8-K - WHF - 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): August 10, 2022

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)

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 August 10, 2022, WhiteHorse Finance, Inc. (the “Company”) issued a press release announcing a quarterly distribution and its financial results for the quarter ended June 30, 2022. 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 5.07. Submission of Matters to a Vote of Security Holders

On August 4, 2022, the Company held its annual meeting of stockholders (the “Annual Meeting”). At the Annual Meeting, the Company’s stockholders approved two proposals. The issued and outstanding shares of stock of the Company entitled to vote at the Annual Meeting consisted of 23,243,088 shares of common stock outstanding on the record date, June 6, 2022. The final voting results from the Annual Meeting were as follows:

Proposal 1. To elect two Class I directors of the Company who will each serve until the 2025 annual meeting of stockholders or until his successor is duly elected and qualifies.

Name	Votes For	Votes Against	Abstentions	Broker Non-Votes
Kevin F. Burke	6,154,712	1,057,268	574,984	6,443,731
G. Stacy Smith	6,146,378	1,065,395	575,191	6,443,731

Proposal 2. To ratify the selection of Crowe LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2022.

Votes For	Votes Against	Abstentions
13,737,299	93,735	399,661

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 August 10, 2022.
99.2	Earnings Presentation of WhiteHorse Finance, Inc.

104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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: August 10, 2022	WHITEHORSE FINANCE, INC.
	By:	/s/ Joyson C. Thomas
		Joyson C. Thomas
		Chief Financial Officer

Exhibit 99.1

WhiteHorse Finance, Inc. Announces Second Quarter 2022 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share

NEW YORK, August 10, 2022 /PRNewswire/ -- WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (Nasdaq: WHF) today announced its financial results for the quarter ended June 30, 2022. In addition, the Company’s board of directors has declared a distribution of $0.355 per share with respect to the quarter ending September 30, 2022. The distribution will be payable on October 4, 2022 to stockholders of record as of September 20, 2022.

Second Quarter 2022 Summary Highlights

●Net Asset Value of $347.4 million, or $14.95 per share

●Investment portfolio^(1)^ totaling $766.5 million

●STRS JV investment portfolio totaling $318.8 million

●Gross investment deployments^(2)^ of $48.1 million for the second quarter, including new originations of $28.9 million and $19.2 million of fundings for add-ons to existing investments

●Net investment income of $7.9 million, or $0.339 per share

●Core net investment income of $7.8 million, or $0.334 per share^(3)^

●Second quarter distribution of $0.355 per share

Stuart Aronson, WhiteHorse Finance’s Chief Executive Officer, commented, “Despite economic headwinds, our well-diversified portfolio continued to perform well this past quarter, and WhiteHorse ended the quarter with no investments on non-accrual status. We believe, given the modest leverage levels that we underwrite our loans to, that the majority of our portfolio companies will be able to service our debt in a rising interest rate environment. Additionally, as a result of elevated repayment activity during the quarter, we remain comfortably below our leverage targets and have capacity to redeploy capital to higher yielding assets. While our pipeline for future deal flow is at record levels, due in part to our differentiated three-tiered sourcing approach and relationship with the leading H.I.G. platform, we have a cautious approach and are selectively taking advantage of market conditions. Our investment portfolio is also well-positioned to benefit from a rising interest rate environment as nearly 100% of our debt portfolio is comprised of floating rate debt investments. Combined with the reset of three-month LIBOR and SOFR contracts and the full impact of our increased ownership in the Ohio STRS JV, we expect to achieve earnings accretion in the coming quarters.”

Portfolio and Investment Activity

As of June 30, 2022, the fair value of WhiteHorse Finance’s investment portfolio was $766.5 million, compared with $800.4 million as of March 31, 2022. The portfolio as of June 30, 2022 consisted of 105 positions across 68 companies with a weighted average effective yield of 9.9% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $7.9 million with the overall portfolio comprised of approximately 80.3% first lien secured loans, 2.9% second lien secured loans, 3.5% equity and 13.3% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the London Interbank Offered Rate or Secured Overnight Financing 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 June 30, 2022, WhiteHorse Finance made investments in four new portfolio companies for a total of $28.9 million, added a total of $19.2 million to existing portfolio companies, and made net fundings of $1.4 million to revolver loans. Proceeds from sales and repayments totaled approximately $66.1 million for the three months ended June 30, 2022, driven by five full realizations in IvyRehab Intermediate II, LLC, What If Holdings, LLC, RLJ Pro-Vac, Inc., Tensar Corporation and Education Networks of America, Inc.

In addition to the transactions discussed above, during the three months ended June 30, 2022, WhiteHorse Finance transferred assets comprised of one new portfolio company and one add-on investment, totaling $17.8 million to STRS JV in exchange for cash proceeds.

WHF STRS Ohio Senior Loan Fund LLC

As of June 30, 2022, STRS JV’s portfolio totaled $318.8 million, consisted of 32 portfolio companies and had a weighted average effective yield of 8.7% on its portfolio.

Results of Operations

For the three months ended June 30, 2022, the Company’s net investment income was approximately $7.9 million, compared with approximately $6.1 million for the same period in the prior year, representing an increase of approximately 29.5%. The increase in net investment income for the year-over-year period was primarily attributable to higher investment income from interest income and STRS JV due to larger portfolio sizes in both the Company and STRS JV and higher accretion income due to more repayment activities. This was partially offset by higher interest expense incurred due to higher leverage balances and higher interest rates. For the three months ended June 30, 2022, the Company’s investment in STRS JV generated an annualized, gross investment yield of approximately 12.1%.

For the three months ended June 30, 2022, core net investment income^(3)^ was $7.8 million, or $0.334 per share, compared with $7.0 million, or $0.338 per share for the same period in the prior year.

For the three months ended June 30, 2022, WhiteHorse Finance reported a net realized and unrealized loss on investments and foreign currency transactions of $0.5 million. This compares with a net realized and unrealized gain on investments and foreign currency transactions of $4.4 million for the three months ended June 30, 2021. The decrease for the year-over-year period was primarily attributable to markdowns on the portfolio in the current quarter, partially offset by a $1.7 million realized gain from the recovery proceeds received from the RCS Class B Units investment.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $7.3 million for the three months ended June 30, 2022, which compares with a net increase of $10.5 million the three months ended June 30, 2021.

WhiteHorse Finance’s net asset value was $347.4 million, or $14.95 per share, as of June 30, 2022, compared with $347.9 million, or $14.99 per share, as of Mach 31, 2022.

Liquidity and Capital Resources

As of June 30, 2022, WhiteHorse Finance had cash and cash equivalents of $18.6 million, compared with $21.3 million as of Mach 31, 2022, inclusive of restricted cash. As of June 30, 2022, the Company also had $96.3 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 September 30, 2022. The distribution will be payable on October 4, 2022 to stockholders of record as of September 20, 2022.

On May 10, 2022, the Company declared a distribution of $0.355 per share for the quarter ended June 30, 2022, consistent with distributions declared for the thirty-ninth consecutive quarter since the Company’s initial public offering. The distribution was paid on July 5, 2022 to stockholders of record as of June 20, 2022.

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 second quarter results for the period ended June 30, 2022 at 1:00 p.m. ET on Wednesday, August 10, 2022. To access the teleconference, please dial 800-459-5346 (domestic and international) approximately 10 minutes before the teleconference’s scheduled start time and reference Conference ID #WHFQ222. 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 August 17, 2022. The teleconference replay can be accessed by dialing 800-839-6911 (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 $50 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 $102.3 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 June 30, 2022 and June 30, 2021.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended June 30, 2022 and June 30, 2021 (in thousands, except per share data):


	June 30, 2022				June 30, 2021
	Amount		Per Share		Amount		Per Share
			Amounts				Amounts
Net investment income	$	7,875	$	0.339	$	6,100	$	0.296
Net impact of costs associated with refinancing of indebtedness		-		-		-		-
Accrual for capital gains incentive fee		(106)		(0.005)		882		0.042
Net impact of excise tax expense related to net realized gains and losses		-		-		-		-
Core net investment income	$	7,769	$	0.334	$	6,982	$	0.338

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)


	****		June 30, 2022	****		December 31, 2021
			(Unaudited)
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments		$	651,983		$	736,727
Non-controlled affiliate company investments			12,217			6,874
Controlled affiliate company investments			102,279			75,607
Total investments, at fair value (amortized cost $767,809 and $831,960, respectively)			766,479			819,208
Cash and cash equivalents			9,231			12,185
Restricted cash and cash equivalents			8,769			9,814
Restricted foreign currency (cost of $603 and $464, respectively)			596			469
Interest and dividend receivable			6,287			7,521
Amounts receivable on unsettled investment transactions			6,271			—
Escrow receivable			1,071			515
Prepaid expenses and other receivables			905			1,307
Total assets		$	799,609		$	851,019

Liabilities
Debt		$	423,235		$	475,958
Distributions payable			8,251			8,222
Management fees payable			3,908			3,766
Incentive fees payable			5,176			7,958
Amounts payable on unsettled investment transactions			7,496			—
Interest payable			2,117			2,087
Accounts payable and accrued expenses			1,476			2,438
Advances received from unfunded credit facilities			525			839
Total liabilities			452,184			501,268

Commitments and contingencies

Net assets
Common stock, 23,243,088 and 23,162,667 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized			23			23
Paid-in capital in excess of par			340,264			339,161
Accumulated earnings			7,138			10,567
Total net assets			347,425			349,751
Total liabilities and total net assets		$	799,609		$	851,019
Number of shares outstanding			23,243,088			23,162,667
Net asset value per share		$	14.95		$	15.10

WhiteHorse Finance, Inc.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share data)


		Three months ended June 30,				Six months ended June 30,
		2022		2021		2022		2021
Investment income
From non-controlled/non-affiliate company investments
Interest income	$	16,028	$	14,148	$	32,769	$	28,960
Fee income		679		350		1,141		1,121
Dividend income		79		65		168		109
From non-controlled affiliate company investments
Interest income		73		—		133		—
Dividend income		109		717		240		967
From controlled affiliate company investments
Interest income		1,459		738		2,586		1,457
Dividend income		1,573		1,325		2,997		2,699
Total investment income		20,000		17,343		40,034		35,313
Expenses
Interest expense		4,945		3,811		9,719		7,613
Base management fees		3,908		3,357		7,859		6,701
Performance-based incentive fees		1,837		2,628		3,264		4,670
Administrative service fees		170		170		341		341
General and administrative expenses		1,088		875		2,036		1,696
Total expenses		11,948		10,841		23,219		21,021
Net investment income before excise tax		8,052		6,502		16,815		14,292
Excise tax		175		402		399		592
Net investment income after excise tax		7,877		6,100		16,416		13,700

Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses)
Non-controlled/non-affiliate company investments		686		(555)		(17,498)		7,605
Non-controlled affiliate company investments		1,725		—		1,725		—
Foreign currency transactions		(61)		(4)		(342)		(3)
Foreign currency forward contracts		(8)		(4)		(8)		(4)
Net realized gains (losses)		2,342		(563)		(16,123)		7,598
Net change in unrealized appreciation (depreciation)
Non-controlled/non-affiliate company investments		(4,546)		4,407		12,570		(2,568)
Non-controlled affiliate company investments		(586)		755		(2,206)		321
Controlled affiliate company investments		1,502		(149)		1,672		(269)
Translation of assets and liabilities in foreign currencies		756		(40)		727		(102)
Foreign currency forward contracts		4		1		—		—
Net change in unrealized appreciation (depreciation)		(2,870)		4,974		12,763		(2,618)
Net realized and unrealized gains (losses) on investments and foreign currency transactions		(528)		4,411		(3,360)		4,980
Net increase in net assets resulting from operations	$	7,349	$	10,511	$	13,056	$	18,680

Per Common Share Data
Basic and diluted earnings per common share	$	0.32	$	0.51	$	0.56	$	0.91
Dividends and distributions declared per common share	$	0.36	$	0.36	$	0.71	$	0.71
Basic and diluted weighted average common shares outstanding		23,240,651		20,626,340		23,215,792		20,589,159

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Issuer	Investment Type^(1)^	Floor	Spread Above Index^(2)^	Interest Rate^(3)^	Acquisition Date^(10)^	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value^(11)^		Fair Value As A Percentage of Net Assets
North America
Debt Investments
Air Freight & Logistics
Access USA Shipping, LLC (d/b/a MyUS.com)	First Lien Secured Term Loan	1.50%	L+ 8.00%	9.67%	02/08/19	02/08/24	4,791	$	4,768	$	4,791	1.38	%
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)	First Lien Secured Term Loan	1.00%	L+ 6.25%	7.50%	07/12/21	07/12/26	11,135		10,956		10,914	3.14
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.25%	7.50%	07/12/21	07/12/26	—		—		(4)	—
									15,724		15,701	4.52
Application Software
Atlas Purchaser, Inc. (d/b/a Aspect Software)	Second Lien Secured Term Loan	0.75%	L+ 9.00%	11.19%	05/03/21	05/07/29	15,000		14,614		13,890	3.99
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)	First Lien Secured Term Loan	1.00%	L+ 7.00%	9.25%	06/14/19	12/29/22	3,197		3,188		3,197	0.92
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)^(7)(12)^	First Lien Secured Revolving Loan	1.00%	Base rate+ 6.38%	10.41%	06/14/19	12/29/22	183		183		183	0.05
									17,985		17,270	4.96
Asset Management & Custody Banks
JZ Capital Partners Ltd.^(4)(5)^	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.21%	01/26/22	01/26/27	10,286		10,098		10,196	2.93
JZ Capital Partners Ltd.^(4)(5)(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.00%	8.21%	01/26/22	01/26/27	—		—		55	0.02
									10,098		10,251	2.95
Automotive Retail
Team Car Care Holdings, LLC (Heartland Auto)^(12)^	First Lien Secured Term Loan	1.00%	Base rate+ 7.98%	9.04%	02/16/18	06/28/24	14,825		14,753		14,791	4.26
									14,753		14,791	4.26
Broadcasting
Coastal Television Broadcasting Group LLC	First Lien Secured Term Loan	1.00%	SF+ 6.50%	8.02%	12/30/21	12/30/26	8,191		8,044		8,041	2.31
Coastal Television Broadcasting Group LLC^(7)^	First Lien Secured Revolving Loan	1.00%	SF+ 6.50%	8.02%	12/30/21	12/30/26	—		—		—	—
									8,044		8,041	2.31
Building Products
PFB Holdco, Inc. (d/b/a PFB Corporation)^(13)^	First Lien Secured Term Loan	1.00%	C+ 6.50%	7.73%	12/17/21	12/17/26	8,982		6,900		6,903	1.98
PFB Holdco, Inc. (d/b/a PFB Corporation)^(7)(13)^	First Lien Secured Revolving Loan	1.00%	C+ 6.50%	7.73%	12/17/21	12/17/26	—		—		7	—
PFB Holdco, Inc. (d/b/a PFB Corporation)	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.50%	12/17/21	12/17/26	2,187		2,148		2,155	0.62
PFB Holdco, Inc. (d/b/a PFB Corporation)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.50%	7.50%	12/17/21	12/17/26	—		—		1	—
Trimlite Buyer LLC (d/b/a Trimlite LLC)^(5)(13)^	First Lien Secured Term Loan	1.00%	C+ 6.50%	9.18%	07/27/21	07/27/26	22,688		17,784		17,345	4.99
									26,832		26,411	7.59
Cable & Satellite
Bulk Midco, LLC^(15)(24)^	First Lien Secured Term Loan	1.00%	L+ 7.17%	8.67%	06/08/18	06/08/23	14,922		14,880		14,326	4.12
									14,880		14,326	4.12
Commodity Chemicals
Flexitallic Group SAS	First Lien Secured Term Loan	1.00%	L+ 7.50%	9.75% (9.25% Cash + 0.50% PIK)	10/28/19	10/29/26	15,682		15,078		15,333	4.41
									15,078		15,333	4.41
Construction Materials
Claridge Products and Equipment, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	8.75%	12/30/20	12/29/25	7,601		7,495		7,508	2.15
Claridge Products and Equipment, LLC^(7)(12)^	First Lien Secured Revolving Loan	1.00%	Base rate+ 5.93%	9.06%	12/30/20	12/29/25	891		882		872	0.25
									8,377		8,380	2.40
Consumer Finance
Maxitransfers Blocker Corp.	First Lien Secured Term Loan	1.00%	L+ 8.50%	10.75%	10/07/20	10/07/25	8,367		8,237		8,367	2.41
Maxitransfers Blocker Corp.^(4)(7)^	First Lien Secured Revolving Loan	1.00%	L+ 8.50%	10.75%	10/07/20	10/07/25	—		—		16	—
									8,237		8,383	2.41

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Issuer	Investment Type^(1)^	Floor	Spread Above Index^(2)^	Interest Rate^(3)^	Acquisition Date^(10)^	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value^(11)^		Fair Value As A Percentage of Net Assets
Data Processing & Outsourced Services
Escalon Services Inc.	First Lien Secured Term Loan	1.00%	L+ 10.31%	11.72% (10.22% Cash + 1.50% PIK)	12/04/20	12/04/25	17,247		16,514		17,592	5.06	%
Future Payment Technologies, L.P.	First Lien Secured Term Loan	1.00%	L+ 8.25%	9.31%	12/23/16	06/07/24	23,533		23,371		23,533	6.77
									39,885		41,125	11.83
Department Stores
Mills Fleet Farm Group, LLC	First Lien Secured Term Loan	1.00%	L+ 6.25%	7.92%	10/24/18	10/24/24	13,172	$	12,992	$	13,172	3.79
									12,992		13,172	3.79
Distributors
Crown Brands LLC	First Lien Secured Term Loan	1.00%	SF+ 8.00%	9.05%	04/22/22	12/09/25	357		357		357	0.10
Crown Brands LLC^(19)^	Second Lien Secured Term Loan	1.50%	L+ 10.50%	12.17%	12/15/20	01/08/26	4,384		4,312		2,850	0.82
Crown Brands LLC^(19)^	Second Lien Secured Delayed Draw Loan	1.50%	L+ 10.50%	12.19%	12/15/20	01/08/26	651		651		423	0.12
									5,320		3,630	1.04
Diversified Chemicals
Manchester Acquisition Sub LLC (d/b/a Draslovka Holding AS)	First Lien Secured Term Loan	0.75%	SF+ 5.75%	7.30%	11/16/21	11/16/26	7,960		7,572		7,571	2.18
Sklar Holdings, Inc. (d/b/a Starco)	First Lien Secured Term Loan	1.00%	L+ 9.75%	10.75% (8.75% Cash + 2.00% PIK)	11/13/19	05/13/23	7,371		7,299		7,003	2.02
									14,871		14,574	4.20
Diversified Support Services
NNA Services, LLC	First Lien Secured Term Loan	1.00%	L+ 6.75%	9.00%	08/27/21	08/27/26	11,448		11,329		11,357	3.27
									11,329		11,357	3.27
Education Services
EducationDynamics, LLC	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.60% (8.10% Cash + 0.50% PIK)	09/15/21	09/15/26	13,186		12,964		13,169	3.78
EducationDynamics, LLC^(4)(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.00%	8.60% (8.10% Cash + 0.50% PIK)	09/15/21	09/15/26	—		—		27	0.01
EducationDynamics, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.00%	8.60% (8.10% Cash + 0.50% PIK)	09/15/21	09/15/26	—		—		19	0.01
EducationDynamics, LLC^(4)^	Subordinated Unsecured Term Loan	N/A	4.00%	4.00%	09/15/21	03/15/27	167		167		167	0.05
									13,131		13,382	3.85
Electric Utilities
CleanChoice Energy, Inc. (d/b/a CleanChoice)	First Lien Secured Term Loan	1.00%	L+ 7.25%	8.29%	10/12/21	10/12/26	10,500		10,320		10,352	2.98
									10,320		10,352	2.98
Environmental & Facilities Services
Industrial Specialty Services USA LLC	First Lien Secured Term Loan	1.00%	L+ 6.25%	8.50%	12/31/21	12/31/26	11,947		11,732		11,595	3.34
Industrial Specialty Services USA LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.25%	7.71%	12/31/21	12/31/26	1,016		998		984	0.28
									12,730		12,579	3.62
Health Care Facilities
Bridgepoint Healthcare, LLC	First Lien Secured Term Loan	1.00%	L+ 7.75%	8.94%	10/05/21	10/05/26	10,701		10,518		10,508	3.02
Bridgepoint Healthcare, LLC^(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.75%	8.94%	10/05/21	10/05/26	—		—		(8)	—
Bridgepoint Healthcare, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.75%	8.94%	10/05/21	10/05/26	—		—		(2)	—
									10,518		10,498	3.02
Health Care Services
CHS Therapy, LLC	First Lien Secured Term Loan A	1.50%	L+ 9.00%	11.25% (10.75% Cash + 0.50% PIK)	06/14/19	06/14/24	7,164	$	7,111	$	7,164	2.06
CHS Therapy, LLC	First Lien Secured Term Loan C	1.50%	L+ 9.00%	11.25% (10.75% Cash + 0.50% PIK)	10/07/20	06/14/24	881		872		881	0.25
Lab Logistics, LLC	First Lien Secured Term Loan	1.00%	SF+ 7.25%	8.63%	10/16/19	09/25/23	5,515		5,445		5,450	1.57
Lab Logistics, LLC	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.25%	8.25%	10/16/19	09/25/23	5,157		5,145		5,157	1.48
PG Dental New Jersey Parent, LLC	First Lien Secured Term Loan	1.00%	L+ 9.75%	11.07% (9.57% Cash + 1.50% PIK)	11/25/20	11/25/25	14,787		14,565		13,548	3.90

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Issuer	Investment Type^(1)^	Floor	Spread Above Index^(2)^	Interest Rate^(3)^	Acquisition Date^(10)^	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value^(11)^		Fair Value As A Percentage of Net Assets
PG Dental New Jersey Parent, LLC^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 9.75%	11.07% (9.57% Cash + 1.50% PIK)	11/25/20	11/25/25	352		346		298	0.09	%
									33,484		32,498	9.35
Health Care Supplies
ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)	First Lien Secured Term Loan	0.75%	L+ 7.50%	8.26%	02/23/22	02/23/28	21,682		21,171		21,096	6.07
ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)^(7)(12)^	First Lien Secured Revolving Loan	0.75%	Base rate+ 6.51%	11.22%	02/23/22	02/23/28	1,970		1,923		1,916	0.55
									23,094		23,012	6.62
Heavy Electrical Equipment
PPS CR Acquisition, Inc. (d/b/a Power Plant Services)	First Lien Secured Term Loan	1.00%	L+ 6.25%	8.50%	06/25/21	06/25/26	11,067		10,891		10,953	3.15
PPS CR Acquisition, Inc. (d/b/a Power Plant Services)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.25%	8.50%	06/25/21	06/25/24	104		103		112	0.03
									10,994		11,065	3.18
Home Furnishings
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.51%	10/12/21	10/12/26	19,934		19,592		19,655	5.66
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.50%	7.51%	10/12/21	10/12/26	—		—		8	—
Sure Fit Home Products, LLC	First Lien Secured Term Loan	1.00%	L+ 9.75%	12.01%	04/12/21	07/13/23	4,807		4,751		4,086	1.18
									24,343		23,749	6.84
Household Appliances
Token Buyer, Inc. (d/b/a Therm-O-Disc, Inc.)	First Lien Secured Term Loan	0.50%	SF+ 6.00%	7.63%	05/26/22	05/31/29	6,180		5,691		5,686	1.64
									5,691		5,686	1.64
Household Products
The Kyjen Company, LLC (d/b/a Outward Hound)	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.99%	04/05/21	04/05/26	11,345		11,217		11,062	3.18
The Kyjen Company, LLC (d/b/a Outward Hound)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 6.50%	7.95%	04/05/21	04/05/26	704		696		683	0.20
									11,913		11,745	3.38
Industrial Machinery
Project Castle, Inc. (d/b/a Material Handling Systems, Inc.)	First Lien Secured Term Loan	0.50%	L+ 5.50%	6.90%	06/09/22	06/01/29	8,376		7,496		7,559	2.18
									7,496		7,559	2.18
Interactive Media & Services
MSI Information Services, Inc.	First Lien Secured Term Loan	1.00%	SF+ 7.75%	9.38%	04/25/22	04/24/26	7,950		7,798		7,791	2.24
MSI Information Services, Inc.^(7)(12)^	First Lien Secured Revolving Loan	1.00%	Base rate+ 6.84%	11.30%	04/25/22	04/24/26	481		472		471	0.14
									8,270		8,262	2.38
Internet & Direct Marketing Retail
BBQ Buyer, LLC (d/b/a BBQ Guys)	First Lien Secured Term Loan	1.50%	L+ 10.00%	11.67% (9.67% Cash + 2.00% PIK)	08/28/20	08/28/25	12,686		12,484		12,528	3.61
BBQ Buyer, LLC (d/b/a BBQ Guys)	First Lien Secured Delayed Draw Loan	1.50%	L+ 10.00%	11.67% (9.67% Cash + 2.00% PIK)	04/29/22	08/28/25	2,586		2,543		2,560	0.74
Luxury Brand Holdings, Inc. (d/b/a Ross-Simons, Inc.)	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.74%	12/04/20	06/04/26	5,910		5,826		5,873	1.69
Potpourri Group, Inc.	First Lien Secured Term Loan	1.50%	L+ 8.25%	9.75%	07/03/19	07/03/24	16,920		16,767		16,920	4.87
									37,620		37,881	10.91
Investment Banking & Brokerage
JVMC Holdings Corp. (fka RJO Holdings Corp)	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.67%	02/28/19	02/28/24	12,295	$	12,254	$	12,295	3.54
									12,254		12,295	3.54
IT Consulting & Other Services

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Issuer	Investment Type^(1)^	Floor	Spread Above Index^(2)^	Interest Rate^(3)^	Acquisition Date^(10)^	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value^(11)^		Fair Value As A Percentage of Net Assets
ATSG, Inc.	First Lien Secured Term Loan	1.00%	L+ 6.50%	7.91%	11/12/21	11/12/26	13,921		13,678		13,708	3.95	%
									13,678		13,708	3.95
Leisure Facilities
Honors Holdings, LLC (d/b/a Orange Theory)^(16)(24)^	First Lien Secured Term Loan	1.00%	L+ 7.69%	9.35% (8.85% Cash + 0.50% PIK)	09/06/19	09/06/24	9,440		9,329		9,345	2.69
Honors Holdings, LLC (d/b/a Orange Theory)^(16)(24)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 7.73%	9.05% (8.55% Cash + 0.50% PIK)	09/06/19	09/06/24	4,649		4,616		4,603	1.32
Lift Brands, Inc. (d/b/a Snap Fitness)	First Lien Secured Term Loan A	1.00%	L+ 7.50%	9.17%	06/29/20	06/29/25	5,603		5,550		5,546	1.60
Lift Brands, Inc. (d/b/a Snap Fitness)	First Lien Secured Term Loan B	N/A	9.50%	9.50% (0.00% Cash + 9.50% PIK)	06/29/20	06/29/25	1,330		1,313		1,303	0.38
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, 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		1,084	0.31
									22,073		21,881	6.30
Leisure Products
Playmonster Group LLC^(6)(20)(22)^	First Lien Secured Term Loan	1.00%	L+ 8.00%	9.08% (1.08% Cash + 8.00% PIK)	01/24/22	06/08/26	3,489		3,489		3,489	1.00
									3,489		3,489	1.00
Life Sciences Tools & Services
LSCS Holdings, Inc. (d/b/a Eversana Life Science Services, LLC)	Second Lien Secured Term Loan	0.50%	L+ 8.00%	10.25%	11/23/21	12/16/29	5,000		4,930		4,900	1.41
									4,930		4,900	1.41
Office Services & Supplies
American Crafts, LC	First Lien Secured Term Loan	1.00%	L+ 8.50%	10.17%	05/28/21	05/28/26	8,245		8,149		8,030	2.31
American Crafts, LC	First Lien Secured Delayed Draw Loan	1.00%	L+ 8.50%	10.17%	01/25/22	05/28/26	1,385		1,360		1,359	0.39
Empire Office, Inc.	First Lien Secured Term Loan	1.50%	L+ 6.50%	8.17%	04/12/19	04/12/24	12,231		12,118		12,072	3.47
Empire Office, Inc.^(4)(7)^	First Lien Secured Delayed Draw Loan	1.50%	L+ 6.50%	8.17%	08/17/21	04/12/24	—		—		(56)	(0.02)
									21,627		21,405	6.15
Packaged Foods & Meats
Lenny & Larry's, LLC^(17)(24)^	First Lien Secured Term Loan	1.00%	L+ 8.38%	9.70% (7.99% Cash + 1.71% PIK)	05/15/18	05/15/23	11,188		11,151		10,909	3.15
									11,151		10,909	3.15
Personal Products
Inspired Beauty Brands, Inc.	First Lien Secured Term Loan	1.00%	L+ 7.00%	8.41%	12/30/20	12/30/25	11,960		11,792		11,841	3.41
Inspired Beauty Brands, Inc.^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 7.00%	8.41%	12/30/20	12/30/25	—		—		2	—
Sunless, Inc.	First Lien Secured Term Loan	1.00%	L+ 6.50%	8.75%	06/30/22	08/13/25	2,097		2,055		2,055	0.59
									13,847		13,898	4.00
Research & Consulting Services
Aeyon LLC^(24)^	First Lien Secured Term Loan	1.00%	SF+ 8.88%	10.07%	02/10/22	02/10/27	8,955		8,790		8,812	2.54
ALM Media, LLC	First Lien Secured Term Loan	1.00%	L+ 6.50%	8.17%	11/25/19	11/25/24	13,781		13,649		13,643	3.93
Nelson Worldwide, LLC	First Lien Secured Term Loan	1.00%	L+ 10.25%	11.29% (10.29% Cash + 1.00% PIK)	01/09/18	01/09/23	9,411		9,386		9,309	2.68
									31,825		31,764	9.15
Specialized Consumer Services
Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)	First Lien Secured Term Loan	1.00%	L+ 6.50%	8.10%	11/16/21	11/16/27	12,838	$	12,607	$	12,624	3.63
Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)^(4)(7)^	First Lien Secured Delayed Draw Loan	1.00%	L+ 6.50%	8.10%	11/16/21	11/16/27	—		—		5	—
HC Salon Holdings, Inc. (d/b/a Hair Cuttery)	First Lien Secured Term Loan	1.00%	L+ 8.00%	10.25%	09/30/21	09/30/26	11,579		11,382		11,579	3.33
HC Salon Holdings, Inc. (d/b/a Hair Cuttery)^(7)^	First Lien Secured Revolving Loan	1.00%	L+ 8.00%	10.25%	09/30/21	09/30/26	—		—		12	—
True Blue Car Wash, LLC^(24)^	First Lien Secured Term Loan	1.00%	SF+ 6.85%	8.47%	10/17/19	10/17/24	10,035		9,930		9,943	2.86

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Issuer	Investment Type^(1)^	Floor	Spread Above Index^(2)^	Interest Rate^(3)^	Acquisition Date^(10)^	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value^(11)^		Fair Value As A Percentage of Net Assets
True Blue Car Wash, LLC^(7)(24)^	First Lien Secured Delayed Draw Loan	1.00%	SF+ 6.50%	7.98%	10/17/19	10/17/24	3,358		3,308		3,310	0.95	%
									37,227		37,473	10.77
Specialized Finance
WHF STRS Ohio Senior Loan Fund LLC^(4)(5)(9)(14)^	Subordinated Note	N/A	L+ 6.50%	7.62%	07/19/19	N/A	80,000		80,000		80,000	23.03
									80,000		80,000	23.03
Systems Software
Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC	First Lien Secured Term Loan	1.00%	L+ 7.00%	9.25%	03/16/21	03/16/27	19,256		18,954		17,909	5.15
									18,954		17,909	5.15
Technology Hardware, Storage & Peripherals
Telestream Holdings Corporation	First Lien Secured Term Loan	1.00%	SF+ 9.25%	10.59%	10/15/20	10/15/25	15,926		15,583		15,899	4.58
Telestream Holdings Corporation^(7)^	First Lien Secured Revolving Loan	1.00%	SF+ 9.25%	10.59%	10/15/20	10/15/25	530		519		546	0.16
Telestream Holdings Corporation^(7)^	First Lien Secured Delayed Draw Loan	1.00%	SF+ 9.25%	10.59%	05/12/22	10/15/25	—		—		—	—
									16,102		16,445	4.74

Total Debt Investments								$	721,166	$	717,089	206.35	%

Equity Investments^(23)^
Advertising
Avision Holdings, LLC (d/b/a Avision Sales Group)^(4)^	Class A LLC Interests	N/A	N/A	N/A	12/15/21	N/A	201	$	251	$	185	0.05	%
									251		185	0.05
Air Freight & Logistics
Motivational CIV, LLC (d/b/a Motivational Fulfillment)^(4)^	Class B Units	N/A	N/A	N/A	07/12/21	N/A	1,250		1,250		650	0.19
									1,250		650	0.19
Building Products
PFB Holdco, Inc. (d/b/a PFB Corporation)^(4)(13)^	Class A Units	N/A	N/A	N/A	12/17/21	N/A	1		423		576	0.17
									423		576	0.17
Data Processing & Outsourced Services
Escalon Services Inc.^(4)^	Warrants	N/A	N/A	N/A	12/04/20	N/A	709		476		2,183	0.63
									476		2,183	0.63
Diversified Support Services
Quest Events, LLC^(4)^	Preferred Units	N/A	N/A	N/A	12/28/18	12/08/25	324		324		53	0.02
ImageOne Industries, LLC^(4)^	Common A Units	N/A	N/A	N/A	09/20/19	N/A	227		2		120	0.03
									326		173	0.05
Education Services
Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC)^(4)^	Preferred Units	N/A	12.00%	12.00%	09/15/21	N/A	167		167		167	0.05
									167		167	0.05
Environmental & Facilities Services
BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings LLC)^(4)^	Class A Units	N/A	N/A	N/A	12/29/21	N/A	83		825		800	0.23
									825		800	0.23
Health Care Services
Lab Logistics, LLC^(4)(21)^	Preferred Units	N/A	14.00%	14.00% PIK	10/29/19	N/A	2	$	857	$	1,141	0.33
									857		1,141	0.33
Industrial Machinery
BL Products Parent, LP (d/b/a Bishop Lifting Products, Inc.)^(4)^	Class A Units	N/A	N/A	N/A	02/01/22	N/A	667		667		667	0.19
									667		667	0.19

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Issuer	Investment Type^(1)^	Floor	Spread Above Index^(2)^	Interest Rate^(3)^	Acquisition Date^(10)^	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value^(11)^		Fair Value As A Percentage of Net Assets
Interactive Media & Services
What If Media Group, LLC^(4)^	Common Units	N/A	N/A	N/A	07/02/21	N/A	851		851		2,068	0.60	%
									851		2,068	0.60
Internet & Direct Marketing Retail
BBQ Buyer, LLC (d/b/a BBQ Guys)^(4)^	Shares	N/A	N/A	N/A	08/28/20	N/A	1,100		1,100		2,255	0.65
Ross-Simons Topco, LP (d/b/a Ross-Simons, Inc.)^(4)^	Preferred Units	N/A	8.00%	8.00% PIK	12/04/20	N/A	600		514		840	0.24
									1,614		3,095	0.89
Investment Banking & Brokerage
Arcole Holding Corporation^(4)(5)(6)(18)^	Shares	N/A	N/A	N/A	10/01/20	N/A	—		6,944		6,475	1.86
									6,944		6,475	1.86
IT Consulting & Other Services
CX Holdco LLC (d/b/a Cennox Inc.)^(4)^	Common Units	N/A	N/A	N/A	05/04/21	N/A	972		972		1,554	0.45
Keras Holdings, LLC (d/b/a KSM Consulting, LLC)^(4)^	Shares	N/A	N/A	N/A	12/31/20	N/A	496		496		496	0.14
									1,468		2,050	0.59
Leisure Facilities
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)^(4)^	Class A Common Stock	N/A	N/A	N/A	06/29/20	N/A	2		1,941		183	0.05
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)^(4)^	Warrants	N/A	N/A	N/A	06/29/20	06/28/28	1		793		74	0.02
									2,734		257	0.07
Leisure Products
Playmonster Group Equity, Inc. (d/b/a PlayMonster Group LLC)^(4)(6)(8)(22)^	Preferred Stock	N/A	14.00%	14.00% PIK	01/24/22	N/A	36		3,600		2,253	0.66
Playmonster Group Equity, Inc. (d/b/a PlayMonster Group LLC)^(4)(6)(22)^	Common Stock	N/A	N/A	N/A	01/24/22	N/A	72		460		—	—
									4,060		2,253	0.66
Other Diversified Financial Services
SFS Global Holding Company (d/b/a Sigue Corporation)^(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		3,489	1.00
									2,890		3,489	1.00
Specialized Consumer Services
Camp Facility Services Parent, LLC (d/b/a Camp Construction Services, Inc.)^(4)^	Preferred Units	N/A	10.00%	10.00% PIK	11/16/21	N/A	15		840		882	0.26
									840		882	0.26
Specialized Finance
WHF STRS Ohio Senior Loan Fund^(4)(5)(14)^	LLC Interests	N/A	N/A	N/A	07/19/19	N/A	20,000		20,000		22,279	6.41
									20,000		22,279	6.41

Total Equity Investments								$	46,643	$	49,390	14.23	%

Total Investments								$	767,809	$	766,479	220.58	%

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

(in thousands)


Counterparty	Currency to be sold		Currency to be purchased		Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	80 CAD	$	62 USD	7/29/22	$	—	$	—
Total						$	—	$	—

(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 Secured Overnight Financing Rate (“SOFR” or “SF”), the Canadian Dollar Offered Rate (“CDOR” or “C”), Canada Prime Rate (“CP”) or the U.S. Prime Rate (“Prime” or “P”).

(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 82.9% 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 June 30, 2022.

(8)	Preferred equity investment is a non-income producing security.

(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 220.6% of the Company’s net assets or 95.9% 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 Floor, 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)	At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 9.00% PIK.

(21)	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.

(22)	On January 24, 2022, as part of a restructuring agreement between the Company and PlayMonster LLC, the Company’s first lien secured term loan and delayed draw loan investments to PlayMonster LLC were converted into a new first lien secured term loan, preferred stock and common stock of Playmonster Group LLC.

(23)	Ownership of certain equity investments may occur through a holding company or partnership.

(24)

Investment is structured as a unitranche loan in which the Company may receive additional interest 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.



Contacts

Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
saronson@higwhitehorse.com

or

Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
jthomas@higwhitehorse.com

or

Robert Brinberg<br>Rose & Company<br>212-257-5932<br>whitehorse@roseandco.com




Source: WhiteHorse Finance, Inc.

Exhibit 99.2

Earnings PresentationQuarter Ended June 30, 2022WhiteHorse Finance, Inc. NASDAQ: WHF (Common Stock)
1References in this presentation to “WHF”, “we”, “us”, “our” and “the Company” refer to WhiteHorse Finance, Inc.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 with the Company or any of its affiliates. Investors are advised to consider carefully the Company’s investment objectives, risks, charges and expenses before 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 with the Securities and Exchange Commission (“SEC”), contain this and other information about the Company and should be read carefully before investing in the Company’s securities. The information in this presentation is not complete and may be changed. This presentation is not an offerto sell the Company’s securities 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 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, 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 condition.The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: the Company’s future operating results; changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, 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 companies’ results of operations and financial condition; the Company’s business prospects and the prospects of its prospective portfolio companies; the impact of investments that the Company expects to make; the impact of increased competition; the Company’s contractual arrangements andrelationships with third 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 Company’s prospective portfolio companies to achieve their objectives; the relative and absolute performance of the Company’sinvestment adviser; the 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 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,” “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 ofthis presentation, and the Company assumes no obligation to update any such forward-looking statements.Actual results could differ materially from those implied or expressed in the Company’s forward-looking statements for any reason, and future results could differ materially from historical performance.Although the Company undertakes 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 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 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 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 file with the SEC.Important Information and Forward Looking Statements
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2WhiteHorse Finance Snapshot<br>Company:<br>WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”):<br>Equity Ticker:<br>NASDAQ: WHF<br>Market Cap:<br>$329.8MM(1)<br>NAV / Share:<br>$14.95<br>Portfolio Fair Value:<br>$766.5MM<br>Current Dividend Yield:<br>10.0%(1)(2); consistent quarterly dividends of $0.355 per share since 2012 IPO(1)Based on August 9, 2022 share price of $14.19(2)Based on LTM dividend rate, excluding special dividends, relative to closing share price.<br>External Manager:<br>Affiliate of H.I.G. Capital, LLC (“H.I.G. Capital” or “H.I.G.”)
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Overview of WhiteHorse Finance, Inc.3<br>Portfolio atFair Value ($MM)<br>NAV + Cumulative Dividends per shareNote: As of December 31stof each respective year presented, unless otherwise noted.(1)Based on total capital commitments managed by H.I.G. Capital and affiliates.(2)Based on fair value. Does not include investments in STRS JV.Source: Company filingsWhiteHorse Finance, Inc. is a publicly listed Business Development Company (“BDC”) that completed its IPO in December 2012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 asset manager with $50Bn of capital under management(1)Principally focused on originating senior secured loans to performing lower middle market companies with individual enterprise values generally between $50MM and $350MMDiversified investment portfolio totaling $766.5MM as of June 30, 2022Investments across 105 positions in 68 portfolio companies as of June 30, 2022−Average Investment Size(2): $6.4MM (Average Debt Investment Size(2): $7.9MM)−Largest Portfolio Company Investment(2): $23.5MMInvested $2,400MM in 203 transactions since December 2012 IPOThe Company and State Teachers Retirement System of Ohio (“STRS Ohio”), a public pension fund established under Ohio law, partnered to create WHF STRS Ohio Senior Loan Fund LLC (“STRS JV”), a joint venture formed to invest in directly originated, senior secured first andsecond lien term loans.<br>$180.5 $272.4 $403.5 $415.3 $411.7 $440.7 $469.6 $589.7 $690.7 $819.2 $766.5 2012201320142015201620172018201920202021Q2 2022<br>$15.30 $15.16 $15.04 $13.33 $13.63 $13.98 $15.35 $15.23 $15.23 $15.10 $14.95 $0.11 $1.53 $2.95 $4.37 $5.79 $7.21 $8.63 $10.25 $11.79 $13.35 $14.06 $15.41 $16.69 $17.99 $17.70 $19.42 $21.19 $23.98 $25.48 $27.02 $28.45 $29.01 2012201320142015201620172018201920202021Q2 2022<br>Net asset value<br>Cumulative dividends paid (including special dividends)
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4Overview of WhiteHorse Finance, Inc. (continued)Note: As of June 30, 2022unless otherwise noted.(1)Reflects life-to-date since IPO, andmay exclude follow-on transactions and investments in STRS JV made via asset transfers in-kind.(2)Across 103 investments. Does not include investments in STRS JV.(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 June 30, 2022, is 9.9%. 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.(4)Measured at origination based on borrower reporting and WHF’s target underwriting leverage.Does not include investments in STRS JV.(5)Based on fair value. Does not include the Company’s investments in STRS JV.<br>Generate attractive risk-adjusted return inall market conditions by originating and investing in senior secured loans to performing lower middle market companies and leveragingthe knowledge of H.I.G. CapitalDifferentiated proprietarydeal flow from over 65 dedicated deal professionalssourcing through direct coverageof financial sponsors and intermediariesRigorous credit process focused on fundamental analysis with emphasis on downside protection and cash flow visibility10-person investment committee with more than 250 years of industry experience Investment strategy focused on first lien and second lien senior secured investments in lower middle market companies with a target hold size of $5MM to $25MM<br>Summary Stats:Invested Capital since IPO:$2,400MM(1)Number of Investments Made:~203(1)Average Investment Size:~$6.4MM(2)All-inYield:9.9%(3)Net Debt / EBITDA of Current Portfolio Companies:~4.1x(4)Secured Debt as a %of Total Debt:~100%(5)<br>Investment Strategy
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5Summary ofQuarterly Results<br>Fiscal Quarter HighlightsTotal investments at fair value decreased to $766.5 million in Q2 2022 as compared to $800.4 million in Q1 2022.The Company made investments in four new portfolio companies for gross deployments of $28.9 million and made add-on investments totaling $19.2 million. The Company transferred two investments to the STRS JV totaling $17.8 million and received additional dispositions and principalrepayments of $66.1 million. The weighted average effective yield on income-producing investments at the end of Q2 2022 was approximately 9.9% as compared with approximately 9.2% at the end of the prior quarter.Q2 Net Investment Income (“NII”) was $7.9 million, or $0.339 per share, which compares with Q1 NII of $8.5 million, or $0.368per share. Q2 Core NII(1) after adjusting for an approximate $0.1 million capital gains incentive fee reversal, was $7.8 million, or $0.334 per share, compared with the quarterly distribution of $0.355 per share. This compares with Q1 Core NII of $7.9 million, or $0.344 per share. Net realized and unrealized losses on investments and foreign currency transactions for Q2 2022 were $0.5 million primarily driven by markdowns across the portfolio, partially offset by a $1.7 million realized gain from the recovery proceeds received from theRCS Class B Units investment.NAV per share at the end of Q2 2022 was$14.95 per sharecompared with $14.99 per share from Q1 2022.Gross leverage levels decreased during the quarter to 1.23x from 1.36x at the end of Q1 2022. Cash on-hand at the end of Q2 2022was $18.6 million resulting in net leverage of 1.18xas compared with 1.30x at the end of Q1 2022.As of June 30, 2022, STRS JV had total assets of $336.5 million. The Company’s return on its investment in STRS JV at the endofQ2 2022 was 12.1%(2). The Company’s increased economic ownership to 66.7% from 60.0%, was only partially in effect during Q2 2022(3). (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 investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, netinvestment income, can also be found by accessing the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com<br>..(2)Computed as the annual stated rate of the subordinated notes, based on the subordinated notes outstanding as of the period, and dividends received over the last twelve-month period, based on average capital invested.(3)Equity distributions on capital invested are generally distributed a quarter in arrears.
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6Quarterly Operating HighlightsNote: Numbers may not foot due to rounding.(1)Total investment income includes investment income (e.g., interest and dividends) from investments in STRS JV.(2)Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides usefulinformation 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 realized and unrealized gains and losses, and (iii) certain excise or other income taxes (net of incentive fees). The presentation of this additional information is not meantto 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, can be found by accessing the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com<br>..Source: Company filings<br>Unaudited Quarterly Financials<br>Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022<br>(USD in MM, expect per share data)<br>Total Investment Income<br>(1)<br>$ 18.0<br>$ 17.3<br>$ 18.4<br>$ 18.5<br>$ 20.0<br>$ 20.0<br>Expenses<br>Interest Expense<br>3.8<br>3.8<br>3.8<br>5.1<br>4.8<br>4.9<br>Base Management Fees<br>3.3<br>3.4<br>3.5<br>3.8<br>4.0<br>3.9<br>Performance-based Incentive Fees<br>2.0<br>2.6<br>2.1<br>0.8<br>1.4<br>1.8<br>Other Expenses<br>1.3<br>1.4<br>1.3<br>1.3<br>1.3<br>1.5<br>Total Expenses<br>10.4<br>11.2<br>$ 10.7<br>11.0<br>11.5<br>12.1<br>Net Investment Income<br>$ 7.6<br>$ 6.1<br>$ 7.7<br>$ 7.5<br>$ 8.5<br>$ 7.9<br>Net Realied and Unrealied Gain / (Loss)<br>0.6<br>4.4<br>0.6<br>(4.3)<br>(2.8)<br>(0.5)<br>Net Increase in Net Assets from Operations<br>$ 8.2<br>$ 10.5<br>$ 8.3<br>$ 3.1<br>$ 5.7<br>$ 7.4<br>Per Share<br>Net Investment Income (NII)<br>$<br>0.37<br>$0.30<br>$<br>0.37<br>$0.33$0.37$0.34Core NII (2)<br>$<br>0.38<br>$0.34<br>$<br>0.37<br>$0.32$0.34$0.33Net Realized and Unrealized Gain / (Loss)<br>$<br>0.03<br>$0.21<br>$<br>0.03<br>$(0.19)$(0.12)$(0.02)Earnings<br>$<br>0.40<br>$0.51<br>$<br>0.40<br>$0.14$0.25$0.32Dividends Declared<br>$<br>0.355<br>$0.355<br>$<br>0.355<br>$0.355$0.355$0.355Special Dividends Declared<br>$<br>-<br>$-<br>$<br>-<br>$0.135$-$-Core NII Dividend Coverage<br>106%<br>95%<br>105%<br>91%<br>97%<br>94%
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7Quarterly Balance Sheet HighlightsNote: Numbers may not foot due to rounding (1)Includes Restricted Cash.(2)Calculated as Total Gross Debt Outstanding divided by Total Net Assets. (3)Net Leverage Ratio is defined as debt outstanding less cash, divided by total net assets. (4)Fundings, exits and repayments may include cash flows on revolver investments as well as non-cash transactions (e.g., PIK, equity issuances).<br>Unaudited Quarterly Financials<br>Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022<br>(USD in MM, expect per share data)<br>Assets<br>Investments at Fair Value<br>$ 617.0<br>$ 670.5<br>$ 687.1<br>$ 819.2<br>$ 800.4<br>$ 766.5<br>Cash and Equivalents(1)<br>24.5<br>17.8<br>16.6<br>22.5<br>21.3<br>18.6<br>Other Assets<br>29.0<br>11.4<br>25.9<br>9.3<br>17.1<br>14.5<br>Total Assets<br>$ 670.5<br>$ 699.7<br>$ 729.6<br>$ 851.0<br>$ 838.8<br>$ 799.6<br>Liabilities<br>Debt (net of issuance costs)<br>334.5<br>358.7<br>379.8<br>476.0<br>467.9<br>423.2<br>Other Liabilities<br>21.7<br>21.4<br>26.1<br>25.2<br>23.0<br>29.0<br>Total Liabilities<br>$ 356.2<br>$ 380.1<br>$ 405.9<br>$ 501.2<br>$ 490.9<br>$ 452.2<br>Total Net Assets<br>$ 314.3<br>$ 319.6<br>$ 323.7<br>$ 349.8<br>$ 347.9<br>$ 347.4<br>Total Liabilities and Net Assets<br>$ 670.5<br>$ 699.7<br>$ 729.6<br>$ 851.0<br>$ 838.8<br>$ 799.6<br>Net Asset Value per Share<br>$ 15.27<br>$ 15.42<br>$ 15.46<br>$ 15.10<br>$ 14.99<br>$ 14.95<br>Leverage Ratio<br>(2)<br>1.08x<br>1.14x<br>1.19x<br>1.38x<br>1.36x1.23x<br>Net Leverage Ratio<br>(3)<br>1.00x<br>1.08x<br>1.14x<br>1.31x<br>1.30x1.18x<br>Gross Fundings<br>(4)<br>72.4<br>118.4<br>137.9<br>215.4<br>103.6<br>66.9<br>Exits and Repayments<br>(4)<br>(149.8)<br>(69.5)<br>(124.0)<br>(80.3)<br>(121.0)(101.2)<br>Net Fundings/(Repayments)<br>$ (77.4)<br>$ 48.9<br>$ 13.9<br>$ 135.1<br>$ (17.4)<br>$ (34.3)
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Portfolio Highlights8Note: Not a guarantee of future performance or investment pace.(1) Does not include investments in STRS JV.(2) Calculated based on funded principal amounts of debt investments.(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.(4) Weighted average effective yield for entire portfolio, including equities and investments in STRS JV.(5) Includes STRS JV Subordinated Note.Source: Company filings($ in MM, except per share data)<br>Portfolio Investment<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Total Fair Value of Investments<br>$ 617.0<br>$ 670.5 $ 687.1 $ 819.2<br>$ 800.4<br>$ 766.5<br>Number of Portfolio Investments<br>90<br>97 99 127<br>111<br>105<br>Number of Portfolio Companies<br>62<br>67 65 76<br>68<br>68<br>Average Investment Size<br>(1)<br>$ 6.4<br>$ 6.4 $ 6.3 $ 5.9<br>$ 6.4<br>$ 6.4<br>Average Borrower Size<br>(1)<br>$ 9.2<br>$ 9.2 $ 9.6 $ 9.9<br>$ 10.4<br>$ 9.9<br>Average Debt Investment Size<br>(1)<br>$ 7.1<br>$ 7.1 $ 7.3 $ 6.8<br>$ 7.7<br>$ 7.9<br>Fair Value as a Percentage of Principal<br>(1)(2)<br>96.3%<br>97.2%<br>96.1%<br>96.5%<br>98.5%<br>97.6%<br>Total Portfolio Effective Yield<br>(3)<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Weighted average effective yield on income<br>-producing debt investments(1)<br>9.6%<br>9.5%<br>9.3%<br>9.1%<br>9.2%<br>9.9%<br>Weighted average effective yield on total portfolio<br>(4)<br>9.7%<br>9.7%<br>9.1%<br>9.0%<br>9.3%<br>9.9%<br>Portfolio Composition<br>-Floating vs. Fixed Investments<br>(Debt Investments at Fair Value)<br>(1)<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Percentage of fixed rate investments<br>0.4%<br>0.4%<br>0.4%<br>0.4%<br>0.4%<br>0.4%<br>Percentage of floating rate investments<br>99.6%<br>99.6%<br>99.6%<br>99.6%<br>99.6%<br>99.6%<br>Portfolio Composition<br>-Sponsor vs. Non-Sponsor (Fair Value)(1)<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Sponsor<br>64.5%<br>67.6%<br>66.8%<br>66.9%<br>60.5%<br>59.8%<br>Non<br>-Sponsor<br>35.5%<br>32.4%<br>33.2%<br>33.1%<br>39.5%<br>40.2%<br>Total Portfolio Composition by Instrument Type (Fair Value)<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>First lien secured loans<br>84.7%<br>84.0%<br>82.3%<br>85.1%<br>81.0%<br>80.3%<br>Second lien secured loans<br>2.4%<br>4.4%<br>4.3%<br>2.9%<br>3.0%<br>2.9%<br>Subordinated debt<br>0.0%<br>0.0%<br>0.0%<br>0.0%<br>0.0%<br>0.0%<br>STRS V<br>9.0%<br>9.2%<br>10.5%<br>9.2%<br>12.6%<br>13.3%<br>Equity<br>3.9%<br>2.4%<br>2.9%<br>2.8%<br>3.4%<br>3.5%<br>Investments on Non<br>-Accrual Status (Debt Investments)<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Fair Value of Investments on Non<br>-accrual Status<br>$ 14.3<br>$ 9.7 $ 8.7 $ 10.0 $ -$ -<br>Cost of Investments on Non<br>-accrual Status<br>$ 23.5<br>$ 18.4 $ 18.4 $ 24.5 $ -$ -<br>% of Investments on Non<br>-accrual Status (Based on Fair Value of Debt Investments)(4)<br>2.5%<br>1.5%<br>1.3%<br>1.3%<br>0.0%<br>0.0%<br>% of Investments on Non<br>-accrual Status (Based on Cost of Debt Investments)(4)<br>4.0%<br>2.8%<br>2.8%<br>3.1%<br>0.0%<br>0.0%
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52%60%52%77%81%85%85%80%43%33%39%21%11%4%3%3%5%7%9%3%3%3%3%3%6%7%9%13%2015201620172018201920202021Q2 2022<br>% First Lien Loans<br>% Second Lien Loans<br>% Equity<br>STRS JV<br>% Subordinated<br>97.1%99.8%99.9%100.0% 100.0% 99.8% 99.6% 99.6% 2.9%0.2%0.1%0.2% 0.4% 0.4% 0.0%20.0%40.0%60.0%80.0%100.0%2015201620172018201920202021Q2 2022<br>Floating<br>FixedPortfolio Trends<br>Historical Portfolio Trends9<br>% Floating and % Fixed (Based on Fair Value)<br>% Instrument Type (Based on Fair Value)<br>% Sponsored / Non-Sponsored (Based on Fair Value)<br>% Non Accruals (Based on Fair Value of Debt Investments)(1)Note: As of end of each year/quarter presented, unless otherwise noted; percentages may not add up to 100% due to rounding. Not a guarantee of future performance or investment pace.(1)Based on fair value of debt investments, including STRS JV Subordinated Note.<br>28%32%32%44%53%58%67%60%72%68%68%56%47%42%33%40%0.0%20.0%40.0%60.0%<br>80.0%100.0%2015201620172018201920202021Q2 2022<br>Sponsor<br>Non-Sponsor<br>4.1%<br>1.7%<br>1.4%3.9%7.4%3.3%<br>1.8%<br>2.5%1.5%1.3%1.3%0.0%0.0%0.0%2.0%4.0%<br>6.0%8.0%10.0%Q2'19Q3'19Q4'19Q1'20<br>Q2'20<br>Q3'20Q4'20Q1'21<br>Q2'21<br>Q3'21<br>Q4'21Q1'22<br>Q2'22<br>% of Investments on Non-accrual
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13.3% 3.1% 3.0% 2.6% 2.6% 2.3% 2.3% 2.3% 2.2% 2.1% 64.2%<br>STRS JV<br>Future Payment Technologies, L.P.<br>ABB/Con-cise Optical Group LLC<br>Escalon Services Inc.<br>Sleep OpCo LLC<br>Arcstor Midco, LLC<br>Trimlite Buyer LLC<br>BBQ Buyer, LLC<br>Potpourri Group, Inc.<br>Telestream Holdings Corporation<br>Other10Note: As of June 30, 2022, unless otherwise noted; percentages may not add up to 100% due to rounding. (1)Does not include investments in STRS JV. Industry classifications based on GICS.<br>Composition by Borrower (Based on Fair Value)<br>Composition by Industry(1)(Based on Fair Value)Borrower and Industry Diversity<br>6.5%6.2%5.8%5.1%4.8%4.1%3.6%3.5%3.3%3.2%2.8%2.7%48.4%<br>Data Processing & Outsourced Services<br>Internet & Direct Marketing Retail<br>Specialized Consumer Services<br>Health Care Services<br>Research & Consulting Services<br>Building Products<br>Home Furnishings<br>Health Care Supplies<br>Leisure Facilities<br>Office Services & Supplies<br>Investment Banking & Brokerage<br>Systems Software<br>OtherSTRS JV~100% of WHF loans are senior secured
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2.8x2.4x4.1x3.4x3.4x2.1x4.5x3.0x3.8x2.3x3.1x2.7x3.0x3.6x2.9x3.4x3.2x3.5x3.4x3.4x3.2x3.3x3.3x3.5x3.6x3.6x3.6x3.6x3.7x3.8x3.7x3.8x4.0x4.1x4.1x4.1x4.0x4.1x15.5% 14.9% 13.1% 11.8% 11.7% 11.1% 10.7% 11.3% 11.4% 11.7% 11.6% 11.8% 11.9% 11.9% 12.1% 11.8% 11.8% 11.9% 11.9% 11.9% 12.0% 12.0% 11.9% 11.9% 11.7% 11.3% 11.1% 10.4% 9.9% 9.6% 9.9% 9.9% 9.6% 9.5% 9.3% 9.1% 9.2% 9.9% Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21Q1'22Q2'22<br>Borrower Leverage through WHF Security<br>Effective YieldEffective Yield & Dividend Coverage<br>Debt Portfolio Effective Yield and Borrower Leverage(1)From IPO to June 30, 202211<br>Core NII(2)to Dividend Coverage(3)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 financial measure. The Company believes that core net investment income provides usefulinformation 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 realized and unrealized gains and losses, and (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. 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, can be found by accessing the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com<br>(3)Does not include special dividends.Source: Company filings<br>Coveredby $0.05<br>Coveredby $0.03<br>Missed by $0.09<br>Coveredby $0.01<br>Missed by $0.10<br>Missed by $0.04<br>Missed by $0.03<br>Missed by $0.01<br>Covered by $0.04<br>Coveredby $0.01<br>Coveredby $0.03<br>Missed by $0.01<br>Coveredby $0.02<br>Missed by $0.02<br>Coveredby $0.01<br>Missed by $0.01<br>$0.35$0.40$0.37$0.36$0.40$0.39$0.27$0.26$0.38$0.35$0.38$0.34$0.37$0.32$0.34$0.33$0.36$0.36$0.36$0.36$0.36<br>$0.36<br>$0.36<br>$0.36<br>$0.36$0.36$0.36$0.36$0.36$0.36<br>$0.36<br>$0.36Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21Q1'22Q2'22<br>Core NII per share<br>Dividends per share
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Yield & Interest Rate Economic Analysis12(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 average cost of investments.(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.(3)Calculated as (a) effective yield less (b) weighted average cost of debt.(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.(5)The base reference rate represents the weighted average base rate for the quarter applied on the JPM Revolving Credit Facility borrowings.<br>11.9%11.9%11.7%11.3%11.1%10.4%9.9%9.6%9.9%9.9%9.6%9.5%9.3%9.1%9.2%9.9%11.4%11.5%11.4%11.0%10.7%10.0%9.5%9.1%9.4%9.4%9.1%9.0%8.8%8.6%8.8%9.4%7.1%6.7%6.0%5.7%5.7%5.5%5.2%5.4%6.2%6.1%5.7%5.7%5.7%5.7%5.7%5.9%4.7%5.2%5.7%5.6%5.4%4.9%4.7%4.2%3.7%3.8%3.8%3.8%3.6%3.4%3.5%4.0%<br>2.3%2.5%2.7%2.6%2.3%2.3%1.7%1.0%0.3%0.2%0.2%0.2%0.1%0.2%0.3%0.9%0.0%2.0%4.0%6.0%8.0%10.0%<br>12.0%Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21Q1'22Q2'22<br>Effective Yield⁽¹⁾<br>Income Yield⁽²⁾<br>Net Investment Spread⁽³⁾<br>Weighted Average Cost of Debt⁽⁴⁾<br>Base reference rate⁽⁵⁾
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Investment Performance Ratings13<br>Investment Performance Ratings(% of Portfolio at Fair Value)Rating2012201320142015201620172018201920202021Q1 2022Q2 202216.3%2.3%22.2%15.4%11.6%12.0%2100.0%92.4%100.0%90.3%87.0%83.9%80.1%83.3%61.1%74.7%78.5%72.8%37.6%7.9%13.0%16.1%13.6%13.1%15.0%8.9%9.1%14.0%40.0%0.0%0.0%0.6%1.0%0.8%1.2%51.8%0.0%1.3%1.1%- - - 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%Investment Perfomance Rating DefinitionsRatingDefinition1The portfolio company's risk of loss has been reduced relative to initial expectations.2The portfolio company is meeting initial expectations with regard to performance and outlook.3The investment's risk of loss has increased relative to initial expectation.4Investment principal is at a material risk of not being fully repaid.5Investment is in payment default and has significant risk of not receiving full repayment.
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Net Asset Value Trends14As 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 the changes in NAV per share of common stock for each quarter excluding the impact of special dividends that were paid and showsthe pro forma to the Company’s NAV per share after payment of regular distributions.Net Asset Value Per Share<br>15.4315.5515.5615.4115.00<br>15.30<br>15.16<br>15.04<br>13.33<br>13.6313.9815.3515.2315.2315.1014.95 $13.00$13.50$14.00$14.50$15.00$15.50<br>$16.00<br>Net Asset Value if No Special Dividends Were Paid<br>Net Asset Value
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NAV Per Share Bridge15Note: Numbers may not foot due to rounding.Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides usefulinformation 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 realized and unrealized gains and losses, and (iii) certain excise or other income taxes (net of incentive fees). The presentation of this additional information is not meant tobeconsidered 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, can be found by accessing the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com<br>..Source: Company filings<br>Net Realized and Unrealized losses: ($0.02)<br>Dividend Coverage: ($0.03)
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Leverage Migration16<br>3/31/2022Quarterly Change6/30/2022Outstanding Debt:Outstanding Debt:$473.8($45.1) $428.7Driven by paydowns and dispositions of portfolio investmentsNAV:NAV:$347.9 ($0.5)$347.4 Driven by net realized and unrealized lossesLeverage Ratio:Leverage Ratio:1.36x1.23xNote: Numbers may not foot due to rounding.($ in MM)<br>Sales & Principal Payments101.3$ Acquisition of Investments$66.9Borrowings36.5 Debt Paydown80.7<br>Sale of Common Stock0.2<br>Dividend Payment, net of distributions reinvested<br>7.8<br>Net Investment Income7.9<br>Balance Sheet Cash2.7<br>Other Balance Sheet Changes6.8<br>Total$155.4Total$155.4<br>Sources<br>Uses
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0.62x0.57x0.57x0.79x0.75x0.97x1.04x0.86x0.94x1.25x1.08x1.14x1.19x1.38x1.36x1.23x0.00x0.20x0.40x0.60x<br>0.80x1.00x<br>1.20x<br>1.40xQ3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21Q1'22Q2'22<br>Debt/ EquityNote: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace.(1)As of June 30, 2022 WHF had $5.5MM of deferred debt issuance costs.(2)Gross leverage excluding cash.(3)Credit Facility bears interest at LIBOR plus 2.35% on outstanding USD denominated borrowings up to $285.0 and SOFR plus 2.50%onborrowings above $285.0.3<br>Current Debt Outstanding (as of June 30, 2022)<br>($ in MM)CommitmentOutstanding(1)Weighted Average Interest RateMaturityRevolving Credit Facility(3)$335.0(Accordion Feature up to $375)$238.7L+2.350%payablequarterly20256.000% 2023 Notes$30.0 $30.0 6.00%payable semi-annually;unsecured20235.375% 2025 Notes$40.0$40.05.375%payable semi-annually;unsecured20255.375% 2026 Notes$10.0$10.05.375%payable semi-annually;unsecured20264.000% 2026 Notes$75.0$75.04.000%payable semi-annually;unsecured20265.625% 2027 Notes$10.0 $10.0 5.625%payable semi-annually;unsecured20274.250% 2028 Notes$25.0 $25.0 4.25%payable semi-annually; unsecured2028Total Debt$525.0 $428.74.4% weighted average cost of debtTotal Shareholders’ Equity/Net Assets$347.4NAFunding Profile17<br>Gross Debt to Equity(2)1.0x-1.35x Target Leverage
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18<br>Appendix
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Origination Footprint (as of June 30, 2022)Regional Direct Origination FootprintScope of H.I.G. WhiteHorse market coverage results in consistent investment activity levels regardless of market conditionsDedicated direct lending team of over 65 investment and origination professionalsRegional footprint with ~25dedicated direct lending originators in 12 North American officesGlobal platform of approximately 525investment professionals across 18 offices in 9 countries and 3 continents Additional 25 generalist business development professionals dedicated to sourcing proprietary opportunities in the lower to middle market19
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Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace. As of June 30, 2022 STRS JV had $2.0 of deferred debt issuance costs.(1) Credit Facility bears interest at LIBOR plus 2.35% on outstanding USD denominated borrowings up to $175.0 and SOFR plus 2.50% on borrowings above $175.0.3<br>($ in MM)CommitmentOutstanding(1)Weighted Average Interest RateMaturityRevolving Credit Facility(1)$225.0($25 Accordion Feature)$181.7L+2.35%payablequarterly2025Subordinated Note$120.0$120.0L+6.50%payablequarterlyN/ATotal Debt$345.0$301.75.3% weighted average cost of debtEquity$30.0$30.0N/AN/ASTRS JV Key Terms and Funding Profile20<br>Key TermsWHFand STRS Ohio have committedto provide up to $150 million in subordinated notes and equity to STRS JV, with STRS Ohio providing $50 million and WHF providing $100 million.WHF and STRS Ohio share voting control 50%/50%. Equity ownership of 66.67% WHF and 33.33% STRS An affiliate of H.I.G. provides day-to-day administrative oversight<br>Current Debt Outstanding (as of June 30, 2022)($ in MM)
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21Note: As of June 30, 2022, unless otherwise noted; percentages may not add up to 100% due to rounding. (1)Industry classifications based on GICS.<br>Composition by Borrower (Based on Fair Value)<br>Composition by Industry(1)(Based on Fair Value)100% of STRS JV loans are senior securedSTRS JV Borrower and Industry Diversity<br>6.0%4.9%4.7%4.6%4.6%4.5%4.5%4.3%4.2%3.6%54.1%<br>Marlin DTC-LS Midco 2, LLC<br>Geo Logic Systems Ltd.<br>Source Code Holdings, LLC<br>RCKC Acquisitions LLC<br>Meta Buyer LLC<br>Drew Foam Companies Inc<br>Cennox, Inc.<br>LMG Holdings, Inc.<br>MEP-TS Midco, LLC<br>Quest Events, LLC<br>Other<br>11.1%7.5%6.9%6.0%5.9%4.9%4.8%4.6%4.5%4.3%4.2%3.6%31.7%<br>IT Consulting & Other Services<br>Packaged Foods & Meats<br>Technology Hardware, Storage & Peripherals<br>Internet & Direct Marketing Retail<br>Environmental & Facilities Services<br>Data Processing & Outsourced Services<br>Industrial Machinery<br>Pharmaceuticals<br>Building Products<br>Electronic Equipment & Instruments<br>Application Software<br>Diversified Support Services<br>Other
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Origination Pipeline Funnel(1)22(1) Origination Pipeline figures reflect 2014 through June 30, 2022.<br>Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance<br>Over 60 WhiteHorse deal professionals dedicated to sourcing and underwriting for WHF<br>20+ person business development team seeks opportunities from H.I.G.’s proprietary database of over 21,000 contacts (telephonic 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 transactions as compared to the broadly syndicated marketDirectly originated loans to lower middle market companies typically generate more attractive risk-adjusted returns relative to larger, broadly syndicated credits<br>Typical Underwriting Process: 3-6 months<br>Opportunities Reviewed<br>Initial Due Diligence<br>Term Sheets Delivered<br>Closed Transactions<br>Deals being sourced by over 500 Investment Professionals across H.I.G.’s platform<br>Total % of Sourced8,325100.0%2,05024.6%5516.6%2062.5%
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23Corporate Data<br>Board of Directors<br>Investment Committee<br>Corporate Officers<br>Research Coverage<br>Corporate Counsel<br>John BolducSami MnaymnehStuart AronsonErik ZwickDechert LLPChairman of the BoardFounder and Co-CEO of H.I.G. CapitalChief Executive Officer<br>Hovde GroupNew York, NY<br>Stuart AronsonAnthony TamerMarco CollazosMelissa WedelCorporate Headquarters<br>DirectorFounder and Co-CEO of H.I.G. CapitalChief Compliance OfficerJ.P. Morgan1450 Brickell Avenue31st FloorJay CarvellStuart AronsonJoyson ThomasMickey SchleienMiami, FL 33131DirectorChief Executive Officer and DirectorChief Financial OfficerLadenburg Thalmann & Co. Inc.Transfer Agent<br>Kevin F. BurkeMark BernierMitchel PennAmerican Stock Transfer &Independent Director<br>Managing Director of WhiteHorse CapitalOppenheimer & Co.Trust Company, LLC<br>New York, NYRick P. FrierJohn BolducRobert DoddIndependent DirectorChairman of the Board, Executive ManagingRaymond JamesInvestor Relations Contact<br>Director of H.I.G. Capital1450 Brickell AvenueRick D. Puckett31st FloorIndependent DirectorJavier CasillasAttention: Investor Relations<br>Managing Director of WhiteHorse CapitalMiami, FL 33131<br>G. Stacy Smith(305) 381-6999Independent DirectorPankaj Gupta<br>Global Head of Originations and Managing Director of WhiteHorse Capital<br>Independent Registered<br>Public Accounting Firm<br>David IndelicatoCrowe LLP<br>Managing Director of WhiteHorse CapitalNew York, NY<br>Brian SchwartzSecurities Listing<br>Co-President of H.I.G. CapitalNASDAQ: WHFJohn YeagerPlease visit our website at:<br>Managing Director of WhiteHorse Capitalwww.whitehorsefinance.com
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