WhiteHorse Capital Finances IGP's Marki Microwave Acquisition

WhiteHorse Capital, the direct lending affiliate of H.I.G. Capital, has provided a first lien credit facility to support Industrial Growth Partners' acquisition of Marki Microwave, a specialized manufacturer of radio frequency and microwave components serving defense and aerospace markets. The transaction, announced January 20, 2026, pairs a middle-market private equity firm with a 30-year-old technical components supplier at a time when defense electronics consolidation is accelerating.

The deal reflects growing private equity appetite for niche defense contractors with proprietary technology and blue-chip customer relationships. Marki Microwave's specialized RF components enable mission-critical signal performance in sophisticated electronic systems used by leading defense contractors—a capability increasingly valued as military modernization programs demand higher-performance components across radar, electronic warfare, and communications platforms.

WhiteHorse acted as administrative agent on the credit facility, delivering what IGP characterized as a "seamless and flexible financing solution" for the transaction. Financial terms were not disclosed.

The transaction brings together IGP's industrials sector expertise with Marki Microwave's technical capabilities in a market experiencing double-digit growth. Founded in 1991 and headquartered in Morgan Hill, CA, Marki has built what it describes as the industry's highest-performance portfolio of broadband mixers, spanning frequencies from DC to sub-terahertz across multiple form factors.

The financing structure reflects WhiteHorse's established relationship with IGP and the lender's focus on middle-market companies across industrials and business services sectors.

For IGP, the acquisition targets a company operating at the intersection of several favorable trends: defense modernization, RF component market growth, and supply chain consolidation among specialized manufacturers.

"Marki's technical excellence and long-standing reputation for high-performance RF and microwave components, combined with IGP's deep sector expertise and resources, create a compelling investment opportunity," said Dan Dubé, Managing Director at WhiteHorse Capital, in the announcement.

The thesis centers on Marki's differentiated product portfolio and customer relationships. The Company's products support mission-critical applications across defense, aerospace, and communications markets and are sold to a long-standing base of blue-chip customers, including leading defense contractors.

IGP's playbook typically involves partnering with management teams to develop growth strategies including new product launches, market expansion, and additional service offerings. For Marki, this could mean accelerating product development cycles, expanding manufacturing capacity, or pursuing add-on acquisitions to broaden the component portfolio.

Matt Antaya, Managing Director at Industrial Growth Partners, emphasized the financing partnership: "WhiteHorse was able to deliver a seamless and flexible financing solution, and we look forward to their continued support as we work with the Marki team to execute on the Company's strategic initiatives."

For over 30 years, Marki Microwave has solved its customers' most complex problems by creating a robust portfolio of performance shattering RF and microwave components. The company's origins trace to a focused mission: developing the industry's best mixers.

That specialization has evolved into a comprehensive product line. Marki Microwave now has the highest performance portfolio of broadband mixers, spanning frequencies from DC to sub-THz in die, surface mount, connectorized and waveguide form factors. The company positions itself as a single-source supplier for high-performance, broadband microwave products across the entire RF block diagram.

The product portfolio addresses critical needs in defense electronics:

Marki's customer base includes prime defense contractors developing next-generation radar systems, electronic warfare platforms, and satellite communications equipment. These relationships, built over three decades, provide recurring revenue streams and deep technical collaboration on emerging requirements.

The company operates from Morgan Hill, California, where it recently tripled its footprint with a new 60,000-square-foot headquarters—a signal of pre-acquisition growth momentum.

The RF components market is experiencing robust expansion driven by defense modernization, 5G deployment, and satellite communications growth. The global RF components market was valued at USD 27.34 billion in 2022 and is expected to grow at a CAGR of 14.0% during the forecast period.

Defense applications represent a particularly attractive segment. Military RF component demand is accelerating as the Pentagon prioritizes electronic warfare capabilities, next-generation radar systems, and resilient communications networks. The shift toward distributed sensor architectures and software-defined radios requires higher-performance, more versatile components—precisely Marki's specialty.

Private equity activity in defense electronics has intensified as firms recognize the sector's favorable fundamentals: multi-year defense budgets, high barriers to entry, and consolidation opportunities among fragmented component suppliers. The aerospace and defense M&A market in 2026 is characterized by several dynamics that favor deals like the Marki acquisition.

Valuations in the sector remain elevated, with buyers increasingly underwriting forward EBITDA projections for 2026-2027 rather than trailing twelve-month figures. Supply chain resilience has emerged as a critical valuation lever, with bill-of-materials provenance and compliance readiness directly impacting deal outcomes.

For niche defense contractors with proprietary intellectual property, valuations have reached premium levels. Bundling complementary assets can drive multiples from mid-teens to 20x+ as buyers underwrite synergies including cost savings, footprint consolidation, and pricing power.

Marki's position as a specialized, high-performance component supplier with established defense contractor relationships fits the profile of assets commanding premium valuations in the current environment.

Industrial Growth Partners focuses exclusively on middle-market companies in the industrials sector. The firm targets businesses with $10 million to $100 million in revenue, seeking companies with strong market positions, differentiated products or services, and opportunities for operational improvement.

IGP's strategy emphasizes partnering with management teams to drive organic and acquisition-based growth. The firm's sector focus provides deep expertise in industrial distribution, specialty manufacturing, and business services—all relevant to the Marki investment thesis.

The firm's portfolio includes companies across industrial end markets, and the Marki acquisition expands IGP's exposure to defense and aerospace applications. This diversification within industrials allows the firm to leverage operational best practices across portfolio companies while maintaining sector-specific expertise.

IGP's relationship with WhiteHorse Capital demonstrates the firm's access to flexible financing solutions for platform acquisitions—critical for middle-market deals where traditional bank financing may be constrained.

WhiteHorse Capital operates as the direct lending arm of H.I.G. Capital, a global alternative asset manager with $70 billion of capital under management. The platform provides senior and subordinated debt to middle-market companies across multiple industries.

WhiteHorse's investment mandate spans refinancings, growth capital, acquisitions, buyouts, and balance sheet recapitalizations. H.I.G. WhiteHorse provides debt financing to both non-sponsor and sponsor middle market companies across a wide range of industries, including Business Services, Industrials, Consumer and Retail, Financial Services, Healthcare, and Telecom, Media and Technology.

The platform recently closed its fourth middle-market lending fund at $5.9 billion in August 2025, signaling strong investor appetite for private credit strategies. That capital base positions WhiteHorse to support larger transactions and provide more comprehensive financing solutions to sponsor partners like IGP.

WhiteHorse's role as administrative agent on the Marki facility reflects the lender's ability to structure and syndicate credit facilities for middle-market acquisitions. The firm's relationship-oriented approach aligns with IGP's growth plans for Marki, providing flexibility for future capital needs as the company executes strategic initiatives.

The Marki Microwave acquisition positions IGP to capitalize on several converging trends in defense electronics. As military platforms become more software-defined and network-centric, demand for high-performance RF components will intensify. Marki's technical capabilities and customer relationships provide a foundation for both organic growth and potential add-on acquisitions.

The defense electronics supply chain is consolidating as prime contractors seek fewer, more capable suppliers with proven compliance and quality systems. Marki's 30-year track record and blue-chip customer base position the company favorably in this environment.

Risks include defense budget uncertainty, potential supply chain disruptions for specialized materials, and execution challenges in scaling manufacturing capacity. The transition to private equity ownership will test management's ability to accelerate growth while maintaining the technical excellence that defines Marki's market position.

For WhiteHorse, the transaction demonstrates the platform's ability to provide tailored financing solutions for niche industrial acquisitions. As private credit continues displacing traditional bank lending in the middle market, relationships with active sponsors like IGP become increasingly valuable.

The deal also signals continued private equity interest in defense-adjacent businesses that benefit from multi-year budget visibility without the regulatory complexity of prime contractors. Component suppliers like Marki occupy a strategic position in the value chain—essential to platform performance but less exposed to program-level risk.

As defense modernization programs accelerate and electronic warfare capabilities become central to military strategy, specialized RF component manufacturers will play an increasingly critical role. The IGP-Marki partnership, backed by WhiteHorse's flexible financing, positions the company to capture that opportunity while navigating the complexities of serving defense and aerospace customers in a rapidly evolving threat environment.