WhiteHorse Capital professionals have extensive experience investing in the senior loan and structured product markets. The expertise and background of the team benefits from the synergies of being associated with the H.I.G. platform in sourcing and underwriting investments.
Broadly Syndicated Credit
We believe there are numerous attractive characteristics of the Senior Loan asset class.
- Downside protection to withstand significant reductions in borrowers’ earnings and enterprise value as a result of secured, senior-priority positions and covenants
- High recovery rates relative to other types of corporate debt
- A natural hedge against rising interest rates as a result of floating rate interest payments
- Low correlation to other asset classes
- Investor liquidity in a large, growing market with diversified borrowers
We manage diversified pools of senior loans through our Collateralized Loan Obligation (CLO) funds and separate accounts. We utilize our rigorous underwriting process to construct portfolios as well as manage credits and trading positions.
We are able to take advantage of our experience and expertise in the senior loan and structured finance space to invest in the CLO asset class. There are attractive risk-return characteristics at various parts of the cycle in multiple parts of these structures. We leverage our knowledge of the underlying portfolios, manager profiles, and proprietary models to opportunistically invest in these structures.