CapitalSource, a middle market lending company, has recently expanded its business into Canada, forming a subsidiary to provide financing for Canadian-based middlemarket companies, according to Bank Loan Report, a sister publication of Merger Mogul. The new extension will originate cash flow and asset-based transactions by working with entrepreneurial U.S. and Canadian private equity sponsors, the company said. As of Sept. 30, 2006, CapitalSource had $11 billion in loan commitments outstanding, with a focus in structured finance, health care and specialty finance and corporate finance.

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