Monroe Capital’s latest private credit fund holds fourth close at $1.3bn

The fund is expected to close at $1.5bn before the end of year.

Monroe Capital has held a fourth close on its latest private credit fund at $1.3 billion, sources told Private Debt Investor. The firm itself declined to comment.

Monroe Capital Private Credit Fund IV is now targeting $1.5 billion for its final close at the end of the year, sources said, and it will have more than $3 billion of total investible capital, including fund leverage. It first launched in October of last year.

Investors in the fund include the New Hampshire Retirement System, Policemen’s Annuity and Benefit Fund of Chicago, Oklahoma Tobacco Settlement Endowment Trust, POBA (Korea), Alaska Permanent, Ventura County Retirement System, AC Transit Retirement System and Fairfax County Uniformed Retirement System, according to the sources.

The latest fund is a continuation of its predecessor, Monroe Capital Private Credit Fund III, focused on senior secured, lower mid-market financing to US and Canadian companies with EBITDA ranging from $3 million to $35 million, the sources said. The predecessor fund had its final close in November 2018 at $1.33 billion, which exceeded its target of $800 million, according to PDI research.

Chicago-based Monroe was founded in 2004 and had $10.3 billion in assets under management as of 1 July 2021. The firm specialises in private credit markets across strategies, including direct lending, structured credit and asset-based lending.