Alternative asset manager Canal Road Group (CRG) has announced an expansion of its strategic relationship with Sumitomo Mitsui Banking Corporation (SMBC). SMBC has committed to an equity investment in CRG's direct lending strategy, an action that will unlock up to $225 million in new investable capital for CRG.

According to an announcement from CRG dated July 16, following this equity investment, the firm's total investment capacity (including financing) for its direct lending strategy will increase to $2.3 billion. Furthermore, as part of this equity investment, SMBC will also receive a passive minority stake in CRG.

This equity investment further deepens the existing partnership between the two entities. Previously, CRG had secured a $350 million asset-backed loan facility from SMBC, which has the potential to be expanded to $500 million in the future. CRG utilizes this facility as a financing tool for its private credit portfolio. This collaboration is anticipated to help both parties leverage their respective networks of borrowers and originators to create new business opportunities across both platforms.

In the announcement, CRG founders and managing partners Don Young and Mike Damaso stated that SMBC has witnessed the company's progress since the partnership was established in the fourth quarter of 2024. This equity investment reflects SMBC's confidence in CRG's deal 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, established by Don Young and Mike Damaso.

The SMBC Group is headquartered in Tokyo, with a history spanning over 400 years, and maintains over 150 offices and 120,000 employees in nearly 40 countries worldwide. The SMBC Group is a subsidiary of Sumitomo Mitsui Financial Group (SMFG), which is listed on the Tokyo, Nagoya, and New York Stock Exchange (NYSE: SMFG).