Growth streak
Monroe Capital LLC has enjoyed impressive growth over the last five years, continuing the upward trajectory in 2018, earning the firm Mergers & Acquisitions' 2018 M&A Mid-Market Award for Lender of the Year. The Chicago lender has increased its AUM at a compound annual growth rate of 38 percent over five years, bringing the total to $7 billion, up from $1.9 billion in 2014. The firm has also expanded significantly when it comes to employees and offices, the number of limited partners with worldwide coverage and loan volume and dollars deployed.
See the full list of Mergers & Acquisitions' 2018 M&A Mid-Market Awards.
Deep bench
Founded in 2004, Monroe is a private credit asset management firm that specializes in direct lending and opportunistic private credit investing. The firm’s offerings provide senior and junior debt financing to businesses, special situation borrowers and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based and enterprise value-based loans; and equity co-investments. The firm currently invests out of 19 funds, comprised of small business investment company (SBIC) funds, institutional private credit funds, separate managed accounts, a publicly-listed business development company (BDC), and collateralized loan obligations (CLO) vehicles. Monroe's Karin Kovacic is one of 36 outstanding dealmakers named in Mergers & Acquisitions' 2019 Most Influential Women in Mid-Market M&A.
Delivered a banner year
In 2018, the firm’s AUM soared by $1.8 billion, or 35 percent, over the previous year. Monroe funded a firm record of 72 direct middle-market transactions, with fundings totaling over $2.5 billion, solidifying the firm’s focus on businesses with $5 million to $50 million of Ebitda.
Monroe grew private credit funds and CLOs by 35 percent, closing three new funds. The firm’s BDC issued $69 million in senior secured notes, also called baby bonds. Monroe brought in new institutional limited partner investors, including several that are based outside the U.S., with representation from Australia, Japan, Peru, Norway and Israel. Monroe has also increased its workforce, growing the number of employees 20 percent over the last five years, including a 23 percent boost in 2018, bringing the total to just over 100 employees.
Served independent sponsors
Reflecting the rise of investors who work on deals one by one, instead of through a private equity fund, Monroe launched a new Independent Sponsor vertical. This vertical was established to support the growing number of fundless sponsors seeking a total financing solution that includes both debt and equity. The Independent Sponsor vertical closed three transactions with $122 million funded in 2018.
Solidified thought leadership role
With more than 25 years of experience, CEO Ted Koenig is a highly regarded thought leader in middle-market lending. Koenig is the founder of Monroe. In 2018, the firm launched the inaugural Chicago Middle Market Business Conference, featuring panelists from the city’s top private equity firms, investment banks, and law firms. More than 600 professionals attended.
Completed deals
· Served as agent on the funding of a $80 million credit facility to support growth and ongoing working capital needs of National Credit Center. NCC is a portfolio company of SNH Capital Partners. Additionally in 2018, Monroe upsized its senior credit facility to support ongoing growth and a second recapitalization of the company.
· Served as agent on the funding of a $40 million senior credit facility to support the initial acquisitions of Marc-1 Car Wash and Wash Me Fast LLC by Mammoth Holdings LLC, as well as their future growth and acquisition strategy. Mammoth partnered with private equity sponsor Red Dog Equity LLC which, through its partnership with Tom Pritzker’s family business interests (advised by The Pritzker Organization), provided the equity for the acquisitions and purchased a controlling interest in Mammoth.
