Monroe fund reaches fourth close on $660m – exclusive

Monroe Capital’s Private Credit Fund II has beaten a $600m target but is staying open and has a $750m hard cap.

Chicago-based mid-market finance provider Monroe Capital has reached a fourth close on its second private credit fund, The Monroe Capital Private Credit Fund II, on $660 million.

The fund has a $750 million hard cap, and PDI understands it is being held open as Monroe Capital is still in talks with some potential investors.

Investors to have committed to the fund so far include Orange County Employees Retirement System, New Hampshire Retirement System, Illinois Teachers Retirement System, the City of Fresno Employee Retirement System and the Alaska Permanent Fund.    

Monroe Capital declined to comment on developments.  

The fund was launched in December 2014 and held a first close on $170 million in May 2015. It increased this to around $330 million in August 2015 and then approximately $475 million by the end of the year.

The firm’s first private credit fund closed on $500 million in December 2013.  

Monroe Capital is a provider of senior and junior debt and equity co-investments to mid-market companies in the US and Canada. Investment types include unitranche financings, cash flow and enterprise value-based loans, asset-based loans, acquisition facilities, mezzanine debt, second lien or last-out loans and equity co-investments.

Founded in 2004, the firm has more than 60 professionals in New York, Los Angeles, San Francisco, Atlanta, Boston, Charlotte, Dallas and Toronto as well as Chicago. President and CEO Theodore Koenig previously held the same roles at distressed investor Hilco Capital before switching to Monroe in 2004.

In November, Monroe established a new retail and consumer asset-based lending group, hiring Andy Moser and Marc Price from Salus Capital to lead the group out of Boston.