White Oak gears up for new $1B fundraise

The White Oak Summit Fund will employ a similar strategy to the most recent White Oak Pinnacle Fund, but will be able to invest more in Canada.

White Oak Global Advisors, the San Francisco-headquartered lending firm, has started raising money for its new White Oak Summit Fund which is targeting $1 billion. This fund will employ a similar strategy to the firm’s predecessor White Oak Pinnacle Fund, but will be able to do more deals in Canada, Margaret McKee, White Oak’s managing partner tells PDI. She expects to hold a first close in December.

The firm manages $1.3 billion overall in a variety of other funds and strategies. It is also raising a more liquid White Oak Fixed Income Fund that will have shorter lockups (one-year as opposed to seven for the Pinnacle fund).

White Oak’s direct lending business originates and underwrites private debt financings to mid-market companies to support their growth. The firm focuses on opportunistic credit, special situations and emerging growth investing across a variety of sectors including industrials, energy, materials, healthcare, technology and consumer staples. The strategy includes asset-based term loans, amortizing loans, unitranche loans and debtor-in-possession financings, among others. The firm’s average loan transaction size is around $7 to $150 million with hold sizes of $7 to $50 million. The term of the loans tends to be between 12 and 60 months and the typical company size is around $5 to $50 million of annual EBITDA, according to the firm’s website.  White Oak primarily invests in the US with some activity in Canada.

The firm was founded in 2007 by McKee and Andre Hakkak. McKee was previously a senior v.p. and senior counsel at KKR Financial and Hakkak was a chief investment officer at Alpine Global. In addition to San Francisco, White Oak has offices in New York and Dallas and recently opened a Denver location by hiring Kevin Grossman as a managing director in originations.