WhiteHorse Finance Inc
NASDAQ:WHF
WhiteHorse Finance Inc
WhiteHorse Finance, Inc. is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The company is headquartered in Miami, Florida. The company went IPO on 2012-12-05. The Company’s investment objective is to generate risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a range of industries, which typically carry a floating interest rate based on a risk-free index rate, such as London Interbank Offered Rate (LIBOR) and have a term of 3-6 years. The firm is principally focuses on originating senior secured loans to lower middle market companies, it may also opportunistically make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests and may receive warrants to purchase common stock in connection with its debt investments. H.I.G. WhiteHorse Advisers, LLC and H.I.G. WhiteHorse Administration, LLC acts as the investment adviser and administrator of the Company.
WhiteHorse Finance, Inc. is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The company is headquartered in Miami, Florida. The company went IPO on 2012-12-05. The Company’s investment objective is to generate risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a range of industries, which typically carry a floating interest rate based on a risk-free index rate, such as London Interbank Offered Rate (LIBOR) and have a term of 3-6 years. The firm is principally focuses on originating senior secured loans to lower middle market companies, it may also opportunistically make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests and may receive warrants to purchase common stock in connection with its debt investments. H.I.G. WhiteHorse Advisers, LLC and H.I.G. WhiteHorse Administration, LLC acts as the investment adviser and administrator of the Company.
Disappointing Quarter: WhiteHorse Finance reported a tough Q3 2025, with net investment income and NAV per share both declining due to interest rate cuts, spread pressure, and portfolio markdowns.
Dividend Reset: The quarterly base distribution was cut to $0.25 per share, an 8.8% yield on ending NAV, to align payouts with the company’s lower earnings power.
Incentive Fee Reduction: Management voluntarily reduced its incentive fee from 20% to 17.5% for the next two quarters to help support distributions.
Share Buyback Announced: The board approved a $15 million share repurchase program, aiming to capture value from the stock’s steep discount to NAV.
Portfolio Pressures: Markdowns in troubled credits and net investment outflows led to a $60.9 million decline in total investments this quarter.
JV Remains Profitable: Income from the STRS JV rose slightly and continues to generate attractive returns.
Outlook Cautious: Management expects slow recoveries from troubled assets and ongoing market headwinds, but believes the new dividend level is sustainable if conditions don’t worsen.
