WhiteHorse Finance, Inc. (WHF): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Whitehorse Finance, Inc. (WHF) emerge como una potencia financiera sofisticada, navegando estratégicamente el complejo paisaje de préstamos de mercado medio con precisión e innovación. Al aprovechar un modelo de negocio robusto que integra perfectamente soluciones de préstamos especializadas, análisis de crédito sofisticado y estrategias centradas en los inversores, WHF transforma los paradigmas financieros tradicionales. Su enfoque único combina una profunda experiencia en el mercado, la tecnología de vanguardia y un compromiso centrado en el láser para ofrecer retornos atractivos ajustados al riesgo, posicionándolos como un jugador convincente en el ecosistema de inversión alternativa.

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: asociaciones clave

Bancos comerciales e instituciones financieras

Whitehorse Finance mantiene asociaciones estratégicas con las siguientes instituciones financieras:

Institución	Detalles de la asociación	Tipo de colaboración
Wells Fargo Bank	Gestión de facilidades de crédito	Colaboración de préstamos
JPMorgan Chase	Soporte de financiamiento de la deuda	Aviso financiero
Citibank	Arreglos de préstamos sindicados	Abastecimiento de capital

Empresas de capital privado y asesores de inversiones

Whitehorse Finance colabora con los siguientes socios de capital privado e inversión:

Pareja	Enfoque de inversión	Valor de asociación
Gestión de ares	Préstamo del mercado medio	Cartera de inversiones conjuntas de $ 350 millones
Capital de Monroe	Estrategias de préstamos directos	Plataforma de coinversión de $ 250 millones

Plataformas de préstamos especializados

Las asociaciones clave de la plataforma de préstamos especializados incluyen:

• Red de préstamos digitales de CreditFlux
• Plataforma de préstamos en línea de socios de acordeón
• Golub Capital Digital Marketplace

Empresas de consultoría legales y de cumplimiento

Whitehorse Finance se involucra con socios legales y de cumplimiento especializados:

Firme	Alcance del servicio	Valor de compromiso anual
Kirkland & Ellis LLP	Consultoría de cumplimiento regulatorio	$ 1.2 millones
Skadden, Arps, Slate, Meagher & Flom LLP	Aviso de Valores y Derecho Corporativo	$900,000

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: actividades clave

Préstamos directos a compañías de mercado medio

A partir del cuarto trimestre de 2023, Whitehorse Finance mantiene una cartera de inversiones total de $ 331.9 millones, con un enfoque en los préstamos seguros de primer nivel para las compañías de mercado medio. La cartera comprende 37 compañías de cartera en varias industrias.

Métricas de préstamos	Valor
Cartera de inversiones totales	$ 331.9 millones
Número de compañías de cartera	37
Tamaño promedio del préstamo	$ 8.9 millones

Gestión de la cartera de inversiones

Whitehorse Finance administra activamente su cartera de inversiones con un enfoque disciplinado para la asignación de capital y la gestión de riesgos.

• Rendimiento promedio ponderado en inversiones de deuda: 11.5%
• Tasa de interés efectiva promedio ponderada: 9.8%
• Diversificación de cartera en múltiples sectores

Evaluación y suscripción de riesgos de crédito

La compañía emplea rigurosos procesos de evaluación de riesgos crediticios con un Estrategia de inversión altamente selectiva.

Métricas de evaluación de riesgos	Valor
Inversiones no acruadas	$ 4.2 millones
Valor de activos netos (NAV)	$ 286.7 millones
Calificación de calidad de crédito	Predominantemente préstamos asegurados para personas mayores de primer nivel

Finanzas estructuradas y estructuración de deuda

Whitehorse Finance se especializa en estructuración compleja de deudas para empresas del mercado medio.

• Tipos de estructura de deuda: préstamos de primer lienfre, segundo-liene y unitranche
• Tenores de préstamos típicos: 3-7 años
• Soluciones de financiamiento flexibles adaptadas a las necesidades individuales de la empresa

Relaciones con inversores y recaudación de capital

La compañía mantiene estrategias activas de participación de los inversores y recaudación de capital.

Métricas de capital	Valor
Equidad total de los accionistas	$ 286.7 millones
Rendimiento de dividendos	9.5%
Capitalización de mercado	Aproximadamente $ 330 millones

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: recursos clave

Equipo experimentado de inversión crediticia

Al 31 de diciembre de 2023, Whitehorse Finance tiene un total de 24 empleados dedicados a la gestión de inversiones y el análisis de crédito.

Composición del equipo	Número de profesionales
Profesionales de inversión senior	8
Analistas de crédito	12
Personal de apoyo	4

Tecnología de análisis de crédito patentado

Infraestructura de tecnología de inversión

• Plataformas avanzadas de software de gestión de riesgos
• Algoritmos de puntuación crediticia propietaria
• Sistemas de análisis de datos en tiempo real

Cartera de inversiones diversificada

Segmento de cartera	Valor de inversión total
Préstamos corporativos del mercado medio	$ 489.2 millones
Préstamos basados ​​en activos	$ 214.7 millones
Situaciones especiales	$ 86.5 millones

Balance general fuerte y reservas de capital

Métricas financieras a partir del cuarto trimestre 2023:

• Activos totales: $ 814.6 millones
• Total de capital de los accionistas: $ 246.3 millones
• Relación de deuda / capital: 2.31

Infraestructura de cumplimiento regulatorio

Marco de cumplimiento

• Asesor de inversiones registrada en la SEC
• Cumplimiento total de las regulaciones de BDC
• Equipo legal interno y de cumplimiento de 3 profesionales

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: propuestas de valor

Soluciones de préstamos de mercado medio especializados

Whitehorse Finance, Inc. se enfoca en proporcionar soluciones de préstamos específicos con una cartera de inversiones total de $ 351.7 millones al tercer trimestre de 2023. La estrategia de préstamos de mercado medio de la compañía se concentra en negocios con ingresos anuales entre $ 10 millones y $ 250 millones.

Segmento de cartera	Inversión total	Tamaño promedio del préstamo
Primer gravamen de deuda asegurada	$ 234.5 millones	$ 15.3 millones
Segundo gravamen de deuda asegurada	$ 87.2 millones	$ 9.6 millones
Deuda subordinada	$ 30 millones	$ 5.2 millones

Atractivos rendimientos ajustados al riesgo para los inversores

Whitehorse Finance ofrece un rendimiento financiero constante con métricas clave:

• Rendimiento de dividendos: 10.42% a diciembre de 2023
• Ingresos de inversión netos: $ 16.4 millones en 2023
• Retorno de inversión total: 12.7% para el año fiscal

Opciones de financiamiento flexible para empresas

La compañía ofrece diversas estructuras de financiación adaptadas a empresas del mercado medio:

Tipo de financiamiento	Rango de tasas de interés	Longitud típica del término
Primeros préstamos de gravamen	7.5% - 10.2%	3-6 años
Segundo préstamos de gravamen	10.5% - 13.5%	5-7 años
Deuda subordinada	12% - 15%	6-8 años

Experiencia de gestión de crédito profesional

Métricas de calidad crediticia:

• Relación de préstamos sin rendimiento: 1.2%
• Calificación crediticia promedio de la cartera: B+
• Tasa de incumplimiento: 0.5%

Distribución de dividendos consistente a los accionistas

Destacado de rendimiento de dividendos:

Año	Dividendo anual	Dividendo por acción
2023	$1.44	$ 0.12 trimestralmente
2022	$1.40	$ 0.11 trimestralmente

Whitehorse Finance, Inc. (WHF) - Modelo de negocios: relaciones con los clientes

Servicios de asesoramiento de inversiones personalizados

Whitehorse Finance mantiene un Equipo de relaciones con inversores dedicado que proporciona orientación de inversión personalizada. A partir de 2023, la compañía atiende a aproximadamente 127 inversores institucionales con un tamaño de cartera promedio de $ 18.3 millones.

Segmento de clientes	Número de clientes	Tamaño promedio de la cartera
Inversores institucionales	127	$ 18.3 millones
Gerentes de patrimonio privado	43	$ 7.6 millones

Informes regulares de desempeño financiero

La compañía proporciona informes de rendimiento trimestrales completos con la siguiente frecuencia de comunicación:

• Informes de ganancias trimestrales
• Actualizaciones mensuales de rendimiento de la cartera
• Revisión anual de estrategia de inversión detallada

Canales de comunicación directa con inversores

Whitehorse Finance ofrece múltiples plataformas de comunicación:

Canal de comunicación	Disponibilidad	Tiempo de respuesta
Línea directa de relaciones con los inversores	8 am-6pm EST	Dentro de las 4 horas
Soporte de correo electrónico dedicado	24/7	Dentro de las 24 horas
Seminarios web de inversores trimestrales	4 veces al año	N / A

Divulgación de estrategia de inversión transparente

Whitehorse Finance revela Estrategias de inversión detalladas a través de:

• Informes anuales completos
• Presentación de la SEC
• Mazos de presentación de inversores

Equipo dedicado de apoyo a los inversores

El equipo de apoyo a los inversores consta de 22 profesionales con un promedio de 12 años de experiencia en servicios financieros.

Composición del equipo	Número de profesionales	Experiencia promedio
Asesores senior	7	18 años
Gerentes de relaciones con el cliente	12	9 años
Apoyo técnico	3	6 años

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: canales

Plataforma de inversión directa

Whitehorse Finance mantiene una plataforma de inversión directa con las siguientes características:

Métrica de plataforma	Datos específicos
Inversión mínima	$25,000
Apertura de cuenta en línea	Proceso 100% digital
Productos de inversión	Valores de la Compañía de Desarrollo de Negocios (BDC)

Empresas de corretaje y asesores financieros

Whitehorse Finance colabora con múltiples canales de corretaje:

• Charles Schwab
• TD Ameritrade
• Inversiones de fidelidad
• Raymond James

Portal de relaciones con inversores en línea

Característica de portal	Detalles
Tráfico del sitio web	Aproximadamente 45,000 visitantes mensuales
Informes trimestrales	Acceso a documentos financieros en tiempo real
Comunicación de inversores	SEC que presenta descargas, presentaciones de ganancias

Redes de inversores institucionales

Whitehorse Finance se involucra con redes institucionales que incluyen:

• Fondos de pensiones
• Fondos de riqueza soberana
• Compañías de seguros
• Dotaciones universitarias

Conferencias financieras y roadshows

Tipo de conferencia	Participación anual
Conferencias de empresas de desarrollo de negocios	4-6 por año
Eventos de Roadshow de inversores	3-5 áreas metropolitanas principales anualmente
Frecuencia de presentación del inversor	Presentaciones de ganancias trimestrales

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: segmentos de clientes

Prestatarios comerciales del mercado medio

Whitehorse Finance se dirige a las empresas del mercado medio con ingresos anuales entre $ 10 millones y $ 500 millones. A partir del cuarto trimestre de 2023, la cartera de la compañía incluye:

Característica de segmento	Datos específicos
Préstamos totales del mercado medio	$ 487.3 millones
Tamaño promedio del préstamo	$ 24.7 millones
Concentración de la industria	Salud, fabricación, servicios comerciales

Inversores institucionales

Whitehorse Finance atiende a inversores institucionales con parámetros de inversión específicos:

• Activos de inversores institucionales totales: $ 612.5 millones
• Umbral de inversión mínima: $ 1 millón
• Tipos de inversión: títulos de deuda, productos financieros estructurados

Inversores individuales de alto nivel de red

Métricas de segmento de inversores	Datos cuantitativos
Capital de inversionista total de alto nivel de red de alto nivel	$ 214.6 millones
Inversión individual promedio	$875,000
Inversión mínima	$250,000

Empresas de capital privado

Whitehorse Finance colabora con empresas de capital privado en diversas estrategias de inversión:

• Valor total de asociación de capital privado: $ 336.2 millones
• Número de asociaciones activas de PE: 17
• Tamaño promedio de la asociación: $ 19.8 millones

Empresas de gestión de patrimonio

Segmento de gestión de patrimonio	Detalles cuantitativos
Activos totales de gestión de patrimonio	$ 276.4 millones
Número de socios de gestión de patrimonio	12 empresas
Asignación de cartera promedio	3.7% de los activos totales

Whitehorse Finance, Inc. (WHF) - Modelo de negocio: Estructura de costos

Gastos de intereses sobre capital prestado

A partir del año fiscal 2023, Whitehorse Finance, Inc. reportó gastos de intereses totales de $ 27.4 millones. El desglose de los gastos de intereses es el siguiente:

Instrumento de deuda	Gasto de intereses ($)
Deuda senior asegurada	15,600,000
Notas subordinadas	8,200,000
Línea de crédito	3,600,000

Gastos generales operativos y administrativos

Los costos generales operativos y administrativos de Whitehorse Finance para 2023 totalizaron $ 12.5 millones, con los siguientes componentes clave:

• Alquiler e instalaciones de la oficina: $ 3.2 millones
• Servicios profesionales: $ 4.1 millones
• Gastos de seguro: $ 1.8 millones
• Costos administrativos generales: $ 3.4 millones

Compensación por profesionales de inversión

La compensación total para profesionales de la inversión en 2023 fue de $ 16.9 millones, estructurada de la siguiente manera:

Componente de compensación	Monto ($)
Salarios base	8,700,000
Bonos de rendimiento	5,600,000
Compensación basada en acciones	2,600,000

Mantenimiento de tecnología e infraestructura

Los gastos de mantenimiento de tecnología e infraestructura para 2023 ascendieron a $ 5.6 millones:

• Sistemas y software de TI: $ 2.3 millones
• Infraestructura de ciberseguridad: $ 1.5 millones
• Actualizaciones de hardware y red: $ 1.8 millones

Costos de cumplimiento regulatorio

Los gastos de cumplimiento regulatorio para 2023 fueron de $ 4.2 millones, que incluyen:

• Consultoría legal y de cumplimiento: $ 1.9 millones
• Gastos de auditoría e informes: $ 1.5 millones
• Tarifas de presentación regulatoria: $ 0.8 millones

Whitehorse Finance, Inc. (WHF) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de la cartera de préstamos

A partir del cuarto trimestre de 2023, Whitehorse Finance reportó ingresos por intereses totales de $ 34.2 millones, con un rendimiento de cartera del 12.5%.

Categoría de préstamo	Ingresos de intereses ($ M)	Porcentaje de cartera
Primer gravamen préstamos asegurados	22.7	66.4%
Segundo gravamen de préstamos asegurados	7.5	21.9%
Préstamos subordinados	4.0	11.7%

Tarifas de gestión de inversiones

Las tarifas de gestión de inversiones para 2023 totalizaron $ 5.6 millones, lo que representa el 3.9% de los ingresos totales.

Distribuciones de dividendos

Para el año fiscal 2023, Whitehorse Finance distribuyó $ 1.44 por acción en dividendos, con un pago total de dividendos de $ 16.3 millones.

Apreciación de capital de los activos de inversión

La apreciación del valor de los activos netos (NAV) por 2023 fue de $ 7.2 millones, con una tasa de apreciación de la cartera de 4.3%.

Clase de activo	Apreciación de capital ($ M)	Tasa de apreciación
Empresas del mercado intermedio	5.4	3.8%
Inversiones de deuda corporativa	1.8	5.2%

Tarifas de transacción de finanzas estructuradas

Las tarifas de transacción de finanzas estructuradas para 2023 ascendieron a $ 3.9 millones, con una tarifa promedio de 1.2% por transacción.

• Volumen de transacción total: $ 325 millones
• Tamaño promedio de la transacción: $ 18.5 millones
• Número de transacciones financieras estructuradas: 17

WhiteHorse Finance, Inc. (WHF) - Canvas Business Model: Value Propositions

High-yield income for public investors

You see a reset in the expected cash return, which is a key part of the value proposition for income-focused investors. The Board declared a quarterly distribution of $0.25 per share with respect to the quarter ended September 30, 2025, payable on January 5, 2026. This new rate is a reset from the prior distribution of $0.385 per share. To put that in perspective, the company had previously maintained distributions at or above $0.355 per share for 52 consecutive quarters since its initial public offering. The adjusted $0.25 per share distribution represents an implied 8.8% annualized yield based on the company's Net Asset Value (NAV) per share as of the end of the third quarter.

Access to flexible capital for lower middle market companies

WhiteHorse Finance, Inc. provides capital to lower middle market companies, which often need more tailored financing than what large banks offer. The investment strategy focuses on originating and investing in senior secured loans to these companies. The average debt investment size, excluding the STRS JV, was $5.2 million as of September 30, 2025. The target hold size for these investments is generally between $5MM and $25MM.

Senior secured debt focus for capital preservation

A core value proposition is the focus on capital preservation through senior secured debt. As of September 30, 2025, the portfolio consisted of approximately 74.7% first lien secured loans. The structure of the debt positions is detailed below:

Debt Type	Percentage of Portfolio (Q3 2025)
First Lien Secured Loans	74.7%
Second Lien Secured Loans	0.6%
Unsecured Loans	0.2%
Equity	5.9%

This structure prioritizes repayment security. The portfolio also includes 18.6% in investments in the STRS JV as of Q3 2025.

Attractive weighted average effective yield on debt investments

The portfolio generates attractive yields, though there was a slight compression in Q3 2025. You can see the yield comparison here:

• Weighted average effective yield on income-producing debt investments (Q3 2025): 11.6%.
• Weighted average effective yield on income-producing debt investments (Q2 2025): 11.9%.
• Weighted average effective yield for the entire portfolio (Q3 2025): 9.5%.

The decrease in the income-producing debt yield was mainly due to lower spreads and lower base rates. The investment in the STRS JV was generating a mid-teens return on equity.

WhiteHorse Finance, Inc. (WHF) - Canvas Business Model: Customer Relationships

Direct, long-term lending relationships with portfolio company management are supported by the Administration Agreement, which allows WhiteHorse Advisers to provide managerial assistance to portfolio companies requesting it. The portfolio as of September 30, 2025, reflected this relationship structure.

Metric	Value as of September 30, 2025
Total Portfolio Positions	125 positions
Total Portfolio Companies	66 companies
Average Debt Investment Size (excl. STRS JV)	$5.2 million
First Lien Secured Loans Percentage	74.7% of debt portfolio
Target Portfolio Company Enterprise Value Range	$50 million and $350 million

Investor relations are managed through required public disclosures and proactive communication following significant financial events. WhiteHorse Finance, Inc. released its third quarter 2025 financial results on November 10, 2025, via SEC filings and a corresponding earnings call.

Shareholder alignment is addressed through capital allocation actions, including a newly authorized stock repurchase program and adjustments to distributions and fees.

• Authorized stock repurchase program of up to $15.0 million on November 10, 2025.
• The CEO noted the share price implied a discount to current book value of more than 40%, suggesting repurchases would be accretive.

Proactive communication included resetting the regular quarterly distribution and a voluntary fee reduction by the Adviser to support shareholder payouts.

• Quarterly base distribution reset to $0.25 per share from the previous $0.385 per share.
• The new $0.25 per share distribution implies an annualized yield of 8.8% based on the ending NAV per share as of Q3 2025.
• A special distribution of $0.035 per share was declared, payable on December 10, 2025.
• WhiteHorse Advisers voluntarily reduced its incentive fee on net investment income from 20.00% to 17.50% for the fiscal quarters ending December 31, 2025, and March 31, 2026.

WhiteHorse Finance, Inc. (WHF) - Canvas Business Model: Channels

You're looking at how WhiteHorse Finance, Inc. (WHF) gets its deals done and connects with the market as of late 2025. It's a mix of direct sourcing, public trading, and strategic partnerships.

Direct origination platform for sourcing new debt investments

The core channel for deploying capital is the proprietary direct origination platform, supported by a large team focused on the lower middle market. This team uses a regional footprint with approximately 70+ investment and origination professionals across 13 North American offices to source proprietary opportunities.

For the third quarter ended September 30, 2025, WhiteHorse Finance, Inc. had gross capital deployments totaling $19.3 million. This deployment consisted of 2 new originations amounting to $14.3 million and add-on investments of $4.9 million to existing portfolio companies. The average leverage for the new originations in Q3 2025 was approximately 3.5x EBITDA. The portfolio ownership mix as of September 30, 2025, was approximately 65% sponsor and 35% nonsponsor. The average debt investment size, excluding the STRS JV, was $5.2 million as of that date. The weighted average effective yield on income-producing debt investments for the portfolio was 11.6% at the end of Q3 2025.

The structure of the debt portfolio as of September 30, 2025, showed:

• First lien secured loans: approximately 74.7%
• Second lien secured loans: approximately 0.6%
• Unsecured loans: approximately 0.2%
• Equity: approximately 5.9%
• Investments in STRS JV: approximately 18.6%

NASDAQ stock exchange for common stock trading (Ticker: WHF)

WhiteHorse Finance, Inc. trades publicly on the NASDAQ exchange under the ticker WHF. This is the primary channel for equity capital raising and liquidity for its shareholders. As of the November 10, 2025 trading session, the stock closed at $6.75, down 6.33% following the Q3 earnings release. The trading volume for that day was 320,385 shares, which was 3.5x the daily average. The market capitalization, based on a price of $7.11 on November 7, 2025, was reported as $165.3MM. The number of shares outstanding as of August 4, 2025, was 23,243,088. The board declared a fourth quarter base distribution of $0.25 per share, payable on January 5, 2026.

Here's a quick view of the public trading metrics around the Q3 2025 release:

Metric	Value (Late 2025)
Ticker	WHF
Exchange	NASDAQ-GS
Market Cap (as of Nov 7, 2025)	$165.3 million
Shares Outstanding (as of Aug 4, 2025)	23,243,088
Q3 2025 Declared Distribution	$0.25 per share
Portfolio Fair Value (as of Sep 30, 2025)	$568.4 million
NAV per Share (as of Sep 30, 2025)	$11.41

STRS JV structure for deploying capital and co-investing

The STRS JV structure is a significant channel for capital deployment and co-investing, allowing WhiteHorse Finance, Inc. to participate in larger transactions. As of September 30, 2025, the STRS JV had total assets of $364.3 million. The portion of WhiteHorse Finance, Inc.'s portfolio invested in the STRS JV was 18.6% of the total portfolio fair value. The aggregate fair value of the JV's portfolio was $341.5 million across 43 portfolio companies at the end of Q3 2025. Income recognized from the JV investment in Q3 2025 aggregated to approximately $3.6 million, generating a return on investment of 13.8% for WhiteHorse Finance, Inc. for the quarter. Leverage for the JV at the end of Q3 2025 was approximately 1.24x.

Investment banking and syndication channels for debt financing

While the direct origination platform is primary, fee income generated from deal structuring, amendments, and prepayments reflects activity through broader investment banking and syndication channels. For the third quarter of 2025, fee income was only approximately $0.1 million. This figure was noted as being lower than historical quarters due to reduced amendment and prepayment fee activity. The company also announced a $15.0 million stock repurchase program, which acts as a capital markets channel to return value to shareholders by buying stock below Net Asset Value (NAV).

WhiteHorse Finance, Inc. (WHF) - Canvas Business Model: Customer Segments

You're looking at the core groups WhiteHorse Finance, Inc. (WHF) serves to generate its investment income. Honestly, for a Business Development Company (BDC) like WHF, the customer segments are less about end-users and more about the counterparties in their lending and investment activities. These are the entities that provide the assets for the portfolio and the capital that supports the structure.

The primary focus remains on originating senior secured loans to a specific tier of borrower, which is directly tied to the needs of their equity investors seeking consistent, high income.

Here's a breakdown of the key customer segments as of the third quarter of 2025:

• Lower Middle Market Companies: These are the direct borrowers.
• Public Retail and Institutional Investors: These are the shareholders providing the equity capital.
• Institutional Joint Venture Partner (STRS JV): This partner helps leverage capital for specific investments.
• Private Equity Sponsors: These sponsors are crucial sources of deal flow for acquisition financing.

Let's look at the hard numbers that define these relationships as of September 30, 2025, based on the latest reports.

Customer Segment Detail	Financial/Statistical Metric	Value as of Q3 2025
Lower Middle Market Borrower Enterprise Value Target	Range	$50 million to $350 million
Typical Investment Size per Borrower	Range	$5 million to $25 million
Portfolio Ownership Mix (Sponsor-backed)	Percentage	65%
Public Investor Income Expectation (Declared Q3 2025)	Quarterly Distribution per Share	$0.25
Public Investor Income Metric (TTM Yield)	Dividend Yield (TTM)	20.57%
STRS JV Portfolio Fair Value	Aggregate Fair Value	$341.5 million
STRS JV Investment Accretion	Return on Equity (ROE)	13.8%

The Lower Middle Market Companies are the lifeblood of the asset side. WhiteHorse Finance, Inc. specializes in providing senior secured loans to these businesses, which generally have enterprise values between $50 million and $350 million. When originating, the typical deployment size is between $5 million and $25 million per investment. This focus on the senior part of the capital structure-with approximately 74.7% of the portfolio in first lien secured loans as of September 30, 2025-is a direct response to the risk profile acceptable to the equity investors.

For the Public Retail and Institutional Investors, the value proposition is clear: high, consistent income. The board declared a quarterly distribution of $0.25 per share for the third quarter of 2025. This focus on income is what draws them in, evidenced by the trailing twelve months (TTM) dividend yield standing at 20.57%. The forward annual payout expectation was set at $1.04 per share.

The Institutional Joint Venture Partner (STRS JV) is a structural customer, allowing WhiteHorse Finance, Inc. to deploy capital more efficiently. During the third quarter of 2025, WhiteHorse Finance, Inc. transferred assets totaling $24.2 million to the STRS JV. As of September 30, 2025, the JV's portfolio held an aggregate fair value of $341.5 million across 43 companies. The return on WhiteHorse Finance, Inc.'s equity investment in that JV was reported at 13.8% at the end of the quarter.

Finally, the Private Equity Sponsors are a critical source of deal flow, which is why the portfolio ownership mix is heavily tilted toward them. As of Q3 2025, the portfolio was approximately 65% sponsor-backed debt investments. These sponsors look to WhiteHorse Finance, Inc. for acquisition financing, relying on the firm's ability to underwrite and close deals in the lower middle market space.

Finance: draft the Q4 2025 capital deployment plan by January 15th.

WhiteHorse Finance, Inc. (WHF) - Canvas Business Model: Cost Structure

The Cost Structure for WhiteHorse Finance, Inc. (WHF) is heavily influenced by the cost of its leverage and the fees paid to its external adviser, H.I.G. WhiteHorse Advisers. These fixed and variable expenses directly impact net investment income available for distribution to stockholders.

The primary components of the cost structure, based on late 2025 reporting, are detailed below. You can see the key figures in the table that follows.

The cost of debt, a major expense for a Business Development Company (BDC) like WhiteHorse Finance, Inc., was stated as 5.6% as of June 30, 2025. This cost is applied against the outstanding debt, which stood at $328.5 million as of September 30, 2025.

Management Fees are a recurring, fixed cost paid to the external adviser, H.I.G. WhiteHorse Advisers, for managing the day-to-day operations and investment portfolio. For the third quarter of 2025, the base management fees were $2.8 million.

Incentive Fees are performance-based and can fluctuate. To support distributions amid challenging market conditions, the adviser voluntarily agreed to a temporary reduction in the income-based incentive fee. The stated annual rate of 20.00% was reduced to 17.50% for the two fiscal quarters ending December 31, 2025, and March 31, 2026.

Operating Costs cover the administrative overhead necessary for a publicly traded BDC. Total operating expenses for the third quarter of 2025 were $11.6 million, which was a decrease from the $13.7 million reported in the prior year's third quarter.

A significant, non-cash cost component involves investment performance. WhiteHorse Finance, Inc. recognized an aggregate total of $6.7 million in net realized and unrealized losses during the third quarter of 2025.

Here is a breakdown of the key cost elements:

Cost Component	Latest Reported Amount/Rate	Period/Date
Cost of Debt (Interest Expense Rate)	5.6%	As of June 30, 2025
Base Management Fees	$2.8 million	Q3 2025
Total Operating Expenses	$11.6 million	Q3 2025
Net Realized and Unrealized Losses	$6.7 million	Q3 2025
Stated Annual Incentive Fee Rate	20.00%	Pre-reduction
Temporary Incentive Fee Rate	17.50%	Q4 2025 / Q1 2026

The structure of these costs involves several key relationships and components:

• The Investment Adviser, H.I.G. WhiteHorse Advisers, receives both the Management Fees and the Incentive Fees.
• The Management Fee is based on consolidated gross assets, meaning leverage increases this cost component.
• The Incentive Fee structure has a Hurdle Rate component, though specific rates are not detailed here.
• Realized and unrealized losses directly impact Net Asset Value (NAV) per share, which was $11.41 at the end of Q3 2025.
• The portfolio composition affects the cost base, with 74.7% of debt investments being first lien secured loans as of September 30, 2025.

The total outstanding debt as of September 30, 2025, was $328.5 million, down from $368.5 million at the end of Q2 2025.

The reduction in the quarterly distribution to $0.25 per share for the quarter ended September 30, 2025, from the prior $0.385 per share, reflects management's response to the earnings power and these underlying cost pressures.

WhiteHorse Finance, Inc. (WHF) - Canvas Business Model: Revenue Streams

WhiteHorse Finance, Inc.'s revenue streams flow primarily from its investment portfolio, which is heavily weighted toward debt instruments. The Interest Income component is the main driver of the top line, stemming from the interest earned on its senior secured loans to lower middle market companies.

The second key component is Fee Income, which is generated from the structuring and originating of these loans. While the exact split between interest and fee income for a given period isn't always broken out in the summary data, both contribute to the overall investment income figure.

A significant, specialized stream comes from the Income from STRS JV (Joint Venture). As of Q3 2025, the Company's return on its equity investment in the STRS JV was reported at 13.8%. During that third quarter, the income recognized from this JV investment aggregated to approximately $3.6 million.

Looking at the broader picture, the Total revenue for the trailing twelve months (TTM) ending Q3 2025 was $76.34 million.

Here's a quick look at some of the key revenue-related metrics as of the end of the third quarter of 2025:

Metric	Value as of Q3 2025
Q3 2025 Total Investment Income	$17.69 million
TTM Revenue (Ending Q3 2025)	$76.34 million
STRS JV Return on Equity	13.8%
STRS JV Income Recognized in Q3 2025	~$3.6 million
Weighted Average Effective Yield on Income-Producing Debt Investments (Excluding JV)	11.6%
Weighted Average Effective Yield on Entire Portfolio (Including JV)	9.5%

You should also note these related financial details that impact the revenue realization:

• The incentive fee on net investment income was voluntarily reduced from 20.00% to 17.50% for the fiscal quarters ending December 31, 2025, and March 31, 2026.
• The quarterly base distribution for the quarter ended September 30, 2025, was reset to $0.25 per share.
• The aggregate fair value of the STRS JV portfolio as of September 30, 2025, was $341.5 million.

Finance: draft 13-week cash view by Friday.