CPP Investments Announces Strategic Partnership with Element Fleet Management

Canada Pension Plan Investment Board (CPP Investments) has entered a three-year strategic relationship with Element Fleet Management Corp. to bolster the company’s funding strategy and global growth initiatives. The partnership involves a commitment from CPP Investments and Blackstone Credit & Insurance to purchase equity residuals in Element’s Chesapeake IV program, which issues asset-backed security (ABS) notes. This move is significant for the fleet management sector as it provides the world's largest pure-play fleet manager with enhanced liquidity and diversified funding to support its 1.5 million-vehicle global portfolio.

Under the terms of the agreement, subsidiaries of CPPIB Credit Investments Inc. and affiliates of Blackstone Credit & Insurance have committed to a three-year term to purchase equity residuals within Element’s Chesapeake IV program. CPP Investments specifically has committed US$88 million to the initiative, which focuses on ABS note offerings backed by a portfolio of U.S. fleet lease receivables. The first transaction under this partnership was finalized on June 25, 2026, coinciding with the closing of a US$670 million ABS note offering from the Chesapeake IV program.

For Toronto-based Element Fleet Management, the strategic relationship serves as a critical mechanism for optimizing its financial structure. The arrangement provides the company with additional off-balance sheet funding, which effectively reduces leverage and diversifies its capital sources. Heath Valkenburg, EVP and Chief Financial Officer at Element, noted that the commitment from global investors like CPP Investments and Blackstone reflects confidence in the strength of the platform, the quality of the lease portfolio, and the company's ability to deliver long-term value to shareholders.

This financial backing supports Element's position as a global leader in intelligent mobility, managing more than 1.5 million vehicles. By securing innovative funding solutions, Element aims to enhance its ability to help clients lower the total cost of ownership and improve fleet uptime through data-driven intelligence and strategic partnerships. Paras Vira, Managing Director at CPP Investments, highlighted that combining flexible capital with Element’s market leadership will support the company's next phase of growth while contributing to the long-term returns of the $793.3 billion CPP Fund.