Monroe Capital closes second private credit fund at $800 mln

U.S. mid-market investor Monroe Capital has closed Monroe Capital Private Credit Fund II LP at US$800 million in committed capital, exceeding its US$600 million target. The fund, Monroe Capital’s 11th since inception, will focus on providing senior secured loans and unitranche loans to private equity-sponsored and non-sponsored mid-market companies in North America. Last year, Monroe Capital hired Mark Sturrock to help expand the firm’s presence in Canada.

PRESS RELEASE

Monroe Capital Reaches Final Close on Private Credit Fund II LP

Chicago, IL, October 13, 2016 – Monroe Capital LLC today announced the final close of Monroe Capital Private Credit Fund II LP (“Fund”) at $800 million of limited partner commitments, eclipsing the Fund target of $600 million. When combined with target fund leverage, the Fund will have approximately $1.5 billion of total investable capital or buying power, the largest fund raised in Monroe Capital’s 12-year firm history.

The Fund invests in private credit transactions originated and underwritten by Monroe Capital. The investment strategy is focused primarily on senior secured loans and unitranche loans to private equity sponsored and non-sponsored middle market companies located throughout the U.S and Canada. This Fund is Monroe Capital’s eleventh investment vehicle since its founding in 2004. The Fund received commitments from over 20 new institutional investors located in the U.S. and Europe, including leading public and private pension plans, insurance companies, universities, endowments, foundations, religious organizations, hospitals, non-profits, sovereign wealth funds, family offices and other institutional investors. In addition to the limited partner commitments, the Fund has secured a significant term warehouse credit facility to complement its available capital.

According to Ted Koenig, President and CEO of Monroe Capital, “Private credit is an appealing area for institutional investors due to the ability to generate consistent yield in a yield starved world. Investors have many choices in this space, most of which are newly created firms over the last several years. I am very pleased and proud that the sophisticated institutional investor and limited partner community have come to understand and appreciate the differentiated absolute returns and consistent risk adjusted returns that Monroe has been able to generate for them each and every year over a 12-year period, regardless of the business cycle or the economic environment. This is truly a testament to our organization and our people.”

Monroe Capital, a $3.6 billion private credit asset manager, was formed in 2004 and has been a consistent and reliable provider of transactional debt financing both pre and post credit crisis. Monroe has 70 employees, inclusive of an investment team of approximately 45 professionals with an average of 17 years of credit, private equity, and investment experience; a national transaction sourcing network of eight offices located through the U.S.; and a proven investment discipline and strategy over multiple economic cycles.

About Monroe Capital
Monroe Capital LLC is a leading provider of senior and junior debt and equity co-investments to middle-market companies in the U.S. and Canada. Investment types include unitranche financings, cash flow and enterprise value based loans, asset based loans, acquisition facilities, mezzanine debt, second lien or last-out loans and equity co-investments. Monroe Capital prides itself on its flexible investment approach and its ability to close and fund transactions quickly. Monroe is committed to being a value-added and user-friendly partner to owners, senior management and private equity sponsors. Monroe has been recognized by Global M&A Network as the 2015, 2014, and 2013 Small Middle Markets Lender of the Year; Private Debt Investor as the 2015 Lower Mid-Market Lender of the Year, the 2014 Senior Lender of the Year, and the 2013 Unitranche Lender of the Year; and the U.S. Small Business Administration as the 2015 Small Business Investment Company (SBIC) of the Year. To learn more about Monroe Capital LLC, visit www.monroecap.com.

Emily Stoermer
Senior Account Executive
BackBay Communications

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Photo courtesy of Reuters/Bernadett Szabo