Monroe Capital closed its 2022 Monroe Capital Private Fund IV with $4.8 billion in capital, which includes targeted fund leverage and separately managed accounts investing alongside the fund.
The fund is the $14 billion firm’s largest to date exceeding Monroe Capital Private Credit Fund III, which closed in 2018 at $2.3 billion of investable capital. The fund will invest primarily on senior secured loans and unitranche loans to private equity-sponsored, independent-sponsored and non-sponsored lower middle-market companies diversified across multiple industries, located throughout the U.S. and Canada. Monroe is targeting companies with less than $35 million in EBITDA for private credit transactions originated and underwritten by the Chicago-based firm.
“We continue to leverage our best-in-class platform to provide unique access to niche areas within the middle-market,” said Ted Koenig, chairman and CEO of Monroe, in a statement. “The low interest rate and inflationary environment we face has led many investors to seek safe floating rate yield to drive investment returns.”
The fund, which was oversubscribed by $800 million, reflects strong investor demand, said Zia Uddin, president and co-portfolio manager of institutional portfolios at Monroe.
“We are pleased that the fund was actively investing during 2021, a record year for deal volume in which Monroe Capital invested in over 130 transactions totaling over $6.3 billion,” said Uddin. “The highly fragmented and fertile nature of the lower middle market continues to offer long-tenured, skilled investors an advantage in generating above-market returns.”
