American Equity Investment Life is investing $1 billion investment in Monroe Capital’s technology lending platform that focuses on middle-market software, technology and recurring revenue loans, also known as STARR. The technology sector is expanding through a combination of automation, data, digital transformation and remote work, and investors and lenders believe there are ample attractive deal opportunities out there.

“While we have been investing in technology for almost two decades, we are still early in the digital transformation for many companies, especially in the middle market,” said Monroe president Zia Uddin, who is responsible for the firm’s technology investments. “We believe there is a great opportunity set for investment in the technology sector through credit. Technology investing is specialized, whether in equity or credit, you need a deeper understanding of the technology and end products to be successful.”

Uddin was promoted to president in October. His previous position was partner and portfolio manager, institutional portfolios. He continues to report to Ted Koenig, who remains chairman and CEO of the Chicago-based lender.

American Equity and Monroe will work together to scale the technology lending platform with third party investors, including other insurance companies, through structured products.

Direct lending, especially ESG-focused investing and technology/software investing are among several areas Monroe is bullish on, with others being: specialty finance, highly structured real estate, infrastructure lending and asset-based lending, Uddin previously told Mergers & Acquisitions Editor-in-Chief Mary Kathleen Flynn.

Time to ride the next wave.

 Demitri Diakantonis