MA Financial Group, Monroe Capital, and Sumitomo Mitsui Banking Corporation (SMBC) have announced the formation of a new joint venture to invest up to US$1.7 billion in senior secured loans to US middle market companies.
The joint venture brings together the strengths of three global credit leaders to capitalise on the growing demand in a structurally underserved segment of the private credit market.
Their move comes amid rapid expansion in the private credit space. As of early 2025, the market is estimated to have reached approximately $2.2 trillion in assets under management, marking a significant increase from prior years.
Analysts forecast that the market could grow to $2.6tn by 2029, driven by tighter bank lending standards and heightened demand for flexible financing solutions.
The platform is designed to focus on first-lien, senior secured loans to established US middle market borrowers. The joint venture will leverage:
Investable capital will be sourced from all three partners, including through MA Financial’s managed funds.
The formation of this joint venture reflects a broader trend in the evolution of private credit, where asset managers and banks are increasingly collaborating to deliver scalable, differentiated capital to real economy borrowers.
“We believe that strategic partnerships between specialist lenders, asset managers, and banks are the next evolution in private credit,” said Frank Danieli (pictured left), head of global credit solutions at MA Financial. “We’re pleased to partner with Monroe Capital and SMBC in this innovative joint venture, reflecting the emerging paradigm shift toward co-lending.
“The US middle market presents a compelling opportunity to deploy capital to real world economy businesses while earning strong risk-adjusted returns and benefiting from robust lender protections that are foundational to our credit philosophy. We are excited to unlock access to this opportunity for our clients.”
Monroe Capital, one of the largest direct lenders to the lower middle market in the US, will contribute its extensive origination capabilities to the joint venture.
“We are excited to partner with MA Financial and SMBC to leverage Monroe’s robust and comprehensive origination platform for middle market transactions in the United States,” said Zia Uddin (pictured centre), president of Monroe Capital. “We continue to innovate new structures to be the financier of choice for lower middle market corporate borrowers and their private equity owners.”
SMBC’s Americas division brings a significant global footprint and sponsor relationships to the joint venture.
“By partnering with two leading credit-focused asset management firms, SMBC will enhance the financing solutions we provide to our middle market financial sponsor client base and continue to grow our footprint with the sponsor community,” said Glenn Autorino (pictured right), co-general manager, managing director and co-head of leveraged finance, SMBC Americas division.
“SMBC, Monroe, and MA Financial each share a similar approach to private credit investing with a focus on providing loans to high quality borrowers backed by top-tier middle market private equity owners. These partnerships are an important strategic milestone for the continued development of SMBC’s private credit business, and we are excited to commence capital deployment.”
The joint venture benefits from strong alignment among the partners, a shared credit philosophy, and diverse origination networks—positioning the platform to meet growing private credit demand in the US middle market. The launch is also a signal of continued investor interest in high-quality senior secured lending strategies amid a shifting global credit landscape.
