WhiteHorse Finance, Inc. (WHF) Bundle
An Overview of WhiteHorse Finance, Inc. (WHF)
General Summary of the Company
WhiteHorse Finance, Inc. (WHF) is a business development company (BDC) primarily engaged in providing debt and equity financing to private middle-market companies across various sectors. Established in 2013, the company has built a diverse portfolio focused on senior secured loans, which constitutes the majority of its investment strategy. As of 2024, WhiteHorse Finance has approximately $707 million in investments at fair value, reflecting its commitment to supporting lower middle-market companies.
In terms of product offerings, WHF specializes in:
- Sourcing senior secured loans
- Providing subordinated debt and equity investments
- Offering mezzanine financing solutions
As of 2024, WhiteHorse Finance has reported total sales of approximately $71.8 million in investment income for the nine months ended September 30, 2024.
Company's Financial Performance in the Latest Financial Reports
For the nine months ended September 30, 2024, WhiteHorse Finance reported a total investment income of $71.8 million, a decrease from $77.6 million in the same period of 2023. The company’s net investment income after excise tax for this period was $29.3 million, compared to $32.1 million in the prior year.
In terms of expenses, total expenses for the nine months ended September 30, 2024, were $41.7 million, which includes:
- Interest expense: $21.4 million
- Base management fees: $9.2 million
- Performance-based incentive fees: $7.3 million
WhiteHorse Finance's net assets as of September 30, 2024, totaled $296.9 million, with a net asset value per share of $12.77. The company's record-breaking revenue has primarily been driven by its core product offerings in senior secured loans, which have a weighted average effective yield of 10.6%.
Introduction to Company as One of the Leading Companies in the Industry
WhiteHorse Finance, Inc. has established itself as a leader in the business development sector by focusing on providing tailored financial solutions to the lower middle market. The company’s investment strategy is characterized by a disciplined approach to risk management and a commitment to supporting the growth of its portfolio companies. As of September 30, 2024, WHF’s portfolio consisted of 129 positions across 73 companies.
As a publicly traded entity listed on NASDAQ under the symbol WHF, the company has demonstrated resilience and adaptability in a dynamic market environment. Investors are encouraged to explore further to understand the factors contributing to WHF's success, including its strategic partnerships and robust investment framework.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Investment Income | $22.9 million | $25.9 million |
| Net Investment Income After Excise Tax | $9.2 million | $10.8 million |
| Total Expenses | $13.4 million | $14.9 million |
| Net Assets | $296.9 million | $322.3 million |
| Net Asset Value Per Share | $12.77 | $13.87 |
Mission Statement of WhiteHorse Finance, Inc. (WHF)
Mission Statement of WhiteHorse Finance, Inc. (WHF)
The mission statement of WhiteHorse Finance, Inc. (WHF) is a critical element that reflects the company's strategic direction and commitment to its stakeholders. It embodies the company's purpose and sets the framework for its operations, guiding decision-making and aligning the organization towards achieving its long-term goals.
Core Component 1: Commitment to Quality
WhiteHorse Finance emphasizes a strong commitment to delivering high-quality financial products and services. This dedication is evident in its investment strategies, which focus on thorough due diligence and risk management processes. As of September 30, 2024, the company reported total investments at fair value amounting to $654.3 million, demonstrating its substantial asset base and capability to provide robust financial solutions.
| Category | Amount ($ in thousands) |
|---|---|
| Total Investments at Fair Value | 654,338 |
| Cash and Cash Equivalents | 11,164 |
| Restricted Cash and Cash Equivalents | 8,634 |
| Total Assets | 683,584 |
| Total Liabilities | 386,709 |
Core Component 2: Client-Centric Approach
The mission statement of WHF also highlights its client-centric approach, which prioritizes the needs and interests of its clients. The company aims to build long-lasting relationships by providing tailored financial solutions that meet specific client requirements. In the nine months ended September 30, 2024, WhiteHorse Finance generated interest and fee income of $30.6 million, reflecting its success in enhancing client satisfaction and loyalty.
| Financial Metric | Amount ($ in thousands) |
|---|---|
| Interest and Fee Income (9 months) | 30,592 |
| Total Investment Income | 30,592 |
| Total Expenses | 23,645 |
| Net Investment Income | 6,947 |
| Net Increase in Members' Equity | 9,062 |
Core Component 3: Sustainable Growth
Furthermore, WHF's mission statement underscores its commitment to sustainable growth, focusing on long-term value creation for its shareholders. The company strategically manages its portfolio to balance risk and return while maintaining a robust capital structure. As of September 30, 2024, WHF had $161.6 million in outstanding borrowings under its credit facility, with an asset coverage ratio of 183.4%, indicating a solid financial position.
| Financial Metric | Amount ($ in millions) |
|---|---|
| Outstanding Borrowings | 161.6 |
| Asset Coverage Ratio | 183.4% |
| Total Debt | 352.8 |
| Net Assets | 296.9 |
Vision Statement of WhiteHorse Finance, Inc. (WHF)
Vision Statement Overview
As of 2024, WhiteHorse Finance, Inc. (WHF) aims to be a leading provider of capital solutions for middle-market companies, emphasizing sustainable growth and value creation for its stakeholders. The vision is centered around fostering long-term partnerships and delivering innovative financial solutions.
Strategic Objectives
The strategic objectives of WHF's vision include:
- Enhancing Portfolio Quality: The company aims to maintain a diversified investment portfolio, focusing on high-quality assets that yield sustainable returns.
- Expanding Market Presence: WHF seeks to increase its footprint in the middle-market sector by targeting new investment opportunities and expanding its client base.
- Commitment to Stakeholders: The company is dedicated to delivering value to its shareholders, clients, and employees through transparent practices and innovative solutions.
Financial Performance Goals
WhiteHorse Finance has set specific financial performance goals to align with its vision:
- Net Asset Value (NAV): As of September 30, 2024, the NAV per share stood at $12.77, down from $13.63 at the end of 2023.
- Total Assets: Total assets were reported at $683.58 million as of September 30, 2024.
- Investment Income: Total investment income for the three months ended September 30, 2024, was $22.85 million, compared to $25.87 million for the same period in 2023.
- Debt Management: The company had outstanding borrowings of $161.6 million under its Credit Facility as of September 30, 2024.
Commitment to Sustainability
WHF's vision includes a strong commitment to sustainability, focusing on responsible investment practices and environmental stewardship:
- Investment in Sustainable Companies: The company actively seeks to invest in businesses that demonstrate sustainable practices and contribute positively to the community.
- Environmental, Social, and Governance (ESG) Criteria: WHF integrates ESG factors into its investment decision-making process to promote long-term sustainability and ethical governance.
Innovation and Technology Integration
WhiteHorse Finance is committed to leveraging technology to enhance its operational efficiency and client engagement:
- Digital Transformation: The company is investing in technology platforms to streamline operations and improve client service delivery.
- Data Analytics: WHF utilizes advanced analytics to assess investment opportunities and manage risks effectively.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Net Asset Value per Share | $12.77 | $13.63 |
| Total Assets | $683.58 million | $730.75 million |
| Total Investment Income | $22.85 million | $25.87 million |
| Outstanding Borrowings | $161.6 million | $196.5 million |
Long-term Vision
The long-term vision of WhiteHorse Finance, Inc. is to be recognized as a trusted partner in the middle-market finance sector, providing innovative solutions that contribute to the growth and success of its clients while ensuring robust returns for its investors. The company aspires to adapt to market changes and continue evolving its strategies to meet the dynamic needs of its stakeholders.
Core Values of WhiteHorse Finance, Inc. (WHF)
Integrity
Integrity is a foundational value at WhiteHorse Finance, Inc. (WHF). It emphasizes the importance of honesty and transparency in all business dealings.
In 2024, WHF has demonstrated its commitment to integrity through the following initiatives:
- Regular audits and compliance checks to ensure adherence to regulatory standards.
- Full disclosure of financial performance, including a net investment income of $9,154,000 for the quarter ending September 30, 2024.
Customer Focus
Customer focus at WHF means prioritizing the needs and satisfaction of its clients. This value drives the company to deliver tailored financial solutions.
In 2024, WHF has implemented several programs to enhance customer service:
- Introduction of personalized investment strategies, resulting in a portfolio with a fair value of $654,338,000 as of September 30, 2024.
- Client feedback mechanisms that have improved service delivery and satisfaction ratings.
Excellence
Excellence signifies WHF's commitment to high standards in its operations and services. The company strives for continuous improvement and innovation.
Examples of excellence in action include:
- Achieving a total net asset value of $296,875,000 as of September 30, 2024.
- Investment in advanced analytical tools that improved decision-making processes in asset management.
Collaboration
Collaboration reflects WHF’s belief in teamwork and partnerships to achieve common goals. This value fosters a culture of inclusivity and shared success.
In 2024, WHF has pursued collaborative efforts through:
- Joint ventures that have expanded its investment reach, including partnerships that contributed to a diversified portfolio worth $707,131,000.
- Internal collaborations among departments to streamline operations and enhance efficiency.
Accountability
Accountability at WHF means taking responsibility for actions and decisions, ensuring that the company remains answerable to its stakeholders.
Illustrations of accountability include:
- Regular reporting of financial metrics, including a decrease in accumulated losses to $41,423,000.
- A commitment to ethical practices that uphold the company’s reputation and stakeholder trust.
| Core Value | Example Initiative | Financial Impact |
|---|---|---|
| Integrity | Regulatory compliance audits | Net investment income of $9,154,000 |
| Customer Focus | Personalized investment strategies | Portfolio fair value of $654,338,000 |
| Excellence | High operational standards | Total net assets of $296,875,000 |
| Collaboration | Joint ventures | Diversified portfolio valued at $707,131,000 |
| Accountability | Regular financial reporting | Accumulated losses reduced to $41,423,000 |
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Resources:
- WhiteHorse Finance, Inc. (WHF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WhiteHorse Finance, Inc. (WHF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View WhiteHorse Finance, Inc. (WHF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.