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White Oak Healthcare Finance ... Deeply Rooted to Weather All Cycles

Date: Feb 23, 2016 @ 07:00 AM

While it’s been said before, Soleimani emphasizes that industry expertise in healthcare is critical in order to navigate the sector’s inherent twists, turns and unique dynamics. He explains, “Again, it’s about the cycles. If you set aside the larger commercial banks that have dedicated and experienced healthcare lending professionals, you’ve seen banks that come into the market when healthcare is hot. They dive in head first just to follow the frenzy without understanding the risks or knowing what happens when the cycle turns. When things get tough, they get scared and ‘head for the hills.’ It’s like clockwork; they come in droves and leave in droves.”

Soleimani notes that this tendency is antithetical to the needs for middle-market healthcare borrowers and many times can contribute to a borrower’s ultimate ruin. “These providers need a steady and predictable source of financing. If you’re an investment grade entity, the banks will always be there because they are looking at your rating. They are also looking at your depository relationship that’s going to generate far more revenue for them than they might lose. But 95% of healthcare providers in the country aren’t investment grade. That’s why we see a real need to provide a steady source of capital for these middle-market companies.”

I asked Soleimani to comment on his view of the healthcare sector for the remainder of this year and going into next. He says, “Certainly in an election year, things might be a little less stable for the sector. But I look more to long term and what matters there is how well you understand the segment, how well you structure your deals and how creative you can be in doing things that will allow your borrower to get the funding they need. At the same time, we need to maintain a certain level of caution, prudence and discipline … and ultimately, that’s a great service to our borrowers.”

As for the future of White Oak Healthcare Finance, Soleimani sees both the trees and the forest and he has set his sights high. He concludes, “What we’re out to build here is a standard-setting healthcare lending operation. We are out to be the lender of choice … not only for our borrowers, but for our lenders and investors as well. What’s great about being here at White Oak is that we are going to have access to a lot of flexible long-term capital that will allow us to provide a much larger suite of products to our target market.”

Senior Editor | ABL Advisor
Stuart Papavassiliou is senior editor of ABL Advisor and Equipment Finance Advisor. He has worked in publishing for more than fifteen years.

Contact Stuart Papavassiliou at 484.380.2964 or

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