NEW
YORK, Jan. 10, 2025 /PRNewswire/ - BMO (NYSE:
BMO) and Canal Road Group ("CRG") today announced they are entering
into a strategic partnership. As part of the arrangement,
BMO's commitment to CRG will enable CRG to invest up to
$1 billion in
capital in support of their direct lending strategy.
CRG is an alternative asset manager specializing in originating,
underwriting, and managing portfolios of senior secured corporate
debt investments for companies in North
America sourced largely from sponsors. CRG will benefit from
BMO's network of banking relationships, facilitating a strategic
origination source.
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
partnership will combine BMO's extensive banking client reach,
origination, and capital markets expertise with CRG's growing
capital base and proven track record of investment management. 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 strategy over the long-term. As
part of the arrangement, BMO will hold a non-voting minority stake
in CRG's management company.
"This exciting project brings BMO together with CRG to offer a
full suite of innovative, private financing solutions to our
clients," said Alan Tannenbaum, CEO
& Group Head, BMO Capital Markets. "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."
CRG commented, "We are excited to collaborate 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, deal flow and access to BMO's vast network of
client relationships. As financial markets and client needs
continue to develop, we are confident that this partnership
maximizes 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 by assets, with total assets of
$1.41 trillion as
of October 31, 2024. Serving customers for 200
years and counting, BMO is a diverse team of highly engaged
employees providing a broad range of personal and commercial
banking, wealth management, global markets and investment banking
products and services to 13 million customers
across Canada, the United States, and in select markets
globally. Driven by a single purpose, to Boldly Grow the Good in
business and life, BMO is committed to driving positive change in
the world, and making progress for a thriving economy, sustainable
future, and inclusive society.
About Canal Road Group
Canal Road Group originates, underwrites, and manages portfolios
of senior secured corporate debt. Canal Road Group's founders
Don Young and Mike Damaso previously led CBAM Partners
("CBAM"), a $15 billion credit platform
founded in 2016 and sold to Carlyle in Spring 2022. Mr. Young and Mr.
Damaso are joined at Canal Road by a team of 14 CBAM alums. The
firm is headquartered in Miami,
Florida.
For more information, please visit www.canalroadgroup.com.
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SOURCE BMO Financial Group
