WhiteHorse Finance, Inc. (WHF): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a Business Development Company, and honestly, figuring out how WhiteHorse Finance, Inc. (WHF) actually makes money can seem complex. As someone who's spent two decades mapping out these structures, I can tell you the core is straightforward: they borrow capital, primarily through debt like their roughly $368.5 million outstanding as of mid-2025, and deploy it as secured loans to lower middle-market firms. This strategy is designed to generate that high-yield income you're looking for, evidenced by their recent 11.6% effective yield on debt investments. Below, I've broken down their entire operating model-from their key partnership with H.I.G. Capital to their cost structure-so you can see exactly where the risk and the return live in their $568.4 million portfolio as of Q3 2025.

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

You're looking at the core relationships that let WhiteHorse Finance, Inc. (WHF) operate and grow its portfolio; these aren't just vendors, they're deeply integrated partners. The entire investment engine runs because of the relationship with its external manager.

External manager: H.I.G. WhiteHorse Advisers, LLC.

H.I.G. WhiteHorse Advisers, LLC serves as the investment adviser, handling the sourcing, diligence, structuring, and ongoing monitoring of all investments. This relationship is critical because the adviser's expertise directly drives the quality of the assets on the balance sheet. To better align interests with shareholders following recent results, the adviser voluntarily agreed to reduce the incentive fee on net investment income from the standard annual rate of 20.00% to 17.50% for the fiscal quarters ending December 31, 2025, and March 31, 2026, respectively. This temporary reduction provides additional financial support for quarterly distributions. WhiteHorse Administration, LLC, an affiliate, handles the day-to-day administrative services.

Global asset manager: H.I.G. Capital, LLC

H.I.G. WhiteHorse Advisers, LLC is an affiliate of H.I.G. Capital, LLC, which is a major player in the alternative asset space. H.I.G. Capital, LLC manages over $70 billion in capital across various funds focused on the small and mid-cap markets as of late 2025. This connection provides WhiteHorse Finance, Inc. with differentiated, proprietary deal flow, reportedly sourced through over 70 dedicated deal professionals. The investment committee, which guides the strategy, has approximately 350 years of combined industry experience as of Q3 2025.

Joint Venture: STRS JV

The STRS JV, a co-investment vehicle with STRS Ohio (State Teachers Retirement System of Ohio), is a key component for portfolio expansion and generating specific returns. WhiteHorse Finance, Inc. actively feeds assets into this structure; for instance, during the three months ended September 30, 2025, the Company transferred assets totaling $24.2 million to the STRS JV. As of September 30, 2025, the STRS JV portfolio held positions in 43 portfolio companies with an aggregate fair value of $341.5 million. WhiteHorse Finance, Inc.'s equity investment in the JV was generating a mid-teens return on equity, with income recognized from the JV investment aggregating to approximately $3.6 million in Q3 2025. The overall portfolio fair value as of September 30, 2025, showed that investments in the STRS JV represented 18.6% of the total portfolio.

You can see the scale of these relationships and the resulting leverage structure here:

Partnership/Facility	Metric	Value as of Late 2025
H.I.G. Capital, LLC	Capital Under Management	Over $70 billion
STRS JV (Total Assets)	Fair Value as of 9/30/2025	$364.3 million
STRS JV (WHF Allocation)	Portfolio Percentage (Fair Value) as of 9/30/2025	18.6%
STRS JV (WHF Return)	Return on Equity (Q3 2025)	Mid-teens
Term Debt Securitization (CLO)	Amount Completed in June 2025	$298.15 million
Revolving Credit Facility	Committed Amount	$100.0 million
Total Outstanding Debt	Amount as of 9/30/2025	$328.5 million
Cash Position	Cash on-hand as of 9/30/2025	$45.9 million

Financial institutions for revolving credit and term debt

WhiteHorse Finance, Inc. relies on financial institutions to provide the necessary leverage to support its investment activities. A significant recent example is the term debt securitization completed in June 2025, which totaled $298.15 million. This transaction, a collateralized loan obligation (CLO), was executed through the Company's subsidiary, WhiteHorse Finance CLO I, LLC. Furthermore, the Company maintains access to liquidity via a Revolving Credit Facility, which had a commitment of $100.0 million as of September 30, 2025, though none of that capacity was drawn at that time. Total outstanding debt, including the notes from the new CLO, stood at $328.5 million at the end of Q3 2025, resulting in a net leverage ratio of 1.07x when factoring in the $45.9 million in cash on-hand. The asset coverage ratio for borrowed amounts, as defined by the 1940 Act, was 180.7% on September 30, 2025.

The key external dependencies look like this:

• External Manager: H.I.G. WhiteHorse Advisers, LLC.
• Parent Asset Manager: H.I.G. Capital, LLC (managing over $70 billion).
• Co-Investment Partner: STRS JV ($364.3 million in assets as of 9/30/2025).
• Lenders/Trustees: Financial institutions providing debt facilities.
• The $298.15 million CLO in 2025 involved The Bank of New York Mellon Trust Company, National Association, as collateral agent and Trustee.

Finance: draft the Q4 2025 leverage forecast by next Wednesday.

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

You're looking at the core engine of WhiteHorse Finance, Inc. (WHF) as of late 2025, which is all about deploying capital into the lower middle market and managing the resulting assets to generate income for shareholders. It's a disciplined, asset-heavy operation.

Originate and underwrite secured loans to lower middle market companies.

The primary activity is sourcing and executing debt investments, focusing on companies with enterprise values generally between $50 million and $350 million. This requires constant deal flow and rigorous due diligence. For the three months ended September 30, 2025, WhiteHorse Finance, Inc. made gross capital deployments totaling $19.3 million, which included investments in two new portfolio companies for $14.3 million and $4.9 million added to existing ones. This activity is balanced by repayments and sales totaling $50.5 million during the same period.

The structure of the lending book is a key part of the underwriting strategy:

Investment Type Detail (as of 9/30/2025)	Percentage of Portfolio at Fair Value
First Lien Secured Loans	74.7%
Second Lien Secured Loans	0.6%
Unsecured Loans	0.2%
Equity Investments	5.9%
Investments in STRS JV	18.6%

Manage a diversified investment portfolio of $568.4 million (Q3 2025).

Managing this asset base is central. As of September 30, 2025, the total investment portfolio fair value stood at $568.4 million, down from $629.3 million the prior quarter. This portfolio is spread across 125 positions in 66 companies. The yield on the income-producing debt investments is a critical metric; the weighted average effective yield decreased to 11.6% as of the end of Q3 2025, down from 11.9% in Q2 2025. The weighted average effective yield on the overall portfolio was 9.5% at the end of Q3 2025.

Actively manage capital structure and liquidity.

WhiteHorse Finance, Inc. must maintain regulatory compliance and manage its cost of capital. The Asset Coverage Ratio stood at 180.7% as of September 30, 2025, comfortably above the minimum requirement of 150%. The Net Effective Debt-to-Equity Ratio was managed down to 1.07x from 1.22x the previous quarter. Management took specific actions to manage capital and signal confidence:

• Authorized a stock repurchase program of up to $15.0 million.
• The adviser agreed to temporarily reduce the incentive fee on net investment income from 20.00% to 17.50% for the next two fiscal quarters ending December 31, 2025, and March 31, 2026.
• Cash resources at the end of Q3 were approximately $45.9 million, which included $36.4 million in restricted cash.

Distribute quarterly income to public shareholders.

The commitment to distributing income is a core function, though the amount is subject to earnings power. The Board declared a fourth quarter base distribution of $0.25 per share, payable on January 5, 2026, to holders of record on December 22, 2025. This represents a reset from the prior distribution level of $0.385 per share. WhiteHorse Finance, Inc. has maintained consistent quarterly dividend payments since its December 2012 IPO.

Reposition and restructure underperforming portfolio investments.

Dealing with credit deterioration is an unavoidable activity in this space. As of September 30, 2025, Non-Accrual Investments represented 2.7% of the debt portfolio at fair value, an improvement from 4.9% in the prior quarter. The company recognized an aggregate total of $6.7 million in net realized and unrealized losses in Q3, with mark-to-market losses primarily driven by write-downs in specific names, including Alvaria and Camarillo Fitness, which struggled to service existing debt levels.

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

You're analyzing the core assets WhiteHorse Finance, Inc. (WHF) relies on to execute its investment strategy as of late 2025. These aren't just line items; they are the engine room of the business.

The primary tangible resource is the Investment Portfolio, which represents the deployed capital generating returns. As of September 30, 2025, the fair value of this portfolio stood at $568.4 million. This portfolio is heavily weighted toward senior secured loans, with approximately 74.7% being first lien secured loans as of that date.

To maintain its investment pace and structure, WhiteHorse Finance, Inc. utilizes Leveraged Capital. As of the second quarter of 2025, the company reported total debt of approximately $368.5 million. This leverage is managed actively; for instance, gross leverage levels decreased to 1.24x by the end of Q3 2025 from 1.34x at the end of Q2 2025.

The joint venture structure is a significant resource, specifically the STRS JV. As of September 30, 2025, the STRS JV reported total assets of $364.3 million. The company's investment in this JV was a meaningful component of the overall portfolio, representing 18.6% of the total portfolio fair value at the end of Q3 2025.

The firm's Intellectual Capital is intrinsically tied to its investment adviser. The expertise of the H.I.G. WhiteHorse Advisers origination team is critical for sourcing and underwriting deals in the lower middle market. This platform supports origination capabilities with approximately 70+ investment and origination professionals across 13 North American offices as of Q2 2025.

Here's a quick look at the scale of these core financial resources as of the latest reported periods:

Key Resource Component	Metric	Amount / Value	Date Reference
Investment Portfolio	Fair Value	$568.4 million	September 30, 2025
Leveraged Capital	Total Debt	$368.5 million	Q2 2025
STRS JV	Total Assets	$364.3 million	September 30, 2025
Portfolio Composition	First Lien Secured Loans (% of Debt Investments)	74.7%	September 30, 2025

You should also note the composition details that underpin the portfolio's value:

• Portfolio consisted of 125 positions across 66 companies as of September 30, 2025.
• Weighted average effective yield on income-producing debt investments was 11.6% at the end of Q3 2025.
• Average debt investment size (excluding STRS JV) was $5.2 million.
• The adviser voluntarily reduced its incentive fee on net investment income to 17.50% for Q4 2025 and Q1 2026.

Finance: confirm the Q4 2025 leverage target by EOW.

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.