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Monroe Capital Closes Opportunistic Private Credit Fund at $500 Million

May 11, 2022, 08:07 AM
Filed Under: Industry News

Monroe Capital announced the final close of its Monroe Capital Opportunistic Private Credit Fund I (“Fund”) with approximately $500 million of investable capital, including targeted fund leverage. The Fund has limited partner commitments from over 75 investors located across the U.S., Asia, Middle East and Europe. Aaron Peck and Kyle Asher, Managing Directors and Partners of Monroe, are co-Heads of Monroe’s Opportunistic Private Credit Group.

The Fund received $286 million of limited partner commitments, plus targeted leverage of approximately $215 million.

The Fund invests in opportunistic and special situation private credit transactions across multiple industries, with focus on asset rich directly originated and secondary credit opportunities. The areas of focus of the Fund include specialty finance, asset heavy corporate credit, highly structured real estate lending, litigation finance, fund finance, NAV lending, and secondary investments in loans. The Fund is Monroe’s 31st investment vehicle since its founding in 2004. The Fund investors include leading public and private pension plans, insurance companies, foundations, non-profits, family offices and other institutional investors.

The Opportunistic Private Credit Group at Monroe has generated over $1.5 billion of investment commitments in 32 transactions since the launch of the Fund primarily held across the Monroe platform. This includes over $280 million of investment commitments the Fund has made to date.

“We value the support and interest of our global investor base in our Opportunistic Private Credit strategy,” said Ted Koenig, Chairman and CEO of Monroe. “This is a high returning business that we have pursued for the last ten years. We continue to search for specialized areas to leverage our core competencies and our proprietary sourcing capabilities to find attractive adjacencies in direct lending where we can generate discernable “alpha” for our limited partner investors. We believe our Opportunistic Private Credit strategy is the ultimate “all-weather” investment product. We have been able to generate differentiated and consistent risk adjusted returns over the last 18-year period, regardless of the business cycle or economic climate.”

“Monroe’s Opportunistic Private Credit strategy takes advantage of the firm’s strong underwriting skillset to focus on high-quality assets whose value is often masked by collateral complexity, market dislocations, nuance around existing credit structures, or restricted access to more traditional capital markets,” said Aaron Peck, Portfolio Manager of the Fund. “We believe the timing for this Fund could not be better. We expect many high-quality investment opportunities given the current direction of the economy as well as public and private market liquidity needs.”

Monroe is a premier boutique asset management firm specializing in private credit markets across various strategies, including direct lending, asset-based lending, specialty finance, opportunistic and structured credit, and equity. The firm has approximately $14 billion in assets under management as of April 1, 2022. The firm has over 160 employees, inclusive of an investment team of approximately 80 professionals focused on deal sourcing and underwriting. Monroe has a national transaction sourcing network of eight offices located throughout the U.S. and a proven investment discipline and strategy that has been tested over multiple economic cycles.

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