H.I.G. WhiteHorse closes middle market lending fund at $5.9bn

H.I.G. WhiteHorse, the direct lending arm of alternative asset manager H.I.G. Capital, has closed its latest mid-market lending fund with $5.9bn (£4.3bn) raised. 

The Middle Market Lending Fund IV (Fund IV) is focused on originating senior secured loans across the US middle market. The fund is invested approximately $18bn in total to more than 285 companies, primarily through senior secured floating rate loans, “often with bespoke terms and conservative loan-to-value ratios”.

Read more: Sound Point Capital raises $1.1bn for Strategic Capital Fund III

Fund IV’s strategy is focused on originating loans to both sponsor and non-sponsor borrowers, with EBITDA typically between $30m and $100m.

The fund attracted a wide range of investors globally, including private and public sector pensions, sovereign wealth funds, financial institutions and family offices in North America, Europe, Asia and the Middle East.

“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,” said Jordan Peer Griffin, executive managing director and global head of capital formation for H.I.G.

Read more: PGIM closes middle market direct lending fund at $4.2bn

H.I.G. WhiteHorse provides primarily senior secured debt for refinancings, growth capital, acquisitions, buyouts, and balance sheet recapitalisations.

Parent company H.I.G. Capital has $70bn of capital under management.

“We have been disciplined in maintaining our middle market focus and are confident that our unique platform targeting both non-sponsor and sponsor borrowers will continue to set us apart in this space,” added Sami Mnaymneh and Tony Tamer, co-founders and co-executive chairs of H.I.G.

Read more: UBS identifies upper middle market as private credit sweet spot