CareersInvestor LoginContact Us About Us Financing Solutions Transactions Investment Products Team News and Events COLLATERALIZED LOAN OBLIGATION (CLO) FUNDS OVERVIEW Private Credit Funds Overview Business Development Company (BDC) Funds Collateralized Loan Obligation (CLO) Funds Overview WHAT IS A CLO? A collateralized loan obligation, or CLO, is a special purpose vehicle that invests in a pool of broadly syndicated or middle market senior secured loans covering a diverse range of issuers and industries. The portfolio of loans is selected by a collateral or CLO manager, who actively buys and sells loans based on their overall attractiveness and diversification. The CLO finances this pool of loans with privately placed rated debt and equity, providing investors with market levels of return. CLO equity returns are driven by the arbitrage or difference between the cost of debt and the yield generated by the pool of loans in the portfolio, net of any gains or losses on the investment loan portfolio. WHY INVEST IN A CLO? Ratings stability Liquidity Higher transparency and disclosure compared to traditional corporate bonds Portfolio diversification Access to high quality investments MONROE CLO PLATFORM HIGHLIGHTS Monroe has a proven 14 year track record as both a middle market and broadly syndicated CLO manager with the same senior investment team and portfolio manager Monroe has outerperformed the market through the recent financial crisis with regards to default and recovery rates Distributed over 25% of net cash-on-cash distributions per annum to investors during the financial crisis in both 2008 and 2009; never missed or diverted a quarterly equity payment Robust originations team provides propriety deal flow Access to broader Monroe origination platform results in proprietary middle market CLO portfolios Established CLO risk retention strategy that complies with regulations in both the U.S. and Europe CONTACT: Jeremy VanDerMeid Managing Director, Portfolio Manager - CLO & Loan Trading 312-523-2376 jvandermeid@monroecap.com Follow Monroe Capital: Chicago Atlanta Boston Los Angeles Naples New York San Francisco Seoul © 2021 Monroe Capital LLC. All Rights Reserved. - Terms of Use