Bennelong Funds Management has signed a memorandum of understanding (MOU) and partnered with US-based Monroe Capital to further expand its distribution to Australia and New Zealand.

Founded in 2004, Monroe Capital is a USD$21.6 billion asset manager specializing in diversified private credit solutions, with a focus on US lower middle market direct lending to institutional and high-net-worth investors.

The firm’s direct lending investment strategy is focused primarily on first lien and unitranche loans to companies diversified across multiple industries located throughout the US and Canada.

Gillian Larkins, Chair of the Bennelong Funds Management Ltd Board, said, “Our alignment with Monroe Capital represents the third step in the process of moving Bennelong from a largely equities-based business to one that best caters for the evolving needs of investors. It is our strategic intent to augment our long-standing Australian capabilities by working with international specialists across all established asset classes.”

CEO of Bennelong Funds Management, John Burke, said, “As a top ten US non-bank lender in 2024, we believe Monroe Capital is a specialist international manager with the proven expertise and scale to offer a valuable private credit alternative to local investors. We are excited to be working with the Monroe Capital team as we continue to service our excellent client base in meeting their evolving needs.”

Alex Kim, Managing Director & Head of APAC at Monroe Capital, commented, “The US middle market lending universe includes over 200,000 companies and is characterized by less competition, more covenants and higher spreads than other areas of direct lending. This fragmentation in the lower middle market, where Monroe Capital specializes, offers investors access to a segment of the market with the potential for higher returns and more downside protection.”

"Launching our private credit strategy via Bennelong’s Australian-domiciled fund marks a pivotal step in democratizing access to institutional-grade credit strategies,” said Zia Uddin, President of Monroe Capital. “We're opening the door for qualifying investors to participate in a resilient asset class that has historically delivered stable income and downside protection."