Private Credit's Role in Fueling Buy-and-Build Strategies: Monroe Capital's Financing of Alpine Investors' Antelope Pet as a Strategic Opportunity in the Natural Pet Care Market

The natural pet care market is undergoing a transformative phase, driven by shifting consumer preferences toward premium, health-conscious products and services. As pet humanization accelerates-evidenced by 70% of U.S. households owning a pet in 2025-and discretionary spending on pets rises, the sector has become a prime candidate for buy-and-build strategies. Monroe Capital's recent financing of Alpine Investors' Antelope Pet exemplifies how private credit is enabling strategic consolidation in this high-growth market, offering a blueprint for investors seeking to capitalize on the sector's projected expansion.

Market Growth and Strategic Imperatives

The global pet care market reached $273.42 billion in 2025 and is forecasted to grow at a compound annual growth rate (CAGR) of 6.60%, reaching $427.75 billion by 2032. This growth is fueled by demand for natural and organic pet food, supplements, and services, as well as the rise of e-commerce platforms like Chewy and Amazon, which have expanded access to premium products. The U.S. alone is expected to see its pet care market grow from $157 billion in 2025 to $250 billion by 2030, driven by generational shifts toward personalized, ethically sourced offerings.

Analysts emphasize that the fragmented nature of the pet care industry-over 70% of veterinary practices remain independently owned-creates fertile ground for consolidation. Buy-and-build strategies, which involve acquiring smaller, niche brands and integrating them into a cohesive platform, are particularly effective in this context. For instance, Antelope Pet, Alpine Investors' flagship platform, has acquired brands such as Ark Naturals and Bocce's Bakery to create a one-stop shop for natural pet products. This approach aligns with consumer demand for limited-ingredient diets, functional supplements, and holistic wellness solutions.

Monroe Capital's Credit Facility: Enabling Strategic Growth

Monroe Capital, a leading private credit provider, has played a pivotal role in supporting Alpine Investors' buy-and-build strategy. As the sole lead arranger and administrative agent for a senior credit facility, Monroe provided the capital necessary to fund Antelope's acquisitions and operational expansion. While specific terms of the facility-such as loan size and leverage ratios-remain undisclosed, Monroe's broader credit profile offers insight into its approach. The firm typically structures deals with leverage multiples of 4.5x EBITDA and targets middle-market companies with EBITDA between $10 million and $150 million. Its recent $730.7 million private credit CLO in 2025 further underscores its capacity to deploy capital in high-growth sectors.

Alpine Investors has committed $100–$150 million in equity capital to Antelope, complementing Monroe's financing to fund both organic growth and strategic acquisitions. This hybrid capital structure-combining private equity and senior debt-enables Antelope to scale rapidly while maintaining financial flexibility. For example, the acquisition of Doggo, a digital pet insurance provider, expanded Antelope's offerings beyond food and treats into the growing pet insurance segment. Such diversification not only enhances revenue streams but also strengthens customer retention through an integrated ecosystem of services.

Strategic Implications for Investors

The Antelope Pet case study highlights how private credit is becoming a cornerstone of buy-and-build strategies in fragmented, high-growth industries. By providing tailored financing solutions, lenders like Monroe Capital reduce the capital constraints that often hinder acquisition-driven growth. This is particularly critical in the natural pet care market, where consumer demand is outpacing supply and first-movers are capturing market share.

Analysts note that the success of buy-and-build strategies hinges on operational synergies and brand integration. Antelope's approach-retaining acquired brands under their original names while leveraging Alpine's marketing and distribution infrastructure-demonstrates a nuanced understanding of brand equity. For instance, the integration of Diggin' Your Dog and Super Snouts into the Antelope platform has allowed the company to maintain their loyal customer bases while benefiting from shared logistics and customer data analytics.

Moreover, the sector's resilience to macroeconomic headwinds positions it as an attractive investment opportunity. Despite near-term uncertainties, such as supply chain disruptions from tariff policies, the long-term fundamentals of pet humanization and demographic trends (e.g., Gen Z and Millennial pet ownership) remain robust. Private credit's focus on recurring revenue models and margin stability further mitigates risks, making it a strategic tool for investors.

Conclusion

Monroe Capital's financing of Alpine Investors' Antelope Pet underscores the transformative potential of private credit in high-growth sectors like natural pet care. By enabling a buy-and-build strategy that aligns with consumer demand for premium, sustainable products, Monroe and Alpine are not only capitalizing on market fragmentation but also setting a precedent for scalable, capital-efficient growth. As the global pet care market approaches $500 billion by 2030, investors who prioritize strategic partnerships between private credit providers and agile platforms like Antelope will be well-positioned to benefit from this paradigm shift.