A Brief History of WhiteHorse Finance, Inc. (WHF)

Formation and Initial Public Offering

WhiteHorse Finance, Inc. was formed in 2012 as a publicly traded business development company (BDC). The company focuses on investing in privately held U.S. companies. On January 23, 2013, WHF completed its initial public offering, raising approximately $50 million.

Investment Strategy

WhiteHorse Finance primarily engages in the investment of secured debt and equity investments in middle-market companies. The company's investment strategy is characterized by:

• Focus on Senior Secured Debt
• Investment in Growth-Oriented Companies
• Targeting Companies with EBITDA between $3 million and $50 million

Financial Performance

As of September 30, 2023, WhiteHorse Finance reported a total investment portfolio valued at approximately $293 million. The company recorded the following financial metrics for the third quarter of 2023:

Dividend History

WhiteHorse Finance has a consistent record of dividend payments, reflecting its commitment to returning profits to its shareholders. The following table illustrates the annual dividends declared:

Market Presence and Investments

WhiteHorse Finance invests across a diverse range of sectors, including healthcare, technology, and manufacturing. As of the latest reporting period, the company's portfolio included investments in:

• Healthcare Services
• Software Development
• Consumer Products
• Business Services

Stock Performance

WhiteHorse Finance's performance on the stock market has shown resilience. As of October 20, 2023, WHF's stock price is approximately $12.10, with a market capitalization nearing $257 million. The company has experienced a year-to-date return of 12.5%.

Future Outlook

The company's management remains optimistic about the upcoming fiscal years, predicting steady growth in net investment income and portfolio diversification. Analysts project a potential increase in NAV driven by:

• Continued strong demand for middle-market financing
• Growth in targeted sectors, particularly technology and healthcare
• Improved economic conditions post-pandemic

A Who Owns WhiteHorse Finance, Inc. (WHF)

Shareholder Composition

As of the latest available data, WhiteHorse Finance, Inc. (WHF) has a diverse shareholder composition, which is critical for its operational stability and growth potential. The company's ownership is largely divided among institutional investors and individual shareholders. Below is a table indicating the major shareholders and their respective ownership percentages:

Market Capitalization

The market capitalization of WhiteHorse Finance, Inc. stands at approximately $415 million as of the end of the last fiscal quarter. This figure fluctuates based on market conditions and investor sentiment. The market cap is a pivotal aspect that often reflects the company's financial health and investor confidence.

Financial Performance Indicators

WhiteHorse Finance, Inc. reported the following financial performance indicators in their most recent quarterly earnings report:

Institutional Ownership Trends

The trend of institutional ownership in WhiteHorse Finance has seen a gradual increase over the last three years, indicating growing confidence in the company's business model. The following table summarizes the percentage of institutional ownership over the past three years:

CEO and Executive Team Ownership

The executive team and board of directors hold a significant amount of shares, reinforcing their commitment to the company's performance. The following table outlines the ownership percentages for key executives:

Conclusion of Ownership Structure

WhiteHorse Finance, Inc. showcases a robust ownership structure characterized by significant institutional ownership, a committed executive team, and growing market confidence. This structural composition is essential for the company's future strategic directions and operational decisions.

WhiteHorse Finance, Inc. (WHF) Mission Statement

Core Values

WhiteHorse Finance, Inc. is dedicated to creating value for its stakeholders by adhering to a set of core values:

• Integrity: Maintaining the highest ethical standards in all business operations.
• Transparency: Providing clear and honest communication with investors and clients.
• Commitment to Excellence: Striving for superior performance in service delivery.

Financial Overview

The financial health of WhiteHorse Finance is demonstrated through its recent performance metrics:

Investment Strategy

WhiteHorse Finance focuses on several strategic areas to optimize its investment portfolio:

• Middle-Market Companies: Targeting companies with earnings before interest, taxes, depreciation, and amortization (EBITDA) between $5 million and $50 million.
• Diverse Sectors: Investing across various sectors, including technology, healthcare, and manufacturing.
• Senior Secured Loans: Prioritizing investments in senior secured loans to mitigate risk.

Social Responsibility

WhiteHorse Finance is committed to corporate social responsibility, reflected in its initiatives:

• Sustainable Investing: Integrating environmental, social, and governance (ESG) factors into investment decisions.
• Community Engagement: Contributing to local communities through charitable giving and volunteer programs.
• Ethical Lending: Providing financial products that promote responsible borrowing.

Recent Achievements

Notable accomplishments of WhiteHorse Finance in 2023 include:

How WhiteHorse Finance, Inc. (WHF) Works

Business Model

WhiteHorse Finance, Inc. is a business development company (BDC) that primarily focuses on providing customized financing solutions to private middle-market companies. The company aims to generate both current income and capital appreciation by investing in various debt instruments.

Investment Strategy

WHF invests predominantly in:

• Senior secured loans
• Subordinated debt
• Equity co-investments

This diversified approach allows the company to mitigate risks while targeting attractive returns.

Portfolio Composition

As of the latest reporting period, WhiteHorse Finance's portfolio distribution is as follows:

Financial Performance

WhiteHorse Finance reported financials for the fiscal year ending December 31, 2022, with key figures including:

Dividend Policy

WhiteHorse Finance's dividend strategy is set to provide consistent income to shareholders. The company aims for a sustainable dividend yield, currently estimated at around 10.5% annually based on recent trading prices.

Market Position

As of October 2023, WHF's market capitalization stands at approximately $200 million, with a stock price hovering around $11.50 per share.

Risk Management

WhiteHorse employs a rigorous risk management framework comprising:

• Credit analysis
• Portfolio diversification
• Active monitoring of financial covenants

This framework aims to minimize potential losses and enhance overall portfolio performance.

Recent Developments

In 2023, WHF reported a 15% year-over-year increase in net asset value per share, reaching $10.95, amidst favorable market conditions and strategic investments.

Regulatory Compliance

As a BDC, WhiteHorse Finance is subject to the Investment Company Act of 1940, which imposes various operational and regulatory requirements.

Conclusion

WhiteHorse Finance's operational framework, investment approach, and market strategies position it as a notable player within the BDC industry, focusing on generating sustainable returns for its investors.

How WhiteHorse Finance, Inc. (WHF) Makes Money

Investment Portfolio

WhiteHorse Finance, Inc. primarily generates its revenue through its investment portfolio, which is mainly focused on private middle-market companies. As of the end of the second quarter of 2023, the total investment portfolio was valued at approximately $574 million.

Income Sources

The income generated by WHF comes from various sources:

• Interest Income
• Dividend Income
• Realized Gains from Investment Sales
• Fee Income

Interest Income

Interest income is the largest revenue stream for WHF. For the fiscal year 2022, WHF reported interest income totaling approximately $47.6 million, reflecting an increase from $37.8 million in 2021.

Dividend Income

Dividend income, primarily earned from equity investments in portfolio companies, contributed about $4.3 million in 2022.

Realized Gains from Investment Sales

In 2022, realized gains from investments reached approximately $5 million, showcasing the company's ability to capitalize on its investment strategies.

Fee Income

In addition to the aforementioned income sources, WHF also earns fee income, contributing about $2.8 million in 2022 from management and advisory services.

Debt Financing

WhiteHorse Finance utilizes debt financing to enhance returns on its investments. As of mid-2023, the company had a total debt outstanding of about $225 million, with an average interest rate of approximately 4.5%.

Leverage Ratio

WHF maintains a leverage ratio of approximately 2.0x, which is indicative of its strategy to leverage its capital structure for higher returns.

Revenue Growth

WHF has demonstrated consistent revenue growth, with total revenue for 2022 reported at approximately $62 million, a significant increase from $49 million in 2021.

Portfolio Composition

The following table displays the composition of WHF's investment portfolio as of June 30, 2023:

Expenses

WhiteHorse Finance incurs various expenses that affect its profitability. For 2022, total expenses were approximately $40 million, which included interest expenses of about $10 million and operating expenses of around $30 million.

Net Investment Income

For the fiscal year ended December 31, 2022, the net investment income was reported at approximately $22 million, yielding a net investment income per share of $1.28.

Dividends Paid

WhiteHorse Finance has a robust dividend policy. In 2022, the company declared dividends totaling around $0.94 per share, with a payout ratio of approximately 73%.

Stock Performance

As of October 2023, WHF's stock price is approximately $13.50, representing a year-to-date performance increase of around 12%.