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H.I.G. WhiteHorse Secures $5.9 Billion in Funding for Middle Market Lending

H.I.G. WhiteHorse, the direct lending affiliate of H.I.G. Capital, has successfully closed its $5.9 billion Middle Market Lending Fund IV. This significant achievement reinforces H.I.G.'s strategic positioning in the realm of alternative asset management, particularly within the U.S. middle market sector.

As a prominent global asset management firm, H.I.G. Capital boasts an impressive portfolio, with over $70 billion in capital under management. The newly established Fund IV is poised to continue H.I.G. WhiteHorse's tradition of originating and deploying senior secured loans across various middle market companies, a vital segment for economic growth.

To date, H.I.G. WhiteHorse has allocated around $18 billion to direct lending transactions, partnering with over 285 middle market companies. The investment primarily focuses on senior secured floating rate loans, characterized by tailored terms and conservative loan-to-value ratios. Fund IV will specifically target borrowers—both sponsor and non-sponsor—with an EBITDA range of $30 to $100 million.

The Co-Founders and Co-Executive Chairmen of H.I.G., Sami Mnaymneh and Tony Tamer, expressed their confidence in the firm's commitment to maintaining a robust middle market focus. They noted H.I.G. WhiteHorse's established leadership in the industry and its unique capacity to cater to both non-sponsor and sponsor borrowers. This dual approach is expected to differentiate H.I.G. from competitors and enhance service to clients looking for value-added financing options.

Opportunity for Growth

In remarks from Stuart Aronson, Executive Managing Director and CEO of H.I.G. WhiteHorse, the firm anticipates favorable opportunities in the upcoming years. The aim is to function as a valuable financing partner for middle market companies, whether they are looking for growth capital, refinancing, or assisting with acquisitions and management buyouts. The company boasts a team of 24 originators spread across 13 regional markets, positioning itself to secure exclusive deal flows beneficial for investors.

According to Jordan Peer Griffin, Executive Managing Director, the demand for innovation in investment strategy is present. Fund IV attracted a diversified pool of limited partners, including pensions, sovereign wealth funds, endowments, and family offices from various regions globally—North America, Europe, Asia, and the Middle East. This wealth of partnerships lays a solid foundation for H.I.G. to continue delivering attractive risk-adjusted returns in fluctuating market conditions.

H.I.G. WhiteHorse's Broad Mandate

H.I.G. WhiteHorse provides diverse debt financing solutions across a wide variety of sectors, including business services, healthcare, financial services, and consumer goods. Their investment strategies focus largely on offering senior secured debt aimed at refinancings, growth, acquisitions, and balance sheet recapitalizations. The team of 85 credit professionals brings a wealth of experience, applying innovative financing structures while adhering to a long-term relationship-oriented management philosophy.

About H.I.G. Capital

Established in 1993, H.I.G. Capital operates across the globe with a network of offices in strategic locations, including Miami, London, and Hong Kong. The firm's core mission is to leverage its operationally focused approach to invest in both equity and debt across middle market companies, ensuring sustainable growth and improvement.

For additional insights about their operations, you may visit H.I.G. Capital's website for more information regarding upcoming developments and investment opportunities. This recent closing positions H.I.G. WhiteHorse not only for immediate impact but for sustained growth in the U.S. middle market lending landscape.