Monroe Capital Takes Minority Interest in Second Avenue

Monroe Capital LLC, a boutique asset management firm focused on private credit markets, has acquired a minority interest in Second Avenue’s operating company and has allocated approximately $250 million of additional capital to its platform through a mix of debt and equity.

The $250 million is structured as a follow-on investment that is expected to be deployed across various opportunities this year. This is in addition to Monroe’s previously $250 million investment in April 2021, which was fully deployed to acquire approximately 500 homes.

Second Avenue is a single-family rental (SFR) platform. Founded in 2017, the company offers technology-based services to home buyers, sellers, renters and investors.

The company ended last year with around $1 billion in assets under management and had deployed approximately $800 million across 3,000 homes, representing a 114% year-over-year increase in home count. With Monroe’s follow-on commitment and remaining previously committed capital, it expects to double its home count this year.

This deal is part of Monroe’s real estate and specialty finance divisions within the opportunistic private credit group. The group focuses on complex and unique situations, structured debt, and equity financings covering all asset types and geographies. Last year, the group closed over 15 debt and equity transactions.

“We are pleased to continue our successful partnership with Second Avenue to support their growth and grow our existing SFR portfolio, at a time when we believe the market is beginning to be very ripe for activity,” said Kyle Asher, partner and co-head of Monroe’s opportunistic credit group.