Monroe Capital Corp., a Chicago-based investment firm, plans to sell shares in an initial public offering of $150 million.

The firm, which makes debt and equity investments in companies with revenues from $20 million and $500 million, said it plans to use the proceeds to repay debt and to take additional stakes in portfolio companies.

Its portfolio companies include Ex Libris in Des Plaines, Gibson Guitar in Nashville and Rocket Dog Brands in Hayward, Calif.

Less competition from a struggling banking industry is among the factors that will help drive deals to specialty finance companies such as Monroe, the company said in its SEC filing.

“We believe that the dislocation in the financial markets over the last 24 to 30 months has reduced the amount of credit available to middle-market companies,” Monroe said in its filing.

As of Dec. 31, 2010, Monroe Capital and its affiliates, headquartered at 311 S. Wacker Drive, had $440 million in assets under management. Since its founding in 2004, Monroe Capital LLC has invested more than $1.1 billion in more than 260 transactions. A few days ago it announced that it has raised a $250 million fund, whose limited partners include five commercial banks.

On average, Monroe Capital estimates that it reviews more than 1,000 deals a year. As of Feb. 24, Monroe Capital had a pipeline of more than 55 transactions for an aggregate potential deal volume of approximately $900 million.

Monroe Capital was founded by Ted Koenig, who is also its chief executive officer. He had also been CEO at Hilco Capital LP, where he led investments in more than 30 companies. Monroe has nearly 20 investment professionals. He’s chairman of the board. He’s also past president of the Indiana University Kelley School of Business Alumni Club of Chicago, and currently serves as director of the Commercial Finance Association and is a member of the Turnaround Management Association, the Association for Corporate Growth and the American Bankruptcy Institute.

Other directors include Chief Financial Officer Daniel Duffy.

From December 2006 through December 31, 2010, Monroe Capital generated a 21.8 percent net return, placing it in the top 10 percent of the 524 U.S. loan funds included in Citibank’s January 2011 report “Global Credit Strategy,” the SEC filing said.

Its investments generally range in size from $5 million to $25 million.

It also has offices in Boston and Los Angeles.