“We have not disclosed the specifics of our ownership stake or lending commitments,” a BMO spokesperson said. “This arrangement is in support of CRG’s direct-lending activity.”
BMO Financial Group has entered a partnership with alternative asset manager Canal Road Group in a deal that will enable the latter to invest up to US$1 billion ($1.37 billion) in direct lending, as the Canadian bank seeks to grow its presence in the booming private credit market.
The deal is the latest in a string of alliances between banks and private credit managers as they navigate tighter regulations and finite pools of capital. Citigroup and Apollo Global Management’s US$25 billion deal last year and Goldman Sachs Group’s deal with Mubadala Investment are examples of these tie-ups.
