H.I.G. Capital Advances Financial Technology Investments Through Strategic Lending Platform Growth
Financial services modernization has attracted significant attention from H.I.G. Capital, with the firm building one of the largest middle market direct lending platforms while simultaneously investing in technology companies that serve financial institutions and business clients. The dual approach positions H.I.G. to benefit from both credit market opportunities and financial technology adoption trends.
H.I.G. WhiteHorse closed its Middle Market Lending Fund IV with $5.9 billion in assets, marking continued expansion of the firm’s direct lending capabilities. The fund targets senior secured loans to companies with EBITDA between $30 million and $100 million, serving both sponsor and non-sponsor borrowers across diverse industries.
“We believe the coming years will offer a compelling opportunity to serve as a value-added financing partner to both sponsor and non-sponsor middle market companies seeking private debt solutions,” said Stuart Aronson, Executive Managing Director and CEO of H.I.G. WhiteHorse.
The lending platform has deployed approximately $18 billion across 285 middle market companies since inception, focusing on senior secured floating rate loans with conservative loan-to-value ratios and customized terms. H.I.G. WhiteHorse operates with 24 originators across 13 regional markets, enabling direct relationships with borrowers and local market expertise.
Revenue Cycle Management and Healthcare Finance
Healthcare financial services represent a specialized focus area where H.I.G. has deployed capital through its acquisition of GetixHealth, a revenue cycle management provider serving healthcare organizations. Founded in 1992 and headquartered in Sugar Land, Texas, GetixHealth offers comprehensive services addressing complex reimbursement environments and regulatory requirements.
“Due to the complex reimbursement environment and evolving regulatory landscape, our customers are increasingly turning to us to address their revenue cycle challenges,” said Kevin Lonergan, Chief Executive Officer of GetixHealth. “We are excited to partner with H.I.G. to leverage their resources and deep RCM expertise.”
The company’s capabilities include patient responsibility management, eligibility and enrollment services, third-party claims resolution, patient access, and insurance billing. Healthcare providers benefit from enhanced patient experiences, streamlined administrative processes, and improved cash conversion cycles through GetixHealth’s technology-enabled solutions.
Anthony Chambers, Managing Director at H.I.G., emphasized the company’s market position: “GetixHealth is a vital partner to healthcare providers, including many of the nation’s largest health systems. We are impressed by the Company’s capabilities and stellar reputation among its clients and patients.”
Technology-Enabled Business Services
Financial technology companies serving enterprise clients have attracted H.I.G.’s investment focus through acquisitions targeting companies with specialized market positions and growth potential. The firm completed the merger of Converge Technology Solutions and Mainline Information Systems to form Pellera Technologies, creating a premier technology partner for enterprise and mid-market clients.
Pellera combines deep technical expertise across cybersecurity, cloud services, digital infrastructure, and artificial intelligence to deliver comprehensive IT solutions. Pro forma for the combination, the company generated approximately $4 billion in revenue in 2024 while serving clients across diverse industries.
“We’re combining the bold vision, unmatched talent, innovative solutions, and trusted partnerships of Mainline and Converge to deliver differentiated value,” said Greg Berard, Chief Executive Officer of Pellera. “With H.I.G.’s support, we’re accelerating investments in areas like AI, cybersecurity, hybrid cloud, app modernization, and data.”
The merger reflects H.I.G.’s approach to building technology platforms through strategic combinations that enhance service offerings and expand client capabilities. Pellera’s comprehensive solutions address enterprise technology needs across cloud migration, digital transformation, and emerging technology adoption.
Direct Lending Market Dynamics
Middle market direct lending has experienced growth as companies seek alternative financing sources amid evolving bank regulations and capital market volatility. H.I.G. WhiteHorse’s lending strategy emphasizes relationship-based origination and credit underwriting that provides flexibility for borrowers while generating attractive risk-adjusted returns.
“Fund IV attracted a diverse group of limited partners seeking differentiated deal flow coupled with rigorous ‘PE-style’ credit underwriting,” said Jordan Peer Griffin, Executive Managing Director and Global Head of Capital Formation for H.I.G.
The lending platform serves both sponsor-backed companies requiring acquisition financing and non-sponsor businesses seeking growth capital, refinancing, or balance sheet optimization. H.I.G. WhiteHorse’s broad investment mandate enables creative financing structures tailored to borrower needs across various transaction types.
Regional origination teams provide local market knowledge while accessing firm-wide underwriting capabilities and portfolio management resources. The approach enables H.I.G. to compete effectively against larger institutional lenders while maintaining disciplined credit standards and relationship focus.
H.I.G. Capital’s Fintech Investment Strategy
Financial technology investments target companies addressing inefficiencies in traditional financial services delivery, regulatory compliance, and data management. H.I.G. seeks businesses with proven technology solutions, established customer relationships, and expansion opportunities through market development or product enhancement.
GetixHealth’s revenue cycle management platform exemplifies H.I.G.’s focus on companies providing mission-critical services to large institutional clients. Healthcare revenue cycle complexity creates demand for specialized technology solutions that improve operational efficiency and financial performance.
Pellera Technologies demonstrates H.I.G.’s approach to technology service providers that help enterprise clients navigate digital transformation initiatives. The company’s Microsoft ecosystem expertise and AI capabilities position it to benefit from continued enterprise technology adoption and modernization spending.
“We are excited to integrate two trusted and complementary IT solutions partners to boost service offerings and accelerate growth in complex IT areas,” said Aaron Tolson, Managing Director at H.I.G.
Credit Market Opportunities and Risk Management
H.I.G. WhiteHorse’s lending approach emphasizes senior secured positions with first lien priority and comprehensive covenant packages that provide downside protection. The platform’s focus on floating rate loans addresses interest rate risk while generating current income for investors.
Credit underwriting incorporates detailed operational analysis, management assessment, and industry evaluation that mirrors private equity due diligence standards. The approach enables H.I.G. to identify attractive lending opportunities while avoiding credit deterioration through active portfolio monitoring and borrower engagement.
“H.I.G. is one of largest and most active credit investors in the middle market where H.I.G. WhiteHorse is an established leader,” said Sami Mnaymneh and Tony Tamer, H.I.G. Co-Founders and Co-Executive Chairmen. “We have been disciplined in maintaining our middle market focus.”
The lending platform benefits from H.I.G.’s broader investment activities and industry relationships that provide deal flow and market intelligence. Cross-platform collaboration enables identification of lending opportunities across H.I.G.’s equity investment activities while maintaining independent credit decision-making processes.
Market Position and Competitive Advantages
H.I.G.’s financial services investments leverage the firm’s operational expertise, industry relationships, and capital resources to support portfolio company growth and market expansion. The approach emphasizes partnership with management teams and value creation through operational improvements rather than financial engineering.
Current financial services portfolio companies benefit from H.I.G.’s network, sector knowledge, and strategic guidance while maintaining operational independence and customer relationships. The firm’s track record includes successful investments across market cycles and economic conditions.
Financial technology continues offering attractive investment opportunities as traditional financial services firms seek to modernize operations, enhance customer experiences, and comply with evolving regulatory requirements. H.I.G.’s diversified approach across lending, technology, and specialized services positions the firm to benefit from continued industry transformation and growth trends.