Monomoy Capital closes second credit opportunities fund

David Robbins, the firm's head of credit strategies, said the latest vehicle had a 'great mix of investors.'

Monomoy Capital Partners has closed on its second credit opportunities fund, with the final close hitting its $300 million target. There was no hard-cap, according to people familiar with the matter.

Monomoy Capital Partners, of Greenwich, Connecticut, has total assets under management of $2.7 billion, according to PDI data. It was founded in 2005 by Stephen Presser, Daniel Collin and Justin Hillenbrand.

Monomoy’s first credit opportunities fund, which launched in August 2019 and closed in October, held a final close on $135 million, making the latest offering more than twice its size.

Monomoy head of credit strategies, David Robbins, attributed the new fund’s greater size to “the continued support of the first fund’s LPs plus the introduction of new investors.”

Robbins has been with Monomoy since 2015. Before that, he had been at Miami-based investment manager HIG Capital for five years.

Through the fund, the firm will invest in middle-market loans and senior secured notes, mainly in the US. The strategy will involve senior loans in companies that Monomoy believes the market fails to understand or has mispriced, in the expectation of both producing an income stream and benefitting from asset appreciation.

“We have a great mix of investors, including family offices, endowments, and pension funds,” Robbins said. “The ability to earn an income stream along with capital appreciation is attractive to each.”

The new fund is not created in pursuit of a debt-for-control strategy via restructuring, said a person familiar with the matter, but debt to be paid off by means of a sale of the company or a refinancing.