Monroe Capital closes on $4.8 billion in direct lending funds


CHICAGO–(BUSINESS WIRE)–Monroe Capital LLC (“Monroe”) today announced the final closing of its 2022 Monroe Capital Private Credit Fund IV (“Fund”) with $4.8 billion in investable capital, including leverage targeted and separately managed accounts investing alongside the Fund. The Fund has sponsorship commitments with over 300 investors in 17 countries. The Fund primarily targets lower-middle-market US companies, sponsored and non-sponsored by private equity funds, with EBITDA below $35 million.

The Fund received $2.3 billion in sponsorship commitments, plus targeted leverage of $1.1 billion. Additionally, he received $1.4 billion from separately managed accounts, including leverage. The fund is Monroe’s largest fund to date, surpassing Monroe Capital Private Credit Fund III, which closed in November 2018 at $2.3 billion in investable capital.

The Fund will invest in private credit transactions initiated and guaranteed by Monroe. The investment strategy is primarily focused on senior secured loans and unitranche loans to lower middle market companies sponsored by private capital, independently sponsored and unsponsored, diversified in several sectors, located in the United States and in Canada.

Investors in the fund are spread across the United States, Canada, Europe, Australia, South America, Asia, and the Middle East. Sponsors include leading public and private pension plans, insurance companies, universities, endowments, foundations, religious organizations, non-profit organizations, sovereign wealth funds, family offices and other institutional investors. In addition to limited partner covenants, the Fund has secured term credit facilities to supplement its available capital.

As of March 31, 2022, the Fund is actively seeking investment opportunities and has already invested over $1.7 billion in 90 transactions. The Fund is expected to generate returns in line with the company’s previous award-winning investment funds (see below). The Fund is Monroe’s 30th investment vehicle since its inception in 2004.

According to Ted Koenig, President and CEO of Monroe, “We greatly appreciate the support of our limited partners around the world for their confidence in our ability to generate consistent and attractive risk-adjusted returns. We continue to leverage our industry-leading platform to provide unique access to niche markets within the middle market. The low interest rates and inflationary environment we face has led many investors to seek safe floating rate yield to generate returns on their investments. We are proud that the institutional investment community continues to appreciate the differentiated returns that Monroe has been able to consistently generate since our company’s inception in 2004, regardless of the economic cycle or economic climate.

Zia Uddin, President and Co-Portfolio Manager, Institutional Portfolios, added: “The Fund was oversubscribed by more than $800 million, which is a direct reflection of strong investor demand, strong relationships with long-term partners and our award-winning balance sheet. We are delighted that the Fund invested actively in 2021, a record year for deal volume in which Monroe Capital invested in more than 130 deals totaling over $6.3 billion. The highly fragmented and fertile nature of the lower middle market continues to provide qualified, long-term investors with an advantage by generating above-market returns.

Monroe has approximately $14 billion in assets under management as of April 1, 2022. The firm has more than 160 employees, including an investment team of approximately 80 professionals focused on sourcing and transaction underwriting. Monroe has a national deal sourcing network of six offices located across the United States and a proven investment discipline and strategy that has been tested over multiple economic cycles.

Monroe was recently recognized by the Global M&A Atlas Awards as 2022 Small Mid-Markets, Americas Lender of the Year and by Private Debt Investor as 2021 Senior Lender of the Year and 2021 Lender of the Year for lower middle markets, Americas.

About Monroe Capital

Monroe Capital LLC (“Monroe”) is a leading asset management company specializing in the private credit markets through various strategies, including direct lending, asset-based lending, specialty finance, opportunistic credit and structured and equity. Since 2004, the company has successfully provided capital solutions to clients in the United States and Canada. Monroe prides itself on being a value-added, friendly partner for business owners, management, and private and independent sponsors. Monroe’s platform offers a wide variety of investment products for institutional and high net worth investors with a focus on generating high quality ‘alpha’ returns regardless of business or economic cycles. The company is headquartered in Chicago and has offices in Atlanta, Boston, Los Angeles, Naples, New York, San Francisco and Seoul.

Monroe has been recognized by both peers and investors with various awards, including Global M&A Network as 2022 Small Midsize Business Lender of the Year, Americas; Private Debt Investor as 2021 Senior Lender of the Year, 2021 Lower Middle Market Lender of the Year, Americas; Creditflux as Best US Direct Lending Fund 2021; and Pension Bridge as Private Credit Strategy of the Year 2020. For more information, please visit www.monroecap.com.

Warning

This is neither an offer to sell nor a solicitation of an offer to buy securities of any fund managed by Monroe Capital. Any offer is made solely in accordance with the relevant offering documents and the relevant subscription application, all of which should be read in their entirety. The information provided above is for informational purposes only and may not be representative of any particular investor’s experience, nor should the information be interpreted or relied upon as an indication of Monroe’s future performance. or one of its funds.

Previous Lloyds profits fall 14% as it warns of mortgage defaults
Next 2022 VA Loan Limits | What do you want to know