Rising interest rates, geopolitical risks and a recessionary environment posed challenges across the economy in most of 2022. Middle market lenders that executed very high multiple cash flow deals began facing credit challenges in terms of cash flow coverages. Fundraising activities across the market were impacted by falling public equity and debt prices and many lenders were running short on capacity by year end. Hold positions for most lenders have been decreased by 50-80%, and as a result, deals that were being done by one or two lenders early in 2022 now require two to six lenders to get done. In addition, large DDTL commitments made when liquidity was plentiful began to impact lenders’ ability to deploy new capital. Despite these challenges, WhiteHorse Capital had a record year in terms of new deal closings and dollars deployed, providing creative financing solutions totaling more than $3.3 billion in 2022 for sponsor and non-sponsor clients.
WhiteHorse Capital’s dedicated team of 70 investment professionals offers decades of experience, a relationship-focused mindset, and underwriting expertise that help our clients achieve their goals. Contact us today to learn more about our financing solutions and ways we partner with our clients to help achieve their business goals.
About WhiteHorse Capital
WhiteHorse Capital provides debt financing to middle market companies across a wide range of industries, including Telecom, Media and Technology, Healthcare, Business Services and Financial Services. WhiteHorse has a broad investment mandate and provides senior and subordinated debt for refinancings, growth capital, acquisitions, buyouts, and balance sheet recapitalizations. WhiteHorse Capital professionals, across the U.S. and Europe, have extensive experience and a proven track record of providing creative financing structures and employing a long-term relationship-oriented portfolio management philosophy.