Canal Road Group (CRG) expanded its strategic relationship with SMBC as the bank makes an equity commitment to CRG’s direct lending strategy that will unlock up to $225 million in additional investable capital. The commitment will increase CRG’s investment capacity to $2.3 billion, inclusive of financing, for its direct lending strategy. In connection with making the commitment, SMBC is also taking a passive minority stake in CRG.
The capital commitment enhances a relationship that already includes a $350 million asset-based lending facility, expandable to $500 million, which CRG utilizes as a financing facility for its private credit portfolio. In addition, the two firms expect to benefit from the breadth of their combined borrower and sponsor relationships, creating new opportunities across both platforms.
“SMBC has had the opportunity to observe our firm’s progress firsthand since we established our relationship in the fourth quarter of 2024,” CRG commented. “This commitment to our strategy demonstrates confidence in CRG’s sourcing and underwriting capabilities, the quality of our existing portfolio and our ability to achieve the goals we have established for both the business and our limited partners. We value the relationship we have built with SMBC and appreciate the trust they have placed in our firm.”
