Horizon Technology Finance Corporation Announces Monroe Capital’s Agreement to Acquire Horizon Technology Finance Management

FARMINGTON, Conn., Feb. 23, 2023 /PRNewswire/ — Horizon Technological innovation Finance Company (NASDAQ: HRZN) (“Horizon” or the “Firm”), a leading specialty finance business that presents cash in the variety of secured loans to venture money backed companies in the technological know-how, lifetime science, health care information and facts and companies, and sustainability industries, today declared that an affiliate of Monroe Money LLC (“Monroe Funds”), a premier boutique middle current market asset manager, has entered into a definitive agreement to obtain Horizon Technological innovation Finance Administration LLC (“HTFM”), the financial commitment adviser to the Organization (the “Transaction”), and that the Company’s Board of Directors has unanimously permitted a new expense advisory agreement with HTFM, issue to stockholder approval and the closing of the Transaction.

The conditions of the proposed new investment decision advisory arrangement amongst the Firm and HTFM are considerably equivalent to the present agreement among HTFM and the Organization.

In connection with the Transaction, HTFM’s current management group and financial commitment personnel are predicted to keep on to serve as officers and senior management of the Corporation and the Corporation programs to preserve and expand its undertaking lending expenditure technique. Monroe Money and HTFM consider that the Transaction will let the Firm to profit from the potential to capture a broader variety of investment chances intended to increase shareholder price in both equally the close to and extended-term as a outcome of obtain to Monroe Capital’s fundraising capabilities and overall expenditure platform. Monroe is a marketplace leader in non-public credit score with a 20-year monitor file and roughly $16 billion in belongings less than management. 

Monroe Capital Chairman and Main Executive Officer Ted Koenig commented, “Horizon has assembled a superior-high quality portfolio and potent sector position that we intend to keep on to scale into a industry leader in venture lending. Monroe has a robust asset management, direct origination and fundraising system, alongside with a demonstrated means to create reliable and differentiated returns for buyers.  We continue to seem for ways to strategically differentiate and scale our asset management platform and Horizon augments our nearly 20-12 months observe record and knowledge in specialty lending spots, like program and technological know-how, specialty finance, impartial sponsor finance, opportunistic, media and leisure, sports activities, fintech and true estate. This acquisition will allow us to greater provide our limited companions and other investors with supplemental solution knowledge with a confirmed administration workforce focused to undertaking lending.”

“We believe that this transaction combining Horizon’s recognized existence in the venture lending market place and Monroe’s deep credit working experience offers a powerful possibility to participate in the potential advancement probable of the Horizon portfolio below a much larger, much more diversified supervisor, led by a remarkably professional expenditure group. Monroe’s long-phrase financial commitment tactic, emphasizing return regularity and downside security for buyers, is more improved by adding a main undertaking lending approach to the platform,” mentioned Zia Uddin, Monroe Funds President & Co-Portfolio Supervisor, Institutional Portfolios.

Rob Pomeroy, Chairman and Chief Govt Officer of HTFM, explained, “We are self-confident that Monroe Capital’s platform is a organic in good shape for HTFM and we think signing up for with the Monroe Capital staff has the capacity to make fantastic price for Horizon shareholders. Our cultures and values are aligned, and with the skill to obtain Monroe Capital’s platform and infrastructure shifting ahead, we consider Horizon will practical experience amplified expense options with bigger range, with possibly lessened charges as a result of economies of scale. We are enthusiastic to be partnering with Monroe Funds as we go on to produce extra worth for Horizon’s shareholders.”

Consummation of the Transaction is matter to customary closing situations, which include approval of the new financial investment advisory agreement with HTFM by the Firm’s stockholders. The Company’s Board of Directors unanimously endorses that the Company’s stockholders approve HTFM to carry on as the Company’s expenditure adviser.  Senior management of HTFM has agreed to vote their shares in favor of the acquisition transaction. 

Dechert LLP is performing as lawful counsel, and Broadhaven Capital Companions is performing as economical advisor, to HTFM. Nelson, Mullins, Riley & Scarborough LLP is performing as lawful counsel, and JMP Securities, a Citizens Firm is performing as economic advisor, to Monroe Capital. Blank Rome LLP is acting as legal counsel to the Firm’s independent administrators.

About Monroe Funds LLC

Monroe Capital is a premier boutique asset management company specializing in personal credit score markets throughout different techniques, which include direct lending, asset-primarily based lending, specialty finance, opportunistic and structured credit history, and fairness. Due to the fact 2004, the agency has been correctly giving cash options to clients in the U.S. and Canada. Monroe prides by itself on being a worth-added and user-welcoming companion to enterprise house owners, administration, and both of those non-public equity and independent sponsors. Monroe’s system provides a extensive range of financial commitment solutions for both institutional and high net truly worth investors with a focus on building superior quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains places of work in Atlanta, Boston, Los Angeles, Miami, Naples, New York, San Francisco, and Seoul.

Monroe has been acknowledged by both of those its peers and buyers with different awards together with International M&A Community as the 2022 Smaller Mid-Marketplaces Loan company of the Yr, Americas Private Personal debt Trader as the 2021 Senior Loan provider of the Yr, 2021 Reduced Mid-Marketplace Loan company of the 12 months, Americas Creditflux as the 2021 Best U.S. Direct Lending Fund and Pension Bridge as the 2020 Non-public Credit score Tactic of the Yr. For a lot more info, you should pay a visit to www.monroecap.com.

About Horizon Technological know-how Finance

Horizon Technological innovation Finance Corporation (NASDAQ: HRZN) is a main specialty finance organization that gives funds in the variety of secured loans to venture capital backed companies in the engineering, daily life science, healthcare data and companies, and sustainability industries. The expense objective of HRZN is to increase its investment portfolio’s return by making current earnings from the debt investments it will make and cash appreciation from the warrants it gets when creating these debt investments. Horizon Technological know-how Finance Administration LLC is headquartered in Farmington, Connecticut, with a regional business in Pleasanton, California, and financial investment gurus found in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn much more, remember to go to www.horizontechfinance.com.

Ahead-Wanting Statements

 Statements included herein may perhaps represent “ahead-looking statements” inside the which means of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical details integrated in this press launch may possibly represent ahead-looking statements and are not assures of potential efficiency, affliction or success and include a amount of challenges and uncertainties. Actual results could vary materially from these in the ahead-searching statements as a final result of a number of factors, together with those people explained from time to time in the Company’s filings with the Securities and Exchange Commission. Horizon undertakes no responsibility to update any ahead-seeking statement built herein. All ahead-looking statements discuss only as of the day of this push release.

More Info and Where by to Uncover It

In link with the proposed transaction, Horizon Engineering Corporation intends to file suitable elements with the SEC, like a proxy statement on Program 14A (“Proxy Assertion”) that will provide further facts about the proposed transaction.  INVESTORS AND STOCKHOLDERS ARE URGED TO Go through THE PROXY Statement, WHEN IT Gets to be Readily available, AND ANY OTHER Applicable Paperwork Filed WITH THE SEC, AND ANY AMENDMENTS OR Nutritional supplements TO THESE Paperwork, Very carefully AND IN THEIR ENTIRETY Due to the fact THEY WILL Contain Important Information and facts, Among OTHER Items, ABOUT HORIZON Technological know-how FINANCE Company, HORIZON Technologies FINANCE Management LLC, MONROE Money LLC, AND THE PROPOSED NEW Investment decision ADVISORY Settlement.  Traders and stockholders may well obtain these documents (and any other documents submitted by the Organization with the SEC) cost-free of demand at the SEC’s web site at http://www.sec.gov and from Horizon Know-how Finance Corporation’s site (www.horizon techfinance.com).  Traders and stockholders may well also acquire no cost copies of the proxy assertion (when it will become offered) and other documents filed with the SEC by Horizon Technology Finance Corporation free of demand by contacting Garrett Edson, Horizon Know-how Finance Corporation’s Trader Relations speak to, at 860-284-6450.  Buyers and stockholders are urged to go through the Proxy Assertion and the other relevant products when they turn out to be readily available ahead of making any voting or financial investment final decision with respect to the proposed new expenditure advisory arrangement.

Participants in the Solicitation

Horizon Engineering Finance Corporation, Horizon Know-how Finance Administration LLC, and Monroe Cash LLC may be considered to be contributors in the predicted solicitation of proxies from the Company’s stockholders in link with the transaction.  Information about Horizon Technological innovation Finance Corporation’s administrators and government officers is available in its definitive proxy statement for its 2022 once-a-year assembly of stockholders filed with the SEC on April 22, 2022, and subsequent filings which the Corporation has designed with the SEC.  Info relating to Horizon Engineering Finance Management LLC’s directors and officers is obtainable on its Kind ADV presently on file with the SEC.  More in depth info concerning the identity of prospective individuals, and their direct or oblique pursuits, by stability holdings or in any other case, which may well be distinctive than all those of the Company’s stockholders normally, will be set forth in the Proxy Statement when and it will become obtainable and in other applicable materials to be filed with the SEC.  These paperwork may possibly be acquired cost-free of demand from the resources indicated previously mentioned.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected] 
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected]
(646) 677-1819

Source Horizon Technological innovation Finance Corporation