WHF 8-K 2021 - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 9, 2021

WhiteHorse Finance, Inc.

(Exact name of registrant as specified in its charter)

Delaware	814-00967	45-4247759
(State or other jurisdiction <br>of incorporation)	(Commission <br>File Number)	(IRS Employer<br>Identification Number)

1450 Brickell Avenue, 31st Floor<br>Miami, Florida	33131
(Address of principal executive offices)	(Zip Code)

(305) 381-6999

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which <br>Registered
Common Stock, par value $0.001 per share	WHF	The Nasdaq Stock Market LLC<br>(Nasdaq Global Select Market)
6.50% Notes due 2025	WHFBZ	The Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On November 9, 2021, WhiteHorse Finance, Inc. (the “Company”) issued a press release announcing a quarterly distribution and its financial results for the quarter ended September 30, 2021. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such Section. The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure.

A copy of an earnings presentation that is intended to be used by representatives of the Company is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 furnished herewith, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such Section. The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 furnished herewith, shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Forward-Looking Statements

This Current Report on Form 8-K may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this Current Report on Form 8-K may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1	Press Release of WhiteHorse Finance, Inc. dated November 9, 2021.
99.2	Earnings Presentation of WhiteHorse Finance, Inc.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 9, 2021	WHITEHORSE FINANCE, INC.
	By:	/s/ Joyson C. Thomas
		Joyson C. Thomas
		Chief Financial Officer

Exhibit 99.1

WhiteHorse Finance, Inc. Announces Third Quarter 2021 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share

NEW YORK, November 9, 2021 /PRNewswire/ -- WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (Nasdaq: WHF) today announced its financial results for the quarter ended September 30, 2021. In addition, the Company’s board of directors has declared a distribution of $0.355 per share with respect to the quarter ending December 31, 2021. The distribution will be payable on January 4, 2022 to stockholders of record as of December 20, 2021.

Third Quarter 2021 Summary Highlights

●Net Asset Value of $323.7 million, or $15.46 per share

●Investment portfolio^(1)^ totaling $687.1 million

●STRS JV investment portfolio totaling $239.0 million

●Gross investment deployments^(2)^ of $122.5 million for the third quarter, including new originations of $47.9 million and $74.6 million of fundings for refinancings and add-ons to existing investments

●Net investment income of $7.6 million, or $0.366 per share

●Core net investment income of $7.8 million, or $0.372 per share^(3)^

●Third quarter distribution of $0.355 per share

Recent Developments

Subsequent to the end of the quarter, the Company issued 1,900,000 shares of its common stock in a public offering at an offering price of $15.81 per share (the “Offering”). The Offering generated net proceeds of approximately $29.4 million. Under the existing underwriting agreement, the underwriters executed the option to purchase an additional 282,300 shares, generating another $4.3 million of net proceeds. The Company’s aggregate net proceeds of the Offering were approximately $33.7 million, inclusive of underwriting discounts and commissions and before offering expenses.

Stuart Aronson, WhiteHorse Finance’s Chief Executive Officer, commented, “Gross capital deployments remained strong in the third quarter, offset in part by continuing repayments and refinancings within the portfolio, and we maintained a high level of origination activity. In anticipation of continuing rapid capital deployment, we completed a follow-on equity offering earlier this month, netting approximately $34 million in proceeds. Our pipeline remains very healthy, and this new capital should enable us to continue to grow WhiteHorse Finance through disciplined deal sourcing. Although the lending market has become more competitive in some segments, where pricing, leverage and documentation terms have returned to pre-COVID levels, we believe that our relationship with the leading H.I.G. platform and our differentiated three-tier sourcing capabilities will continue to drive growth. Notwithstanding the competitive backdrop, we believe that we can continue to identify and close deals that meet our rigorous underwriting standards and generate strong cash flow to support our dividend and create value for our shareholders.”

Portfolio and Investment Activity

As of September 30, 2021, the fair value of WhiteHorse Finance’s investment portfolio was $687.1 million, compared with $670.5 million as of June 30, 2021. The portfolio as of September 30, 2021 consisted of 99 positions across 65 companies with a weighted average effective yield of 9.3% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $7.3 million with the overall portfolio comprised of approximately 82.3% first lien secured loans, 4.3% second lien secured loans, 2.9% equity and 10.5% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the London Interbank Offered Rate) with fixed rate securities representing only 0.4% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended September 30, 2021, WhiteHorse Finance made investments in four new portfolio companies totaling $47.9 million, added a total of $34.8 million to existing portfolio companies, exclusive of refinancing, and made net fundings of $0.9 million to revolver loans. Proceeds from sales and repayments, exclusive of refinancing, totaled approximately $26.1 million for the quarter ended September 30, 2021, driven by two full realizations in LS GFG Holdings Inc. and Connexity, Inc. In addition, the Company refinanced three first lien investments, NNA Services, LLC, EducationDynamics, LLC and Source Code Midco, LLC, resulting in net repayments of approximately $7.3 million. Gross receipts from refinancings were $47.1 million and gross deployments from refinancings were $39.8 million.

In addition to the transactions discussed above, during the three months ended September 30, 2021, WhiteHorse Finance transferred assets comprised of two new portfolio companies, three add-ons and the remaining portions of four previously transferred deals totaling $45.7 million to STRS JV in exchange for a net investment in STRS JV of $9.4 million as well as cash proceeds of $36.3 million.

WHF STRS Ohio Senior Loan Fund LLC

As of September 30, 2021, STRS JV’s portfolio totaled $239.0 million, consisted of 27 portfolio companies and had a weighted average effective yield of 8.0% on its portfolio.

Results of Operations

For the three months ended September 30, 2021, the Company’s net investment income was approximately $7.6 million, compared with approximately $5.9 million for the same period in the prior year, representing an increase of approximately 28.8%. The increase in net investment income for the year-over-year period was primarily attributable to accelerated accretion and nonrecurring fee income recognized due to higher repayment activities as well as lesser capital gains incentive fee accrued, and partially offset by higher interest expense incurred due to higher leverage balances for the quarter ended September 30, 2021. For the three months ended September 30, 2021, the Company’s investment in STRS JV generated an annualized, gross investment yield of approximately 12.6%.

For the three months ended September 30, 2021, core net investment income^(3)^ was $7.8 million, or $0.372 per share, compared with $7.8 million, or $0.380 per share, for the same period in the prior year.

For the three months ended September 30, 2021, WhiteHorse Finance reported net realized and unrealized gains on investments and foreign currency transactions of $0.6 million. This compares with net realized and unrealized gains on investments and foreign currency transactions of $15.7 million for the three months ended September 30, 2020. The decrease for the year-over-year period was primarily attributable to higher prior-year unrealized gains generated on markups in the portfolio as a result of the market’s continuing recovery from the COVID-19 pandemic.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.3 million for the three months ended September 30, 2021, which compares with a net increase of $21.6 million for the three months ended September 30, 2020.

WhiteHorse Finance’s net asset value was $323.7 million, or $15.46 per share, as of September 30, 2021, as compared with $319.6 million, or $15.42 per share, as of June 30, 2021.

Liquidity and Capital Resources

As of September 30, 2021, WhiteHorse Finance had cash and cash equivalents of $16.6 million, as compared with $17.8 million as of June 30, 2021, inclusive of restricted cash. As of September 30, 2021, the Company also had $25.4 million of undrawn capacity under its revolving credit facility.

Distributions

The Company's Board of Directors has declared a distribution of $0.355 per share with respect to the quarter ending December 31, 2021. The distribution will be payable on January 4, 2022 to stockholders of record as of December 20, 2021. In addition, previously on October 14, 2021, the Company declared a special distribution of $0.135 per share, which will be payable on December 10, 2021 to stockholders of record as of October 29, 2021.

On August 9, 2021, the Company declared a distribution of $0.355 per share for the quarter ended September 30, 2021, consistent with distributions declared for the thirty-sixth consecutive quarter since the Company's initial public offering. The distribution was paid on October 4, 2021 to stockholders of record as of September 20, 2021.

Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company’s periodic reports filed with the Securities and Exchange Commission.

Conference Call

WhiteHorse Finance will host a conference call to discuss its third quarter results at 2:00 p.m. ET on Tuesday, November 9, 2021. To access the teleconference, please dial 877-876-9177 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference Conference ID #WHFQ321. Investors may also access the call on the investor relations portion of the Company’s website at www.whitehorsefinance.com.

If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call’s completion through November 16, 2021. The teleconference replay can be accessed by dialing 888-566-0150 (domestic and international). A webcast replay will also be available on the investor relations portion of the Company’s website at www.whitehorsefinance.com.

About WhiteHorse Finance, Inc.

WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company’s investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, (“H.I.G. Capital”). H.I.G. Capital is a leading global alternative asset manager with over $45 billion of capital under management^(4)^ across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC (“STRS JV”), an unconsolidated joint venture, totaling $72.1 million, at fair value.

(2) Excludes investments made in STRS JV.

(3) “Core net investment income” is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company’s financial performance excluding (i) the net impact of costs associated with the refinancing of the Company’s indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.

(4) Based on total capital commitments managed by H.I.G. Capital and affiliates.

SCHEDULE 1

As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company’s non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company’s indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses nor did the Company incur any costs with refinancing any of its indebtedness for the quarters ended September 30, 2021 and September 30, 2020.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2021 and September 30, 2020 (in thousands, except per share data):


	September 30, 2021				September 30, 2020
	Amount		Per Share		Amount		Per Share
			Amounts				Amounts
Net investment income	$	7,639	$	0.366	$	5,930	$	0.289
Net impact of costs associated with refinancing of indebtedness		-		-		-		-
Accrual for capital gains incentive fee		127		0.006		1,870		0.091
Net impact of excise tax expense related to net realized gains and losses		-		-		-		-
Core net investment income	$	7,766	$	0.372	$	7,800	$	0.380

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)


	****		September 30, 2021	****		December 31, 2020	****
			(Unaudited)
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments		$	608,213		$	623,777
Non-controlled affiliate company investments			6,800			15,717
Controlled affiliate company investments			72,110			51,241
Total investments, at fair value (amortized cost $695,047 and $695,429, respectively)			687,123			690,735
Cash and cash equivalents			9,579			8,062
Restricted cash and cash equivalents			6,749			7,549
Restricted foreign currency (cost of $241 and $319, respectively)			241			333
Interest and dividend receivable			7,227			6,532
Amounts receivable on unsettled investment transactions			15,489			4,717
Escrow receivable			1,827			—
Prepaid expenses and other receivables			1,162			1,061
Unrealized appreciation on foreign currency forward contracts			186			—
Total assets		$	729,583		$	718,989

Liabilities
Debt		$	379,757		$	384,880
Distributions payable			7,433			7,294
Management fees payable			3,508			3,354
Incentive fees payable			7,404			6,117
Amounts payable on unsettled investment transactions			3,380			497
Interest payable			2,201			1,870
Accounts payable and accrued expenses			1,680			1,708
Advances received from unfunded credit facilities			496			372
Total liabilities			405,859			406,092

Commitments and contingencies

Net assets
Common stock, 20,936,874 and 20,546,032 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized			21			21
Paid-in capital in excess of par			305,972			300,002
Accumulated earnings			17,731			12,874
Total net assets			323,724			312,897
Total liabilities and total net assets		$	729,583		$	718,989
Number of shares outstanding			20,936,874			20,546,032
Net asset value per share		$	15.46		$	15.23

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)


		Three months ended September 30,				Nine months ended September 30,
		2021		2020		2021		2020
Investment income
From non-controlled/non-affiliate company investments
Interest income	$	15,199	$	14,222	$	44,159	$	39,506
Fee income		1,224		741		2,344		1,571
Dividend income		35		21		144		101
From non-controlled affiliate company investments
Dividend income		76		263		1,042		800
From controlled affiliate company investments
Interest income		905		682		2,362		1,913
Dividend income		939		568		3,638		961
Total investment income		18,378		16,497		53,689		44,852
Expenses
Interest expense		3,842		2,770		11,456		9,661
Base management fees		3,508		3,069		10,209		9,110
Performance-based incentive fees		2,069		3,819		6,739		5,571
Administrative service fees		171		171		512		512
General and administrative expenses		896		601		2,592		2,212
Total expenses		10,486		10,430		31,508		27,066
Net investment income before excise tax		7,892		6,067		22,181		17,786
Excise tax		253		137		845		513
Net investment income after excise tax		7,639		5,930		21,336		17,273

Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses)
Non-controlled/non-affiliate company investments		109		635		7,714		1,069
Non-controlled affiliate company investments		—		—		—		—
Foreign currency transactions		(206)		(1)		(209)		66
Foreign currency forward contracts		1		(25)		(3)		(25)
Net realized gains (losses)		(96)		609		7,502		1,110
Net change in unrealized appreciation (depreciation)
Non-controlled/non-affiliate company investments		(1,370)		12,659		(3,937)		6,303
Non-controlled affiliate company investments		792		999		1,112		(131)
Controlled affiliate company investments		860		1,526		591		(1,316)
Translation of assets and liabilities in foreign currencies		263		(92)		161		251
Foreign currency forward contracts		187		3		186		—
Net change in unrealized appreciation (depreciation)		732		15,095		(1,887)		5,107
Net realized and unrealized gains (losses) on investments and foreign currency transactions		636		15,704		5,615		6,217
Net increase in net assets resulting from operations	$	8,275	$	21,634	$	26,951	$	23,490

Per Common Share Data
Basic and diluted earnings per common share	$	0.40	$	1.06	$	1.30	$	1.15
Dividends and distributions declared per common share	$	0.36	$	0.36	$	1.07	$	1.07
Basic and diluted weighted average common shares outstanding		20,851,435		20,546,032		20,677,545		20,546,032

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Issuer	Investment Type^(1)^	Floor	SpreadAboveIndex^(2)^	InterestRate^(3)^	AcquisitionDate^(10)^	MaturityDate	Principal/ShareAmount	AmortizedCost		FairValue^(11)^		Fair ValueAs APercentageof NetAssets
North America
Debt Investments
Advertising
SmartSign Holdings LLC	First Lien Secured Term Loan	1.00%	L+ 7.50%	8.50%	08/21/20	10/11/24	7,686	$	7,573	$	7,686	2.37	%
							7,686		7,573		7,686	2.37
Air Freight & Logistics
Access USA Shipping, LLC	First Lien Secured Term Loan	1.50%	L+ 8.00%	9.50%	02/08/19	02/08/24	5,010		4,975		5,010	1.55
Motivational Marketing, LLC	First Lien Secured Term Loan	1.00%	L+ 6.25%	7.25%	07/12/21	07/12/26	11,818		11,592		11,590	3.58
Motivational Marketing, LLC^(7)(12)^	First Lien Secured Revolving Loan	1.75%	L+ 5.92%	7.67%	07/12/21	07/12/26	906		889		888	0.27
							17,734		17,456		17,488	5.40
Application Software
Atlas Purchaser, Inc (dba Aspect Software)	Second Lien Secured Term Loan	0.75%	L+ 9.00%	9.75%	05/03/21	05/07/29	15,000		14,572		14,700	4.54
Newscycle Solutions, Inc	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.00%	06/14/19	12/29/22	3,221		3,198		3,208	0.99
Newscycle Solutions, Inc^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.00%	8.00%	06/14/19	12/29/22	169		168		168	0.05
TaxSlayer LLC	First Lien Secured Term Loan	1.00%	L+ 6.00%	7.00%	12/31/20	12/31/26	6,762		6,643		6,666	2.06
TaxSlayer LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.00%	7.00%	12/31/20	12/31/26	—		—		3	—
							25,152		24,581		24,745	7.64
Automotive Retail
Team Car Care Holdings, LLC^(12)^	First Lien Secured Term Loan	1.03%	Base rate+ 7.99%	9.02%	02/16/18	06/28/24	15,516		15,413		15,392	4.75
							15,516		15,413		15,392	4.75
Building Products
Drew Foam Companies Inc	First Lien Secured Term Loan	1.00%	L+ 6.25%	7.25%	11/05/20	11/05/25	7,225		7,104		7,153	2.21
LHS Borrower, LLC	First Lien Secured Term Loan	1.00%	L+ 6.75%	7.75%	09/30/20	09/30/25	9,506		9,336		9,436	2.91
LHS Borrower, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.75%	7.75%	09/30/20	09/30/25	—		—		6	—
Trimlite Buyer LLC^(5)(13)^	First Lien Secured Term Loan	1.00%	C+ 6.50%	7.50%	07/27/21	07/27/26	23,122		18,070		17,900	5.53
Trimlite Buyer LLC^(5)(7)(13)^	First Lien Secured Revolving Loan	1.00%	C+ 6.50%	7.50%	07/27/21	07/27/26	—		—		—	—
							39,853		34,510		34,495	10.65
Cable & Satellite
Bulk Midco, LLC^(15)^	First Lien Secured Term Loan	1.00%	L+ 7.34%	8.34%	06/08/18	06/08/23	15,000		14,924		14,419	4.45
							15,000		14,924		14,419	4.45
Construction & Engineering
Tensar Corp	First Lien Secured Term Loan	1.00%	L+ 6.75%	7.75%	11/20/20	08/20/25	6,948		6,805		6,948	2.15
							6,948		6,805		6,948	2.15
Construction Materials
Claridge Products and Equipment, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	12/30/20	12/29/25	7,659		7,529		7,521	2.32
Claridge Products and Equipment, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.50%	7.50%	12/30/20	12/29/25	—		—		—	—
							7,659		7,529		7,521	2.32
Commodity Chemicals
Flexitallic Group SAS	First Lien Secured Term Loan	1.00%	L+ 7.50%	8.50% (8.00% Cash + 0.50% PIK)	10/28/19	10/29/26	15,742		15,038		15,191	4.69
							15,742		15,038		15,191	4.69
Consumer Finance
Maxitransfers Blocker Corp	First Lien Secured Term Loan	1.00%	L+ 8.50%	9.50%	10/07/20	10/07/25	8,701		8,535		8,701	2.69
Maxitransfers Blocker Corp^(4)(7)^	First Lien Secured Revolving Loan	1.00%	L+ 8.50%	9.50%	10/07/20	10/07/25	—		—		20	0.01
							8,701		8,535		8,721	2.70
Data Processing & Outsourced Services
Escalon Services Inc	First Lien Secured Term Loan	1.00%	L+ 13.50%	14.50% (13.00% Cash + 1.50% PIK)	12/04/20	12/04/25	8,035		7,442		7,932	2.45
FPT Operating Company, LLC/ TLabs Operating Company, LLC	First Lien Secured Term Loan	1.00%	L+ 8.25%	9.25%	12/23/16	06/07/24	24,156		23,953		24,028	7.42
							32,191		31,395		31,960	9.87

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Issuer	Investment Type^(1)^	Floor	SpreadAboveIndex^(2)^	InterestRate^(3)^	AcquisitionDate^(10)^	MaturityDate	Principal/ShareAmount	AmortizedCost		FairValue^(11)^		Fair ValueAs APercentageof NetAssets
Department Stores
Mills Fleet Farm Group, LLC	First Lien Secured Term Loan	1.00%	L+ 6.25%	7.25%	10/24/18	10/24/24	13,538	$	13,320	$	13,538	4.18	%
							13,538		13,320		13,538	4.18
Distributors
Crown Brands, LLC^(19)^	Second Lien Secured Term Loan	1.50%	L+ 10.50%	12.00%	12/15/20	01/08/26	4,380		4,293		3,504	1.08
Crown Brands, LLC^(19)^	Second Lien Secured Delayed Draw Loan	1.50%	L+ 10.50%	12.00%	12/15/20	01/08/26	650		650		520	0.16
							5,030		4,943		4,024	1.24
Diversified Chemicals
Sklar Holdings, Inc	First Lien Secured Term Loan	1.00%	L+ 7.75%	8.75%	11/13/19	05/13/23	7,429		7,323		7,429	2.29
							7,429		7,323		7,429	2.29
Diversified Support Services
NNA Services, LLC	First Lien Secured Term Loan	1.00%	L+ 6.75%	7.75%	08/27/21	08/27/26	11,667		11,524		11,522	3.56
							11,667		11,524		11,522	3.56
Education Services
EducationDynamics, LLC	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.00% (7.50% Cash + 0.50% PIK)	09/15/21	09/14/26	13,385		13,119		13,118	4.05
EducationDynamics, LLC^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.00%	8.00% (7.50% Cash + 0.50% PIK)	09/15/21	09/14/26	—		—		—	—
EducationDynamics, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.00%	8.00% (7.50% Cash + 0.50% PIK)	09/15/21	09/14/26	—		—		—	—
EducationDynamics, LLC^(4)^	Subordinated Unsecured Term Loan	N/A	4.00%	4.00%	09/15/21	03/15/27	167		167		167	0.05
							13,552		13,286		13,285	4.10
Electronic Equipment & Instruments
LMG Holdings, Inc	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	04/30/21	04/30/26	6,819		6,694		6,704	2.07
LMG Holdings, Inc^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.50%	7.50%	04/30/21	04/30/26	—		—		1	—
							6,819		6,694		6,705	2.07
Health Care Facilities
Epiphany Dermatology	First Lien Secured Term Loan	1.00%	L+ 7.50%	8.50%	12/04/20	06/22/23	3,474		3,415		3,446	1.06
Epiphany Dermatology^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.50%	8.50%	12/04/20	06/22/23	—		—		4	—
Epiphany Dermatology^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.50%	8.50%	12/04/20	06/22/23	1,195		1,175		1,202	0.37
Grupo HIMA San Pablo, Inc^(8)^	First Lien Secured Term Loan A	N/A	L+ 9.00%	9.13%	05/05/19	04/30/19	3,855		3,855		1,927	0.60
Grupo HIMA San Pablo, Inc^(8)^	First Lien Secured Term Loan B	1.50%	L+ 9.00%	10.50%	02/01/13	04/30/19	13,511		13,511		6,756	2.09
Grupo HIMA San Pablo, Inc^(8)^	Second Lien Secured Term Loan	N/A	L+ 15.75%	15.75% (13.75% Cash + 2.00% PIK)	02/01/13	07/31/18	1,028		1,024		—	—
							23,063		22,980		13,335	4.12
Health Care Services
CHS Therapy, LLC	First Lien Secured Term Loan A	1.50%	L+ 9.00%	10.50% (10.00% Cash + 0.50% PIK)	06/14/19	06/14/24	7,281		7,206		7,281	2.25
CHS Therapy, LLC	First Lien Secured Term Loan C	1.50%	L+ 9.00%	10.50% (10.00% Cash + 0.50% PIK)	10/07/20	06/14/24	895		882		895	0.28
DCA Investment Holding, LLC	First Lien Secured Term Loan	0.75%	L+ 6.25%	7.00%	03/12/21	03/12/27	7,042		6,946		6,944	2.15
DCA Investment Holding, LLC^(7)^	First Lien Secured Delayed Draw Loan	0.75%	L+ 6.25%	7.00%	03/12/21	03/12/27	340		337		337	0.10
IvyRehab Intermediate II, LLC	First Lien Secured Term Loan	1.00%	L+ 6.75%	7.75%	12/04/20	12/04/24	17,410		17,143		17,280	5.34
IvyRehab Intermediate II, LLC^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 6.75%	7.75%	12/04/20	12/04/24	1,553		1,529		1,553	0.48
IvyRehab Intermediate II, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.75%	7.75%	12/04/20	12/04/24	—		—		9	—
Lab Logistics, LLC	First Lien Secured Term Loan	1.00%	L+ 7.25%	8.25%	10/16/19	09/25/23	1,158		1,141		1,155	0.36
Lab Logistics, LLC	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.25%	8.25%	10/16/19	09/25/23	5,197		5,177		5,197	1.61
PG Dental New Jersey Parent, LLC	First Lien Secured Term Loan	1.00%	L+ 9.00%	10.00% (8.75% Cash + 1.25% PIK)	11/25/20	11/25/25	15,398		15,110		14,782	4.57
PG Dental New Jersey Parent, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 9.00%	10.00% (8.75% Cash + 1.25% PIK)	11/25/20	11/25/25	—		—		(20)	(0.01)
							56,274		55,471		55,413	17.13

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Issuer	Investment Type^(1)^	Floor	SpreadAboveIndex^(2)^	InterestRate^(3)^	AcquisitionDate^(10)^	MaturityDate	Principal/ShareAmount	AmortizedCost		FairValue^(11)^		Fair ValueAs APercentageof NetAssets
Heavy Electrical Equipment
PPS CR Acquisition, Inc (dba Power Plant Services)	First Lien Secured Term Loan	1.00%	L+ 6.25%	7.25%	06/25/21	06/25/26	11,151	$	10,940	$	10,940	3.38	%
PPS CR Acquisition, Inc (dba Power Plant Services)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.25%	7.25%	06/25/21	06/25/24	104		103		100	0.03
							11,255		11,043		11,040	3.41
Home Furnishings
Sure Fit Home Products, LLC	First Lien Secured Term Loan	1.00%	L+ 9.75%	10.75%	04/12/21	07/13/23	4,947		4,848		4,419	1.37
							4,947		4,848		4,419	1.37
Household Products
The Kyjen Company, LLC (dba Outward Hound)	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	04/05/21	04/05/26	11,432		11,277		11,348	3.51
The Kyjen Company, LLC (dba Outward Hound)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.50%	7.50%	04/05/21	04/05/26	385		380		385	0.12
							11,817		11,657		11,733	3.63
Interactive Media & Services
What If Media Group, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	10/02/19	10/02/24	18,972		18,709		18,857	5.83
							18,972		18,709		18,857	5.83
Internet & Direct Marketing Retail
BBQ Buyer, LLC	First Lien Secured Term Loan	1.50%	L+ 8.00%	9.50%	08/28/20	08/28/25	12,634		12,382		12,846	3.97
Luxury Brand Holdings, Inc	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	12/04/20	06/04/26	5,955		5,854		5,955	1.84
Marlin DTC-LS Midco 2, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	08/06/21	07/01/25	4,277		4,194		4,193	1.30
Potpourri Group, Inc	First Lien Secured Term Loan	1.50%	L+ 8.25%	9.75%	07/03/19	07/03/24	17,263		17,048		17,263	5.33
							40,129		39,478		40,257	12.44
Investment Banking & Brokerage
JVMC Holdings Corp (f/k/a RJO Holdings Corp)	First Lien Secured Term Loan	1.00%	L+ 6.75%	7.75%	02/28/19	02/28/24	12,946		12,884		12,946	4.00
							12,946		12,884		12,946	4.00
IT Consulting & Other Services
AST-Applications Software Technology LLC	First Lien Secured Term Loan	1.00%	L+ 8.00%	9.00% (8.00% Cash + 1.00% PIK)	01/10/17	01/10/23	3,973		3,954		3,973	1.23
Core BTS, Inc	First Lien Secured Term Loan	1.50%	L+ 6.75%	8.25%	02/01/21	08/30/25	3,317		3,260		3,279	1.01
Core BTS, Inc	First Lien Secured Delayed Draw Loan	1.50%	L+ 6.75%	8.25%	02/01/21	08/30/25	1,658		1,627		1,623	0.50
							8,948		8,841		8,875	2.74
Leisure Facilities
Honors Holdings, LLC^(16)^	First Lien Secured Term Loan	1.00%	L+ 7.81%	8.81% (8.31% Cash + 0.50% PIK)	09/06/19	09/06/24	9,440		9,307		9,213	2.85
Honors Holdings, LLC^(16)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.60%	8.60% (8.10% Cash + 0.50% PIK)	09/06/19	09/06/24	4,649		4,609		4,537	1.40
Lift Brands, Inc (aka Snap Fitness Holdings, Inc)	First Lien Secured Term Loan A	1.00%	L+ 7.50%	8.50%	06/29/20	06/29/25	5,645		5,579		5,556	1.72
Lift Brands, Inc (aka Snap Fitness Holdings, Inc)	First Lien Secured Term Loan B	N/A	9.50%	9.50% (0.00% Cash + 9.50% PIK)	06/29/20	06/29/25	1,249		1,227		1,227	0.38
Lift Brands, Inc (aka Snap Fitness Holdings, Inc)^(9)^	First Lien Secured Term Loan C	N/A	9.50%	9.50% (0.00% Cash + 9.50% PIK)	06/29/20	NA	1,268		1,265		1,218	0.38
							22,251		21,987		21,751	6.73
Leisure Products
PlayMonster LLC	First Lien Secured Term Loan	1.00%	L+ 6.00%	7.00%	06/07/21	06/07/26	6,000		5,888		5,580	1.72
PlayMonster LLC^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 6.00%	7.00%	06/07/21	06/07/26	—		—		(158)	(0.05)
							6,000		5,888		5,422	1.67

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Issuer	Investment Type^(1)^	Floor	SpreadAboveIndex^(2)^	InterestRate^(3)^	AcquisitionDate^(10)^	MaturityDate	Principal/ShareAmount	AmortizedCost		FairValue^(11)^		Fair ValueAs APercentageof NetAssets
Office Services & Supplies
American Crafts, LC	First Lien Secured Term Loan	1.00%	L+ 8.50%	9.50%	05/28/21	05/28/26	8,392	$	8,280	$	8,278	2.56	%
Empire Office, Inc	First Lien Secured Term Loan	1.50%	L+ 6.75%	8.25%	04/12/19	04/12/24	12,868		12,700		12,786	3.95
Empire Office, Inc^(7)^	First Lien Secured Delayed Draw Loan	1.50%	L+ 6.75%	8.25%	08/17/21	04/12/24	—		—		(2)	—
							21,260		20,980		21,062	6.51
Packaged Foods & Meats
Lenny & Larry's, LLC^(17)^	First Lien Secured Term Loan	1.00%	L+ 8.40%	9.40% (7.68% Cash + 1.72% PIK)	05/15/18	05/15/23	11,094		11,025		10,814	3.34
							11,094		11,025		10,814	3.34
Personal Products
Inspired Beauty Brands, Inc	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.00%	12/30/20	12/30/25	12,397		12,185		12,397	3.83
Inspired Beauty Brands, Inc^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.00%	8.00%	12/30/20	12/30/25	—		—		9	—
							12,397		12,185		12,406	3.83
Property & Casualty Insurance
Policy Services Company, LLC ^(5)^	First Lien Secured Term Loan	1.00%	L+ 6.00%	7.00%	03/06/20	05/31/24	6,046		5,854		5,562	1.72
							6,046		5,854		5,562	1.72
Research & Consulting Services
ALM Media, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	11/25/19	11/25/24	14,372		14,191		14,134	4.37
Nelson Worldwide, LLC	First Lien Secured Term Loan	1.00%	L+ 10.25%	11.25% (10.25% Cash + 1.00% PIK)	01/09/18	01/09/23	10,333		10,268		10,230	3.16
							24,705		24,459		24,364	7.53
Specialized Consumer Services
HC Salon Holdings, Inc	First Lien Secured Term Loan	1.00%	L+ 8.00%	9.00%	09/30/21	09/24/26	11,667		11,433		11,433	3.53
HC Salon Holdings, Inc^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 8.00%	9.00%	09/30/21	09/24/26	—		—		—	—
True Blue Car Wash, LLC	First Lien Secured Term Loan	1.00%	L+ 6.82%	7.82%	10/17/19	10/17/24	8,256		8,129		8,181	2.53
True Blue Car Wash, LLC^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 6.82%	7.82%	10/17/19	10/17/24	2,924		2,896		2,922	0.90
							22,847		22,458		22,536	6.96
Specialized Finance
Golden Pear Funding Assetco, LLC^(5)^	Second Lien Secured Term Loan	1.00%	L+ 10.50%	11.50%	09/20/18	03/20/24	10,938		10,839		10,938	3.38
WHF STRS Ohio Senior Loan Fund LLC^(4)(5)(7)(9)(14)^	Subordinated Note	N/A	L+ 6.50%	6.58%	07/19/19	N/A	57,297		57,297		57,297	17.70
							68,235		68,136		68,235	21.08
Systems Software
Arcstor Midco, LLC	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.00%	03/16/21	03/16/27	19,403		19,050		19,179	5.92
							19,403		19,050		19,179	5.92
Technology Hardware, Storage & Peripherals
Source Code Midco, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	07/30/21	07/30/27	7,648		7,500		7,499	2.32
Source Code Midco, LLC^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.00%	8.00%	07/30/21	07/30/27	—		—		—	—
Telestream Holdings Corporation	First Lien Secured Term Loan	1.00%	L+ 8.75%	9.75%	10/15/20	10/15/25	15,117		14,725		14,966	4.62
Telestream Holdings Corporation^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 8.75%	9.75%	10/15/20	10/15/25	371		361		382	0.12
							23,136		22,586		22,847	7.06

Total Debt Investments							675,942	$	661,368	$	652,122	201.45	%

Equity Investments
Air Freight & Logistics
Motivational CIV, LLC (dba Motivational Marketing, LLC)^(4)^	Class B Units	N/A	N/A	N/A	07/12/21	N/A	1,250	$	1,250	$	1,250	0.39	%
									1,250		1,250	0.39

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Issuer	Investment Type^(1)^	Floor	SpreadAboveIndex^(2)^	InterestRate^(3)^	AcquisitionDate^(10)^	MaturityDate	Principal/ShareAmount	AmortizedCost		FairValue^(11)^		Fair ValueAs APercentageof NetAssets
Data Processing & Outsourced Services
Escalon Services Inc^(4)^	Warrants	N/A	N/A	N/A	12/04/20	N/A	709	$	476	$	914	0.28	%
									476		914	0.28
Diversified Support Services
Quest Events, LLC^(4)^	Preferred Units	N/A	N/A	N/A	12/28/18	12/08/25	317		317		—	—
ImageOne Industries, LLC^(4)^	Common A Units	N/A	N/A	N/A	09/20/19	N/A	225		—		164	0.05
									317		164	0.05
Education Services
EducationDynamics, LLC^(4)^	Preferred Units	N/A	N/A	N/A	09/15/21	N/A	167		167		167	0.05
									167		167	0.05
Health Care Services
Lab Logistics^(4)(20)^	Preferred Units	N/A	14.00%	14.00% PIK	10/29/19	N/A	2		857		934	0.29
									857		934	0.29
Interactive Media & Services
What If Media Group, LLC^(4)^	Common Units	N/A	N/A	N/A	07/02/21	N/A	8		850		850	0.26
									850		850	0.26
Internet & Direct Marketing Retail
BBQ Buyer, LLC^(4)^	Shares	N/A	N/A	N/A	08/28/20	N/A	1,100		1,100		3,311	1.02
Ross-Simons Topco, LP^(4)^	Preferred Units	N/A	N/A	N/A	12/04/20	N/A	600		600		840	0.26
									1,700		4,151	1.28
Investment Banking & Brokerage
Arcole Holding Corp.^(4)(5)(6)(18)^	Shares	N/A	N/A	N/A	10/01/20	N/A	—		6,944		6,800	2.10
									6,944		6,800	2.10
IT Consulting & Other Services
CX Holdco LLC^(4)^	Common Units	N/A	N/A	N/A	05/04/21	N/A	660		660		660	0.20
Keras Holdings, LLC^(4)^	Shares	N/A	N/A	N/A	12/31/20	N/A	496		496		546	0.17
									1,156		1,206	0.37
Leisure Facilities
Lift Brands, Inc (aka Snap Fitness Holdings, Inc)^(4)^	Class A Common Stock	N/A	N/A	N/A	06/29/20	N/A	2		1,955		184	0.06
Lift Brands, Inc (aka Snap Fitness Holdings, Inc)^(4)^	Warrants	N/A	N/A	N/A	06/29/20	06/28/28	1		793		75	0.02
									2,748		259	0.08
Other Diversified Financial Services
SFS Global Holding Company^(4)^	Warrants	N/A	N/A	N/A	06/28/18	12/28/25	—		—		—	—
Sigue Corporation^(4)^	Warrants	N/A	N/A	N/A	06/28/18	12/28/25	22		2,890		3,493	1.08
									2,890		3,493	1.08
Specialized Finance
WHF STRS Ohio Senior Loan Fund^(4)(5)(7)(14)^	LLC Interests	N/A	N/A	N/A	07/19/19	N/A	14,324		14,324		14,813	4.58
									14,324		14,813	4.58

Total Equity Investments								$	33,679	$	35,001	10.81	%

Total Investments								$	695,047	$	687,123	212.26	%

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)

Forward Currency Contracts


Counterparty	Currency to be sold		Currency to be purchased		Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	24,385 CAD	$	19,440 USD	10/28/21	$	186	$	—
Total						$	186	$	—

(1)	Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility.

(2)

The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Canadian Dollar Offered Rate (“CDOR” or “C”), or the U.S. Prime Rate as published by the Wall Street Journal (“Prime” or “P”). The one, three and six-month USD LIBOR were 0.08%, 0.13% and 0.16%, respectively, as of September 30, 2021. The CDOR and Prime was 0.45% and 3.25%, respectively, as of September 30, 2021.

(3)	The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

(4)	The investment or a portion of the investment does not provide collateral for the Company’s credit facility.

(5)	Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 84.5% of total assets as of the date of the consolidated schedule of investments.

(6)	Investment is a non-controlled/affiliate investment as defined by the 1940 Act.

(7)	The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of September 30, 2021.

(8)	The investment is on non-accrual status.

(9)	Security is perpetual with no defined maturity date.

(10)	Except as otherwise noted, all of the Company’s portfolio company investments, which as of the date of the consolidated schedule of investments represented 212.3% of the Company’s net assets or 94.2% of the Company’s total assets, are subject to legal restrictions on sales.

(11)	The fair value of each investment was determined using significant unobservable inputs.

(12)	The investment was comprised of two contracts, which were indexed to different base rates, L and P, respectively. The Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(13)	Principal amount is non-USD denominated and is based in Canadian dollars.

(14)

Investment is a controlled affiliate investment as defined by the 1940 Act. On January 14, 2019, the Company entered into an agreement with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law (“STRS Ohio”), to create WHF STRS Ohio Senior Loan Fund, LLC (“STRS JV”), a joint venture, which invests primarily in senior secured first and second lien term loans.

(15)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 2.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(16)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(17)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(18)	On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company’s investments in first lien secured term loans to Arcole Acquisition Corp were converted into common shares of Arcole Holding Corp.

(19)	At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 2.00% PIK.

(20)	Investment earns 14.00% that converts to PIK on an annual basis and is recorded in interest and dividend receivable in the consolidated statements of assets and liabilities.



Contacts

Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
[email protected]

or

Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
[email protected]

or

Robert Brinberg<br>Rose & Company<br>212-257-5932<br>[email protected]




Source: WhiteHorse Finance, Inc.

Exhibit 99.2

Earnings Presentation<br>Quarter Ended September 30, 2021<br>WhiteHorse Finance, Inc.<br>NASDAQ: WHF (Common Stock)<br>NASDAQ: WHFBZ (6.50% Notes due 2025)
1<br>References in this presentation to “WHF”, “we”, “us”, “our” and “the Company” refer to WhiteHorse Finance, Inc.<br>This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction<br>with the Company or any of its affiliates. Investors are advised to consider carefully the Company’s investment objectives, risks, charges and expenses before<br>investing in the Company’s securities. Our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, which have been filed<br>with the Securities and Exchange Commission (“SEC”), contain this and other information about the Company and should be read carefully before investing in the<br>Company’s securities. The information in this presentation is not complete and may be changed. This presentation is not an offer to sell the Company’s securities<br>and is not soliciting an offer to buy the Company’s securities in any jurisdiction where such offer or sale is not permitted.<br>A shelf registration statement relating to the Company’s securities is on file with the SEC. A public offering of the Company’s securities may be made only by<br>means of a prospectus and a related prospectus supplement, copies of which may be obtained by writing the Company at 1450 Brickell Avenue, 31st Floor, Miami,<br>FL 33131, Attention: Investor Relations, or by calling (305) 381-6999; copies may also be obtained by visiting EDGAR on the SEC’s website at http://www.sec.gov.<br>Forward Looking Statements<br>Some of the statements in this presentation constitute forward-looking statements, which relate to future events or the Company’s future performance or financial<br>condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: the Company’s future<br>operating results; changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets,<br>which could result in changes to the value of the Company’s assets; the impact of the COVID-19 pandemic and its effects on the Company’s and its portfolio<br>companies’ results of operations and financial condition; the Company’s business prospects and the prospects of its prospective portfolio companies; the impact<br>of investments that the Company expects to make; the impact of increased competition; the Company’s contractual arrangements and relationships with third<br>parties; the dependence of the Company’s future success on the general economy and its impact on the industries in which the Company invests; the ability of the<br>Company’s prospective portfolio companies to achieve their objectives; the relative and absolute performance of the Company’s investment adviser; the<br>Company’s expected financings and investments; the adequacy of the Company’s cash resources and working capital; the timing of cash flows, if any, from the<br>operations of the Company’s prospective portfolio companies; and the impact of future acquisitions and divestitures.<br>Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,”<br>“could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words.<br>The Company has based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and the<br>Company assumes no obligation to update any such forward-looking statements. Actual results could differ materially from those implied or expressed in the<br>Company’s forward-looking statements for any reason, and future results could differ materially from historical performance. Although the Company undertakes<br>no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult<br>any additional disclosures that are made directly to you or through reports that the Company in the future may file with the SEC, including annual reports on Form<br>10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. For a further discussion of factors that could cause the Company’s future results to differ<br>materially from any forward-looking statements, see the section entitled “Risk Factors” in the annual reports on Form 10-K and quarterly reports on Form 10-Q we<br>file with the SEC.<br>Important Information and Forward Looking Statements
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2<br>WhiteHorse Finance Snapshot<br>Company: WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”):<br>Equity Ticker: NASDAQ: WHF<br>Market Cap: $355.6MM(1)<br>NAV / Share: $15.46<br>Portfolio Fair Value: $687.1MM<br>Current Dividend Yield: 9.2%(1)(2); consistent quarterly dividends of $0.355 per share since 2012 IPO<br>(1) Based on November 8, 2021 share price of 15.36<br>(2) Based on LTM dividend rate, excluding special dividends, relative to closing share price.<br>External Manager: Affiliate of H.I.G. Capital, LLC (“H.I.G. Capital” or “H.I.G.”)
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Overview of WhiteHorse Finance, Inc.<br>3<br>Portfolio at Fair Value ($MM) NAV + Cumulative Dividends per share<br>Note: As of December 31st of each respective year presented, unless otherwise noted.<br>(1) Based on total capital commitments managed by H.I.G. Capital and affiliates.<br>(2) Based on fair value. Does not include investments in STRS JV.<br>Source: Company filings<br>.. WhiteHorse Finance, Inc. is a publicly listed Business Development Company (“BDC”) that completed its IPO in December 2012<br>.. WhiteHorse Finance’s investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, a leading global alternative<br>asset manager with over $45Bn of capital under management(1)<br>.. Principally focused on originating senior secured loans to performing lower middle market companies with individual enterprise values generally between<br>$50MM and $350MM<br>.. Diversified investment portfolio totaling $687.1MM as of September 30, 2021<br>.. Investments across 99 positions in 65 portfolio companies as of September 30, 2021<br>− Average Investment Size(2): $6.3MM (Average Debt Investment Size(2): $7.3MM)<br>− Largest Portfolio Company Investment(2): $24.0MM<br>.. Invested $2,120MM in 175 transactions since December 2012 IPO<br>.. The Company and State Teachers Retirement System of Ohio (“STRS Ohio”), a public pension fund established under Ohio law, partnered to create WHF<br>STRS Ohio Senior Loan Fund LLC (“STRS JV”), a joint venture formed to invest in directly originated, senior secured first and second lien term loans.<br>$180.5<br>$272.4<br>$403.5 $415.3 $411.7 $440.7 $469.6<br>$589.7<br>$690.7 $687.1<br>2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021<br>$15.30 $15.16 $15.04 $13.33 $13.63 $13.98 $15.35 $15.23 $15.23 $15.46<br>$0.11 $1.53 $2.95 $4.37 $5.79 $7.21<br>$8.63 $10.25 $11.79 $12.86<br>$15.41<br>$16.69<br>$17.99 $17.70<br>$19.42<br>$21.19<br>$23.98<br>$25.48<br>$27.02<br>$28.32<br>2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021<br>Net asset value Cumulative dividends paid (including special dividends)
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4<br>Overview of WhiteHorse Finance, Inc. (continued)<br>Note: As of September 30, 2021 unless otherwise noted.<br>(1) Reflects life-to-date since IPO, and may exclude follow-on transactions and investments in STRS JV made via asset transfers in-kind.<br>(2) Across 97 investments. Does not include investments in STRS JV.<br>(3) Reflects weighted average effective yield of income-producing debt investments. Weighted average effective yield for entire portfolio, including equities and investments in STRS JV, as of<br>September 30, 2021, is 9.1%. Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting from the amortization of fees and<br>discounts) by (b) the weighted average cost of investments.<br>(4) Measured at origination based on borrower reporting and WHF’s target underwriting leverage. Does not include investments in STRS JV.<br>(5) Based on fair value. Does not include the Company’s investments in STRS JV.<br>.. Generate attractive risk-adjusted return in all market conditions by<br>originating and investing in senior secured loans to performing<br>lower middle market companies and leveraging the knowledge of<br>H.I.G. Capital<br>.. Differentiated proprietary deal flow from over 60 dedicated deal<br>professionals sourcing through direct coverage of financial<br>sponsors and intermediaries<br>.. Rigorous credit process focused on fundamental analysis with<br>emphasis on downside protection and cash flow visibility<br>.. 11-person investment committee with more than 250 years of<br>industry experience<br>.. Investment strategy focused on first lien and second lien senior<br>secured investments in lower middle market companies with a<br>target hold size of $5MM to $25MM<br>Summary Stats:<br>Invested Capital since IPO: $2,120MM(1)<br>Number of Investments Made: ~175(1)<br>Average Investment Size: ~$6.3MM(2)<br>All-in Yield: 9.3%(3)<br>Net Debt / EBITDA of Current Portfolio<br>Companies: ~4.1x(4)<br>Secured Debt as a % of Total Debt: ~100%(5)<br>Investment Strategy
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5<br>Summary of Quarterly Results<br>Fiscal Quarter<br>Highlights<br>.. Total investments at fair value increased to $687.1 million in Q3 2021 as compared to $670.5 million in Q2 2021.<br>.. The Company made investments in four new portfolio companies for gross deployments of $47.9 million, refinancings to three<br>portfolio companies of $39.8 million and add-on investments totaling $34.8 million.<br>.. The Company transferred nine investments to the STRS JV totaling $45.7 million, received proceeds from refinancings from three<br>portfolio companies of $47.1 million and additional sales and principal repayments of $26.1 million.<br>.. The weighted average effective yield on income-producing investments at the end of Q3 2021 was approximately 9.3% as<br>compared to approximately 9.5% at the end of the prior quarter.<br>.. Q3 Net Investment Income (“NII”) was $7.6 million, or $0.366 per share, which compares to Q2 NII of $6.1 million, or $0.296 per share.<br>.. Q3 Core NII(1) after adjusting for an approximate $0.1 million capital gains incentive fee accrual, was $7.8 million, or $0.372 per share,<br>compared with the quarterly distribution of $0.355 per share. This compares with Q2 Core NII of $7.0 million, or $0.338 per share.<br>.. Net realized and unrealized gains on investments for Q3 2021 were $0.4 million primarily driven by unrealized gains generated from our<br>investments in STRS JV, Arcole Holding Corporation and partially offset by markdown on Grupo Hima San Poablo, Inc.<br>.. NAV per share at the end of Q3 2021 was $15.46 per share compared to $15.42 per share from Q2 2021.<br>.. Gross leverage levels increased during the quarter to 1.19x from 1.14x at the end of Q2 2021. Cash on-hand at the end of Q3 2021was<br>$16.6 million resulting in net leverage of 1.14x as compared to 1.08x at the end of Q2 2021.<br>.. As of September 30, 2021, STRS JV had total assets of $246.8 million. The Company’s return on its investment in STRS JV at the end of Q3<br>2021 was 12.6%.<br>(1) Core net investment income is a non-GAAP financial measure. Refer to next slide for components and discussion of core net investment income. Additional information on core net<br>investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, can also be found by accessing<br>the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com.
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6<br>Quarterly Operating Highlights<br>Note: Numbers may not foot due to rounding.<br>(1) Total investment income includes investment income (e.g., interest and dividends) from investments in STRS JV.<br>(2) Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial<br>performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to realized and unrealized gains and losses, and<br>(iii) certain excise or other income taxes (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.<br>Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, can be found by accessing the<br>earnings releases posted to the Company’s website at http://www.whitehorsefinance.com.<br>Source: Company filings<br>Unaudited Quarterly Financials Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>(USD in MM, expect per share data)<br>Total Investment Income (1) $ 13.8 $ 16.5 $ 16.8 $ 18.0 $ 17.3 $ 18.4<br>Expenses<br>Interest Expense 3.2 2.8 3.5 3.8 3.8 3.8<br>Base Management Fees 2.9 3.1 3.4 3.3 3.4 3.5<br>Performance-based Incentive Fees 1.3 3.8 2.0 2.0 2.6 2.1<br>Other Expenses 1.2 0.9 1.1 1.3 1.4 1.3<br>Total Expenses 8.6 10.6 10.0 10.4 11.2 $ 10.7<br>Net Investment Income $ 5.2 $ 5.9 $ 6.8 $ 7.6 $ 6.1 $ 7.7<br>Net Realized and Unrealized Gain / (Loss) 17.6 15.7 1.3 0.6 4.4 0.6<br>Net Increase in Net Assets from Operations $ 22.8 $ 21.6 $ 8.1 $ 8.2 $ 10.5 $ 8.3<br>Per Share<br>Net Investment Income (NII) $ 0.26 $ 0.29 $ 0.34 $ 0.37 $ 0.30 $ 0.37<br>Core NII (2) $ 0.26 $ 0.38 $ 0.35 $ 0.38 $ 0.34 $ 0.37<br>Net Realized and Unrealized Gain / (Loss) $ 0.85 $ 0.77 $ 0.06 $ 0.03 $ 0.21 $ 0.03<br>Earnings $ 1.11 $ 1.06 $ 0.40 $ 0.40 $ 0.51 $ 0.40<br>Dividends Declared $ 0.355 $ 0.355 $ 0.355 $ 0.355 $ 0.355 $ 0.355<br>Core NII Dividend Coverage 72% 107% 98% 106% 95% 105%
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7<br>Quarterly Balance Sheet Highlights<br>Note: Numbers may not foot due to rounding<br>(1) Includes Restricted Cash.<br>(2) Calculated as Total Gross Debt Outstanding divided by Total Net Assets.<br>(3) Net Leverage Ratio is defined as debt outstanding less cash, divided by total net assets.<br>(4) Fundings, exits and repayments may include cash flows on revolver investments as well as non-cash transactions (e.g., PIK, equity issuances).<br>Unaudited Quarterly Financials Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>(USD in MM, expect per share data)<br>Assets<br>Investments at Fair Value $ 547.4 $ 595.3 $ 690.7 $ 617.0 $ 670.5 $ 687.1<br>Cash and Equivalents(1) 20.9 22.9 15.9 24.5 17.8 16.6<br>Other Assets 6.6 7.6 12.3 29.0 11.4 25.9<br>Total Assets $ 574.9 $ 625.8 $ 719.0 $ 670.5 $ 699.7 $ 729.6<br>Liabilities<br>Debt (net of issuance costs) 252.7 291.9 384.9 334.5 358.7 379.8<br>Other Liabilities 22.0 19.3 21.2 21.7 21.4 26.1<br>Total Liabilities $ 274.7 $ 311.2 $ 406.1 $ 356.2 $ 380.1 $ 405.9<br>Total Net Assets $ 300.2 $ 314.6 $ 312.9 $ 314.3 $ 319.6 $ 323.7<br>Total Liabilities and Net Assets $ 574.9 $ 625.8 $ 719.0 $ 670.5 $ 699.7 $ 729.6<br>Net Asset Value per Share $ 14.61 $ 15.31 $ 15.23 $ 15.27 $ 15.42 $ 15.46<br>Leverage Ratio(2) 0.86x 0.94x 1.25x 1.08x 1.14x 1.19x<br>Net Leverage Ratio(3) 0.79x 0.87x 1.20x 1.00x 1.08x 1.14x<br>Gross Fundings (4) 39.3 59.3 176.5 72.4 118.4 137.9<br>Exits and Repayments (4) (67.7) (28.1) (84.4) (149.8) (69.5) (124.0)<br>Net (Fundings)/Repayments $ (28.4) $ 31.2 $ 92.1 $ (77.4) $ 48.9 $ 13.9
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Portfolio Highlights<br>8<br>Note: Not a guarantee of future performance or investment pace.<br>(1) Does not include investments in STRS JV.<br>(2) Calculated based on funded principal amounts of debt investments.<br>(3) Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting from the amortization of fees and discounts) by (b) the weighted average cost of investments.<br>(4) Includes STRS JV Subordinated Note.<br>Source: Company filings<br>($ in MM, except per share data)<br>Portfolio Investment Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Total Fair Value of Investments $ 547.4 $ 595.3 $ 690.7 $ 617.0 $ 670.5 $ 687.1<br>Number of Portfolio Investments 68 73 99 90 97 99<br>Number of Portfolio Companies 53 54 67 62 67 65<br>Average Investment Size(1) $ 7.6 $ 7.7 $ 6.6 $ 6.4 $ 6.4 $ 6.3<br>Average Borrower Size(1) $ 9.6 $ 10.3 $ 9.7 $ 9.2 $ 9.2 $ 9.6<br>Average Debt Investment Size(1) $ 8.8 $ 8.8 $ 7.3 $ 7.1 $ 7.1 $ 7.3<br>Fair Value as a Percentage of Principal(1)(2) 92.0% 93.5% 94.4% 96.3% 97.2% 96.1%<br>Total Portfolio Effective Yield (3) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Weighted average effective yield on income-producing debt investments(1) 9.6% 9.9% 9.9% 9.6% 9.5% 9.3%<br>Weighted average effective yield on total portfolio 8.6% 9.2% 9.4% 9.7% 9.7% 9.1%<br>Portfolio Composition - Floating vs. Fixed Investments<br>(Debt Investments at Fair Value)(1) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Percentage of fixed rate investments 0.4% 0.4% 0.2% 0.4% 0.4% 0.4%<br>Percentage of floating rate investments 99.6% 99.6% 99.8% 99.6% 99.6% 99.6%<br>Portfolio Composition - Sponsor vs. Non-Sponsor (Fair Value)(1) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Sponsor 50.7% 52.4% 58.1% 64.5% 67.6% 66.8%<br>Non-Sponsor 49.3% 47.6% 41.9% 35.5% 32.4% 33.2%<br>Total Portfolio Composition by Instrument Type (Fair Value) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>First lien secured loans 82.9% 83.1% 85.2% 84.7% 84.0% 82.3%<br>Second lien secured loans 5.5% 5.0% 4.0% 2.4% 4.4% 4.3%<br>Subordinated debt 0.0% 0.1% 0.0% 0.0% 0.0% 0.0%<br>STRS JV 8.9% 8.5% 7.4% 9.0% 9.2% 10.5%<br>Equity 2.7% 3.3% 3.4% 3.9% 2.4% 2.9%<br>Investments on Non-Accrual Status (Debt Investments) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Fair Value of Investments on Non-accrual Status $ 39.0 $ 18.7 $ 11.6 $ 14.3 $ 9.7 $ 8.7<br>Cost of Investments on Non-accrual Status $ 38.8 $ 21.7 $ 14.7 $ 23.5 $ 18.4 $ 18.4<br>% of Investments on Non-accrual Status (Based on Fair Value of Debt Investments)(4) 7.4% 3.3% 1.8% 2.5% 1.5% 1.3%<br>% of Investments on Non-accrual Status (Based on Cost of Debt Investments)(4) 7.2% 3.8% 2.2% 4.0% 2.8% 2.8%
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96.1% 97.1% 99.8% 99.9% 100.0% 100.0% 99.8% 99.6%<br>3.9% 2.9% 0.2% 0.1% 0.2% 0.4%<br>0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>100.0%<br>2014 2015 2016 2017 2018 2019 2020 Q3 2021<br>Floating Fixed<br>Portfolio Trends<br>Historical Portfolio Trends<br>9<br>% Floating and % Fixed (Based on Fair Value) % Instrument Type (Based on Fair Value)<br>% Sponsored / Non-Sponsored (Based on Fair Value) % Non Accruals (Based on Fair Value of Debt Investments)(1)<br>Note: As of end of each year/quarter presented, unless otherwise noted; percentages may not add up to 100% due to rounding.<br>Not a guarantee of future performance or investment pace.<br>(1) Except as otherwise indicated, non-zero values <0.05%. Based on fair value of debt investments, including STRS JV Subordinated Note.<br>33% 28% 32% 32%<br>44% 53% 58% 67%<br>67% 72% 68% 68%<br>56% 47% 42% 33%<br>0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>100.0%<br>2014 2015 2016 2017 2018 2019 2020 Q3 2021<br>Sponsor Non-Sponsor<br>4.1%<br>1.7% 1.4%<br>3.9%<br>7.4%<br>3.3%<br>1.8% 2.5%<br>1.5% 1.3%<br>0.0%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21<br>% of Investments on Non-accrual<br>55% 52% 60% 52%<br>77% 81% 85% 82%<br>40% 43% 33% 39%<br>21% 11% 4% 4%<br>5% 5% 7% 9% 3%<br>3% 3% 3%<br>6% 7% 11%<br>2014 2015 2016 2017 2018 2019 2020 Q3 2021<br>% First Lien Loans % Second Lien Loans % Equity STRS JV % Subordinated
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10.5%<br>3.5%<br>2.9%<br>2.8%<br>2.7%<br>2.6%<br>2.5%<br>2.4%<br>2.2%<br>2.2% 65.7%<br>STRS JV Future Payment Technologies, LP<br>What If Holdings, LLC Arcstor Midco, LLC<br>IvyRehab Intermediate II, LLC Trimlite Buyer LLC<br>Potpourri Group, Inc BBQ Buyer, LLC<br>Team Car Care Holdings, LLC (Heartland Auto) Telestream Holdings Corporation<br>Other<br>10<br>Note: As of September 30, 2021, unless otherwise noted; percentages may not add up to 100% due to rounding.<br>(1) Does not include investments in STRS JV. Industry classifications based on GICS.<br>Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value)<br>Borrower and Industry Diversity<br>9.2%<br>7.2%<br>5.6%<br>5.3%<br>4.0%<br>4.0%<br>3.7%<br>3.7%<br>3.6% 3.4% 3.2% 3.2%<br>43.9%<br>Health Care Services Internet & Direct Marketing Retail<br>Building Products Data Processing & Outsourced Services<br>Application Software Research & Consulting Services<br>Technology Hardware, Storage & Peripherals Specialized Consumer Services<br>Leisure Facilities Office Services & Supplies<br>Investment Banking & Brokerage Interactive Media & Services<br>Other<br>STRS JV<br>~100% of WHF loans are senior secured
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$0.33<br>$0.42<br>$0.33<br>$0.35<br>$0.40<br>$0.37<br>$0.36<br>$0.40<br>$0.39<br>$0.27<br>$0.26<br>$0.38<br>$0.35<br>$0.38<br>$0.34<br>$0.37<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36<br>Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19<br>Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21<br>Core NII per share<br>Dividends per share<br>Effective Yield & Dividend Coverage<br>Debt Portfolio Effective<br>Yield and Borrower Leverage<br>(1)<br>From IPO to September 30, 2021<br>11<br>Core NII<br>(2)<br>to Dividend Coverage<br>(3)<br>Note: Amounts may not foot due to rounding. (1) Portfolio leverage is based on investment leverage at inception. (2) Core net investment income is a non-GAAP<br>financial measure. The<br>Company believes that core net<br>investment income provides us<br>eful information to investors and management because it reflects the Company's financial<br>performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrua<br>l of the capital gains<br>incentive fee attributable to realiz<br>ed and unrealized gains and losses, and (iii)<br>certain excise or other income taxes (net of incentive fees). The presentation of this additional information is not meant to be<br> considered in isolat<br>ion or as a substitute f<br>or financial results prepared in<br>accordance with GAAP. The<br>presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results<br> prepared in accordance with GAAP. Addi<br>tional information on core net inve<br>stment income and a reconciliation<br>of core net investment income to its mo<br>st directly comparable GAAP financ<br>ial measure, net investment<br> income, can be found by ac<br>cessing the earnings releases posted to the Company’s website at<br>http://www.whitehorsefinance.com<br>(3) Does not include special dividends.Source: Company filings<br>Covered<br>by $<br>0.05<br>Covered<br>by $<br>0.03<br>Missed by<br>$0.09<br>2.8x<br>2.4x<br>4.1x<br>3.4x<br>3.4x<br>2.1x<br>4.5x<br>3.0x<br>3.8x<br>2.3x<br>3.1x<br>2.7x<br>3.0x<br>3.6x<br>2.9x<br>3.4x<br>3.2x<br>3.5x<br>3.4x<br>3.4x<br>3.2x<br>3.3x<br>3.3x<br>3.5x<br>3.6x<br>3.6x<br>3.6x 3.6x<br>3.7x<br>3.8x<br>3.7x<br>3.8x<br>4.0x<br>4.1x<br>4.1x<br>15.5%<br>14.9%<br>13.1%<br>11.8%<br>11.7%<br>11.1%<br>10.7%<br>11.3%<br>11.4%<br>11.7%<br>11.6%<br>11.8%<br>11.9% 11.9%<br>12.1%<br>11.8% 11.8%<br>11.9% 11.9% 11.9%<br>12.0%<br>12.0%<br>11.9%<br>11.9%<br>11.7%<br>11.3%<br>11.1%<br>10.4%<br>9.9%<br>9.6%<br>9.9%<br>9.9%<br>9.6%<br>9.5%<br>9.3%<br>Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2<br>'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21<br>Borrower Leverage through WHF Security<br>Effective Yield<br>Covered<br>by $0.01<br>Missed by<br>$0.10<br>Covered<br>by $0.07<br>Missed by<br>$0.02<br>Missed by<br>$0.03<br>Missed by<br>$0.01<br>Covered<br>by $0.04<br>Covered<br>by $0.01<br>Covered<br>by $<br>0.03<br>Missed by<br>$0.01<br>Covered<br>by $<br>0.02<br>Missed by<br>$0.02<br>Covered<br>by $<br>0.01
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Yield & Interest Rate Economic Analysis<br>12<br>(1) Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting from the amortization of fees and discounts) by (b) the weighted<br>average cost of investments.<br>(2) Income yield is calculated as (a) the actual amount earned on earning investments, including interest and fee income but excluding amortization of capitalized fees and discounts.<br>(3) Calculated as (a) effective yield less (b) weighted average cost of debt.<br>(4) The weighted average cost of debt is calculated as (a) the actual amount of expenses incurred on debt obligations divided by (b) the daily average of total debt obligations.<br>11.9% 12.0% 12.0% 11.9% 11.9% 11.7% 11.3% 11.1%<br>10.4%<br>9.9% 9.6% 9.9% 9.9% 9.6% 9.5% 9.3%<br>11.5% 11.5% 11.5% 11.4% 11.5% 11.4% 11.0% 10.7%<br>10.0%<br>9.5% 9.1% 9.4% 9.4% 9.1% 9.0% 8.8%<br>7.8%<br>7.2% 6.8% 7.1% 6.7%<br>6.0% 5.7% 5.7% 5.5% 5.2% 5.4%<br>6.2% 6.1% 5.7% 5.7% 5.7%<br>4.1%<br>4.7% 5.1% 4.7%<br>5.2%<br>5.7% 5.6% 5.4%<br>4.9% 4.7%<br>4.2%<br>3.7% 3.8% 3.8% 3.8% 3.6%<br>1.4% 1.7%<br>2.1% 2.3% 2.5% 2.7% 2.6% 2.3% 2.3%<br>1.7% 1.0% 0.3% 0.2% 0.2% 0.2% 0.1%<br>0.0%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21<br>Effective Yield(1) Income Yield(2)<br>Net Investment Spread(3) Weighted Average Cost of Debt(4)<br>3‐Month London Interbank Offered Rate ("LIBOR")
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Investment Performance Ratings<br>13<br>Investment Performance Ratings<br>(% of Portfolio at Fair Value)<br>Rating 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021<br>1 6.3% 2.3% 22.2% 21.9% 22.7% 21.6%<br>2 100.0% 92.4% 100.0% 90.3% 87.0% 83.9% 80.1% 83.3% 61.1% 62.4% 67.3% 67.3%<br>3 7.6% 7.9% 13.0% 16.1% 13.6% 13.1% 15.0% 14.1% 8.6% 9.8%<br>4 0.0% 0.0% 0.0% 0.6% 1.6% 1.4% 1.3%<br>5 1.8% 0.0% 1.3% 1.1% - - -<br>100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%<br>Investment Perfomance Rating Definitions<br>Rating Definition<br>1 The portfolio company's risk of loss has been reduced relative to initial expectations.<br>2 The portfolio company is meeting initial expectations with regard to performance and outlook.<br>3 The investment's risk of loss has increased relative to initial expectation.<br>4 Investment principal is at a material risk of not being fully repaid.<br>5 Investment is in payment default and has significant risk of not receiving full repayment.
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Net Asset Value Trends<br>14<br>As a supplement to GAAP financial measures, the Company has provided this non-GAAP measure. The Company believes that this non-GAAP financial measure is useful as it highlights<br>the changes in NAV per share of common stock for each quarter excluding the impact of special dividends that were paid and shows the pro forma to the Company’s NAV per share after<br>payment of regular distributions.<br>Net Asset Value Per Share<br>$15.43 $15.55 <br>$15.78 <br>15.00<br>15.30<br>15.16<br>15.04<br>13.33<br>13.63<br>13.98<br>15.35<br>15.23<br>15.23<br>15.46 <br>$13.00<br>$13.50<br>$14.00<br>$14.50<br>$15.00<br>$15.50<br>$16.00<br>Net Asset Value if No Special Dividends Were Paid Net Asset Value
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NAV Per Share Bridge<br>15<br>Note: Numbers may not foot due to rounding.<br>Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial<br>performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to realized and unrealized gains and losses, and (iii)<br>certain excise or other income taxes (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.<br>Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, can be found by accessing the earnings<br>releases posted to the Company’s website at http://www.whitehorsefinance.com.<br>Source: Company filings<br>Net Realized and Unrealized Gains: $0.03 Dividend Coverage: $0.01
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Leverage Migration<br>16<br>6/30/2021 Quarterly Change 9/30/2021<br>Outstanding Debt: Outstanding Debt:<br>$363.5 $21.1 $384.6<br>Driven by net borrowings to fund<br>new investments<br>NAV: NAV:<br>$319.6 +$4.1 $323.7<br>Driven by shares issued from DRIP and<br>ATM offering<br>Leverage Ratio: Leverage Ratio:<br>1.14x 1.19x<br>Note: Numbers may not foot due to rounding.<br>($ in MM)<br>Sales & Principal Payments $124.0 Acquisition of Investments $137.9<br>Borrowings $53.8 Debt Paydown 32.7<br>Net Investment Income 7.7 Dividend Payment, net of<br>distributions reinvested 5.5<br>Sale of Common Stock 1.4 Other Balance Sheet Changes 12.0<br>Balance Sheet Cash 1.2<br>Total $188.1 Total $188.1<br>Sources Uses
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Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace.<br>(1) As of September 30, 2021 WHF had $4.9MM of deferred debt issuance costs.<br>(2) Gross leverage excluding cash.<br>3<br>Current Debt Outstanding (as of September 30, 2021)<br>($ in MM) Commitment Outstanding(1) Weighted Average Interest Rate Maturity Additional Information<br>Revolving Credit Facility $285.0<br>($65 Accordion Feature) $259.6 L+2.35%<br>payable quarterly 2025<br>2023 Private Notes $30.0 $30.0<br>6.00%<br>payable semi-annually;<br>unsecured<br>2023<br>2025 Private Notes $40.0 $40.0<br>5.375%<br>payable semi-annually;<br>unsecured<br>2025<br>2025 Public Notes $35.0 $35.0<br>6.50%<br>payable quarterly;<br>unsecured<br>2025 NASDAQ: WHFBZ<br>2026 Private Notes $10.0 $10.0<br>5.375%<br>payable semi-annually;<br>unsecured<br>2026<br>2027 Private Notes $10.0 $10.0<br>5.625%<br>payable quarterly;<br>unsecured<br>2027<br>Total Debt $410.0 $384.6 3.6% weighted average cost of debt<br>Total Shareholders’ Equity/Net Assets $323.7 NA<br>Funding Profile<br>17<br>Gross Debt to Equity(2)<br>1.0x-1.25x Target Leverage<br>0.64x<br>0.63x 0.71x 0.62x 0.57x 0.57x<br>0.79x 0.75x<br>0.97x 1.04x<br>0.86x 0.94x<br>1.25x<br>1.08x 1.14x 1.19x<br>0.00x<br>0.20x<br>0.40x<br>0.60x<br>0.80x<br>1.00x<br>1.20x<br>Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21<br>Debt/ Equity
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18<br>Appendix
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19<br>COVID-19 Portfolio Exposure as of September 30, 2021<br>WhiteHorse Finance, Inc. STRS JV<br>Note: Fair values are as of September 30, 2021 and may not foot due to rounding; percentages may not add up to 100% due to rounding.<br>(1) Categories of High, Moderate, Low/Moderate and Low can and will change over time as more data becomes available. These categorizations are based on<br>estimates and current information available as of October 22, 2021 and are subject to change without notice.<br>(2) Within Low through High categories, there is variation in the amount of exposure. For example, not all Lows or Moderates are the same.<br>(3) Low/Moderate category is used for portfolio companies where impact so far has been low, but it is believed that this might rise to moderate over time.<br>(4) Post-COVID Originations category represents all new portfolio company investments originated on or after April 1, 2021.<br>($ in MM)<br>High<br>5.7%<br>Moderate<br>14.2%<br>Low/Moderate<br>3.3%<br>Low<br>45.7%<br>Post‐Covid Origination<br>20.6%<br>High<br>0.6%<br>Moderate<br>0.7% Low/Moderate<br>0.3%<br>Low<br>6.9% Post‐Covid <br>Origination<br>2.0% STRS JV<br>10.5%<br>WHF Fair Value % of FV<br>High $ 39.1 5.7%<br>Moderate 97.4 14.2%<br>Low/Moderate 23.0 3.3%<br>Low 313.9 45.7%<br>Post‐Covid Origination 141.6 20.6%<br>STRS JV 72.1 10.5%<br>Total $ 687.1 100.0%<br>STRS JV Fair Value % of FV<br>High $ 14.7 6.2%<br>Moderate 16.0 6.7%<br>Low/Moderate 6.8 2.9%<br>Low 155.1 64.8%<br>Post‐Covid Origination 46.4 19.4%<br>Total $ 239.0 100.0%
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Origination Footprint (as of September 30, 2021)<br>Regional Direct Origination Footprint<br>.. Scope of H.I.G. WhiteHorse market coverage results in consistent investment activity levels regardless of market conditions<br>.. Dedicated direct lending team of over 60 investment and origination professionals<br>.. Regional footprint with 24 dedicated direct lending originators in 12 North American offices<br>.. Global platform of approximately 503 investment professionals across 18 offices in 9 countries and 3 continents<br>.. Additional 24 generalist business development professionals dedicated to sourcing proprietary opportunities in the lower to middle market<br>20
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Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace.<br>As of September 30, 2021 STRS JV had $1.9 of deferred debt issuance costs.<br>3<br>($ in MM) Commitment Outstanding(1) Weighted Average Interest<br>Rate Maturity<br>Revolving Credit Facility $175.0<br>($75 Accordion Feature) $126.2 L+2.35%<br>payable quarterly 2025<br>Subordinated Note $100.0 $95.5<br>L+6.50%<br>payable quarterly N/A<br>Total Debt $275.0 $221.7 4.3% weighted average cost of<br>debt<br>Equity $25.0 $23.9 N/A N/A<br>STRS JV Key Terms and Funding Profile<br>21<br>Key Terms<br>.. WHF and STRS Ohio have committed to provide up to $125 million in subordinated notes and equity to STRS JV, with STRS<br>Ohio providing $50 million and WHF providing $75 million.<br>.. WHF and STRS Ohio share voting control 50%/50%.<br>.. Equity ownership 60% WHF and 40% STRS<br>.. An affiliate of H.I.G. provides day-to-day administrative oversight<br>Current Debt Outstanding (as of September 30, 2021)<br>($ in MM)
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22<br>Note: As of September 30, 2021, unless otherwise noted; percentages may not add up to 100% due to rounding.<br>(1) Industry classifications based on GICS.<br>Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value)<br>100% of STRS JV loans are senior secured<br>STRS JV Borrower and Industry Diversity<br>7.3%<br>6.8%<br>6.4%<br>5.1%<br>4.7%<br>4.4%<br>4.3%<br>4.2%<br>4.2% 4.0%<br>48.6%<br>Cennox, Inc Geo Logic Systems Ltd<br>Marlin DTC-LS Midco 2, LLC RCKC Acquisitions LLC<br>Pluto Acquisition Topco, LLC Quest Events, LLC<br>TOUR Intermediate Holdings, LLC LINC Systems, LLC<br>IDIG Parent LLC LHS Borrower, LLC<br>Other<br>14.9%<br>10.8%<br>6.9%<br>6.8%<br>6.4%<br>6.2% 5.8%<br>4.7%<br>4.4%<br>4.3%<br>4.2%<br>4.2%<br>20.4%<br>IT Consulting & Other Services Packaged Foods & Meats<br>Building Products Data Processing & Outsourced Services<br>Internet & Direct Marketing Retail Technology Hardware, Storage & Peripherals<br>Construction & Engineering Human Resource & Employment Services<br>Diversified Support Services Investment Banking & Brokerage<br>Systems Software Trading Companies & Distributors<br>Other
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Origination Pipeline Funnel(1)<br>23 (1) Origination Pipeline figures reflect 2014 through September 30, 2021.<br>Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance<br>Over 60 WhiteHorse deal<br>professionals dedicated to sourcing<br>and underwriting for WHF<br>20+ person business development<br>team seeks opportunities from<br>H.I.G.’s proprietary database of over<br>21,000 contacts (telephonic<br>salesforce)<br>.. With access to H.I.G. Capital’s extensive sourcing network, the Company is able to capitalize on attractive self-originated lower middle market<br>transactions as compared to the broadly syndicated market<br>.. Directly originated loans to lower middle market companies typically generate more attractive risk-adjusted returns relative to larger, broadly<br>syndicated credits<br>Typical Underwriting Process:<br>3-6 months<br>Opportunities Reviewed<br>Initial Due Diligence<br>Term Sheets<br>Delivered<br>Transactions<br>Closed<br>Transactions<br>Deals being sourced by<br>approximately 500 Investment<br>Professionals across H.I.G.’s platform<br>Total % of Sourced<br>7,427 100.0%<br>1,828 24.6%<br>477 6.4%<br>169 2.3%
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24<br>Corporate Data<br>Board of Directors Investment Committee Corporate Officers Research Coverage Corporate Counsel<br>John Bolduc Sami Mnaymneh Stuart Aronson Sarkis Sherbetchyan Dechert LLP<br>Chairman of the Board Founder and Co‐CEO of H.I.G. Capital Chief Executive Officer B. Riley FBR New York, NY<br>Stuart Aronson Anthony Tamer Marco Collazos Bryce Rowe Corporate Headquarters<br>Director Founder and Co‐CEO of H.I.G. Capital Chief Compliance Officer Hovde Group 1450 Brickell Avenue<br>31st Floor<br>Jay Carvell Stuart Aronson Joyson Thomas Melissa Wedel Miami, FL 33131<br>Director Chief Executive Officer and Director Chief Financial Officer J.P. Morgan<br>Transfer Agent<br>Kevin F. Burke Mark Bernier Mickey Schleien American Stock Transfer &<br>Independent Director Managing Director of WhiteHorse Capital Ladenburg Thalmann & Co. Inc. Trust Company, LLC<br>New York, NY<br>Rick P. Frier John Bolduc Mitchel Penn<br>Independent Director Chairman of the Board, Executive Managing Oppenheimer & Co. Investor Relations Contact<br>Director of H.I.G. Capital 1450 Brickell Avenue<br>Rick D. Puckett Robert Dodd 31st Floor<br>Independent Director Jay Carvell Raymond James Attention: Investor Relations<br>Managing Director of WhiteHorse Capital Miami, FL 33131<br>G. Stacy Smith (305) 381‐6999<br>Independent Director Javier Casillas<br>Managing Director of WhiteHorse Capital Independent Registered<br>Public Accounting Firm<br>Pankaj Gupta Crowe LLP<br>Global Head of Originations and Managing <br>Director of WhiteHorse Capital New York, NY<br>David Indelicato Securities Listing<br>Managing Director of WhiteHorse Capital NASDAQ: WHF<br>Brian Schwartz Please visit our website at:<br>Co‐President of H.I.G. Capital www.whitehorsefinance.com<br>John Yeager<br>Managing Director of WhiteHorse Capital
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