Forward-looking statements and information in this news release may include, but are not limited to, statements with respect to, among other things, Element’s expectations regarding its future relationship with Blackstone and Element’s expectations regarding its growth and its ability to fund such growth. By their nature, these statements require us to make assumptions and are subject to inherent risks and uncertainties that may be general or specific, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct. External factors outside of Element’s reasonable control may impact our ability to achieve our goals and expectations, including industry dynamics, economic conditions, legislation and regulatory actions, the failure of third parties to comply with their obligations to us and our affiliates or associates, and client decisions and preferences. These and other factors may cause actual results to differ materially from the expectations expressed in the forward-looking statements and may require Element to adjust its initiatives and activities. The forward-looking statements in this news release speak only as of the date hereof and are presented for the purpose of assisting our stakeholders and others in understanding our objectives and strategic priorities and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement except as required by law. In addition, a discussion of some of the material risks affecting Element and its business appears under the heading “Risk Management & Risk Factors” in Element’s Management Discussion and Analysis for the twelve-month period ended December 31, 2024 and under the heading “Risk Factors” in Element’s Annual Information Form for the year ended December 31, 2024, as well as Element’s other filings with the Canadian securities regulatory authorities, which have been filed on SEDAR+ and can be accessed on Element’s profile on www.sedarplus.ca.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227048575/en/
Element
Rocco Colella
Director, Investor Relations
(437) 349-3796
rcolella@elementcorp.com
Blackstone
Thomas Clements
Thomas.Clements@blackstone.com
646.482.6088
Source: Blackstone
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