Private credit manager Monroe Capital is acquiring venture capital debt manager Horizon Technology Finance Management, which would add a new investment offering for institutional investors, said Theodore L. Koenig, chairman and CEO of Monroe Capital.
Horizon Technology Finance Management is a venture debt manager and investment adviser to specialty finance company Horizon Technology Finance Corp. Horizon Technology Finance Management has about $1 billion in assets under management, including institutional capital and a public business development company.
Monroe has $15.9 billion in assets under management.
Venture debt is "a hot area," Mr. Koenig said in an interview.
Venture capital exits are down with fewer portfolio company sales and the initial public offering market closed for about a year, Mr. Koenig said.
When the transaction closes, Monroe would focus on lending to late-stage venture capital portfolio companies that would normally go public, he said.
"These companies need liquidity," which cannot be provided by their venture capital backers due to a lull in fundraising, Mr. Koenig said.
Horizon's entire 32-person team will be joining Monroe.
