Bennelong Funds Management has signed a memorandum of understanding (MOU) and partnered with U.S.-based Monroe Capital to further expand its distribution to Australia and New Zealand.
“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,” Gillian Larkins, chair of the Bennelong Funds Management board, said. “It is our strategic intent to augment our long-standing Australian capabilities by working with international specialists across all established asset classes.”
“As a top 10 U.S. 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,” John Burke, CEO of Bennelong Funds Management, said. “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.”
“The U.S. 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,” Alex Kim, managing director and head of APAC at Monroe Capital, said. “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,” Zia Uddin, president of Monroe Capital, said. “We’re opening the door for qualifying investors to participate in a resilient asset class that has historically delivered stable income and downside protection.”
Bennelong plans to launch a local registered vehicle in the coming months.
