The White House has chosen Monroe Capital LLC to create a groundbreaking investment strategy aimed at supporting businesses in the U.S. automotive supply chain. In partnership with the Motor & Equipment Manufacturers Association (MEMA) and the Alliance for Automotive Innovation, Monroe plans to launch the Drive Forward Fund LP, targeting up to $1 billion in investments. This fund will focus on companies crucial for growth and innovation in the $1 trillion U.S. automotive sector.
The Drive Forward Fund LP will specifically support small and medium-sized enterprises that are vital for the modernization of the automotive industry. It will invest in suppliers and manufacturers, as well as businesses providing complementary products and services. The fund aims to finance critical parts manufacturing—including powertrain, body, and electrical components—as well as innovative technologies like Software-as-a-Service (SaaS) and battery production.
Monroe’s strategy aligns with Vice President Harris’s May announcement in Detroit, emphasizing support for the automotive supply chain and job creation. The fund will facilitate capital access for technology investments, particularly in the transition to electric vehicles (EVs) and advancements such as Software-Defined Vehicles (SDVs) and smart factories. These investments aim to help businesses adapt to supply chain challenges and capitalize on growth opportunities.
To maximize impact, Monroe plans to combine private capital with low-cost government-guaranteed leverage by applying for a U.S. Small Business Administration (SBA) Small Business Investment Company (SBIC) license.
Monroe’s Chairman and CEO, Ted Koenig, stated, “The Drive Forward Fund will catalyze growth and innovation in America’s automotive supply chain.” The fund is designed to provide essential financial support to local businesses, enhancing their competitiveness while ensuring a stable supply chain for Original Equipment Manufacturers (OEMs).
Alex Parmacek, the Fund’s Portfolio Manager, emphasized that the automotive industry is on the brink of transformative changes. He noted the importance of supporting clean energy and sustainable vehicle technologies to bolster U.S. competitiveness.
Bill Long, MEMA’s CEO, expressed enthusiasm for collaborating with the White House to address industry challenges and enhance manufacturing competitiveness. John Bozzella, CEO of the Alliance for Automotive Innovation, highlighted the necessity of a robust supply chain to ensure the success of automotive electrification and the overall economy.
The Drive Forward Fund will be guided by an advisory council of industry experts, including representatives from MEMA and the Alliance for Automotive Innovation. The fund aims to ensure that investments support domestic manufacturing and local communities that have historically driven the automotive industry.
Monroe Capital, recognized as the SBA’s SBIC Fund of the Year, manages approximately $20 billion in assets and is poised to generate attractive returns for limited partners while focusing on growth opportunities in EVs and clean energy markets. The fundraising process for the Drive Forward Fund will commence once the SBA licensing is completed.
