BMO Financial Group (BMO.TO), a major Canadian financial services firm and investment bank, has announced a strategic alliance with Canal Road Group (CRG). As part of this partnership, BMO has committed up to $1 billion in capital to support CRG's direct lending initiatives.
CRG, an alternative asset manager, will benefit from BMO's extensive banking network, which will serve as a significant source for strategic deal origination.
This strategic collaboration aims to broaden access to private lending capital for sponsors and corporate clients, facilitating critical transactions with enhanced scale and capacity. It will merge BMO's expansive banking reach, origination, and capital markets expertise with CRG's expanding capital resources and investment management capabilities.
Through this partnership, BMO will also gain entry into CRG's network of borrowers, lenders, sponsors, and management teams, with a vision to provide long-term credit facilities. Moreover, BMO will acquire a non-voting minority interest in CRG's management company.
Currently, BMO is trading at $140.51, marking a 0.79% decrease on the Toronto Stock Exchange.
