Monarch Alternative Capital Closes MCP V at $3 Billion

December 11, 2020

Willkie advised client Monarch Alternative Capital LP on the formation of Monarch Capital Partners V (MCP V), its fifth closed-end fund, which is poised to capitalize on distressed opportunities in the current market.

On December 8, Monarch Alternative Capital LP, a leading distressed and opportunistic credit investment firm, announced the final close of Monarch Capital Partners V. Monarch raised $3 billion of capital for its oversubscribed fifth closed-end fund, which is poised to capitalize on distressed opportunities in the current market.

Monarch Capital Partners V launched in early 2020, ahead of the COVID-19 pandemic. The fund began investing upon the first close in May 2020 and has been actively deploying capital. Monarch's seasoned team, which has been together through multiple distressed cycles, is well positioned to capitalize on the dynamic and unpredictable environment arising from COVID-19. Through October 31, 2020, MCP V has deployed $1.1 billion of capital across 38 different investments. Firmwide, Monarch has invested over $3.5 billion into the distressed asset class, the most capital the firm has deployed in a year since 2008.

Monarch Alternative Capital LP is a global investment firm founded in 2002 with offices in New York and London. The firm manages approximately $8.3 billion across its closed-end funds, open-ended fund, and customized solutions. Monarch focuses primarily on distressed situations and opportunistic credit across corporate debt, structured credit, real estate, government debt, and special situations.

Willkie had previously advised Monarch on MCP V's predecessor funds, including MCP IV for which Monarch had raised $1.25 billion in 2017

The Willkie team was led by fund formation partners Lior Ohayon and John Knapke, and included partners Hillel Jacobson and Peter Haller, and associates Matthew Pei and Caitlin Link.