Monroe Capital nears $500 mln hard cap on loan fund

Monroe Capital, a specialty finance company in Chicago, reported in August that it had raised more than $188 million toward the $400 million target for Monroe Capital Senior Secured Direct Loan Fund LP. Regulatory filings showed three elements to the fundraise: the main fund, which had collected $54 million at the time; an offshore affiliate, which had raised $57 million; and an unleveraged pool, which had received $77 million in commitments.

The $6.4 billion New Hampshire Retirement System committed $50 million to the fund, the magazine Pensions & Investments reported. The Dow Jones news service reported in October that Monroe Capital had closed on $440 million. The firm expects to easily hit its hard cap, the person with knowledge said.

Monroe Capital declined comment.

Founded in 2004 and led by Theodore L. Koenig, its president and chief executive officer, Monroe Capital has become an active player in mid-market leveraged lending. In October, for instance, the company provided $78.5 million of senior secured credit to help Monomoy Capital Partners complete its buyout of Escort Inc, a maker of automotive accessories such as radar detectors. Also in October, Monroe Capital hired Andrew Cozewith, a dealmaker at SunTrust Robinson Humphrey, CIT Group and GE Capital, as managing director in its Atlanta office to lead the firm’s national media practice.

In the past year, the company has doubled its assets under management to more than $1.5 billion. In addition to its Chicago headquarters, Monroe Capital has offices in New York City, Boston, Los Angeles, San Francisco, Atlanta, Charlotte and Dallas. It focuses on senior secured and junior secured debt to middle-market companies with EBITDA of $5 million or more.

The firm launched an affiliate, MC Healthcare Finance LLC, last November, by backing a startup in the San Diego area that provides short-term, asset-based funding for healthcare companies across the United States. Monroe Capital also operates a business development company, Monroe Capital Corp, that launched in October 2012 at $75 million. And it has operated a credit advisory business, helping borrowers arrange loans with other lenders, since 2009.

An earlier fund, the 2011 vintage Monroe Capital Partners Fund LP, raised $250 million, according to the Thomson One private equity database.

du Pasqiuer & Co Inc, a boutique investment bank and placement agent with offices in New York and Paris, received sales compensation for its efforts on the new fund, the regulatory filings showed.