Monroe Capital has held a final close of Monroe Capital Private Credit Fund III (Fund III) with $1.33 billion of limited partner commitments. When combined with targeted leverage, Fund III will have more than $2.5 billion of capital available for investment.
Fund III will invest in private credit transactions originated and underwritten by Monroe including cash flow, enterprise value and asset-based loans; unitranche financings; and equity co-investments. Typical transactions for the firm are with private equity sponsored, independent sponsored, and non-sponsored middle market companies located throughout the US and Canada that have EBITDA from $3 million to $35 million.
The new fund received commitments from over 50 new institutional investors, and in total more than 100 investors from eight countries participated in the fundraise which exceeded the target of $800 million. Investors include 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, Fund III has secured term credit facilities to complement its available capital.
Fund III is Monroe’s 17th investment vehicle since its founding in 2004. The firm has been a consistent and reliable provider of transactional debt financing both pre and post-credit crisis for private equity sponsored and non-sponsored deals. Monroe has invested over $7 billion since its founding in 325 directly originated loan transactions involving over 125 different private equity firms.
“Private credit is an appealing area for institutional investors due to the ability to generate consistent absolute returns in a low yield environment,” said Ted Koenig, President and CEO of Monroe. “Investors have many choices in this space, many of which are recently created firms. 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.”
Monroe has over 100 employees, including 55 professionals on its investment team that have an average of 16 years of credit, private equity, and investment experience. The firm has 20 full-time origination professionals generating over 2,000 investment opportunities per year. In addition, Monroe has dedicated industry vertical origination and underwriting expertise in healthcare; technology; media; specialty finance; independent sponsor; and retail & consumer goods.
Monroe Capital is headquartered in Chicago and maintains offices in Atlanta, Boston, Dallas, Los Angeles, New York, and San Francisco (www.monroecap.com).
© 2018 Private Equity Professional | November 27, 2018