BMO and Canal Road Group Form Strategic Partnership Aimed at Providing Direct Lending to Upper Middle-Market Companies

Core Insights - BMO and Canal Road Group (CRG) have entered into a strategic partnership, with BMO committing up to $1 billion in capital to support CRG's direct lending strategy [1][3]. Company Overview - BMO Financial Group is the eighth largest bank in North America, with total assets of$1.41 trillion as of October 31, 2024, providing a wide range of banking and financial services to 13 million customers [5]. - Canal Road Group specializes in originating, underwriting, and managing portfolios of senior secured corporate debt investments, with a focus on North American companies [2][6]. Partnership Details - The partnership aims to enhance access to private lending capital for sponsors and corporate clients, combining BMO's banking expertise with CRG's investment management capabilities [3][4]. - BMO will hold a non-voting minority stake in CRG's management company, allowing for long-term collaboration and access to CRG's network of borrowers and lenders [3][4]. Strategic Goals - The collaboration is designed to provide innovative private financing solutions tailored to meet evolving client needs and strategic objectives [4]. - CRG anticipates increased capital, deal flow, and access to BMO's extensive client relationships as a result of this partnership [4].