Bennelong has partnered with US-based Monroe Capital, signing a memorandum of understanding (MOU) to continue expanding its reach beyond equities into other asset classes for the Australian market.
The strategic move includes plans to launch a local registered vehicle in the coming months.
Commenting on the announcement, Bennelong chair Gillian Larkins said the alignment “represents the third step in the process of moving Bennelong from a largely equities-based business to one that best caters for the evolving needs of investors”.
It follows the firm’s previous ventures into fixed income, having launched a distribution partnership with US asset manager Allspring Global Investments in June, building on last year’s partnership with UK-based Leadenhall Capital Partners.
“It is our strategic intent to augment our long-standing Australian capabilities by working with international specialists across all established asset classes,” Larkins said.
Headquartered in Chicago, Monroe Capital is an asset manager specialising in diversified private credit solutions. With US$21.6 billion in assets under management, the firm focuses on direct lending to the US lower middle market, serving both institutional and high-net-worth investors.
Its direct lending investment strategy concentrates on first-lien and unitranche loans to companies in diverse industries across the US and Canada.
According to Alex Kim, managing director and head of APAC at Monroe, the US middle market lending universe – which includes over 200,000 companies – is characterised by “less competition, more covenants and higher spreads than other areas of direct lending”.
“This fragmentation in the lower middle market, where Monroe Capital specialises, offers investors access to a segment of the market with the potential for higher returns and more downside protection,” Kim said.
Bennelong CEO John Burke expressed the firm’s enthusiasm for the collaboration.
“As a top 10 US non-bank lender in 2024, we believe Monroe Capital is a specialist international manager with the proven expertise and scale to offer a valuable private credit alternative to local investors,” he said.
Monroe Capital president Zia Uddin added that the launch marks a “pivotal step” in democratising access to institutional-grade credit strategies.
“We’re opening the door for qualifying investors to participate in a resilient asset class that has historically delivered stable income and downside protection.”
