Monroe Capital launches ETN linked to direct lending strategy for LatAm investors

Private credit specialist Monroe Capital has opened up its lower middle-market direct lending strategy to Latin America and the US offshore market through a new  exchange-traded note (ETN) programme.

Investors can access Monroe’s lower middle-market direct lending strategy – which primarily invests in senior secured loans to US lower middle-market companies – through a single security with an International Securities Identification Number (ISIN) that settles on the brokerage and custody platforms wealth managers already use.

As the ETN has daily pricing and a standard security identifier, portfolio reporting uses the same process as a listed holding, negating the need for subscription documents, capital calls and bespoke reporting that are typically associated with private credit allocations.

The programme was developed with digital private markets platform PM Alpha and EBW Capital, which will lead distribution across Latin America and the US offshore market through its network of wealth management institutions, private banks and offshore investment platforms.

Zia Uddin, president at Monroe Capital, said: “Demand for private credit from international wealth channels has outpaced the infrastructure available to serve it. Working with PM Alpha and EBW Capital, we can deliver the same lower middle-market direct lending strategy our institutional investors have accessed for two decades, in a format that fits the way private banks and family offices already operate.”

Tom Douie, chief executive officer of PM Alpha, said: “We continue to see strong demand from private banks, family offices and wealth managers seeking access to high-quality private credit strategies such as Monroe's lower middle-market direct lending strategy, but in a format that integrates seamlessly with existing investment administration rails.

“The ETN structure provides that bridge, combining institutional investment exposure with the simplicity and convenience of a listed security, that is already accessed by more than 200 wealth and asset managers globally.”