Monroe Capital Announces $250 Million Forward Flow Purchase of Consumer Recreational Vehicle and Marine Loans from Source One Financial Services, LLC

CHICAGO--(BUSINESS WIRE)--Monroe Capital LLC (“Monroe”), on behalf of its investment funds, has announced it has established a partnership with Source One Financial Services, LLC (“Source One”) to originate and purchase consumer recreational vehicle (“RV”) and marine loans. The initial pool is expected to be $250 million. Monroe has secured a revolving credit facility with Canadian Imperial Bank of Commerce to finance such origination and purchase. The capital provided by the Monroe partnership will allow Source One to continue to drive origination growth in high quality consumer RV and marine loans. Source One will originate and service the loans.

Source One, a subsidiary of ECN Capital Corp. (TSX: ECN) (“ECN”), is a leading financial services provider in the RV and marine financing industry in the U.S. and has been operating since 1999. Source One maintains an expansive network of RV and marine dealer relationships across the U.S. ECN, through its subsidiaries, manages over $1.3 billion in its RV and marine segment.

“Source One is a proven partner with extensive underwriting capabilities and experience. This investment directly highlights Monroe’s asset-backed finance expertise and our ability to source unique and high-quality specialty finance transactions,” said Kyle Asher, Co-Head, Alternative Credit Solutions, Monroe Capital.

“We are excited by our partnership with Monroe Capital providing and managing high quality consumer RV and marine loans,” said Steve Hudson, CEO of ECN Capital. “With this partnership, we continue to execute on our strategy to diversify and expand funding for Source One assets.”

This transaction is representative of Monroe’s Specialty Finance division within the Alternative Credit Solutions Group. The group focuses on asset-backed finance (ABF), complex and special situation structured debt and equity financings that cover all asset types and geographies. In 2024, the Alternative Credit Solutions Group closed 19 debt and equity transactions. The team has a broad investment mandate, flexible capital and prides itself not only on its “bottoms up” expertise but also on its ability to move quickly and efficiently and provide confidence of execution on complex transactions. For over 20 years, the firm has been investing in asset-backed transactions with attractive collateral, as well as cash flow and enterprise value-based loans.

About Monroe Capital

Monroe Capital LLC (“Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and has 11 locations throughout the United States, Asia and Australia.

Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2024 Lower Mid-Market Lender of the Year, Americas and 2023 Lower Mid-Market Lender of the Decade; Inc.’s 2024 Founder-Friendly Investors List; Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the 2022 Best CLO Manager of the Year; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.