Monroe Capital LLC has partnered with Source One Financial Services, LLC in a $250 million forward flow purchase of consumer recreational vehicle (RV) and marine loans.
According to a press release, the investment, made on behalf of Monroe’s funds, establishes a financing arrangement that will enable Source One to originate and service loans across its national dealer network.
This partnership marks a significant move in the growing RV and marine finance sector, with Monroe securing a revolving credit facility through Canadian Imperial Bank of Commerce to support the transaction.
Source One, a subsidiary of ECN Capital Corp. (TSX: ECN), is a well-established financial services provider in the U.S. RV and marine loan industry, operating since 1999.
The company manages over $1.3 billion in assets within this segment and works with a broad network of dealers nationwide.
“Source One is a proven partner with extensive underwriting capabilities and experience. This investment directly highlights Monroe’s asset-backed finance expertise and our ability to source unique and high-quality specialty finance transactions,” said Kyle Asher, Co-Head, Alternative Credit Solutions at Monroe Capital.
Steve Hudson, CEO of ECN Capital, added, “We are excited by our partnership with Monroe Capital providing and managing high quality consumer RV and marine loans. With this partnership, we continue to execute on our strategy to diversify and expand funding for Source One assets.”
This transaction is part of Monroe’s Specialty Finance division within its Alternative Credit Solutions Group, which targets asset-backed finance (ABF) and structured debt and equity investments.
In 2024, the group completed 19 such transactions, drawing on its capacity for flexible capital deployment and expertise in complex deal execution.
For over two decades, Monroe has invested across the private credit spectrum, including cash flow lending and asset-backed transactions.
The firm is headquartered in Chicago and operates across 11 locations globally. It has earned recognition for its performance, including being named the 2024 Lower Mid-Market Lender of the Year, Americas by Private Debt Investor, and appearing on Inc.’s 2024 Founder-Friendly Investors List.
This deal holds notable significance for the RV industry. With recreational vehicle ownership on the rise, increased access to financing from specialized lenders like Source One—backed by strategic capital from firms like Monroe—signals strong institutional confidence in the long-term growth and stability of the RV and marine markets.