Monroe Capital has held a final close of Monroe Capital Private Credit Fund II LP (PCFII) with $800 million of limited partner commitments. The fund had a targeted raise of $600 million.
In addition to its limited partner commitments, PCFII has secured term credit facilities to complement its available capital. When combined with this leverage, the new fund will have approximately $1.5 billion of investable capital and becomes the largest fund raised in Monroe Capital’s 12-year firm history.
PCFII invests primarily in senior secured loans and unitranche loans to private equity sponsored and non-sponsored middle market companies located throughout the U.S and Canada.
“Private credit is an appealing area for institutional investors due to the ability to generate consistent yield in a yield starved world” said Ted Koenig, President and CEO of Monroe Capital. “Investors have many choices in this space, most of which are newly created firms over the last several years. I am very pleased and proud that the sophisticated institutional investor and limited partner community has come to understand and appreciate the differentiated absolute returns and consistent risk adjusted returns that Monroe has been able to generate for them each and every year over a 12-year period, regardless of the business cycle or the economic environment. This is truly a testament to our organization and our people.”
PCFII is Monroe Capital’s eleventh investment vehicle since its founding in 2004. The fund received commitments from over 20 new institutional investors located in the US and Europe, including public and private pension plans, insurance companies, universities, endowments, foundations, religious organizations, hospitals, non-profits, sovereign wealth funds, and family offices.
Monroe has been a very active lender in 2016. In October alone the firm has closed three transactions: it was the syndication agent on the funding of a senior credit facility to support the acquisition of Oldenburg Group Heavy Equipment by J.F. Lehman & Company; it was the sole lead arranger and administrative agent on the funding of a senior term loan to support the acquisition of The Worth Collection, Ltd. by New Water Capital. The Worth Collection had been a portfolio company of L Catterton since 2006; and it was the sole lead arranger and administrative agent on a senior credit facility to support the acquisition of ProPharma Group by Linden Capital Partners.
Monroe Capital has 70 employees, including an investment team of 45 professionals with an average of 17 years of credit, private equity, and investment experience. The firm provides senior and junior debt and equity co-investments to middle-market companies based in the US and Canada. Monroe Capital was founded in 2004 and has offices in Chicago, Atlanta, Boston, Charlotte, Dallas, Los Angeles, New York and San Francisco (www.monroecap.com).
© 2016 Private Equity Professional • 10-18-16