The latest in funds and investments in North America.
Monroe Capital has held the final close of a credit fund, raising $1.33 billion and handily beating its target fund-raise of $800 million.
When combined with target fund leverage, the 2018 Monroe Capital Private Credit Fund III will have more than $2.5 billion of buying power or capital available for investment, the firm said in a statement.
Private credit as a sector has expanded rapidly in recent years, as conventional bank lending has been squeezed by tougher capital rules following the 2008 financial crash. At a time of low or even negative interest rates, private, non-bank alternative credit sources have filled the gap.
Monroe said its roster of more than 100 investors in the fund cover those from eight countries. Investors include family offices, insurance companies, endowments, non-profits and sovereign wealth funds.
The fund will invest in private credit transactions originated and underwritten by Monroe. The investment strategy is focused primarily on senior secured loans and uni-tranche loans to private equity sponsored, independent sponsored, and non-sponsored middle market companies located throughout the US and Canada.
The fund is Monroe’s 17th investment vehicle since it was founded in 2004.