Element Fleet Management and Blackstone Credit & Insurance announced they have have entered into a strategic funding relationship, in which funds managed by Blackstone through its Infrastructure & Asset-Based Credit group are providing capital involving a portfolio of Canadian fleet lease receivables valued at approximately $500 million Canadian.

“Element is committed to optimizing our funding strategies to support our growth objectives,” said Heath Valkenburg, incoming executive vice president and chief financial officer. “This strategic relationship with Blackstone enhances our ability to serve our clients and capitalize on emerging opportunities in the market.”

Element, which claims the title of “world’s largest publicly traded, pure-play automotive fleet manager”, said it benefits from substantial off-balance sheet treatment through the strategic arrangement, diversifying and optimizing its funding profile while validating the high quality of its asset origination platform and supporting the company’s continued growth.

“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,” Blackstone head of financial services for asset based finance Aneek Mamik said. “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.”