The White House has partnered with Monroe Capital LLC to create an investment strategy aimed at supporting businesses in the U.S. automotive supply chain. In collaboration with MEMA, The Vehicle Suppliers Association, and the Alliance for Automotive Innovation, Monroe plans to launch the “Drive Forward Fund LP,” targeting up to $1 billion. This fund will invest in companies essential to the U.S. auto industry, including suppliers, manufacturers, and adjacent service providers.
The goal is to support small and medium-sized businesses that are critical to the automotive supply chain, offering financial resources to help them modernize and innovate. The fund will focus on companies providing key parts like powertrain, chassis, and electrical components, as well as tech firms developing Software-as-a-Service (SaaS) solutions and other innovations like battery manufacturing and materials recycling.
This initiative builds on Vice President Harris’s earlier announcement to boost jobs and growth in the U.S. auto industry, supporting over 9.7 million jobs nationwide. It will help these companies transition from internal combustion engines to electric vehicles (EVs), adopt Software-Defined Vehicles (SDVs), and implement advanced technology like autonomous driving systems.
Monroe plans to apply for a U.S. Small Business Administration (SBA) Small Business Investment Company (SBIC) license to secure low-cost government leverage for the fund. According to Monroe’s CEO Ted Koenig, this fund will help create a reliable supply chain for Original Equipment Manufacturers (OEMs) and Tier 1 suppliers while benefiting local communities and boosting U.S. automotive competitiveness.
Key industry figures, including MEMA President Bill Long and John Bozzella, CEO of the Alliance for Automotive Innovation, have expressed support for the fund. They emphasized the importance of a robust automotive supply chain for the U.S. economy and its role in the shift to EVs and clean energy.
Monroe Capital, an asset management firm with over $20 billion in assets, will manage the fund, which will start fundraising after completing the SBA licensing process. The Drive Forward Fund LP is expected to play a critical role in maintaining the U.S.’s leadership in automotive innovation and manufacturing while offering attractive returns for investors.
