Daily News: November 27, 2018

Monroe Capital Closes $1.33B Private Credit Fund III


Monroe Capital closed its 2018 Monroe Capital Private Credit Fund III at $1.33 billion of limited partner commitments with over 100 investors in eight countries, eclipsing the Fund target of $800 million.

When combined with target Fund leverage, the Fund will have more than $2.5 billion of buying power or capital available for investment.

The Fund will invest in private credit transactions originated and underwritten by Monroe. The investment strategy is focused primarily on senior secured loans and unitranche loans to private equity sponsored, independent sponsored, and non-sponsored middle market companies located throughout the U.S and Canada.

The Fund is Monroe’s 17th investment vehicle since its founding in 2004.

The Fund received commitments from over 50 new institutional investors, which included 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 also 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 absolute returns in a low yield environment. Investors have many choices in this space, many of which are recently created firms,” said Ted Koenig, president and CEO of Monroe. “We are pleased and proud that the institutional investor and limited partner community has come to appreciate the differentiated returns and consistent risk adjusted returns that Monroe has been able to generate every year over the last 14-year period, regardless of the business cycle or economic climate. This is a testament to our organization and our people.”