WhiteHorse Finance : Q1 2025 Earnings Presentation
WHF
Published on 05/12/2025 at 19:53
Quarter Ended March 31, 2025
WhiteHorse Finance Snapshot
Company:
WhiteHorse Finance, Inc.
Equity Ticker:
NASDAQ: WHF
Market Cap:
$216.9MM(1)
Credit Rating:
Egan-Jones: BBB+ / DBRS: BBB (low)
NAV / Share:
$12.11(2)
Portfolio Fair Value:
$651.0MM
Current Dividend Yield:
16.5%(1)(3); quarterly dividends at or above $0.355 per share since 2012 IPO
External Manager:
Affiliate of H.I.G. Capital, LLC ("H.I.G. Capital" or "H.I.G.")
Based on May 12, 2025 share price of $9.33.
As of March 31, 2025. 2
Based on LTM dividend rate, excluding special dividends, relative to closing share price.
Overview of WhiteHorse Finance, Inc.
WhiteHorse Finance, Inc. is a publicly listed Business Development Company ("BDC") that completed its IPO in December 2012
WhiteHorse Finance's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC (the "Investment Adviser"), an affiliate of H.I.G. Capital, a leading global alternative asset manager with over $69BN of capital under management(1)
Principally focused on originating senior secured loans to performing lower middle market companies with individual enterprise values generally between
$50MM and $350MM
Diversified investment portfolio totaling $651.0MM as of March 31, 2025
Investments across 134(2) positions in 74 portfolio companies as of March 31, 2025
Average Investment Size(3): $4.1MM (Average Debt Investment Size(3): $5.2MM)
Largest Portfolio Company Investment(3): $22.3MM
Invested $2,778 MM in 260 transactions since December 2012 IPO
The Company and State Teachers Retirement System of Ohio ("STRS Ohio"), a public pension fund established under Ohio law, partnered to create WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), a joint venture formed to invest in directly originated, senior secured first and second lien term loans
Portfolio at Fair Value ($MM)
NAV + Cumulative Dividends per share
$180
$272
$0.82
$0.82
$404 $415 $412
$441 $470
$17.72
$590
$691
$819
$760
$696
$642
$651
$15.41 $16.69
$14.30
$15.16
$15.30
$1.53
$0.11
$13.33
$4.37
$15.04
$2.95
$17.99 $17.70
$21.19
$13.98
$7.21
$19.42
$5.79
$15.35
$8.63
$23.98
$27.02
$11.47
$0.32
$25.48
$10.05
$0.20
$28.45 $29.12
$12.89
$0.46
$14.31
$0.51
$30.00 $30.46 $30.65
$15.79
$0.58
$17.33
$12.11
$12.31
$13.63
$13.63
$15.10
$15.23
$15.23
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025
Note: As of March 31st, of each respective year presented, unless otherwise noted.
Based on total capital raised by H.I.G. Capital and affiliates.
Includes investments in STRS JV.
Based on fair value. Does not include investments in STRS JV. Source: Company filings
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025
Net asset value Cumulative special dividends paid Cumulative base dividends paid
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Overview of WhiteHorse Finance, Inc. (continued)
Investment Strategy
Summary Stats:
Generate attractive risk-adjusted returns in all market conditions by originating and investing in senior secured loans to performing lower middle market companies and leveraging the knowledge of
H.I.G. Capital
Differentiated proprietary deal flow from over 70 dedicated deal professionals sourcing through direct coverage of financial sponsors and intermediaries
Rigorous credit process focused on fundamental analysis with emphasis on downside protection and cash flow visibility
10-person investment committee with more than 250 years of industry experience
Investment strategy focused on first lien and second lien senior secured investments in lower middle market companies with a target hold size of $5MM to $25MM
Invested Capital since IPO:
All-in Yield: 12.1% (3)
Number of Investments Made: ~260(1)
Average Investment Size:
Net Debt / EBITDA of Current Portfolio Companies:
$2,778MM (1)
~$4.1MM(2)
~4.2x (4)
Secured Debt as a % of Total Debt: ~99.8%(5)
Note: As of March 31, 2025, unless otherwise noted.
Reflects life-to-date since IPO and may exclude follow-on transactions and investments in STRS JV made via asset transfers in-kind.
Across 132 investments. Does not include investments in STRS JV.
Reflects weighted average effective yield of income-producing debt investments. Weighted average effective yield for entire portfolio, including equities and investments in STRS JV, as of March 31, 2025, is 9.6%. Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting from the amortization of fees and discounts) by (b) the weighted average cost of investments.
Measured at origination based on borrower reporting and WHF's target underwriting leverage. Does not include investments in STRS JV.
Based on fair value. Does not include the Company's investments in STRS JV.
4
Disclaimer
WhiteHorse Finance Inc. published this content on May 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2025 at 23:52 UTC.