Monroe Capital has closed a $730.7 million collateralized loan obligation backed by a diversified pool of lower-middle-market and traditional middle-market senior secured loans. 

The new vehicle, Monroe Capital PCL CLO 1, includes debt tranches rated from AA to BBB-, with Monroe and its affiliates retaining a majority of the subordinated notes. The CLO was structured to meet U.S., U.K., and European risk-retention requirements. BNP Paribas served as the initial purchaser and placement agent. 

“This transaction underscores the evolution of Monroe’s private credit platform with its first private credit CLO and our continued leadership in delivering creative capital solutions across the lower and middle markets,” said Monroe Capital President Zia Uddin. 

PCL CLO 1 represents Monroe’s third CLO transaction of the year—and the first solely dedicated to private credit. It follows the firm’s refinancings of Monroe Capital MML CLO X in June and MML CLO XV in October. Those transactions originally closed in 2020 and 2023, respectively. 

With the addition of PCL CLO 1, Monroe’s CLO platform now oversees more than $4.5 billion in assets. The firm has operated as a middle-market and broadly syndicated CLO manager for 21 years and launched its inaugural collateralized fund obligation last year. 

As of October 1, Monroe Capital manages $22 billion across more than 45 vehicles, including direct lending funds, alternative credit strategies, venture debt, business development companies, separately managed accounts, and CLOs.