Ted Koenig, CEO of Monroe Capital on Debt, CLOs and Competition
Paola: Tell us what Monroe Capital does?
Ted: We’re a middle-market asset manager. We provide debt-capital solutions to middle-market companies located in the US. We have offices in New York, Boston, Chicago, Los Angeles, Atlanta, and Charlotte specializing in buyouts, re-capitalization transactions, re-financing gross capital for companies of $25 million of EBIDTA and below.
Paola: What are some of the unique ways you create value for companies?
Ted: Our product, the Unit Rox debt product essentially is a one-stop financing source for middle-market companies. We combine senior- and junior-secured debt as well as mezzanine debt to provide a single solution for our borrowers. There are no inner-creditor agreements, no multi-lender transactions and no uncertainty. We try to provide certainty of close and minimize our borrowers’ execution risk.
Paola: Which hobbies or talents of yours drive your work performance?
Ted: I am a pretty competitive person. I play a lot of basketball. I play baseball. I play a lot of golf, anything that gets my competitive juices flowing on the ball fields. I try to bring that same camaraderie, team work and team spirit to the workplace.
Paola: What is one thing that you can attribute to the success of your company?
Ted: It’s a single-minded competitiveness. We’ve stuck to our knitting. We’ve been doing this as a company for over a dozen years. We’ve seen three or four different business cycles in those dozen years. When most of our competitors fell by the wayside in ’07, ’08 and ’09, we came out stronger. What’s happened over the last couple of years really set the table for us in terms of being what we are today.
Paola: What do you mean by: “single-minded competitiveness”?
Ted: We are very, very focused on what we do and try to be the very best at what we do. We’re not all things to all people. We don’t do oil and gas or venture capital. We don’t do private equity. We provide debt capital to middle-market companies and think we do it as well if not better than anybody else in the market.
Paola: What are your predictions for your company in the next year?
Ted: We’ll continue to grow our business. We’ve got a private, institutional capital business where we raise money from pensions, endowments and insurance companies. We’ll continue growing that business. We now have a public company, Monroe Capital Corporation (www.monroebdc.com), which is a publicly traded, business-development company on the NASDAQ (symbol: MRCC). That business has been growing nicely and I would bet that our collateralized loan obligations (CLO) business grows as well in 2013.
Paola: Thank you.