Monroe Capital Raises $800M For Second Private Debt Fund

Oct 12 2016 | 10:01pm ET

Monroe Capital has raised $800 million in capital commitments for its second private credit fund.

Capital for the new fund, named the Monroe Capital Private Credit Fund II LP, surpassed the company’s target of $600 million, according to a statement. When combined with target fund leverage, it will have approximately $1.5 billion of total investable capital, making it the largest fund raised in Monroe Capital’s history and its eleventh investment vehicle since inception in 2004.

The new fund will invest in private credit transactions originated and underwritten by Monroe Capital and focused primarily on senior secured and unitranche loans, the company said. Borrowers will include both private equity-sponsored and non-sponsored middle market companies located throughout the U.S and Canada. 

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 term credit facilities to complement its available capital. 

“Private credit is an appealing area for institutional investors due to the ability to generate consistent yield in a yield starved world,” said Ted Koenig, president and CEO of Monroe Capital, in the statement. “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 has come to understand and appreciate the differentiated absolute returns and consistent risk-adjusted returns that Monroe has been able to generate for them.”

Based in Chicago, Monroe Capital manages approximately $3.6 billion in private credit strategies including senior and junior debt co-investments, 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. 

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