Monroe Capital LLC has announced a strategic joint venture with Channel Partners, LLC, a specialty finance company. This partnership is further strengthened by Monroe acting as the sole lead arranger and administrative agent for a significant $50 million senior credit facility, designed to fuel the expansion of Channel Partners and bolster their provision of Channel Partners Capital.
Channel Partners, based in Maple Grove, Minnesota, is a prominent provider of working capital loans specifically for small businesses. Their unique approach involves delivering these crucial financial solutions exclusively through collaborations with equipment leasing and finance companies. Since its inception in 2009, Channel Partners has successfully originated over 3,000 loans, generating a loan receivable portfolio exceeding $150 million through these strategic alliances. This demonstrates a robust and effective model for deploying channel partners capital into the market.
Brad Peterson, CEO of Channel Partners, highlighted the strategic importance of this new financial backing, stating, “Monroe Capital is a highly knowledgeable financial partner with substantial capital resources and deep relationships in the banking and asset management industries.” He further emphasized the positive impact of this alliance on their growth strategy, “We are very pleased to partner with them as we look to drive our focused loan origination strategy and grow our on-balance sheet funding activity.” This clearly indicates how access to channel partners capital is a key enabler for Channel Partners’ future development.
Ted Koenig, President & CEO of Monroe Capital, also commented on the strategic rationale behind this venture, noting, “The unique origination channel and the underserved market need attracted us to the transaction.” He added, “The Channel Partners investment represents Monroe’s growing focus on the specialty finance business sector.” This statement underscores Monroe Capital’s strategic vision in investing in companies that effectively deploy channel partners capital and address specific market demands.
This joint venture and credit facility represent a significant injection of channel partners capital into the small business lending market. It signifies a powerful collaboration between two experienced financial players, poised to facilitate further growth and expand access to essential working capital for small businesses through strategic channel partnerships.
