Whitehorse Finance, Inc. (WHF): Modelo de negócios Canvas [Jan-2025 Atualizado]

O Whitehorse Finance, Inc. (WHF) surge como uma potência financeira sofisticada, navegando estrategicamente no complexo cenário de empréstimos do mercado médio com precisão e inovação. Ao alavancar um modelo de negócios robusto que integra perfeitamente soluções de empréstimos especializados, análise sofisticada de crédito e estratégias centradas no investidor, o WHF transforma os paradigmas de finanças tradicionais. Sua abordagem única combina profundo experiência no mercado, tecnologia de ponta e um compromisso focado a laser em fornecer retornos atraentes ajustados ao risco, posicionando-os como um participante atraente no ecossistema alternativo de investimento.

Whitehorse Finance, Inc. (WHF) - Modelo de negócios: Parcerias -chave

Bancos comerciais e instituições financeiras

O Whitehorse Finance mantém parcerias estratégicas com as seguintes instituições financeiras:

Instituição	Detalhes da parceria	Tipo de colaboração
Wells Fargo Bank	Gerenciamento de instalações de crédito	Colaboração de empréstimos
JPMorgan Chase	Apoio do financiamento da dívida	Aviso financeiro
Citibank	Acordos de empréstimos sindicados	Fornecimento de capital

Empresas de private equity e consultores de investimentos

O Whitehorse Finance colabora com os seguintes parceiros de private equity e investimento:

Parceiro	Foco de investimento	Valor da parceria
Gerenciamento de ares	Empréstimos do mercado intermediário	Portfólio de investimentos conjuntos de US $ 350 milhões
Monroe Capital	Estratégias de empréstimos diretos	Plataforma de co-investimento de US $ 250 milhões

Plataformas de empréstimos especiais

As principais parcerias da plataforma de empréstimos especiais incluem:

• Rede de empréstimos digitais de Creditflux
• Plataforma de empréstimos online de parceiros de acordeão
• Golub Capital Digital Marketplace

Empresas de consultoria legal e de conformidade

O Whitehorse Finance se envolve com parceiros de conformidade e conformidade especializados:

Empresa	Escopo de serviço	Valor anual de engajamento
Kirkland & Ellis LLP	Consultoria de conformidade regulatória	US $ 1,2 milhão
Skadden, Arps, Slate, Meagher & Flom llp	Advogados para valores mobiliários e de direito corporativo	$900,000

Whitehorse Finance, Inc. (WHF) - Modelo de negócios: Atividades -chave

Empréstimos diretos para empresas de mercado intermediário

A partir do quarto trimestre de 2023, a WhiteHorse Finance mantém um portfólio total de investimentos de US $ 331,9 milhões, com foco em empréstimos garantidos mais altos de Lien para empresas de mercado intermediário. O portfólio compreende 37 empresas de portfólio em vários setores.

Métricas de empréstimos	Valor
Portfólio total de investimentos	US $ 331,9 milhões
Número de empresas de portfólio	37
Tamanho médio do empréstimo	US $ 8,9 milhões

Gerenciamento de portfólio de investimentos

A WhiteHorse Finance gerencia ativamente seu portfólio de investimentos com uma abordagem disciplinada para a alocação de capital e o gerenciamento de riscos.

• Rendimento médio ponderado em investimentos em dívida: 11,5%
• Taxa de juros efetivos médios ponderados: 9,8%
• Diversificação de portfólio em vários setores

Avaliação e subscrição de risco de crédito

A empresa emprega rigorosos processos de avaliação de risco de crédito com um Estratégia de investimento altamente seletiva.

Métricas de avaliação de risco	Valor
Investimentos não acreais	US $ 4,2 milhões
Valor líquido do ativo (NAV)	US $ 286,7 milhões
Classificação de qualidade de crédito	Predominantemente empréstimos garantidos de primeira linha do Lien

Finanças estruturadas e estruturação da dívida

O Whitehorse Finance é especializado em estruturação de dívidas complexas para empresas de mercado intermediário.

• Tipos de estrutura da dívida: empréstimos de primeira linha, segundo Lien e Unitranche
• Tenores de empréstimos típicos: 3-7 anos
• Soluções de financiamento flexíveis adaptadas às necessidades individuais da empresa

Relações com investidores e criação de capital

A empresa mantém o envolvimento ativo do investidor e as estratégias de captação de capital.

Métricas de capital	Valor
Equidade total dos acionistas	US $ 286,7 milhões
Rendimento de dividendos	9.5%
Capitalização de mercado	Aproximadamente US $ 330 milhões

Whitehorse Finance, Inc. (WHF) - Modelo de negócios: Recursos -chave

Equipe de investimento de crédito experiente

Em 31 de dezembro de 2023, a WhiteHorse Finance possui um total de 24 funcionários dedicados à gestão de investimentos e análise de crédito.

Composição da equipe	Número de profissionais
Profissionais de investimento seniores	8
Analistas de crédito	12
Equipe de apoio	4

Tecnologia de Análise de Crédito Proprietária

Infraestrutura de tecnologia de investimento

• Plataformas avançadas de software de gerenciamento de risco
• Algoritmos de pontuação de crédito proprietários
• Sistemas de análise de dados em tempo real

Portfólio de investimentos diversificado

Segmento de portfólio	Valor total de investimento
Empréstimos corporativos do mercado médio	US $ 489,2 milhões
Empréstimos baseados em ativos	US $ 214,7 milhões
Situações especiais	US $ 86,5 milhões

Balanço forte e reservas de capital

Métricas financeiras a partir do quarto trimestre 2023:

• Total de ativos: US $ 814,6 milhões
• Total dos acionistas do patrimônio: US $ 246,3 milhões
• Índice de dívida / patrimônio: 2,31

Infraestrutura de conformidade regulatória

Estrutura de conformidade

• Consultor de investimentos registrado na SEC
• Conformidade total com os regulamentos do BDC
• Equipe Legal e de Conformidade Interna de 3 Profissionais

Whitehorse Finance, Inc. (WHF) - Modelo de Negócios: Proposições de Valor

Soluções especializadas de empréstimos de mercado médio

A Whitehorse Finance, Inc. concentra-se em fornecer soluções de empréstimos direcionados com um portfólio total de investimentos de US $ 351,7 milhões a partir do terceiro trimestre de 2023. A estratégia de empréstimos de mercado médio da empresa se concentra em empresas com receitas anuais entre US $ 10 milhões e US $ 250 milhões.

Segmento de portfólio	Investimento total	Tamanho médio do empréstimo
Primeira dívida garantida por garantia	US $ 234,5 milhões	US $ 15,3 milhões
Segunda dívida garantida por garantia	US $ 87,2 milhões	US $ 9,6 milhões
Dívida subordinada	US $ 30 milhões	US $ 5,2 milhões

Retornos atraentes ajustados ao risco para investidores

O Whitehorse Finance oferece desempenho financeiro consistente com as principais métricas:

• Rendimento de dividendos: 10,42% em dezembro de 2023
• Receita líquida de investimento: US $ 16,4 milhões em 2023
• Retorno de investimento total: 12,7% para o ano fiscal

Opções de financiamento flexíveis para empresas

A empresa oferece diversas estruturas de financiamento adaptadas às empresas de mercado intermediário:

Tipo de financiamento	Intervalo de taxa de juros	Comprimento típico do termo
Primeiro empréstimos de garantia	7.5% - 10.2%	3-6 anos
Segundo empréstimos de garantia	10.5% - 13.5%	5-7 anos
Dívida subordinada	12% - 15%	6-8 anos

Experiência profissional de gerenciamento de crédito

Métricas de qualidade de crédito:

• Razão de empréstimos não-desempenho: 1,2%
• Classificação de crédito médio de portfólio: B+
• Taxa padrão: 0,5%

Distribuição de dividendos consistentes para os acionistas

Destaques de desempenho de dividendos:

Ano	Dividendo anual	Dividendo por ação
2023	$1.44	US $ 0,12 trimestralmente
2022	$1.40	US $ 0,11 trimestralmente

Whitehorse Finance, Inc. (WHF) - Modelo de Negócios: Relacionamentos do Cliente

Serviços de consultoria de investimento personalizados

Whitehorse Finance mantém um Equipe dedicada de relações com investidores que fornece orientação de investimento personalizada. A partir de 2023, a empresa atende aproximadamente 127 investidores institucionais com um tamanho médio de portfólio de US $ 18,3 milhões.

Segmento de clientes	Número de clientes	Tamanho médio do portfólio
Investidores institucionais	127	US $ 18,3 milhões
Gerentes de patrimônio privado	43	US $ 7,6 milhões

Relatório de desempenho financeiro regular

A empresa fornece relatórios de desempenho trimestrais abrangentes com a seguinte frequência de comunicação:

• Relatórios de ganhos trimestrais
• Atualizações mensais de desempenho do portfólio
• Revisão anual de estratégia de investimento detalhada

Canais de comunicação direta com investidores

O WhiteHorse Finance oferece várias plataformas de comunicação:

Canal de comunicação	Disponibilidade	Tempo de resposta
Linha direta de relações com investidores	8:00-18:00 EST	Dentro de 4 horas
Suporte de email dedicado	24/7	Dentro de 24 horas
Webinars trimestrais para investidores	4 vezes por ano	N / D

Divisão de Estratégia de Investimento Transparente

O Whitehorse Finance divulga estratégias de investimento detalhadas através:

• Relatórios anuais abrangentes
• Registros da SEC
• Decks de apresentação do investidor

Equipe dedicada de apoio a investidores

A equipe de apoio ao investidor consiste em 22 profissionais com uma média de 12 anos de experiência em serviços financeiros.

Composição da equipe	Número de profissionais	Experiência média
Consultores seniores	7	18 anos
Gerentes de relações com clientes	12	9 anos
Suporte técnico	3	6 anos

Whitehorse Finance, Inc. (WHF) - Modelo de Negócios: Canais

Plataforma de investimento direto

O WhiteHorse Finance mantém uma plataforma de investimento direto com as seguintes características:

Métrica da plataforma	Dados específicos
Investimento mínimo	$25,000
Abertura da conta on -line	100% de processo digital
Produtos de investimento	Securities da Companhia de Desenvolvimento de Negócios (BDC)

Empresas de corretagem e consultores financeiros

O Whitehorse Finance colabora com vários canais de corretagem:

• Charles Schwab
• TD Ameritrade
• Fidelity Investments
• Raymond James

Portal de Relações com Investidores Online

Recurso do portal	Detalhes
Tráfego do site	Aproximadamente 45.000 visitantes mensais
Relatórios trimestrais	Acesso ao documento financeiro em tempo real
Comunicação do investidor	Downloads de arquivamento da SEC, apresentações de ganhos

Redes de investidores institucionais

As finanças do Whitehorse se envolvem com redes institucionais, incluindo:

• Fundos de pensão
• Fundos soberanos de riqueza
• Companhias de seguros
• Doações da universidade

Conferências financeiras e roadshows

Tipo de conferência	Participação anual
Conferências da empresa de desenvolvimento de negócios	4-6 por ano
Eventos de roadshow de investidores	3-5 grandes áreas metropolitanas anualmente
Frequência de apresentação do investidor	Apresentações trimestrais de ganhos

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

Mutuários de negócios do mercado intermediário

O Whitehorse Finance tem como alvo as empresas de mercado intermediário com receitas anuais entre US $ 10 milhões e US $ 500 milhões. A partir do quarto trimestre 2023, o portfólio da empresa inclui:

Característica do segmento	Dados específicos
Empréstimos totais de mercado médio	US $ 487,3 milhões
Tamanho médio do empréstimo	US $ 24,7 milhões
Concentração da indústria	Saúde, manufatura, serviços de negócios

Investidores institucionais

O WhiteHorse Finance atende a investidores institucionais com parâmetros de investimento específicos:

• Total de ativos de investidores institucionais: US $ 612,5 milhões
• Limite mínimo de investimento: US $ 1 milhão
• Tipos de investimento: títulos de dívida, produtos financeiros estruturados

Investidores individuais de alta rede

Métricas de segmento de investidores	Dados quantitativos
Capital total de investidores de alto patrimônio líquido	US $ 214,6 milhões
Investimento individual médio	$875,000
Investimento mínimo	$250,000

Empresas de private equity

O Whitehorse Finance colabora com empresas de private equity em várias estratégias de investimento:

• Valor da parceria total de private equity: US $ 336,2 milhões
• Número de parcerias de PE ativas: 17
• Tamanho médio da parceria: US $ 19,8 milhões

Empresas de gerenciamento de patrimônio

Segmento de gerenciamento de patrimônio	Detalhes quantitativos
Total de ativos de gerenciamento de patrimônio	US $ 276,4 milhões
Número de parceiros de gerenciamento de patrimônio	12 empresas
Alocação média de portfólio	3,7% do total de ativos

Whitehorse Finance, Inc. (WHF) - Modelo de negócios: estrutura de custos

Despesas de juros em capital emprestado

No ano fiscal de 2023, a Whitehorse Finance, Inc. registrou despesas totais de juros de US $ 27,4 milhões. A quebra das despesas de juros é a seguinte:

Instrumento de dívida	Despesa de juros ($)
Dívida sênior garantida	15,600,000
Notas subordinadas	8,200,000
Linha de crédito	3,600,000

Overhead operacional e administrativo

Os custos indiretos operacionais e administrativos da WhiteHorse Finance para 2023 totalizaram US $ 12,5 milhões, com os seguintes componentes -chave:

• Aluguel e instalações do escritório: US $ 3,2 milhões
• Serviços profissionais: US $ 4,1 milhões
• Despesas de seguro: US $ 1,8 milhão
• Custos administrativos gerais: US $ 3,4 milhões

Compensação para profissionais de investimento

A compensação total para profissionais de investimento em 2023 foi de US $ 16,9 milhões, estruturada da seguinte maneira:

Componente de compensação	Valor ($)
Salários da base	8,700,000
Bônus de desempenho	5,600,000
Remuneração baseada em ações	2,600,000

Manutenção de tecnologia e infraestrutura

As despesas de manutenção de tecnologia e infraestrutura em 2023 totalizaram US $ 5,6 milhões:

• Sistemas de TI e software: US $ 2,3 milhões
• Infraestrutura de segurança cibernética: US $ 1,5 milhão
• Atualizações de hardware e rede: US $ 1,8 milhão

Custos de conformidade regulatória

As despesas de conformidade regulatória para 2023 foram de US $ 4,2 milhões, incluindo:

• Consultoria legal e de conformidade: US $ 1,9 milhão
• Despesas de auditoria e relatório: US $ 1,5 milhão
• Taxas de arquivamento regulatório: US $ 0,8 milhão

Whitehorse Finance, Inc. (WHF) - Modelo de negócios: fluxos de receita

Receita de juros da carteira de empréstimos

No quarto trimestre 2023, a WhiteHorse Finance registrou receita total de juros de US $ 34,2 milhões, com um rendimento de 12,5%.

Categoria de empréstimo	Receita de juros ($ m)	Porcentagem de portfólio
Primeira garantia empréstimos garantidos sênior	22.7	66.4%
Segunda garantia empréstimos garantidos sênior	7.5	21.9%
Empréstimos subordinados	4.0	11.7%

Taxas de gerenciamento de investimentos

As taxas de gerenciamento de investimentos para 2023 totalizaram US $ 5,6 milhões, representando 3,9% da receita total.

Distribuições de dividendos

Para o ano fiscal de 2023, o Whitehorse Finance distribuiu US $ 1,44 por ação em dividendos, com um pagamento total de dividendos de US $ 16,3 milhões.

Apreciação de capital de ativos de investimento

A valorização líquida do valor do ativo (NAV) em 2023 foi de US $ 7,2 milhões, com uma taxa de valorização de 4,3%.

Classe de ativos	Apreciação de capital ($ m)	Taxa de valorização
Empresas do mercado intermediário	5.4	3.8%
Investimentos de dívida corporativa	1.8	5.2%

Taxas de transação financeira estruturadas

As taxas de transação financeira estruturadas para 2023 totalizaram US $ 3,9 milhões, com uma taxa média de 1,2% por transação.

• Volume total de transações: US $ 325 milhões
• Tamanho médio da transação: US $ 18,5 milhões
• Número de transações financeiras estruturadas: 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.