H.I.G. WhiteHorse Successfully Closes Major Lending Fund
H.I.G. WhiteHorse, the dedicated lending affiliate of H.I.G. Capital, has reached a significant milestone with the closure of its Middle Market Lending Fund IV, boasting assets of $5.9 billion. As part of H.I.G. Capital, a prominent player in the global alternative investment space with over $70 billion in capital under management, this latest fund underscores the firm's commitment to providing bespoke financing solutions in the middle market.
Investment Strategies and Focus
Throughout its operational history, H.I.G. WhiteHorse has participated in nearly $18 billion worth of U.S. direct lending transactions. This seasoned team has successfully backed over 285 middle market enterprises primarily through senior secured loans, tailoring terms to meet specific client needs while adhering to prudent loan-to-value ratios.
Key Borrowing Criteria
The focus of Fund IV is on sourcing and structuring senior secured loans for both sponsor-backed and non-sponsor-backed firms, targeting those with earnings before interest, taxes, depreciation, and amortization (EBITDA) values typically between $30 million to $100 million. This strategic approach enables the fund to cater to an array of businesses seeking financial support and enhances the potential for long-term partnerships.
Leadership Insights
According to Sami Mnaymneh and Tony Tamer, co-founders and co-executive chairmen of H.I.G., the firm remains one of the most dynamic credit investors in the market. They emphasize the importance of a disciplined investment focus that differentiates H.I.G. WhiteHorse in the marketplace. They express confidence that their ability to target a diverse range of borrowers will continue to yield favorable results.
Market Opportunities
Stuart Aronson, CEO of H.I.G. WhiteHorse, added that the outlook for the coming years presents unique opportunities to serve as a valuable financing partner. With a workforce of 24 originators spread across 13 regions, the company is strategically positioned to identify lucrative deals that can benefit their investors while contributing to the growth of middle market companies.
Attracting Diverse Partnerships
The success of Fund IV can be attributed to its appeal to a broad spectrum of limited partners. This group includes pension funds, sovereign wealth funds, foundations, and family offices across North America, Europe, Asia, and the Middle East, all seeking innovative deal flows alongside a rigorous credit evaluation process.
Commitment to Value and Protection
Jordan Peer Griffin, executive managing director and global head of capital formation for H.I.G., noted the essential role of diverse partnerships in their business model. The firm prides itself on delivering superior risk-adjusted returns, assuring investors of effective downside protection while maintaining an attractive yield.
About H.I.G. WhiteHorse
H.I.G. WhiteHorse serves as a critical player in the financing landscape, offering debt solutions tailored for a wide variety of sectors such as healthcare, financial services, telecommunications, and more. The team comprises 85 seasoned credit professionals who bring extensive experience in crafting innovative financing structures to support their clientele.
About H.I.G. Capital
H.I.G. Capital is noted for its substantial experience in managing investment portfolios. With a history dating back to 1993, H.I.G. has overseen investments in over 400 companies worldwide, amassing a current portfolio that includes 100+ companies generating sales above $53 billion. The firm's approach not only emphasizes debt financing but also encompasses equity investment strategies targeted toward both profitable and distressed businesses.
Frequently Asked Questions
What is the total capital raised by H.I.G. WhiteHorse Fund IV?
H.I.G. WhiteHorse Fund IV has successfully raised a total of $5.9 billion allocated for middle market lending.
Who are the co-founders of H.I.G.?
The co-founders of H.I.G. are Sami Mnaymneh and Tony Tamer, who also serve as co-executive chairmen.
What industries does H.I.G. WhiteHorse focus on?
H.I.G. WhiteHorse provides financing solutions across various sectors, including business services, healthcare, consumer and retail, and technology.
How does H.I.G. WhiteHorse differentiate itself?
H.I.G. WhiteHorse differentiates itself through its disciplined investment focus and tailored financing solutions for both sponsor and non-sponsor borrowers.
What is the advantage of investing in H.I.G. WhiteHorse funds?
Investing in H.I.G. WhiteHorse funds offers potential partners access to innovative deal flows and a rigorous credit underwriting process that emphasizes downside protection.
