BMO Financial Group filed an 8-K press release on October 29, 2026, announcing it had closed the previously announced sale of its Transportation Finance and Vendor Finance businesses to Stonepeak, with approximately 75% of the combined portfolio transferred at closing.

Key Highlights

  • Portfolio transfer at closing: BMO transferred approximately 75%, equal to C$11 billion, of the estimated C$14.5 billion total combined loan and lease portfolio to Stonepeak.
  • Remaining balance timeline: The remaining portfolio balances are expected to transfer in the first quarter of fiscal 2027, subject to customary conditions.
  • Retained equity stake: BMO holds a 19.9% interest in the Stonepeak-managed entity that acquired the businesses.
  • New operating name: The acquired businesses will operate under the name Longview Capital Solutions.
  • Capital ratio impact: The transaction is expected to improve BMO's common equity Tier 1 (CET1) ratio by approximately 23 bps in the fourth quarter of fiscal 2026.
  • Transitional services agreement: BMO and Stonepeak entered into a transitional services agreement under which BMO will provide certain services to support an orderly transition for clients.

BMO Transfers C$11 Billion Portfolio to Stonepeak at Transaction Close

According to the filing, BMO Financial Group (TSX: BMO) (NYSE:BMO), described as the eighth largest bank in North America by assets with total assets of $1.5 trillion as of July 31, 2026, announced the closing of its sale of the Transportation Finance and Vendor Finance businesses to Stonepeak. These segments represented lending and leasing activities that, combined, carried an estimated C$14.5 billion total portfolio. At closing, BMO transferred approximately 75%, or C$11 billion, of that portfolio, with the remainder expected to move in the first quarter of fiscal 2027, contingent on customary closing conditions.

The filing noted that BMO and Stonepeak entered into a transitional services agreement, under which BMO will provide certain services to support an orderly transition for clients. The divested businesses will now operate under the name Longview Capital Solutions. BMO retains a 19.9% interest in the Stonepeak-managed entity that acquired the businesses, which the filing stated enables BMO "to continue participating in their long-term value creation." The transaction is expected to improve BMO's CET1 ratio by approximately 23 bps in the fourth quarter of fiscal 2026, according to the filing.

The filing also included cautionary language regarding forward-looking statements, noting that the anticipated CET1 ratio improvement and the expected closing of the remaining portfolio transfer are subject to risks, including the possibility that remaining conditions to closing are not satisfied on a timely basis or at all, and that anticipated benefits may not be realized in the time frame anticipated or at all.

What Was Disclosed

BMO Financial Group disclosed the completed closing of its Transportation Finance and Vendor Finance business sale to Stonepeak, including the C$11 billion initial portfolio transfer, a 19.9% retained equity stake, a transitional services agreement, and an expected CET1 ratio improvement of approximately 23 bps in fiscal Q4 2026.