WhiteHorse Capital – Q1 2023 Investment Highlights

Market volatility and uncertainty continued in the first quarter, with gyrations in the stock market and treasury market coming from the nervousness about bank sector stability. The direct lending market appears to be fairly steady but given that many sellers of high-quality assets don’t want to sell into current market weakness, firms are taking this as an opportunity to offer out assets which have some type of credit concern. On assets that are exposed to moderate or more cyclicality, we are seeing both EV and debt multiples come in. Moderate cyclicals which were selling for up to 10X multiples and getting up to 5X in the debt markets are now trading about 2X lower with debt at LTV’s of 50% or less. The current market environment offers exceptionally attractive terms, and we are being cautious in the face of a weakening economy and remain focused on credits with compelling risk return characteristics.

WhiteHorse Capital provides creative financing for sponsor and nonsponsor led businesses. Our dedicated team of nearly 70 investment professionals offers decades of experience, underwriting expertise, and a relationship-focused mindset. Contact us today to learn more about our financing solutions and ways we partner with our clients to help achieve their business goals.

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