Canal Road Group boosts direct lending strategy with BMO partnership
Bank of Montreal (BMO) Financial Group has partnered with Canal Road Group (CRG) to support the alternative asset manager’s direct lending strategy and enable it to invest up to $1 billion in capital to upper middle-market companies across North America.
BMO says that CRG, which specialises in originating, underwriting and managing senior secured corporate debt investments, will leverage the bank’s “extensive banking client reach, origination, and capital markets expertise” to expand its direct lending activities.
“The strategic partnership aims to broaden sponsor and corporate clients’ access to the private lending capital pool with scale and capacity to provide funding for critical transactions,” the bank says.
BMO adds that it will look to support the asset manager’s direct lending strategy with credit facilities “over the long term”. As part of the deal, BMO will also gain a non-voting minority stake in CRG’s management company.
“By leveraging BMO’s robust banking, capital markets and sponsor finance platforms alongside CRG’s expanding capital resources, clients will have access to the full array of financing solutions tailored to support their evolving needs and strategic objectives,” explains Alan Tannenbaum, CEO and group head of BMO Capital Markets.