BMO Financial Group announced today it will commit up to US$150 million in capital to the Halyard Capital Fund II, a private equity fund focused on investing in middle market companies in the media, communications and business services industries.

Halyard Capital was formed as a wholly owned affiliate of BMO Financial Group in May 2000. Its first fund, Halyard Capital Fund I, is a US$350 million private equity fund with investments in a wide variety of media, communications and business services sectors including newspapers, radio broadcasting, TV broadcasting, wireless towers, marketing services, directories and B2B publishing.

BMO has now committed up to US$150 million of capital as the anchor investor in Halyard II. As part of the creation of Fund II, Halyard Capital will seek additional institutional limited partners. It is expected that Halyard Capital Fund II will have an initial close within the next six months. At that time, Halyard Capital will operate independently of BMO Financial Group.

“As the principal investor in Halyard II, we will continue to leverage both our capital and our longstanding experience in the media industry and its related sectors,” said Yvan Bourdeau, president and COO, BMO Nesbitt Burns.

“Our partnership with BMO Financial Group has been instrumental in the success of Halyard Capital Fund I,” said Robert Nolan, Managing Partner of Halyard Capital. “Continued investment from BMO will play a significant role as Halyard continues to build a private equity portfolio of significant value.”

Halyard Capital Fund I will continue to be managed by the principals of Halyard Capital. Halyard Capital has retained Park Hill Group, an affiliate of The Blackstone Group, as placement agent and financial advisor to Halyard Capital Fund II. The firm has also retained Paul, Weiss, as legal advisor.