BMO and Canal Road Group, an alternative asset manager specializing in the originating, underwriting and managing portfolios of senior secured corporate debt investments for companies in North America sourced largely from sponsors, 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 its direct lending strategy.
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 banking client reach, origination and capital markets expertise with CRG’s capital base and 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,” Alan Tannenbaum, CEO and group head, BMO Capital Markets, said. “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.”
“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,” CRG commented. “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.”
