BMO and Canal Road Group Form Strategic Partnership Aimed at Providing Direct Lending to Upper Middle-Market Companies
BMO (NYSE: BMO) and Canal Road Group (CRG) announced a strategic partnership where BMO will enable CRG to invest up to $1 billion in capital for direct lending operations. The partnership combines BMO's banking relationships and capital markets expertise with CRG's investment management capabilities in senior secured corporate debt investments.
As part of the arrangement, BMO will acquire a non-voting minority stake in CRG's management company. The collaboration aims to expand access to private lending capital for sponsor and corporate clients, leveraging BMO's extensive banking network and CRG's growing capital base. BMO will provide credit facilities to support CRG's strategy long-term, while benefiting from access to CRG's network of borrowers, lenders, sponsors, and management teams.
BMO (NYSE: BMO) e Canal Road Group (CRG) hanno annunciato una partnership strategica in cui BMO consentirà a CRG di investire fino a 1 miliardo di dollari in capitale per operazioni di prestito diretto. La partnership combina le relazioni bancarie e l'expertise nei mercati dei capitali di BMO con le capacità di gestione degli investimenti di CRG in investimenti in debito societario garantito senior.
Come parte dell'accordo, BMO acquisirà una partecipazione minoritaria non votante nella società di gestione di CRG. La collaborazione mira ad ampliare l'accesso al capitale di prestito privato per i clienti sponsorizzati e aziendali, sfruttando la vasta rete bancaria di BMO e la crescente base di capitale di CRG. BMO fornirà linee di credito per supportare a lungo termine la strategia di CRG, beneficiando al contempo dell'accesso alla rete di CRG di mutuatari, prestatori, sponsor e team di gestione.
BMO (NYSE: BMO) y Canal Road Group (CRG) anunciaron una asociación estratégica en la que BMO permitirá a CRG invertir hasta 1 mil millones de dólares en capital para operaciones de préstamos directos. La asociación combina las relaciones bancarias y la experiencia en mercados de capital de BMO con las capacidades de gestión de inversiones de CRG en inversiones en deuda corporativa senior garantizada.
Como parte del acuerdo, BMO adquirirá una participación minoritaria sin derecho a voto en la empresa de gestión de CRG. La colaboración tiene como objetivo ampliar el acceso al capital de préstamo privado para clientes patrocinados y corporativos, aprovechando la extensa red bancaria de BMO y la creciente base de capital de CRG. BMO proporcionará líneas de crédito para respaldar a largo plazo la estrategia de CRG, beneficiándose al mismo tiempo del acceso a la red de prestatarios, prestamistas, patrocinadores y equipos de gestión de CRG.
BMO (NYSE: BMO)와 Canal Road Group (CRG)는 BMO가 CRG가 직접 대출 운영을 위해 최대 $10억을 투자할 수 있도록 하는 전략적 파트너십을 발표했습니다. 이 파트너십은 BMO의 은행 관계와 자본 시장 전문성과 CRG의 상위 담보 기업 부채 투자 관리 능력을 결합합니다.
계약의 일환으로 BMO는 CRG의 관리 회사에서 의결권이 없는 소액 지분을 인수합니다. 이 협력은 BMO의 광범위한 은행 네트워크와 CRG의 성장하는 자본 기반을 활용하여 스폰서 및 기업 고객을 위한 개인 대출 자본 접근을 확대하는 것을 목표로 합니다. BMO는 CRG의 전략을 장기간 지원하기 위해 신용 시설을 제공하고, CRG의 차용자, 대출자, 스폰서 및 관리 팀 네트워크에 접근하여 혜택을 누릴 것입니다.
BMO (NYSE: BMO) et Canal Road Group (CRG) ont annoncé un partenariat stratégique dans lequel BMO permettra à CRG d'investir jusqu'à 1 milliard de dollars en capital pour des opérations de prêt direct. Ce partenariat combine les relations bancaires et l'expertise des marchés de capitaux de BMO avec les capacités de gestion d'investissement de CRG dans les investissements en dette d'entreprise senior sécurisée.
Dans le cadre de l'accord, BMO acquerra une participation minoritaire sans droit de vote dans la société de gestion de CRG. La collaboration vise à élargir l'accès au capital de prêt privé pour les clients sponsorisés et d'entreprise, tirant parti du vaste réseau bancaire de BMO et de la base de capital croissante de CRG. BMO fournira des facilités de crédit pour soutenir à long terme la stratégie de CRG, tout en bénéficiant de l'accès au réseau de CRG de débiteurs, prêteurs, sponsors et équipes de gestion.
BMO (NYSE: BMO) und Canal Road Group (CRG) haben eine strategische Partnerschaft angekündigt, bei der BMO CRG ermöglichen wird, bis zu 1 Milliarde Dollar in Kapital für direkte Kreditoperationen zu investieren. Die Partnerschaft kombiniert BMOs Bankbeziehungen und Expertise im Kapitalmarkt mit CRGs Fähigkeiten im Investitionsmanagement in senior gesicherten Unternehmensschuldverschreibungen.
Im Rahmen der Vereinbarung wird BMO eine nicht stimmberechtigte Minderheitsbeteiligung an der Managementgesellschaft von CRG erwerben. Die Zusammenarbeit zielt darauf ab, den Zugang zu privatem Kreditkapital für Sponsoren- und Unternehmensklienten zu erweitern, indem sie BMOs umfangreiches Bankennetzwerk und CRGs wachsende Kapitalbasis nutzen. BMO wird Kreditlinien bereitstellen, um CRGs langfristige Strategie zu unterstützen, während es gleichzeitig von dem Zugang zu CRGs Netzwerk aus Kreditnehmern, Kreditgebern, Sponsoren und Managementteams profitiert.
- Strategic partnership enables deployment of up to $1 billion in lending capital
- BMO acquires minority stake in CRG's management company
- Expansion of lending capabilities through combined network access
- New revenue stream through credit facilities provision to CRG
- None.
Insights
This strategic partnership marks a significant expansion into the lucrative private credit market, with BMO committing up to
The deal structure is particularly clever - BMO gains exposure to higher-yielding private credit returns while maintaining arms-length risk through a non-voting minority stake. This allows them to benefit from fee income and investment returns without consolidating the loans on their balance sheet. For context, private credit typically generates returns of
The timing aligns with broader market dynamics where middle-market companies increasingly seek alternative funding sources. This partnership positions BMO to capture market share in the $1.5 trillion private credit market while diversifying revenue streams beyond traditional banking.
The strategic value proposition here is compelling. By partnering with CRG, BMO gains immediate scale in direct lending without building the capability from scratch - a process that would typically take 5-7 years and significant resources. The arrangement creates a powerful flywheel effect: BMO's extensive client network feeds deals to CRG, while CRG's expertise in private credit enhances BMO's product offering.
Think of this as BMO adding a specialized tool to their toolbox - they can now offer clients a full spectrum of financing solutions from traditional bank loans to private credit. This flexibility is important in today's market where companies need diverse funding options. For scale reference, the average middle-market deal size ranges from
CRG is an alternative asset manager specializing in originating, underwriting, and managing portfolios of senior secured corporate debt investments for companies in
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
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
For more information, please visit www.canalroadgroup.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/bmo-and-canal-road-group-form-strategic-partnership-aimed-at-providing-direct-lending-to-upper-middle-market-companies-302347704.html
SOURCE BMO Financial Group
FAQ
What is the value of BMO's lending commitment to Canal Road Group?
What type of stake is BMO acquiring in Canal Road Group?
What is the purpose of BMO's partnership with Canal Road Group?
How will BMO benefit from the Canal Road Group partnership?
What markets will the BMO-CRG partnership serve?
