MA Financial, Monroe Capital, Sumitomo Mitsui in $2.6b private credit JV
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The news: MA Financial Group, Monroe Capital and Sumitomo Mitsui Banking Corporation (SMBC) have formed a joint venture to invest up to USD1.7 billion ($2.61 billion) in senior secured loans to US middle market borrowers.
The context: The JV will use the loan origination capabilities of Monroe Capital, SMBC’s private credit and sponsor finance platform, and MA Financial’s expertise in specialty credit and co-lending.
US-based Monroe is one of the largest lower middle market direct lenders while Japan-based SMBC has a global middle market sponsor business.
The companies said asset managers and banks were collaborating more in the private credit space to provide scalable, differentiated solutions to borrowers.
What they said: MA Financial Group head of global credit solutions Frank Danieli said: “The US middle market presents a compelling opportunity to deploy capital to real world economy businesses while earning strong risk-adjusted returns and benefiting from robust lender protections that are foundational to our credit philosophy. We are excited to unlock access to this opportunity for our clients”.
The source: Joint press release
