Monroe Capital LLC announced the final close of its 2025 Monroe Capital Private Credit Fund V, bringing total investable capital to $6.1 billion. The fund is underpinned by $2.8 billion of institutional limited‑partner commitments, $1.5 billion of targeted leverage, and $1.8 billion from separately managed accounts that will invest in the same mandate.
Fund V is the firm’s largest private‑credit vehicle to date and the first time Monroe Capital has raised more than $6 billion in a single fund. The capital expansion allows the company to originate senior‑secured loans to lower‑middle‑market U.S. companies with EBITDA between $3 million and $35 million, a segment that has seen heightened demand as traditional banks retreat from this niche.
The raise reflects strong investor confidence, with over 90 global institutional investors—pension plans, insurance companies, sovereign wealth funds, and endowments—committing capital. The firm’s disciplined underwriting and track record of delivering risk‑adjusted returns have attracted a broad base of investors, underscoring the perceived strength of its direct‑lending platform.
Zia Uddin, President of Monroe Capital, said the close “reflects the continued confidence our global institutional investor base has in Monroe’s tenured direct‑lending platform, disciplined underwriting culture, and long‑term performance across market cycles.” The additional capital will enable Monroe to pursue larger deals, deepen relationships with private‑equity sponsors, and capture a larger share of the lower‑middle‑market lending market, which has expanded as banks reduce exposure to this segment.
Monroe’s assets under management reached approximately $23 billion as of December 1 2025, up from $22 billion in October 2025 and $14 billion in April 2022. The growth trajectory of its AUM, coupled with the record‑size Fund V, signals a sustained expansion of the firm’s private‑credit platform and a strengthening competitive position in a market that is increasingly attractive to non‑bank lenders.
The successful fund close positions Monroe Capital to capitalize on a favorable supply‑demand dynamic in the lower‑middle‑market, where banks’ retrenchment has created a tailwind for non‑bank lenders. Investor confidence in the firm’s disciplined approach and proven performance is expected to translate into continued capital inflows and a stronger market presence in the coming years.
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