Key Takeaways
- • Monroe Capital LLC completed the final close of its largest credit fund, the 2025 Monroe Capital Private Credit Fund V, bringing total new investable capital to $6.1 billion.
- • Fund V's capital comprises $2.8 billion in institutional limited partner commitments, $1.5 billion of targeted leverage, and $1.8 billion from separately managed accounts (SMAs) under the same mandate.
- • As of Dec. 31, 2025, the fund had committed over $3.2 billion to more than 130 borrowers, targeting senior secured financing for lower middle-market US companies with approximately $35 million or less in EBITDA.
- • The investor base spans over 90 global institutions across 18 countries, including pension plans, insurers, sovereign wealth funds, endowments and family offices.
- • Fund V is roughly 30% larger than Fund IV, which closed in April 2022 with $4.8 billion in investable capital, and lifts Monroe's AUM of about $23 billion across more than 45 vehicles.
Summary
Monroe Capital LLC has completed the final close of the 2025 Monroe Capital Private Credit Fund V, its largest credit fund to date, bringing total new investable capital to $6.1 billion, according to a company press release issued Thursday. The capital includes fund-level leverage and separately managed accounts (SMAs). As of December 31, 2025, the middle-market-focused fund had committed over $3.2 billion to more than 130 borrowers.
The fund attracted $2.8 billion in commitments from institutional limited partners, complemented by $1.5 billion of targeted leverage and $1.8 billion from SMAs expected to invest under the same mandate. The investor base comprises over 90 global institutions, including public and corporate pension plans, insurance companies, sovereign wealth funds, foundations, endowments, family offices and other institutional investors across 18 countries.
Fund V will continue Monroe's focus on senior secured financing to private equity-sponsored and non-sponsored lower middle-market US companies with approximately $35 million or less in EBITDA. The fund follows Monroe Capital Private Credit Fund IV, which closed in April 2022 with $4.8 billion in investable capital.
Zia Uddin, president of Monroe Capital, said the close reflects continued confidence from the firm's global institutional investor base in its direct lending platform, underwriting discipline and long-term performance across market cycles. He added that many limited partners are seeking greater diversification and exposure to the target segment.
Monroe Capital operates a private credit platform with approximately $23 billion in assets under management as of December 1, 2025, across more than 45 vehicles. These include direct lending and alternative credit funds, venture debt, publicly traded and private business development companies (BDCs), SMAs and collateralized loan obligations (CLOs). In November, chairman and founder Theodore Koenig told The Korea Economic Daily's CIO Roundtable that direct lending in the lower middle market is expected to remain a top-performing segment within private credit.
The fund attracted $2.8 billion in commitments from institutional limited partners, complemented by $1.5 billion of targeted leverage and $1.8 billion from SMAs expected to invest under the same mandate. The investor base comprises over 90 global institutions, including public and corporate pension plans, insurance companies, sovereign wealth funds, foundations, endowments, family offices and other institutional investors across 18 countries.
Fund V will continue Monroe's focus on senior secured financing to private equity-sponsored and non-sponsored lower middle-market US companies with approximately $35 million or less in EBITDA. The fund follows Monroe Capital Private Credit Fund IV, which closed in April 2022 with $4.8 billion in investable capital.
Zia Uddin, president of Monroe Capital, said the close reflects continued confidence from the firm's global institutional investor base in its direct lending platform, underwriting discipline and long-term performance across market cycles. He added that many limited partners are seeking greater diversification and exposure to the target segment.
Monroe Capital operates a private credit platform with approximately $23 billion in assets under management as of December 1, 2025, across more than 45 vehicles. These include direct lending and alternative credit funds, venture debt, publicly traded and private business development companies (BDCs), SMAs and collateralized loan obligations (CLOs). In November, chairman and founder Theodore Koenig told The Korea Economic Daily's CIO Roundtable that direct lending in the lower middle market is expected to remain a top-performing segment within private credit.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.