WhiteHorse Finance Inc is a non-diversified, closed-end management investment company that makes debt investments in privately held, small-cap companies located in the United States. Its investment objective is to generate attractive risk-adjusted returns for investors, primarily by originating senior secured loans to privately held small-cap companies across a broad range of industries.
Performance Overview
WhiteHorse Finance Inc (WHF, Financial) reported total investment income of $23.48 million for Q2 2024, a 7.8% decrease from $25.48 million in Q1 2024. The net investment income and core net investment income stood at $9.29 million, down 14.1% from $10.82 million in the previous quarter. The net investment income per share was $0.40, compared to $0.465 in Q1 2024.
Financial Achievements and Challenges
Despite the challenges with specific credits and elevated repayment activity, WhiteHorse Finance Inc (WHF, Financial) managed to generate core net investment income well in excess of its regular dividend. The company declared a quarterly distribution of $0.385 per share, payable on October 2, 2024, to stockholders of record as of September 18, 2024.
Stuart Aronson, WhiteHorse Finance’s Chief Executive Officer, commented, “Despite some challenges with specific credits and elevated repayment activity, I am pleased to report that WhiteHorse generated another quarter of core net investment income well in excess of our regular dividend. We are generally seeing balanced activity across our portfolio in terms of credit performance and stability with markdowns partially offset by various net markups during the quarter.”
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Change |
|---|---|---|---|
| Total Investment Income | $23.48 million | $25.48 million | -7.8% |
| Total Expenses | $14.19 million | $14.66 million | -3.2% |
| Net Investment Income | $9.29 million | $10.82 million | -14.1% |
| Net Investment Income per Share | $0.40 | $0.465 | -14.0% |
| Net Realized Gains (Losses) | $(93) thousand | $(5.63) million | +98.3% |
| Net Unrealized Appreciation (Depreciation) | $(1.36) million | $0.79 million | -272.6% |
| Net Increase in Net Assets from Operations | $7.84 million | $5.97 million | +31.3% |
| Total Investments at Fair Value | $660.01 million | $697.87 million | -5.4% |
| Net Asset Value per Share | $13.45 | $13.50 | -0.4% |
Portfolio and Investment Activity
As of June 30, 2024, the fair value of WhiteHorse Finance’s investment portfolio was $660.0 million, compared to $697.9 million as of March 31, 2024. The portfolio consisted of 125 positions across 72 companies with a weighted average effective yield of 11.7% on income-producing debt investments. The average debt investment size was $5.8 million, with the overall portfolio comprising approximately 79.2% first lien secured loans.
During Q2 2024, WhiteHorse Finance made investments in seven new portfolio companies totaling $47.4 million and added $8.4 million to existing portfolio companies. Proceeds from sales and repayments amounted to approximately $71.7 million, driven by full repayments from several companies.
Distribution and Conference Call
The company's board of directors declared a distribution of $0.385 per share for Q2 2024, payable on October 2, 2024. WhiteHorse Finance will host a conference call to discuss its Q2 2024 results on August 8, 2024, at 9:00 a.m. ET.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from WhiteHorse Finance Inc for further details.
