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 In New York, Dirk Leasure was just named head of the financial sponsors group at BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (NYSE:BMO). Leasure will lead a team of investment bankers in Chicago and New York, which focuses on U.S. private equity firms, and he would like to see those teams get bigger.Leasure told us BMO is well positioned for growth because it has a strong balance sheet that "wasn't hampered with residue from the financial crisis." The firm added more than 300 people globally in the past year and opened a sales and trading Paris office about two weeks ago. BMO recently grabbed Peter Boukouzis as a director to focus on M&A opportunities in the energy sector. He spent nearly eight years at Rothschild, focusing on M&A deals in the oil and gas industry. Earlier this year, the firm took on three senior investment bankers from Banc of America Securities LLC to join its food and consumer group, including Greg Pearlman. Pearlman told us at the time, "The general feeling is that things seem better. People in the industry are cautiously optimistic that there will continue to be measured improvement in the business atmosphere." So where are the deals? When asked what he saw as the hot sectors, Leasure replied, "Well, everything ... business services and education, food and consumer; industrials. ... More sponsors are coming in with deal activity from buyers and sellers." In July, Leasure advised Atlanta private equity firm Roark Capital Group in its deal to take Pet Valu Inc. private for C$143.7 million ($123.9 million). He says the middle market is coming alive since there's pent up deal activity and buyers are finally able to get financing. That's where it helps to be a one-stop-shop of sorts. Leasure said, "Sponsors are increasingly focused on the middle market, leaning to investment banks that bring dealflow, can provide acquisition financing, M&A advice and ECM alternatives. And we do have over 80 equity research analysts." Competition for middle-market PE business is steep. The Wall Street journal notes that over the summer Broadpoint Capital Inc., Duff & Phelps Corp. (NYSE:DUF), Harris Williams & Co., Imperial Capital LLC, Lincoln International, Prestwick Partners and TM Capital Corp. were bulking up, whether by doing acquisitions or adding staff in key areas. FBR Capital Markets Corp. (NASDAQ:FBCM) recently bought Watch Hill Partners LLC (The Deal Pipeline subscribers can read more here). And earlier this year PE-controlled investment bank and securities firm Broadpoint Securities Group Inc. paid $67 million for advisory boutique Gleacher Partners Inc. BMO obviously has a strong presence in Canada as well. In fixed income, its main competitors are TD Securities and RBC Capital Markets. "We're heavy hitters in Canada in fixed income and lending, but also in equities and M&A." BMO is advising Canadian energy company NAL Oil & Gas Trust on its recent agreement to buy junior oil and gas explorer Breaker Energy Ltd. for C$403 million in stock and assumed debt. Leasure said, "In addition to helping U.S. sponsors with buying companies, financing them and exiting through sale or IPO in the U.S. middle market, we are seeing more and more U.S. sponsors with strong interest in investing in Canada." Leasure joined BMO in 2002 after eight years in the leveraged finance group at Goldman, Sachs & Co. (NYSE:GS) - Baz Hiralal
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