312-258-8300 • monroecap.com
Monroe Capital continually strives to be innovative in the areas of fund formation and fund finance so it can offer access to its investment platform to a wider variety of limited partners and generate attractive returns.
Product innovation is a key element in the continued growth of Monroe Capital. For example, the company has developed and executed new innovations in the areas of fund formation and fund finance. These innovations have created value for the company’s limited partners by enhancing risk adjusted returns.
In the area of fund formation, Monroe Capital has constructed multi-jurisdictional fund structures that provide institutional and high net worth investors from all over the world with seamless and tax-efficient points of entry to one of the largest directly originated transaction platforms in direct lending. These structures have the added investor-friendly benefit of additional external management and risk oversight, which has become a requirement for certain institutional investors.
In addition, Monroe Capital’s bespoke fund structures allow rating sensitive institutional investors (insurance companies, for example) to make fund investments in a highly capital efficient manner. Monroe Capital has also established funds with periodic liquidity for retail and high net worth clients.
Monroe Capital also offers limited partners an option to invest in fund vehicles that utilize modest fund level leverage, thereby enhancing returns. Additionally, the firm has executed on fund finance facilities designed to generate higher returns and provide additional investable capital for its funds. For example, Monroe Capital has deployed highly customized securitization vehicles as a complement to traditional asset-based financing facilities, allowing funds to access a broader and more efficient source of debt capital. The firm has also applied new fund finance technology in the form of hybrid loan facilities, which provide cost effective fund leverage secured by a mix of collateral that is underutilized by traditional fund finance structures.