BMO and Canal Road Group Form Strategic Partnership to Provide Direct Lending to Upper Middle Market Companies Investing.com

NEW YORK, January 10, 2025 /PRNewswire/ – BMO (NYSE: BMO) and A group of canal roads (“CRG”) announced today that they are entering into a strategic partnership. As part of the deal, BMO’s commitment to CRG will allow CRG to invest up to $1 billions of capital to support their direct lending strategy.

CRG is an alternative asset manager specializing in creating, underwriting and managing portfolios of senior secured corporate debt investments for companies in North America mostly from sponsors. CRG will benefit from BMO’s network of banking relationships, facilitating strategic sourcing.

The strategic partnership aims to expand sponsors’ and corporate clients’ access to a private equity lending pool with the scale and capacity to finance critical transactions. The partnership will combine BMO’s broad banking client reach, provenance and capital markets expertise with CRG’s growing capital base and proven investment management experience. BMO will also benefit from access to CRG’s network of borrowers, lenders, sponsors and management teams and anticipates providing credit facilities to CRG’s long-term strategy. As part of the arrangement, BMO will hold a minority non-voting stake in CRG’s management company.

“This exciting project brings together BMO and CRG to offer our clients a complete suite of innovative, private finance solutions,” he said. Alan Tannenbaumchief executive officer and head of the group, BMO Capital Markets. “By leveraging BMO’s robust banking, capital markets and sponsor financing platforms alongside CRG’s growing capital resources, clients will have access to a full range of financial solutions tailored to support their evolving needs and strategic objectives.”

CRG commented: “We are excited to work with BMO, a leading banking partner and authority in capital markets and advisory, to establish a distinctive direct lending platform. Through our partnership, CRG will benefit from increased capital, flow business and access to BMO’s vast network of client relationships. As financial markets and client needs continue to evolve, we are confident that this partnership enhances our complementary strengths and resources, enabling us to deliver solutions that better serve our clients.”

About BMO Financial Group

BMO Financial Group is the eighth largest bank in North America per asset, with total assets of $1.41 trillion since October 31, 2024 Serving clients for 200 years and counting, BMO is a diverse team of highly engaged employees who provide a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers worldwide Canada, United Statesand in selected markets around the world. Driven by one purpose, to boldly develop good in business and life, BMO is committed to driving positive change in the world and achieving progress for a thriving economy, sustainable future and inclusive society.

About A group of canal roads

A group of canal roads originates, underwrites and manages portfolios of senior secured corporate debt. Founders of Canal Road Group Don Young and Mike Damaso previously led CBAM Partners (“CBAM”), $15 billion loan platform founded in 2016 and sold to Carlyle in spring 2022. Mr. Young and Mr. Damaso they are joined at Canal Road by a team of 14 CBAM alumni. The headquarters of the company is in Miami, Florida.

For more information, visit www.canalroadgroup.com.