Monroe Capital announced the closing of its partnership agreement with Wendel Group, one of Europe’s leading listed investment firms. The transaction was originally announced on October 22, 2024.
Per the partnership agreement, Wendel has committed $1 billion for seed capital and GP commitments for current and future Monroe investment strategies. Wendel, jointly with a minority investment from AXA IM Prime, has purchased a 75% equity stake in Monroe. Wendel will use its significant balance sheet to support Monroe including by funding growth initiatives and expanding Monroe’s private credit platform.
Monroe will continue to operate independently, maintaining its current leadership structure, investment process, strategy and operations. Investment advisory agreements between Monroe and its funds, including its business development companies, remain in place. The selling shareholders have retained a 25% stake in the business, with no impact on the firm’s broader economic alignment with limited partners, including existing fund commitments and carried interest.
Wendel and AXA IM Prime have a longstanding relationship and have jointly worked since inception on the current transaction. AXA IM Prime is a shareholder, through its GP-stake fund “AXA IM Prime Capital Partners I” (“PCP I”), alongside Wendel in Monroe Capital. AXA Group (CS-FP) are the anchor investor of PCP I and already a significant and historic limited partner in Monroe Capital’s funds.
Theodore L. Koenig, Chairman and CEO of Monroe, said, “We are proud to finalize our partnership with Wendel and AXA IM Prime, a milestone achievement in our two-decade journey. Together, we are eager to collaborate and align our efforts to deliver exceptional results for our investors and clients worldwide.”
Zia Uddin, President of Monroe, said, “We are delighted to have secured a long-term, reliable partner who will play a pivotal role in strengthening our scalability and driving the accelerated growth of our asset management platform. In the evolving world of asset management, private credit stands apart—offering bespoke solutions, unparalleled flexibility, and a unique ability to potentially unlock hidden value in underserved markets.”
Laurent Mignon, Group CEO of Wendel, said, “We are excited to take the next step in our partnership with Monroe’s talented team and support their next phase of growth and success. We look forward to working together to deliver long-lasting value to our investors while helping to expand Monroe’s asset management platform and enhancing their position in the market.”
Goldman Sachs & Co. LLC acted as exclusive financial advisor to Monroe, and Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel to Monroe. UBS acted as exclusive financial advisor to Wendel and Kirkland & Ellis LLP acted as legal counsel to Wendel.