Bennelong Funds Management has signed a memorandum of understanding (MOU) with US private credit manager Monroe Capital to distribute its products in Australia.
Chicago-based Monroe Capital has US$21.6 billion ($32.5 billion) in assets under management in private credit solutions and over 300 employees. Launched in 2004, it opened its first office in Australia in February 2025.
The firm has a focus on US lower middle market direct lending to institutional and high-net-worth investors, stating the middle market lending universe has over 200,000 companies, more covenants and higher spreads than other areas of direct lending.
Its direct lending strategy is focused on first lien and unitranche loans to companies, which are diversified across multiple industries in the US and Canada.
Bennelong said it plans to launch a local registered vehicle for Australian investors in the coming months.
John Burke, chief executive of Bennelong Funds Management, said: “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. We are excited to be working with the Monroe Capital team as we continue to service our excellent client base in meeting their evolving needs.”
“Launching our private credit strategy via Bennelong’s Australian-domiciled fund marks a pivotal step in democratising access to institutional-grade credit strategies,” said Zia Uddin, president of Monroe Capital.
“We’re opening the door for qualifying investors to participate in a resilient asset class that has historically delivered stable income and downside protection.”
This is the second US firm that Bennelong has worked with on distribution in recent months as it announced in July that it had formed a strategic partnership with North Carolina business Allspring Global Investments. This will see Bennelong distribute the Allspring Global Income Fund to Australian retail, wholesale and institutional investors.
Allspring was previously the asset management arm of Wells Fargo, and has US$600 billion ($932 billion) in assets under management across fixed income funds.
