Firm Description and Ownership
Founded in 2008, Horizon Technology Finance Management LLC (“HTFM”) provides
investment management services to its advisory clients, including, but not limited to, closed-end
management investment companies that have elected to be regulated as business development
companies (“BDC”) under the Investment Company Act of 1940, as amended (the “Company
Act”), other management investment companies (collectively with BDC Clients, “Investment
Company Clients”) and other institutional clients (collectively, “Clients”).
HTFM is a wholly owned subsidiary of MCH Holdco LLC, which is a wholly owned subsidiary
of Monroe Capital Investment Holdings, L.P. (“MCIH”), which is majority owned and controlled
by its general partner, Monroe Management Holdco, LLC (“MM Holdco”), which is indirectly
majority owned in the aggregate by Messrs. Theodore L. Koenig and Michael J. Egan through
intermediate holding companies, and an affiliate of Monroe Capital LLC.
Types of Advisory Services
HTFM provides investment management services, typically on a discretionary basis, to its
Clients, including identifying investment opportunities, conducting diligence on and valuing
prospective investments, negotiating investments and managing diversified portfolios of Venture
Loans (as defined below) (collectively, “advisory services”).
HTFM sources and makes debt investments to venture capital and private equity-backed
companies and publicly targeted companies (“Venture Loans”) in the technology, life science,
healthcare information and services and sustainability industries (collectively, “Target
Industries”) and manages such debt investments for its Clients (“Venture Lending”). HTFM
seeks to maximize its Clients’ investment portfolios’ total return by generating current income
from the Venture Loans it makes and capital appreciation from the warrants and other equity
interests received when making such Venture Loans. The Venture Loans are typically secured by
first liens, first liens behind a secured revolving line of credit or liens behind a combination of
secured revolving and term debt provided by the same lender. Venture Lending is typically
characterized by (1) the making of a secured debt investment after a venture capital or equity
investment
in the portfolio company has been made, which investment provides a source of cash
to fund the portfolio company’s debt service obligations under the Venture Loan, (2) the senior
priority of the Venture Loan which requires repayment of the Venture Loan prior to the equity
investors realizing a return on their capital, (3) the amortization of the Venture Loan and (4) the
receipt of warrants or other success fees with the making of the Venture Loan. HTFM also
provides advice on the sale or disposition of any warrants or equity interests obtained in
connection with the making of Venture Loans. HTFM’s investment advice is limited to the
above referenced types of investments.
Non-Advisory Services
HTFM may also have non-advisory relationships with certain entities (collectively, “Non-
Advisory Services Customers”, together with Clients, “Customers”) for which it provides
services related to sourcing of Venture Loans and administrative and similar services relating to
payment collection, billing services and report generation (collectively, “non-advisory services”).
Tailored Relationships
HTFM enters into investment management agreements or similar agreements (“Investment
Agreements”) with its Clients and manages Client accounts in accordance with such Client’s
investment guidelines, including any limitations or restrictions on diversification, concentration,
investment size limits, etc. For Investment Company Clients, such Investment Company Client’s
investment objective, guidelines and restrictions are described in the Investment Company
Client’s registration statement filed with the SEC. To date, all of HTFM’s Clients have set forth
Venture Loans as the type of investments that HTFM will seek for such Client.
For the non-advisory services HTFM provides to Non-Advisory Services Customers, HTFM
enters into a program agreement or similar agreement (“Program Agreement”) with such Non-
Advisory Services Customers. HTFM provides its non-advisory services in accordance with such
Non-Advisory Services Customer’s instructions and guidelines.
Assets Under Management
As of December 31, 2023, HTFM managed approximately (i) $802,356,000 of assets on a
discretionary basis and (ii) $0 of assets on a non-discretionary basis.