Private equity firm H.I.G. WhiteHorse successfully concludes funding for middle market lending at a total of $5.9 billion.
H.I.G. WhiteHorse Closes $5.9bn Middle Market Lending Fund IV
Sami Mnaymneh and Tony Tamer, co-founders and co-executive chairs of H.I.G., have expressed confidence in their middle market focus and unique platform targeting both non-sponsor and sponsor borrowers. This confidence is reflected in the success of their latest fund, the Middle Market Lending Fund IV (Fund IV), which has recently closed with $5.9 billion (£4.3 billion) raised.
The strategy of Fund IV is centered on originating senior secured loans across the U.S. middle market. The focus is on providing financing to both sponsor and non-sponsor borrowers, typically with EBITDA between $30 million and $100 million. The fund aims to maintain a disciplined approach by offering bespoke terms and conservative loan-to-value ratios, often through senior secured floating rate loans.
The investment scope of Fund IV primarily targets middle market companies in the U.S. for refinancing, growth capital, acquisitions, buyouts, and balance sheet recapitalizations. The fund has been invested approximately $18 billion in total to more than 285 companies.
Jordan Peer Griffin, executive managing director and global head of capital formation for H.I.G., stated that Fund IV attracted a diverse group of limited partners seeking differentiated deal flow coupled with a rigorous 'PE-style' of credit underwriting, delivering downside protection with attractive yield.
UBS identifies the upper middle market as a private credit sweet spot, although the focus of UBS in the upper middle market is not specified in the provided information. The fund attracted a wide range of investors globally, including private and public sector pensions, sovereign wealth funds, financial institutions, and family offices from North America, Europe, Asia, and the Middle East.
H.I.G. WhiteHorse, the direct lending arm of alternative asset manager H.I.G. Capital, boasts an impressive parent company managing $70 billion of capital. The fund's success is underpinned by H.I.G. Capital's extensive resources and network, which support its middle market origination capabilities.
In conclusion, H.I.G. WhiteHorse's Middle Market Lending Fund IV continues to set itself apart in the middle market space with its disciplined approach and unique platform targeting both non-sponsor and sponsor borrowers. The fund's success is a testament to the confidence of its co-founders and the appeal of its rigorous 'PE-style' credit underwriting process to a diverse group of investors worldwide.
The $5.9 billion raised for H.I.G. WhiteHorse's Middle Market Lending Fund IV is indicative of the confidence in its finance-centered strategy, which focuses on originating senior secured loans in the U.S. middle market to both sponsor and non-sponsor borrowers. The fund's success is also attributed to its disciplined approach of offering bespoke terms and conservative loan-to-value ratios, reflecting the co-founders' faith in their unique platform.
