SMBC backs Canal Road Group with $225M to fuel direct lending push
What's the deal? Miami-based Canal Road Group (CRG) has secured an equity commitment from SMBC GroupDealroom has a profile for this one. Try Dealroom → that unlocks up to $225 million in additional investable capital for its direct lending strategy. The commitment lifts CRG's investment capacity to $2.3 billion, inclusive of financing. As part of the deal, SMBC is also taking a passive minority stake in CRG.
What does CRG do? The alternative asset manager provides financing to companies, focusing primarily on senior secured investments. It was founded by Don Young and Mike Damaso, who previously built CBAM PartnersDealroom has a profile for this one. Try Dealroom → into a roughly $15 billion credit platform before selling it to CarlyleDealroom has a profile for this one. Try Dealroom → in 2022.
Why now? SMBC has observed CRG since the two firms established their relationship in the fourth quarter of 2024. Since launching its private credit platform under two years ago, CRG has deployed nearly $1.2 billion of commitments to corporate credit borrowers.
What's the endgame? The commitment builds on an existing $350 million asset-based lending facility, expandable to $500 million, that CRG uses to finance its private credit portfolio. Both firms expect to tap their combined borrower and sponsor relationships to create new opportunities across the two platforms.
In their words: The commitment "demonstrates confidence in CRG's sourcing and underwriting capabilities, the quality of our existing portfolio, and our ability to achieve the goals we have established for both the business and our limited partners," CRG said.
The signal: At $225 million, this ranks among the larger capital commitments in its class — a sign of the appetite big banks have to deepen ties with fast-growing private credit managers. For SMBC, one of Japan's three largest banking groups, the minority stake extends its reach into a US direct lending market that continues to draw institutional money.
Read more: StreetInsider
Image credit: Generated with Gemini
