Canal Road Group received equity investment from SMBC, unlocking US$225 million in new investment capabilities
Alternative asset manager Canal Road Group (CRG) announces expansion of partnership with Bank (SMBC) strategic partnership. SMBC has committed to an equity investment in CRG's direct lending strategy, a move that will unlock up to $225 million in new investable capital for CRG. According to CRG’s announcement on July 16, after this equity investment, CRG’s overall investment capacity (including financing) for direct lending strategies will increase to US$2.3 billion. In addition, as part of this equity investment, SMBC will also acquire a passive minority stake in CRG. This equity investment further deepens the existing cooperative relationship between the two parties. Previously, CRG has obtained a US$350 million asset-backed loan facility from SMBC, which can be expanded to US$500 million in the future, and CRG uses it as a financing tool for its private credit investment portfolio. The collaboration is expected to help both parties combine their respective networks of borrowers and originators to create new business opportunities on both platforms. CRG founders and managing partners Don Young and Mike Damaso said in the announcement that SMBC has witnessed the company's progress since establishing the partnership in the fourth quarter of 2024. This equity investment reflects SMBC’s confidence in CRG’s project sourcing and underwriting capabilities, the quality of its existing investment portfolio, and its ability to achieve commercial and limited partner objectives. CRG was founded in 2023 and is headquartered in Miami, Florida, founded by Don Young and Mike Damaso. SMBC Group is headquartered in Tokyo and has a history of more than 400 years. It has more than 150 offices and 120,000 employees in nearly 40 countries around the world. SMBC Group is a subsidiary of Sumitomo Mitsui Financial Group (SMFG), which is listed on the Tokyo, Nagoya and New York Stock Exchanges (NYSE: SMFG).