Monroe Capital has held the final close of Monroe Capital Private Credit Fund II with USD800 million of limited partner commitments, eclipsing the fund’s target of USD600 million.
When combined with target fund leverage, the fund will have approximately USD1.5 billion of total investable capital or buying power, the largest fund raised in Monroe Capital’s 12-year firm history.
The fund invests in private credit transactions originated and underwritten by Monroe Capital.
The investment strategy is focused primarily on senior secured loans and unitranche loans to private equity sponsored and non-sponsored middle market companies located throughout the US and Canada.
The fund is Monroe Capital’s 11th investment vehicle since its founding in 2004.
It received commitments from over 20 new institutional investors located in the US and Europe, including leading public and private pension plans, insurance companies, universities, endowments, foundations, religious organisations, hospitals, non-profits, sovereign wealth funds, family offices and other institutional investors. In addition to the limited partner commitments, the fund has secured term credit facilities to complement its available capital.
Ted Koenig, president and CEO of Monroe Capital, says: “Private credit is an appealing area for institutional investors due to the ability to generate consistent yield in a yield starved world. 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 organisation and our people.”
