HIG WhiteHorse closes on $1.65bn direct lending fund

The firm surpasses its target on fund originating loans to mainly non-sponsored companies.

The credit affiliate of HIG Capital, HIG WhiteHorse, said it has closed its HIG Direct Lending Fund 2020 on $1.65 billion, surpassing its target.

The fund, which was launched in February 2020, will renew the firm’s investment plan of originating tailored senior secured financing solutions to mainly non-sponsor-owned companies in the US, the firm said in a news release.

“The next several years will present a compelling opportunity to partner with non-sponsor-owned companies in need of private debt solutions,” said Stuart Aronson, HIG WhiteHorse’s head of US direct lending, in the statement.

The fund said it received strong support from a diverse and global investor base in North America, Europe, Asia and the Middle East, including sovereign wealth funds, public and corporate pensions, consultants, foundations, endowments and family offices.

HIG WhiteHorse’s direct lending fund has received commitments of $200 million from the New York State Teachers’ Retirement System and $50 million from the Alaska Permanent Fund, according to PDI data.

A predecessor fund, HIG WhiteHorse Principal Lending Fund, closed in December of 2019 on $1.1 billion, according to PDI data. The New York State Teachers’ Retirement System committed to that fund as well, with some $100 million.

The Miami-based investment firm’s debt funds invest in senior, unitranche and junior debt financing to companies of all sizes on a primary basis and in the secondary markets. HIG Capital, with $44 billion under management, also manages equity and real estate funds.