Monroe Capital LLC has announced a strategic joint venture with Channel Partners, LLC, a leading specialty finance company. This collaboration is further strengthened by Monroe Capital acting as the sole lead arranger and administrative agent for a substantial $50 million senior credit facility. This financial injection is specifically designed to fuel the growth of Channel Capital Partners and enhance its operations in the small business lending sector.
Channel Capital Partners, headquartered in Maple Grove, Minnesota, specializes in providing crucial working capital loans to small businesses. Their unique business model operates exclusively through strategic partnerships with equipment leasing and finance companies. Since its inception in 2009, Channel Capital Partners has successfully originated over 3,000 loans, accumulating a loan receivable portfolio exceeding $150 million. This impressive track record highlights their expertise and effectiveness in the niche market of small business financing.
Brad Peterson, CEO of Channel Capital Partners, expressed enthusiasm about the new venture, stating, “Monroe Capital is a highly knowledgeable financial partner bringing significant capital resources and strong industry connections in banking and asset management.” He further emphasized the strategic alignment, “We are very pleased to partner with them as we look to drive our focused loan origination strategy and expand our on-balance sheet funding activities.”
Ted Koenig, President & CEO of Monroe Capital, also commented on the investment, highlighting the strategic appeal of Channel Capital Partners’ business model. “The unique origination channel and the underserved market need were key factors that attracted us to this transaction,” Koenig explained. He also noted the broader strategic importance of this partnership for Monroe Capital, adding, “The Channel Capital Partners investment underscores Monroe’s increasing focus within the specialty finance business sector.”
This joint venture and credit facility represent a significant step forward for Channel Capital Partners, providing them with the financial backing to further penetrate the small business lending market and expand their reach through their established partnership network. For Monroe Capital, this investment strategically diversifies their portfolio within the growing and dynamic specialty finance sector, reinforcing their commitment to supporting middle-market companies and innovative financial service providers.
