Monroe Capital, an asset management firm specializing in private credit markets, launched an Exchange Traded Note (ETN) program that gives qualified international investors access to Monroe’s lower middle-market direct lending strategy.
The program was developed with PM Alpha, a digital private markets platform, which provided the structuring framework and platform technology behind the note, and EBW Capital, which will lead distribution across Latin America and the U.S. offshore market through its network of wealth management institutions, private banks and offshore investment platforms.
Investors gain exposure to Monroe’s lower middle-market direct lending strategy, which is invested primarily in senior secured loans to U.S. lower middle-market companies, through a single ISIN-based security that settles on the brokerage and custody platforms wealth managers already use. Because the note carries a daily price and a standard security identifier, subscriptions, transfers and portfolio reporting follow the same process as any listed holding — removing the subscription documents, capital calls and bespoke reporting that typically accompany private credit allocations.
“Demand for private credit from international wealth channels has outpaced the infrastructure available to serve it,” Zia Uddin, president at Monroe Capital, said. “Working with PM Alpha and EBW Capital, we can deliver the same lower middle-market direct lending strategy our institutional investors have accessed for two decades, in a format that fits the way private banks and family offices already operate.”
Tom Douie, CEO of PM Alpha, added, “We continue to see strong demand from private banks, family offices and wealth managers seeking access to high-quality private credit strategies such as Monroe’s lower middle-market direct lending strategy, but in a format that integrates seamlessly with existing investment administration rails. The ETN structure provides that bridge, combining institutional investment exposure with the simplicity and convenience of a listed security, that is already accessed by more than 200 wealth and asset managers globally.”
Frank Pauls, senior partner at EBW Capital, said, “Demand across the wealth channel in Latin America and the U.S. offshore market continues to build, with advisors increasingly seeking differentiated alternative investment solutions and broader access to institutional-quality managers.”
The ETN is available now through PM Alpha, with a minimum investment of $50,000 and $15,000 thereafter.
