CPP Investments Announces Strategic Partnership with Element Fleet Management

Canada Pension Plan Investment Board (CPP Investments) has established a three-year strategic partnership with Element Fleet Management Corp. to support the company’s global growth and funding strategy. The agreement involves a commitment from CPP Investments and Blackstone Credit & Insurance to purchase equity residuals in Element’s Chesapeake IV asset-backed security program. This arrangement provides the fleet management leader with diversified, off-balance sheet funding to enhance its service delivery and optimize its extensive lease portfolio.

The strategic relationship centers on a three-year commitment from subsidiaries of CPPIB Credit Investments Inc. and affiliates of Blackstone Credit & Insurance to acquire equity residuals within Element's Chesapeake IV program. This program is responsible for issuing asset-backed security (ABS) note offerings that are secured by a portfolio of U.S. fleet lease receivables. As part of this arrangement, CPP Investments has specifically committed US$88 million over the term of the relationship to support Toronto-based Element, which currently stands as the world's largest publicly traded pure-play automotive fleet manager.

The partnership's inaugural transaction was finalized on June 25, 2026, coinciding with the closing of a US$670 million ABS note offering from the Chesapeake IV program. According to the companies, this structure provides Element with critical off-balance sheet funding, which serves to reduce the company's leverage and diversify its capital sources. Paras Vira, Managing Director of Americas Structured Credit at CPP Investments, noted that the innovative funding solution is designed to help Element grow its business globally while contributing to the long-term returns of the CPP Fund.

Element Fleet Management currently manages more than 1.5 million vehicles globally, utilizing its scale to identify over $1.6 billion in cost savings opportunities for its clients in the past year alone. Heath Valkenburg, Element’s EVP and Chief Financial Officer, stated that the commitment from high-profile investors like CPP Investments and Blackstone reflects significant confidence in the company’s platform and the quality of its lease portfolio. For the fleet management sector, this deal underscores the increasing importance of sophisticated financial structures in maintaining the liquidity necessary to manage large-scale vehicle assets and drive intelligent mobility solutions.