White Oak Global Advisors and its financing affiliates deployed $1.1 billion in capital in 2023.
“Last year marked a significant increase in the demand for our flexible financing solutions, especially as banks retrenched due to regulatory pressures and other economic factors,” Andre Hakkak, co-founder and CEO of White Oak Global Advisors, said. “Last year, our efficient and creative financing solutions continued to meet the needs of our middle market clients. Looking ahead to 2024, we anticipate an even more dynamic year and are excited to collaborate with exceptional companies, offering them bespoke financing solutions tailored to their specific business needs.”
In 2023, as monetary policy and economic challenges caused traditional lenders to decrease their capital deployment, White Oak and other non-bank lenders witnessed a surge in demand, a trend expected to persist into 2024.
“Despite a more favorable inflation outlook and the prospect of continued interest rate reductions, we believe that non-bank, private lenders will remain a preferred choice for many middle market businesses,” Darius Mozaffarian, partner and president at White Oak Global Advisors, said. “White Oak has the flexibility to customize each financing facility to meet the unique needs of our partner companies. We can provide true, one-stop financing solutions to meet our partner companies’ growth ambitions through many combinations of loan products including cash flow term loans, asset-based revolvers secured by current assets such as receivables and inventory and asset backed loans secured by longer term assets such as machinery and equipment.”
Last year was a pivotal year for White Oak Commercial Finance, the asset-based lending affiliate of White Oak Global Advisors, as the firm deployed more than $600 million in asset-based loans, including:
- A $67 million credit facility for a U.S. healthcare and food safety products provider
- A $287.5 million credit facility for Majestic Steel USA, a distributor and provider of flat-rolled steel products
- A $70 million credit facility for a textile supplier
- A $20 million facility for a telecommunications company involved in the Affordable Connectivity Program
- A $120 million credit facility for Alliance Entertainment, a distributor of music, movies and consumer electronics
In addition, Finacity Corporation, a White Oak company that facilitates the financing and administration of receivables, surpassed a company-record $200 billion in annual flow of financed receivables. Finacity closed seven new transactions in 2023, representing more than $1 billion in new financing, and upsized existing transactions by $650 million. Financings were collateralized by receivables in 175 countries and denominated in 13 currencies. The company hosted working capital roundtables at U.S. embassies and consulates in London, Madrid, Lisbon and Toronto, with upcoming roundtables scheduled in Frankfurt, Seoul, Singapore and Sydney in early 2024.