The bank said Monday it will be selling its transportation and vendor financing businesses to Stonepeak—including related loan portfolios in Canada and the U.S. tied to trucks, trailers and equipment financing—in a deal involving roughly $14.5 billion in assets. (The Logic)

Talking point: The New York-based alternative asset manager will pay cash upfront for the assets, along with an earn-out tied to future performance targets. BMO said it plans to use part of the proceeds to take a 19.9 per cent equity stake in the new entity. “We’re allocating capital to areas with strong potential for long-term value creation,” said Aron Levine, president of BMO U.S, in a press release. Jefferies analyst John Aiken wrote in a note to clients the portfolio had caused a “measure of indigestion” for the bank in recent years, adding that the transaction should provide capital relief and help lift BMO’s return on equity—a key focus for the lender in recent quarters.