CPP Investments and Blackstone Credit & Insurance have sealed a three‑year financing pact with Toronto‑based Element Fleet Management. Through subsidiaries of CPPIB Credit Investments and Blackstone affiliates, the partners will purchase equity residuals in Element’s Chesapeake IV program, which issues asset‑backed securities backed by U.S. fleet‑lease receivables. The deal provides flexible capital to support Element’s growth and refinance existing lease portfolios.

Under the agreement, CPP Investments has earmarked $88 million for the duration, signalling confidence in the asset‑backed securities market. Blackstone Credit contributes additional capital, though amounts remain undisclosed. By buying equity residuals, both investors gain exposure to cash‑flow from lease payments while mitigating credit risk through the ABS structure, an approach gaining traction among institutional lenders.

Element Fleet Management expects the infusion to broaden its leasing portfolio and lower funding costs as it scales across North America. The partnership also diversifies CPPIB’s credit exposure beyond traditional loans, while Blackstone deepens its foothold in the U.S. fleet‑finance niche. The three‑year tie‑up locks in a stable source of capital for both parties. It also positions Element to compete for larger corporate contracts.