Monroe Capital AUM Surges 43% to $14.9B

AUM Growth Driven by Strong Investment Performance

Monroe Capital, a leading provider of private credit to middle-market companies, has announced a significant increase in its assets under management (AUM). As of December 31, 2023, Monroe Capital's AUM stood at $14.9 billion, representing a remarkable 43% growth compared to the $10.4 billion reported on December 31, 2022.

Strong Debt and Equity Investment Contributions

The growth in AUM was driven by strong performance across both debt and equity investments. Monroe Capital's debt investments, which include first-lien, second-lien, and mezzanine loans, grew by 39% to $9.8 billion. The firm's equity investments, primarily consisting of preferred equity and common equity, increased by a substantial 58% to $5.1 billion.

Diversified Portfolio and Industry Focus

Monroe Capital's portfolio is well-diversified across various industries, with a particular focus on healthcare, technology, and business services. The healthcare sector represents approximately 28% of the portfolio, followed by technology at 22% and business services at 19%. This diversification helps mitigate risk and enhance returns.

Commitment to Credit Expertise

Monroe Capital's success can be attributed to its deep credit expertise and rigorous underwriting process. The firm has a team of experienced professionals with an average of over 20 years of industry experience. This expertise allows Monroe Capital to identify and invest in companies with strong fundamentals and growth potential.

Track Record of Strong Returns

Monroe Capital has consistently delivered strong returns to its investors. Over the past five years, the firm's flagship Direct Lending Fund has generated an annualized net return of 9.5%. This performance has attracted a wide range of investors, including pension funds, insurance companies, and family offices.

Expanded Platform and New Initiatives

In addition to its core debt and equity investment strategies, Monroe Capital has expanded its platform to include a variety of other services. These include:

• Capital Solutions Group: Provides customized capital solutions for companies facing complex challenges
• Energy and Infrastructure Group: Focuses on investments in the energy and infrastructure sectors
• Real Estate Group: Invests in commercial real estate properties
• Special Situations Group: Focuses on opportunistic investments in distressed assets

Innovation and Future Growth

Monroe Capital remains committed to innovation and exploring new opportunities for growth. The firm has recently introduced a number of new investment products, including:

• Monroe Capital Credit Opportunities Fund: A closed-end fund that invests in a diversified portfolio of credit assets
• Monroe Capital Income Credit Fund: A closed-end fund that provides investors with a high level of current income
• Monroe Capital Specialty Lending Fund: A fund dedicated to providing growth capital to high-potential middle-market companies

AUM Growth Table

Debt and Equity Investment AUM Growth Table

Portfolio Diversification by Industry Table

Flagship Fund Return History Table

Conclusion

Monroe Capital's impressive AUM growth is a testament to the firm's strong investment performance, commitment to credit expertise, and ability to innovate. The firm's portfolio is well-diversified and generates strong returns, making it an attractive option for investors seeking exposure to the middle-market credit market. Monroe Capital is well-positioned for continued growth in the future and remains committed to delivering strong returns to its clients.