BMO and CRG forge $1bn partnership

Partnership aims to transform North American direct lending

BMO and CRG forge $1bn partnership

BMO Financial Group and Canal Road Group (CRG) have announced a strategic partnership aimed at providing enhanced direct lending solutions to upper middle-market companies in North America. Under the agreement, BMO will support CRG’s direct lending strategy by enabling the deployment of up to US$1 billion in capital.

CRG, an alternative asset manager specializing in senior secured corporate debt investments, is set to benefit from BMO’s expansive banking network and expertise in capital markets, according to a media release.

The partnership aims to enhance access to private lending for sponsors and corporate clients, with a focus on funding critical transactions. By integrating BMO’s financial reach and CRG’s investment management capabilities, the collaboration is expected to provide tailored financing solutions for businesses.

BMO’s CEO and group head of capital markets, Alan Tannenbaum, emphasized the synergy: “This exciting project brings BMO together with CRG to offer a full suite of innovative, private financing solutions to our clients. 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 echoed this sentiment, highlighting the increased access to capital and deal opportunities facilitated by BMO. “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,” CRG stated.

As part of the agreement, BMO will hold a non-voting minority stake in CRG’s management company.

Founded by Don Young and Mike Damaso, alongside 14 former CBAM Partners colleagues, Canal Road Group specializes in senior secured corporate debt.

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