Monroe Bundles Private Fund Stakes for $350 Million of Financing

Chicago-based private credit investor Monroe Capital plans to raise around $350 million through a structured finance vehicle backed by cash flows from stakes in a number of its funds, according to people with knowledge of the matter.

Investment bank Jefferies is helping Monroe with the deal, the people said, asking not to be identified discussing private information. Such instruments, called collateralized fund obligations, typically include a debt component as well as a so-called equity portion that’s the first to absorb any losses.

The deal is Monroe’s second CFO after it raised $315 million late last year in a transaction that ...