Canal Road Group Enhances Lending Strategy with New Equity Partnership from SMBC

Miami, FL – In an exciting development for the financial services sector, Canal Road Group (CRG) has announced an expanded strategic alliance with Sumitomo Mitsui Banking Corporation (SMBC). This collaboration will support CRG's direct lending strategy and result in an equity commitment that unlocks up to $225 million in additional investable capital. This newfound resource significantly increases CRG's investment capacity to a staggering total of $2.3 billion, further solidifying their position within the alternative asset management arena.

The partnership extends an existing relationship, which previously included a $350 million asset-based lending facility, expandable to $500 million. This facility has been critical in providing financing solutions for CRG's expanding private credit portfolio. With additional capital at their disposal, the two firms are poised to leverage their shared relationships with borrowers and sponsors, opening doors to myriad opportunities across their financial platforms.

Since the inception of its private credit platform less than two years ago, CRG has successfully deployed approximately $1.2 billion in commitments to corporate credit borrowers within the private market. The commitment from SMBC highlights confidence in CRG's innovative platform, the expertise of its leadership team, and its promising growth trajectory.

Leading this talented team are financial industry veterans Mike Damaso and Don Young, known for their past success at CBAM Partners, a credit platform that accumulated well over $15 billion in managed assets in less than six years before its acquisition by Carlyle in 2022. Their track record of growth speaks volumes regarding their capabilities.

Damaso, reflecting on the partnership, stated, “We value the relationship we have cultivated with SMBC and appreciate the confidence they have in our firm. This backing not only increases our liquidity but also exemplifies our sourcing and underwriting talents, the caliber of our existing portfolio, and our steadfast plan for achieving both business and partner aims.”

Canal Road Group is dedicated to providing tailored financial solutions designed to yield consistent, attractive risk-adjusted returns through a balanced portfolio that focuses primarily on senior secured investments. The firm prides itself on rigorous investment practices, underpinned by comprehensive research and disciplined risk management strategies.

Founded by Don Young and Mike Damaso, CRG houses a distinguished team of financial experts, including 14 former professionals from CBAM, marking itself as a leader in the alternative assets sphere.

Based in Miami, Florida, and supported by a robust operational backbone, Canal Road Group looks forward to embarking on this new chapter alongside SMBC. This strategic move not only boosts CRG's lending capabilities but also promises to deliver attractive opportunities for investors and partners alike.

For further details about Canal Road Group and their initiatives, visit www.canalroadgroup.com.

About SMBC Group

SMBC Group, established in Tokyo, boasts a rich history spanning 400 years, offering diverse financial services such as banking, leasing, securities, credit cards, and consumer finance. With over 150 offices globally and a workforce of around 120,000 across nearly 40 countries, the group stands as one of Japan's leading banking institutions. SMFG (Sumitomo Mitsui Financial Group, Inc.), the holding company for SMBC Group, has its shares traded on the Tokyo, Nagoya, and New York Stock Exchanges (NYSE: SMFG).