Mr. Alan Tannenbaum reports

BMO AND CANAL ROAD GROUP FORM STRATEGIC PARTNERSHIP AIMED AT PROVIDING DIRECT LENDING TO UPPER MIDDLE-MARKET COMPANIES

Bank of Montreal and Canal Road Group (CRG) have entered into a strategic partnership. As part of the arrangement, BMO's commitment to CRG will enable CRG to invest up to $1-billion in capital in support of its direct lending strategy.

CRG is an alternative asset manager specializing in originating, underwriting and managing portfolios of senior secured corporate debt investments for companies in North America sourced largely from sponsors. CRG will benefit from BMO's network of banking relationships, facilitating a strategic origination source.

The strategic partnership aims to broaden sponsor and corporate clients' access to the private lending capital pool with scale and capacity to provide financing 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 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, chief executive officer and 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 Bank of Montreal

BMO Financial Group is the eighth-largest bank in North America by assets, with total assets of $1.41-trillion as of Oct. 31, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets, and investment banking products and services to 13 million customers across Canada, the United States and in select markets globally. Driven by a single purpose, to boldly grow the good in business and life, BMO is committed to driving positive change in the world and making progress for a thriving economy, sustainable future and inclusive society.