Monroe Capital LLC announced the closing of its PCL CLO 1, LTD, a $730.7 million term‑debt securitization that pools lower‑ and traditional middle‑market senior secured loans. The deal marks the firm’s third CLO issuance in 2025 and expands its private‑credit platform to more than $4.5 billion in assets under management.
The CLO structure features tranches rated from AA to BBB‑, with Monroe and its affiliates retaining a majority of the subordinated notes. BNP Paribas acted as the initial purchaser and placement agent, and the transaction complies with risk‑retention guidelines in the United States, United Kingdom, and Europe, ensuring the securitizer maintains a meaningful share of the credit risk.
By issuing the CLO, Monroe leverages its strong underwriting track record to unlock capital that can be redeployed into new direct‑lending and alternative‑credit opportunities. The deal demonstrates the firm’s ability to access capital markets efficiently and reinforces its positioning as a leader in lower‑middle‑market credit solutions.
Management explained that the transaction underscores the evolution of Monroe’s private‑credit platform and its continued leadership in delivering creative capital solutions across the lower and middle markets. The firm’s confidence in the underlying portfolio is reflected in its decision to retain a majority of the subordinated notes, signaling alignment of interests with other investors.
Monroe Capital LLC manages approximately $22 billion in assets across more than 45 vehicles, but the CLO issuance is distinct from Monroe Capital Corporation’s publicly traded BDC arm. The transaction does not directly impact MRCC’s financial statements, though it strengthens the overall Monroe ecosystem.
The closing of the CLO positions Monroe to accelerate growth in its core private‑credit strategies while maintaining compliance with regulatory risk‑retention standards, thereby supporting the firm’s long‑term capital‑raising and investment objectives.
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