Form 8-K WhiteHorse Finance, Inc. For: Mar 02

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March 2, 2021 8:17 AM EST

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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: March 2, 2021

(Date of earliest event reported)

WhiteHorse Finance, Inc.

(Exact name of registrant as specified in its charter)

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

1450 Brickell Avenue, 31st Floor
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 Registered
Common Stock, par value $0.001 per share	WHF	The Nasdaq Stock Market LLC (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 March 2, 2021, WhiteHorse Finance, Inc. (the “Company”) issued a press release announcing a quarterly distribution and its financial results for the fourth quarter and fiscal year ended December 31, 2020. 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, including Exhibit 99.1 and Exhibit 99.2 furnished herewith, 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 March 2, 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: March 2, 2021	WHITEHORSE FINANCE, INC.

	By:	/s/ Joyson C. Thomas
		Joyson C. Thomas
		Chief Financial Officer

Exhibit 99.1

WhiteHorse Finance, Inc. Announces Fourth Quarter and Full Year 2020 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share

NEW YORK, NY, March 2, 2021 – WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (Nasdaq: WHF) today announced its financial results for the year ended December 31, 2020. Additionally, the Company announced that its board of directors has declared a distribution of $0.355 per share with respect to the quarter ending March 31, 2021. The distribution will be payable on April 5, 2021 to stockholders of record as of March 26, 2021.

Fourth Quarter 2020 Summary Highlights

	•	Net Asset Value of $312.9 million, or $15.23 per share, compared to $15.23 per share in 2019
	•	Investment portfolio⁽¹⁾ totaling $690.7 million
	•	STRS JV investment portfolio totaling $174.6 million
	•	Gross investment deployments⁽²⁾ of $162.4 million for the fourth quarter, including new originations of $158.9 million and $3.5 million of fundings for add-ons to existing investments
	•	Gross investment deployments⁽²⁾ of $286.9 million for the year, including new originations of $261.3 million and $25.6 million of fundings for add-ons to existing investments
	•	Net investment income of $6.9 million, or $0.335 per share, for the fourth quarter
	•	Core net investment income of $7.1 million, or $0.348 per share⁽³⁾, for the fourth quarter
	•	Annual net investment income of $24.2 million, or $1.176 per share
	•	Annual core net investment income of $25.7 million, or $1.249 per share⁽³⁾
	•	Annual distributions of $1.545 per share, including special distributions of $0.125 per share

(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC (“STRS JV”), an unconsolidated joint venture, totaling $51.2 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.

Stuart Aronson, WhiteHorse Finance’s Chief Executive Officer commented, “During the fourth quarter, we successfully originated 16 first lien loans financed partially through $60 million unsecured notes newly issued under the current favorable market conditions. Our fourth quarter origination volume set a new company record and enabled us to reach our target leverage of 1.25x. The year 2020 presented unprecedented challenges, but our business remained resilient and we finished the year stronger than ever which emphasizes the strength of our three-tiered sourcing approach and rigorous underwriting standards. We will remain prudent as we continue to enhance value for our shareholders in this environment.”

Portfolio and Investment Activity

As of December 31, 2020, the fair value of WhiteHorse Finance’s investment portfolio was $690.7 million, compared with $589.7 million as of December 31, 2019. The portfolio at December 31, 2020 consisted of 99 positions across 67 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) was $7.3 million with the overall portfolio comprised of approximately 85.2% first lien secured loans, 4.0% second lien secured loans, 3.4% equity and 7.4% in investments in STRS JV. Almost all loans were substantially variable-rate investments (primarily indexed to the London Interbank Offered Rate) with fixed rate securities representing only 0.2% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended December 31, 2020, WhiteHorse Finance made investments in 16 new portfolio companies totaling $158.9 million, added a total of $3.5 million to five existing portfolio companies and funded $1.2 million to revolver commitments. Proceeds from sales and repayments totaled approximately $39.1 million for the quarter ended December 31, 2020, driven by a full realization in Vessco Holdings, LLC, partial sales of Vero Parent, Inc. and payments received from Golden Pear Funding Assetco, LLC.

In addition to the transactions above, during the three months ended December 31, 2020, WhiteHorse Finance transferred assets comprised of four new portfolio companies and one existing portfolio company totaling $32.4 million to STRS JV in exchange for cash consideration.

During the year ended December 31, 2020, WhiteHorse Finance invested $261.3 million across 26 new portfolio companies. The Company also invested $26 million in existing portfolio companies. Gross proceeds from sales and repayments (exclusive of asset transfers to STRS JV) totaled approximately $119.0 million for the year.

In addition to the transactions above, during the year ended December 31, 2020, WhiteHorse Finance transferred assets totaling $98.8 million in exchange for a net investment in STRS JV of $18.4 million as well as cash proceeds of $80.4 million. As of December 31, 2020, the Company’s investment in STRS JV was approximately $51.2 million, at fair value.

WHF STRS Ohio Senior Loan Fund LLC

As of December 31, 2020, STRS JV’s portfolio totaled $174.6 million, consisted of 20 portfolio companies and had a weighted average effective yield of 7.9% on its portfolio.

Results of Operations

For the three months and year ended December 31, 2020, the Company’s net investment income was approximately $6.9 million and $24.2 million, respectively, compared with approximately $7.7 million and $31.2 million for the same periods in the prior year, representing a decrease of approximately 10.4% and 22.4%, respectively. The decrease in net investment income for the year-over-year period was primarily attributable to lower non-recurring fee income, partially offset by higher investment income generated from STRS JV for the year ended December 31, 2020. The decrease in fee income during the quarter and year ended December 31, 2020 as compared with the same period in the prior year was primarily a result of fewer nonrecurring, fee-generating events.

For the three months and year ended December 31, 2020, core net investment income, a non-GAAP financial measure that excludes capital gains incentive fee accruals, the net effects of excise or other income taxes related to net realized gains and losses, and the associated costs of refinancing the Company’s indebtedness, was $7.1 million and $25.7 million, respectively, compared with $7.9 million and $31.1 million for the same period in the prior year, representing a decrease of approximately 10.1% and 17.4%, respectively.

For the three months and year ended December 31, 2020, WhiteHorse Finance reported net realized and unrealized gains on investments and foreign currency transactions of $1.3 million and $7.5 million, respectively. This compares with a net realized and unrealized gain on investments and foreign currency transactions of $1.1 million and a net realized and unrealized loss on investments and foreign currency transactions of $0.4 million for the three months and year ended December 31, 2019, respectively. The increase for the year-over-year period was primarily attributable to unrealized gains generated on AG Kings Holdings, Inc., partially offset by unrealized losses recognized on positions in Grupo HIMA San Pablo, Inc., Honors Holdings, LLC as well as Lift Brands, Inc., in addition to realized gains generated from sales and equity realizations in Vessco Holdings, LLC, PMA Holdco, LLC, Fluent, LLC and Vero Parent, Inc.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.2 million and $31.7 million for the three months and year ended December 31, 2020, respectively, which compares with a net increase of $8.8 million and $30.8 million for the three months and year ended December 31, 2019, respectively.

WhiteHorse Finance’s net asset value was $312.9 million, or $15.23 per share, as of December 31, 2020, as compared with $314.6 million, or $15.31 per share, as of September 30, 2020. As of December 31, 2019, WhiteHorse Finance’s net asset value was $313.0 million, or $15.23 per share.

Liquidity and Capital Resources

As of December 31, 2020, WhiteHorse Finance had cash and cash equivalents of $15.9 million, as compared with $22.9 million as of September 30, 2020, inclusive of restricted cash. As of December 31, 2020, the Company also had $19.8 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 March 31, 2021. The distribution will be payable on April 5, 2021 to stockholders of record as of March 26, 2021.

On November 9, 2020, the Company declared a distribution of $0.355 per share for the quarter ended December 31, 2020, consistent with distributions declared for the thirty-third consecutive quarter since the Company’s initial public offering. The distribution was paid on January 5, 2021 to stockholders of record as of December 21, 2020. In addition, previously on October 9, 2020, the Company declared a special distribution of $0.125 per share, which was paid on December 10, 2020 to stockholders of record as of October 30, 2020.

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 fourth quarter and fiscal year-end results at 2:30 p.m. ET on Tuesday, March 2, 2021. To access the teleconference, please dial 706-758-9224 (domestic and international) approximately 10 minutes before the teleconference’s scheduled start time and reference ID #1860839. 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 March 9, 2021. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #1860839. 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 $43 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.

^{(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 and years ended December 31, 2020 and December 31, 2019.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended December 31, 2020 and December 31, 2019 (in thousands, except per share data):

	December 31, 2020				December 31, 2019
	Amount		Per Share Amounts		Amount		Per Share Amounts
Net investment income	$	6,883	$	0.335	$	7,702	$	0.375
Net impact of costs associated with refinancing of indebtedness		-		-		-		-
Accrual for capital gains incentive fee		262		0.013		212		0.010
Net impact of excise tax expense related to net realized gains and losses		-		-		-		-
Core net investment income	$	7,145	$	0.348	$	7,914	$	0.385

The following table provides a reconciliation of net investment income to core net investment income for the years ended December 31, 2020 and December 31, 2019 (in thousands, except per share data):

	December 31, 2020				December 31, 2019
	Amount		Per Share Amounts		Amount			Per Share Amounts
Net investment income	$	24,157	$	1.176	$	31,196		$	1.518
Net impact of costs associated with refinancing of indebtedness		-		-		-			-
Accrual for capital gains incentive fee		1,505		0.073		(71	)		(0.003	)
Net impact of excise tax expense related to net realized gains and losses		-		-		-			-
Core net investment income	$	25,662	$	1.249	$	31,125		$	1.515

WHITEHORSE FINANCE, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)

	December 31, 2020		December 31, 2019
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments	$	623,777	$	546,744
Non-controlled affiliate company investments		15,717		9,651
Controlled affiliate company investments		51,241		33,293
Total investments, at fair value (amortized cost $695,429 and $597,725, respectively)		690,735		589,688
Cash and cash equivalents		8,062		4,294
Restricted cash and cash equivalents		7,549		23,252
Restricted foreign currency (cost of $319)		333		—
Interest and dividend receivable		6,532		6,010
Amounts receivable on unsettled investment transactions		4,717		360
Prepaid expenses and other receivables		1,061		7,620
Total assets	$	718,989	$	631,224
Liabilities
Debt	$	384,880	$	298,924
Distributions payable		7,294		7,294
Management fees payable		3,354		3,060
Incentive fees payable		6,117		5,230
Amounts payable on unsettled investment transactions		497		—
Interest payable		1,870		1,674
Accounts payable and accrued expenses		1,708		1,944
Advances received from unfunded credit facilities		372		143
Total liabilities		406,092		318,269
Commitments and contingencies
Net assets
Common stock, 20,546,032 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		300,002		300,744
Accumulated undistributed (overdistributed) earnings		12,874		12,190
Total net assets		312,897		312,955
Total liabilities and total net assets	$	718,989	$	631,224
Number of shares outstanding		20,546,032		20,546,032
Net asset value per share	$	15.23	$	15.23

WHITEHORSE FINANCE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)

	Years ended December 31,
	2020			2019			2018
Investment income
From non-controlled/non-affiliate company investments
Interest income	$	54,039		$	56,566		$	56,208
Fee income		1,988			8,398			4,906
Dividend income		133			—			—
From non-controlled affiliate company investments
Dividend income		1,183			1,173			2,132
From controlled affiliate company investments
Interest income		2,595			936			—
Dividend income		1,761			—			—
Total investment income		61,699			67,073			63,246
Expenses
Interest expense		13,125			13,468			11,599
Base management fees		12,464			11,300			10,511
Performance-based incentive fees		7,619			7,710			12,134
Administrative service fees		683			646			684
General and administrative expenses		2,909			2,337			2,646
Total expenses, before fees waived		36,800			35,461			37,574
Base management fees waived		—			(397	)		(270	)
Total expenses, net of fees waived		36,800			35,064			37,304
Net investment income before excise tax		24,899			32,009			25,942
Excise tax		742			813			942
Net investment income after excise tax		24,157			31,196			25,000
Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses)
Non-controlled/non-affiliate company investments		4,118			(409	)		(216	)
Non-controlled affiliate company investments		—			—			32,950
Foreign currency transactions		70			1			—
Foreign currency forward contracts		(25	)		—			—
Net realized gains (losses)		4,163			(408	)		32,734
Net change in unrealized appreciation (depreciation)
Non-controlled/non-affiliate company investments		4,685			388			(5,136	)
Non-controlled affiliate company investments		(878	)		(514	)		4,703
Controlled affiliate company investments		(464	)		363			—
Translation of assets and liabilities in foreign currencies		22			(184	)		—
Net change in unrealized appreciation (depreciation)		3,365			53			(433	)
Net realized and unrealized gains (losses) on investments and foreign currency transactions		7,528			(355	)		32,301
Net increase in net assets resulting from operations	$	31,685		$	30,841		$	57,301
Per Common Share Data
Basic and diluted earnings per common share	$	1.55		$	1.50		$	2.79
Dividends and distributions declared per common share	$	1.55		$	1.62		$	1.42
Basic and diluted weighted average common shares outstanding		20,546,032			20,546,032			20,538,971

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
Advertising
Fluent, LLC
First Lien Secured Term Loan	L+ 7.00% (0.50% Floor)		7.50	%		03/26/18	03/27/23		7,453	$	7,453	$	7,453		2.38	%
SmartSign Holdings LLC
First Lien Secured Term Loan	L+ 7.50% (1.00% Floor)		8.50	%		08/21/20	10/11/24		7,744		7,603		7,706		2.46
									15,197		15,056		15,159		4.84
Agricultural & Farm Machinery
Bad Boy Mowers Acquisition, LLC
First Lien Secured Term Loan	L+ 5.75% (1.00% Floor)		6.75	%		12/19/19	12/06/25		9,294		9,062		9,201		2.94
Air Freight & Logistics
Access USA Shipping, LLC
First Lien Secured Term Loan	L+ 8.00% (1.50% Floor)		9.50	%		02/08/19	02/08/24		5,359		5,309		5,359		1.71
Application Software
Connexity, Inc.
First Lien Secured Term Loan	L+ 8.50% (1.50% Floor)		10.00	%		05/21/20	05/21/25		10,863		10,577		10,863		3.47
Newscycle Solutions, Inc.
First Lien Secured Term Loan	L+ 7.00% (1.00% Floor)		8.00	%		06/14/19	12/29/22		3,245		3,209		3,194		1.02
First Lien Secured Revolving Loan⁽⁷⁾	L+ 7.00% (1.00% Floor)		8.00	%		06/14/19	12/29/22		181		179		177		0.06
TaxSlayer LLC
First Lien Secured Term Loan	L+ 6.50% (1.00% Floor)		7.50	%		12/31/20	12/31/26		14,452		14,163		14,163		4.53
First Lien Secured Revolving Loan⁽⁷⁾	L+ 6.50% (1.00% Floor)		7.50	%		12/31/20	12/31/26		—		—		—		—
									28,741		28,128		28,397		9.08
Automotive Retail
Team Car Care Holdings, LLC
First Lien Secured Term Loan⁽¹²⁾	Base rate+ 8.00% (1.00% Floor)		9.00	%		02/26/18	02/23/23		16,168		16,011		15,820		5.06
BW Gas & Convenience Holdings, LLC
First Lien Secured Term Loan	L+ 6.25% (0.00% Floor)		6.40	%		11/15/19	11/18/24		6,319		6,121		6,319		2.02
									22,487		22,132		22,139		7.08
Broadcasting
Alpha Media, LLC
First Lien Secured Term Loan	P+7.50% (2.00% Floor)		10.75	%		08/14/18	02/25/22		5,075		5,022		4,844		1.55
Building Products
Drew Foam Companies Inc
First Lien Secured Term Loan	L+ 6.50% (1.00% Floor)		7.50	%		12/15/20	11/24/25		10,078		9,878		9,879		3.16
First Lien Secured Revolving Loan⁽⁷⁾	L+ 6.50% (1.00% Floor)		7.50	%		12/15/20	11/05/25		332		325		325		0.10
LHS Borrower, LLC
First Lien Secured Term Loan	L+ 6.75% (1.00% Floor)		7.75	%		09/30/20	09/30/25		9,689		9,483		9,543		3.05
First Lien Secured Revolving Loan ⁽⁷⁾	L+ 6.75% (1.00% Floor)		7.75	%		09/30/20	09/30/25		—		—		4		—
									20,099		19,686		19,751		6.31

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
Cable & Satellite
Bulk Midco, LLC
First Lien Secured Term Loan⁽¹⁵⁾	L+ 7.19% (1.00% Floor)	8.19%	06/08/18	06/08/23		15,000	$	14,890	$	14,250			4.55	%
Communications Equipment
Ribbon Communications Operating Company, Inc.
First Lien Secured Term Loan⁽⁵⁾	L+ 7.50% (0.00% Floor)	7.65%	08/14/20	03/03/26		12,438		12,002		12,313			3.94	%
Sorenson Communications, LLC
First Lien Secured Term Loan	L+ 6.50% (0.00% Floor)	6.75%	03/15/19	04/29/24		3,462		3,393		3,457			1.10
						15,900		15,395		15,770			5.04
Construction & Engineering
Atlas Intermediate Holdings LLC
First Lien Secured Term Loan	L+ 6.25% (1.00% Floor)	7.25%	05/26/20	02/13/26		15,073		14,259		14,922			4.77
Road Safety Services, Inc.
First Lien Secured Term Loan	L+ 6.00% (1.00% Floor)	7.00%	12/31/20	09/18/23		4,550		4,459		4,461			1.43
First Lien Secured Revolving Loan⁽⁷⁾	L+ 6.00% (1.00% Floor)	7.00%	12/31/20	09/18/23		—		—		17			0.01
Tensar Corp.
First Lien Secured Term Loan	L+ 6.75% (1.00% Floor)	7.75%	11/20/20	08/20/25		7,000		6,829		6,829			2.18
						26,623		25,547		26,229			8.39
Construction Materials
Claridge Products and Equipment, LLC
First Lien Secured Term Loan	L+ 6.50%	7.50%	12/30/20	12/29/25		8,000		7,840		7,840			2.51
	(1.00% Floor)
First Lien Secured Revolving Loan⁽⁷⁾	L+ 6.50% (1.00% Floor)	7.50%	12/30/20	12/29/25		—		—		—			—
						8,000		7,840		7,840			2.51
Consumer Finance
Maxitransfers Blocker Corp
First Lien Secured Term Loan	L+ 9.00% (1.00% Floor)	10.00%	10/07/20	10/07/25		8,869		8,668		8,668			2.77
First Lien Secured Revolving Loan⁽⁴⁾	L+ 9.00% (1.00% Floor)	10.00%	10/07/20	10/07/25		1,038		1,014		1,014			0.32
						9,907		9,682		9,682			3.09
Data Processing & Outsourced Services
Escalon Services Inc
First Lien Secured Term Loan	P+12.50% (0.75% Floor)	15.75% (1.50% PIK)	12/04/20	12/04/25		8,000		7,295		7,763			2.48

FPT Operating Company, LLC/
TLabs Operating Company, LLC
First Lien Secured Term Loan	L+ 8.25% (1.00% Floor)	9.25% (0.50% PIK)	12/23/16	06/07/24		24,467		24,225		23,460			7.50
Geo Logic Systems Ltd.⁽⁵⁾
First Lien Secured Term Loan⁽¹³⁾	C +6.25% (1.00% Floor)	7.25%	12/19/19	12/19/24		6,709		5,035		5,164			1.65
First Lien Secured Revolving Loan^(7)(13)	C +6.25% (1.00% Floor)	7.25%	12/19/19	12/19/24		—		—		(2	)		—
						39,176		36,555		36,385			11.63

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
Department Stores
Mills Fleet Farm Group, LLC
First Lien Secured Term Loan	L+ 6.00% (1.00% Floor)	7.00%	10/24/18	10/24/24		13,543	$	13,292	$	13,272		4.24	%
Distributors
Crown Brands, LLC
Second Lien Secured Term Loan⁽²⁰⁾	L+ 10.50% (1.50% Floor)	12.00%	12/15/20	01/08/26		4,526		4,420		3,621		1.16
Second Lien Secured Delayed Draw Loan⁽²⁰⁾	L+ 10.50% (1.50% Floor)	12.00%	12/15/20	01/08/26		671		671		537		0.17
						5,197		5,091		4,158		1.33
Diversified Chemicals
Sklar Holdings, Inc.
First Lien Secured Term Loan	L+ 6.00% (1.00% Floor)	7.00%	11/13/19	05/13/23		8,882		8,718		8,834		2.82
Diversified Support Services
ImageOne Industries, LLC
First Lien Secured Term Loan	L+ 10.00% (1.00% Floor)	11.00% (4.00% PIK)	01/11/18	01/11/23		6,564		6,422		6,564		2.10
First Lien Secured Revolving Loan⁽⁴⁾⁽⁷⁾	L+ 10.00% (1.00% Floor)	11.00% (4.00% PIK)	07/22/19	12/12/22		379		379		379		0.12
NNA Services, LLC
First Lien Secured Term Loan	L+ 7.00% (1.50% Floor)	8.50%	10/16/18	10/16/23		13,353		13,178		13,284		4.25
						20,296		19,979		20,227		6.47
Education Services
EducationDynamics, LLC
First Lien Secured Term Loan	L+ 7.75% (1.00% Floor)	8.75%	11/26/19	11/26/24		13,649		13,428		13,612		4.35
Food Retail
AG Kings Holdings, Inc.
First Lien Secured Term Loan⁽⁴⁾⁽⁸⁾	P+ 11.00% (0.75% Floor)	16.25% (2.00% PIK)	8/10/16	08/10/21		21,755		8,612		7,600		2.43
Superpriority Secured Debtor-In-Possession Term Loan^(4)(18)	L+ 10.00% (1.00% Floor)	11.00%	08/26/20	02/08/21		14,222		5,663		14,222		4.55
						35,977		14,275		21,822		6.98
Health Care Facilities
Epiphany Dermatology
First Lien Secured Term Loan	L+ 7.50% (1.00% Floor)	8.50%	12/04/20	12/01/25		3,500		3,414		3,414		1.09
First Lien Secured Revolving Loan⁽⁷⁾	L+ 7.50% (1.00% Floor)	8.50%	12/04/20	12/01/25		—		—		—		—
First Lien Secured Delayed Draw Loan⁽⁷⁾	L+ 7.50% (1.00% Floor)	8.50%	12/04/20	12/01/25		—		—		—		—
Grupo HIMA San Pablo, Inc.
First Lien Secured Term Loan A	L+ 9.00%	9.22%	05/15/19	04/30/19		3,855		3,855		2,613		0.84
First Lien Secured Term Loan B	L+ 9.00% (1.50% Floor)	10.50%	02/01/13	04/30/19		13,511		13,511		9,161		2.93
Second Lien Secured Term Loan⁽⁸⁾	N/A	15.75% (2.00% PIK)	02/01/13	07/31/18		1,028		1,024		—		—
						21,894		21,804		15,188		4.86
Health Care Services
CHS Therapy, LLC
First Lien Secured Term Loan A	L+ 7.75% (1.50% Floor)	9.25%	06/14/19	06/14/24		7,422		7,325		7,422		2.37
First Lien Secured Term Loan C	L+ 7.75% (1.50% Floor)	9.25%	10/07/20	06/14/24		912		895		895		0.29

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
Ivy Rehab Holdings LLC
First Lien Secured Term Loan	L+ 6.75% (1.00% Floor)	7.75%	12/04/20	12/04/24		8,855	$	8,682	$	8,682		2.77	%
First Lien Secured Revolving Loan⁽⁷⁾	L+ 6.75% (1.00% Floor)	7.75%	12/04/20	12/04/25		—		—		—		—
First Lien Secured Delayed Draw Loan⁽⁷⁾	L+ 6.75% (1.00% Floor)	7.75%	12/04/20	12/04/25		—		—		—		—
Lab Logistics, LLC
First Lien Secured Term Loan	L+ 7.25% (1.00% Floor)	8.25%	10/16/19	11/19/25		709		693		694		0.22
First Lien Secured Delayed Draw Loan	L+ 7.25% (1.00% Floor)	8.25%	10/16/19	09/25/23		5,236		5,209		5,236		1.67
PG Dental New Jersey Parent, LLC
First Lien Secured Term Loan	L+ 7.75% (1.00% Floor)	8.75%	11/25/20	11/25/25		16,170		15,813		15,814		5.05
First Lien Secured Revolving Loan ⁽⁷⁾	L+ 7.75% (1.00% Floor)	8.75%	11/25/20	11/25/25		—		—		—		—
						39,304		38,617		38,743		12.37
Home Furnishings
Sure Fit Home Products, LLC
First Lien Secured Term Loan⁽⁸⁾	L+ 9.75% (1.00% Floor)	10.75%	10/26/18	07/13/22		5,229		5,111		4,019		1.28
Interactive Media & Services
What If Media Group, LLC
First Lien Secured Term Loan	L+ 6.50% (1.00% Floor)	7.50%	10/02/19	10/02/24		12,594		12,405		12,594		4.02
Internet & Direct Marketing Retail
BBQ Buyer, LLC
First Lien Secured Term Loan	L+ 8.00% (1.50% Floor)	9.50%	08/28/20	08/28/25		10,669		10,421		10,563		3.38

First Lien Secured Revolving Loan⁽⁷⁾	L+ 8.00% (1.50% Floor)	9.50%	08/28/20	02/28/21		—		—		8		—
Luxury Brand Holdings, Inc.
First Lien Secured Term Loan	L+ 7.00% (1.00% Floor)	8.00%	12/04/20	06/04/26		6,000		5,882		5,882		1.88
Potpourri Group, Inc.
First Lien Secured Term Loan	L+ 8.25% (1.50% Floor)	9.75%	07/03/19	07/03/24		18,390		18,099		18,238		5.83
						35,059		34,402		34,691		11.09
Investment Banking & brokerage
JVMC Holdings Corp. (f/k/a RJO Holdings Corp)
First Lien Secured Term Loan	L+ 7.25% (1.00% Floor)	8.25%	02/28/19	02/28/24		13,598		13,512		13,598		4.35
IT Consulting & Other Services
AST-Applications Software Technology LLC
First Lien Secured Term Loan	L+ 8.00% (1.00% Floor)	9.00% (1.00% PIK)	01/10/17	01/10/23		4,019		3,988		4,019		1.28
RCKC Acquisitions LLC (dba KSM Consulting LLC)
First Lien Secured Term Loan	L+ 6.25% (1.00% Floor)	7.25%	12/31/20	12/31/26		11,378		11,150		11,150		3.56
First Lien Secured Revolving Loan⁽⁷⁾	L+ 6.25% (1.00% Floor)	7.25%	12/31/20	12/31/26		—		—		—		—
First Lien Secured Delayed Draw Loan⁽⁷⁾	L+ 6.25% (1.00% Floor)	7.25%	12/31/20	12/31/22		—		—		—		—
						15,397		15,138		15,169		4.84

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
Leisure Facilities
Honors Holdings, LLC
First Lien Secured Term Loan⁽¹⁶⁾	L+ 7.97% (1.00% Floor)	8.97% (0.50% PIK)	09/06/19	09/06/24		9,427	$	9,278	$	8,296		2.65	%
First Lien Secured Delayed Draw Loan⁽¹⁶⁾	L+ 7.61% (1.00% Floor)	8.61% (0.50% PIK)	09/06/19	09/06/24		4,643		4,597		4,086		1.31
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc)
First Lien Secured Term Loan A	L+ 3.25% (1.00% Floor)	4.25%	06/29/20	06/29/25		5,659		5,580		5,569		1.78
First Lien Secured Term Loan B	N/A	9.50% (9.50% PIK)	06/29/20	06/29/25		1,164		1,138		1,133		0.36
First Lien Secured Term Loan C⁽⁹⁾	N/A	9.50% (9.50% PIK)	06/29/20	NA		1,268		1,265		1,265		0.40
						22,161		21,858		20,349		6.50
Office Services & Supplies
Empire Office, Inc.
First Lien Secured Term Loan	L+ 6.75% (1.50% Floor)	8.25%	04/12/19	04/12/24		10,736		10,595		10,489		3.35
Packaged Foods & Meats
Lenny & Larry's, LLC
First Lien Secured Term Loan⁽¹⁷⁾	L+ 7.94% (1.00% Floor)	8.94% (1.17% PIK)	05/15/18	05/15/23		11,304		11,200		10,811		3.46
Personal Products
Inspired Beauty Brands, Inc.
First Lien Secured Term Loan	L+ 7.00% (1.00% Floor)	8.00%	12/30/20	12/31/25		11,500		11,270		11,270		3.60
First Lien Secured Revolving Loan⁽⁷⁾	L+ 7.00% (1.00% Floor)	8.00%	12/30/20	12/31/25		—		—		—		—
						11,500		11,270		11,270		3.60
Property & Casualty Insurance
Policy Services Company, LLC⁽⁵⁾
First Lien Secured Term Loan	L+ 6.00% (1.00% Floor)	7.00%	03/06/20	05/31/24		6,240		5,987		6,115		1.95
Research & Consulting Services
Comniscient Technologies LLC
First Lien Secured Term Loan	L+ 7.50% (1.00% Floor)	8.50%	10/13/20	10/13/25		6,962		6,830		6,830		2.18
First Lien Secured Revolving Loan⁽⁷⁾	L+ 7.50% (1.00% Floor)	8.50%	10/13/20	10/13/25		—		—		—		—
Nelson Worldwide, LLC
First Lien Secured Term Loan	L+ 9.25% (1.00% Floor)	10.25%	01/09/18	01/09/23		11,593		11,477		11,362		3.63
ALM Media, LLC
First Lien Secured Term Loan	L+ 6.50% (1.00% Floor)	7.50%	11/25/19	11/25/24		14,962		14,728		14,439		4.61
						33,517		33,035		32,631		10.42
Restaurants
LS GFG Holdings Inc.
First Lien Secured Term Loan	L+ 7.00% (1.00% Floor)	8.00% (1.00% PIK)	11/30/18	11/19/25		11,240		10,442		9,779		3.13
Specialized Consumer Services
True Blue Car Wash, LLC
First Lien Secured Term Loan	L+ 7.12% (1.00% Floor)	8.12%	10/17/19	10/17/24		4,349		4,283		4,349		1.39
First Lien Secured Delayed Draw Loan	L+ 7.12% (1.00% Floor)	8.12%	10/17/19	10/17/24		2,014		1,997		2,014		0.64
						6,363		6,280		6,363		2.03

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
Specialized Finance
Golden Pear Funding Assetco, LLC⁽⁵⁾
Second Lien Secured Term Loan	L+ 10.50% (1.00% Floor)	11.50%	09/20/18	03/20/24		10,938	$	10,810	$	10,938		3.50	%
Oasis Legal Finance, LLC⁽⁵⁾
Second Lien Secured Term Loan	L+ 10.75% (1.00% Floor)	11.75%	09/09/16	03/09/22		12,500		12,446		12,500		3.99
WHF STRS Ohio Senior Loan Fund LLC
Subordinated Note^{(4)(5)(7)(9)(14)}	L+ 6.50%	6.65%	07/19/19	N/A		41,073		41,073		41,073		13.13
						64,511		64,329		64,511		20.62
Specialty Chemicals
Flexitallic Group SAS
First Lien Secured Term Loan	L+ 6.50% (1.00% Floor)	7.50%	10/28/19	10/29/26		11,632		11,389		10,818		3.46
Systems Software
Vero Parent, Inc.
First Lien Secured Term Loan	L+ 6.00% (1.00% Floor)	7.00%	11/06/19	08/16/24		7,074		6,613		7,074		2.26
Technology Hardware, Storage & Peripherals
Source Code Midco, LLC
First Lien Secured Term Loan	L+ 8.25% (1.00% Floor)	9.25%	05/04/18	05/04/23		22,322		22,022		22,322		7.13
Telestream Holdings Corporation
First Lien Secured Term Loan	L+ 8.75% (1.00% Floor)	9.75%	10/15/20	10/15/25		14,037		13,608		13,769		4.40
First Lien Secured Revolving Loan⁽⁷⁾	L+ 8.75% (1.00% Floor)	9.75%	10/15/20	10/15/25		—		—		15		—
						36,359		35,630		36,106		11.54
Total Debt Investments						694,114		658,704		657,249		210.03
Equity Investments
Asset Management & Custody Banks
Arcole Holding Corp. Shares^{(4)(5)(6)(19)}	N/A	N/A	10/01/20	N/A		—		6,944		6,448		2.06
Data Processing & Outsourced Services
Escalon Services Inc Warrants⁽⁴⁾	N/A	N/A	12/04/20	N/A		709		476		476		0.15
Diversified Support Services
Quest Events, LLC Preferred Units⁽⁴⁾	N/A	N/A	12/28/18	12/08/25		317		317		—		—
ImageOne Industries, LLC Common A Units⁽⁴⁾	N/A	N/A	09/20/19	N/A		225		—		14		—
						542		317		14		—
Health Care Services
Lab Logistics Preferred Units⁽⁴⁾	N/A	N/A	10/29/19	N/A		2		857		857		0.27
Internet & Direct Marketing Retail
BBQ Buyer, LLC Shares⁽⁴⁾	N/A	N/A	08/28/20	N/A		1,100		1,100		1,265		0.40
Ross-Simons Topco, LP Preferred Units⁽⁴⁾	N/A	N/A	12/04/20	N/A		600		600		600		0.19
						1,700		1,700		1,865		0.59
IT Consulting & Other Services
Keras Holdings, LLC Shares(dba KSM Consulting LLC)⁽⁴⁾	N/A	N/A	12/31/20	N/A		496		496		496		0.16
Leisure Facilities
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Class A Common Stock⁽⁴⁾	N/A	N/A	06/29/20	N/A		2		1,955		282		0.09
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Warrants⁽⁴⁾	N/A	N/A	06/29/20	06/28/28		1		793		114		0.04

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

Investment Type⁽¹⁾	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
						3		2,748		396		0.13
Other Diversified Financial Services
RCS Creditor Trust Class B Units⁽⁴⁾⁽⁶⁾	N/A	N/A	10/01/17	N/A		143	$	—	$	—		—%
SFS Global Holding Company Warrants⁽⁴⁾	N/A	N/A	06/28/18	12/28/25		—		—		—		—
Sigue Corporation Warrants⁽⁴⁾	N/A	N/A	06/28/18	12/28/25		22		2,890		3,498		1.12
						165		2,890		3,498		1.12
Specialized Finance
NMFC Senior Loan Program I LLC Units^(4)(5)(6)	N/A	N/A	08/13/14	08/31/22		10,000		10,029		9,269		2.96
WHF STRS Ohio Senior Loan Fund LLC Interests^{(4)(5)(7)(14)}	N/A	N/A	07/19/19	N/A		10,268		10,268		10,167		3.25
						20,268		20,297		19,436		6.21
Total Equity Investments						23,885		36,725		33,486		10.69
Total Investments						717,999	$	695,429	$	690,735		220.72	%

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

(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 LIBOR were 0.1%, 0.2% and 0.3%, respectively, as of December 31, 2020. The Prime was 3.25% as of December 31, 2020. The CDOR was 0.5% as of December 31, 2020.

(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% 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 December 31, 2020.

(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 221% of the Company’s net assets or 96% 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.

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)

(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 denominated 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 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 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 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) In August 2020, in conjunction with the AG Kings Holdings, Inc. bankruptcy, the Company converted approximately $14.2 million of its existing first lien secured term loan into a new superpriority secured debtor-in-possession term loan.

(19) 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.

(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 2.00% PIK.

Contacts

Stuart Aronson

WhiteHorse Finance, Inc.

212-506-0500

[email protected]

Joyson Thomas

WhiteHorse Finance, Inc.

305-379-2322

[email protected]

Sean Silva

Prosek Partners

646-818-9122

[email protected]

Source: WhiteHorse Finance, Inc.

Exhibit 99.2

Earnings Presentation Quarter Ended December 31, 2020 WhiteHorse Finance, Inc. NASDAQ: WHF (Common Stock) NASDAQ: WHFBZ (6.50% Notes due 2025)

1 References 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 a n o ffer to enter into any transaction with the Company or any of its affiliates. Investors are advised to consider carefully the Company’s investment objectives, r isk s, 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 Fo rm 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 car efully before investing in the Company’s securities. The information in this presentation is not complete and may be changed. This presentation is not an of fer to 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. 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 Bri cke ll 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 . Forward Looking Statements 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 affecti ng 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 C ompany’s and its portfolio companies’ results of operations and financial condition; the Company’s business prospects and the prospects of its prospecti ve portfolio companies; the impact of investments that the Company expects to make; the impact of increased competition; the Company’s contractual arrangements and relationships with third parties; the dependence of the Company’s future success on the general economy and its impact on the industries in which the Com pany invests; the ability of the Company’s prospective portfolio companies to achieve their objectives; the relative and absolute performance of the Company’s in vestment adviser; the Company’s expected financings and investments; the adequacy of the Company’s cash resources and working capital; the timing o f c ash flows, if any, from the operations of the Company’s prospective portfolio companies; and the impact of future acquisitions and divestitures. Such forward - looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “migh t,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. 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 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. Al though the Company undertakes no obligation to revise or update any forward - looking statements, whether as a result of new information, future events or other wise, 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 q uarterly reports on Form 10 - Q we file with the SEC. Important Information and Forward Looking Statements

2 WhiteHorse Finance Snapshot Company: WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) : Equity Ticker: NASDAQ: WHF Market Cap: $301.6MM (1) NAV / Share: $15.23 Portfolio Fair Value: $690.7MM Current Dividend Yield: 9.7% (1)(2) ; consistent quarterly dividends of $0.355 per share since 2012 IPO (1) Based on February 26, 2021 share price of $14.68. (2) Based on LTM dividend rate, excluding special dividends, relative to closing share price. External Manager: Affiliate of H.I.G. Capital, LLC (“H.I.G. Capital” or “H.I.G.”)

Overview of WhiteHorse Finance, Inc. 3 Portfolio at Fair Value ($MM) NAV + Cumulative Dividends per share Note: As of December 31 st of each respective year presented, unless otherwise noted. (1) Based on total capital commitments managed by H.I.G. Capital and affiliates. (2) Represents number of companies not total number of investments. (3) 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 lea ding global alternative asset manager with more than $43Bn of capital under management (1) ▪ Principally focused on originating senior secured loans to performing lower middle market companies with individual enterpris e v alues generally between $50MM and $350MM ▪ Diversified investment portfolio totaling $690.7MM as of December 31, 2020 ▪ Investments across 67 (2) portfolio companies as of December 31, 2020 − Average Investment Size (3) : $6.6MM (Average Debt Investment Size (3) : $7.3MM) − Largest Portfolio Company Investment (3) : $23.5MM ▪ Invested $1,890MM in 155 transactions since December 2012 IPO ▪ The Company and State Teachers Retirement System of Ohio (“STRS Ohio”), a public pension fund established under Ohio law, par tne red to create WHF STRS Ohio Senior Loan Fund LLC (“STRS JV”), a joint venture formed to invest in directly originated, senior secured first and se cond lien term loans. $15.44 $16.69 $17.99 $17.70 $19.42 $25.48 $23.98 $21.19 $ 27.02 $180.5 $272.4 $403.5 $415.3 $411.7 $440.7 $469.6 $589.7 $690.7 2012 2013 2014 2015 2016 2017 2018 2019 2020 $15.30 $15.16 $15.04 $13.33 $13.63 $13.98 $15.35 $15.23 $15.23 $0.11 $1.53 $2.95 $4.37 $5.79 $7.21 $8.63 $10.25 $11.79 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net asset value Cumulative dividends paid (including special dividends)

4 Overview of WhiteHorse Finance, Inc. (continued) Note: As of Dec ember 31, 2020 unless otherwise noted. (1) Reflects life - to - date since IPO, and may exclude follow - on transactions and investments in STRS JV made via asset transfers in - k ind. (2) Across 97 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 port folio, including equities and investments in STRS JV, as of December 31, 2020, is 9.4%. Weighted average effective yield is computed by dividing (a) annualized interest income (includin g i nterest income resulting from the amortization of fees and discounts) by (b) the weighted average cost of investments. (4) Measured at origination based on WHF’s underwriting leverage. Does not include investments in STRS JV. (5) Does not include the Company’s investments in STRS JV. ▪ Generate attractive risk - adjusted return in all market conditions by originating and investing in senior secured loans to performing lower middle market companies and leveraging the knowledge of H.I.G. Capital ▪ Differentiated proprietary deal flow from over 45 dedicated deal professionals sourcing through direct coverage of financial sponsors and intermediaries ▪ Rigorous credit process focused on fundamental analysis with emphasis on downside protection and cash flow visibility ▪ 11 - 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 $4MM to $20MM Summary Stats: Invested Capital since IPO: $1,890MM (1) Number of Investments Made: ~ 155 (1) Average Investment Size: ~$6.6 MM (2) All - in Yield : 9.9% (3) Net Debt / EBITDA of Current Portfolio Companies: ~3.8x (4) Secured Debt as a % of Total Debt : 100% (5) Investment Strategy

5 Summary of Quarterly Results Fiscal Quarter Highlights ▪ Total investments at fair value increased to $690.7 million in Q4 2020 as compared to $595.3 million in Q3 2020. ▪ The Company made investments in sixteen new portfolio companies for gross deployments of $158.9 million as well as funded add - on investments totaling $3.5 million. ▪ The Company transferred five investments to the STRS JV totaling $32.4 million and had additional sales and principal repayme nts of $39.1 million. ▪ The weighted average effective yield on income - producing investments at the end of Q4 2020 was approximately 9.9% as compared to approximately 9.9% at the end of the prior quarter. ▪ Q4 net investment income (“NII”) was $6.9 million, or $0.335 per share, which compares to Q3 NII of $5.9 million, or $0.289 p er share. ▪ Q4 Core NII (1) after adjusting for an approximate $0.3 million capital gains incentive fee accrual, was $7.1 million, or $0.348 per share, compared with the quarterly distribution of $0.355 per share. This compares with Q3 Core NII of $7.8 million, or $0.380 per s har e. ▪ Net unrealized losses on investments for Q4 2020 were $1.5 million and were primarily driven by reversals of unrealized gains up on the Vessco Holdings, LLC realization and Vero Parent, Inc. partial sales as well as fair value decreases on our investments in AG Kings Holdings, Inc. and NMFC Senior Loan Program I LLC, partially offset by unrealized gains in STRS JV, LS GFG Holdings Inc. and Esc alon Services Inc. ▪ NAV per share at the end of Q4 2020 was $15.23 per share compared to $15.31 per share reported at the end of Q3 2020. Excluding the 12.5 cent per share special dividend, NAV per share would have increased to $15.35, an improvement of 4 cents compared with Q 3 2 020. ▪ Gross leverage levels increased during the quarter to 1.25x from 0.94x at the end of Q3 2020. Cash on - hand at the end of Q4 2020 was $15.9 million resulting in net leverage of 1.20x as compared to 0.87x at the end of Q3 2020. ▪ As of December 31, 2020, STRS JV had total assets of $181.4 million. At December 31, 2020, STRS JV had a weighted average unl eve red effective yield on its portfolio of 7.9%. (1) Core net investment income is a non - GAAP financial measure. Refer to next slide for components and discussion of core net invest ment income. 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 also be found by accessing the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com.

6 Quarterly Operating Highlights Note: N umbers may not foot due to rounding. (1) Total investment income includes investment income (e.g., interest and dividends) from investments in STRS JV. (2) Net of fee waivers, if any. (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 acc rua l 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 me ant 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 com parable 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 . Source: Company filings Unaudited Quarterly Financials Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 (USD in MM, expect per share data) Total Investment Income (1) 17.8$ 17.4$ 14.5$ 13.8$ 16.5$ 16.8$ Expenses Interest Expenses 3.5 3.7 3.7 3.2 2.8 3.5 Base Management Fees (2) 2.8 3.1 3.1 2.9 3.1 3.4 Performance-based Incentive Fees 1.7 2.2 0.4 1.3 3.8 2.0 Other Expenses 1.1 0.7 1.2 1.2 0.9 1.1 Total Expenses 9.1 9.7 8.4 8.6 10.6 10.0 Net Investment Income 8.7$ 7.7$ 6.1$ 5.2$ 5.9$ 6.8$ Net Realized and Unrealized Gain / (Loss) (1.8) 1.1 (27.1) 17.6 15.7 1.3 Net Increase in Net Assets from Operations 6.9$ 8.8$ (21.0)$ 22.8$ 21.6$ 8.1$ Per Share Net Investment Income (NII) 0.42$ 0.37$ 0.30$ 0.26$ 0.29$ 0.34$ Core NII (3) 0.40$ 0.39$ 0.27$ 0.26$ 0.38$ 0.35$ Net Realized and Unrealized Gain / (Loss) (0.08)$ 0.05$ (1.31)$ 0.85$ 0.77$ 0.06$ Earnings 0.34$ 0.42$ (1.01)$ 1.11$ 1.06$ 0.40$ Dividends Declared 0.355$ 0.355$ 0.355$ 0.355$ 0.355$ 0.355$ Core NII Dividend Coverage 114% 108% 75% 72% 107% 98%

7 Quarterly Balance Sheet Highlights Note: 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, equit y issuances). Unaudited Quarterly Financials Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 (USD in MM, expect per share data) Assets Investments at Fair Value 527.5$ 589.7$ 557.1$ 547.4$ 595.3$ 690.7$ Cash and Equivalents (1) 22.2 27.5 28.1 20.9 22.9 15.9 Other Assets 16.3 14.0 6.7 6.6 7.6 12.3 Total Assets 566.0$ 631.2$ 591.9$ 574.9$ 625.8$ 719.0$ Liabilities Debt (net of issuance costs) 232.0 298.9 291.1 252.7 291.9 384.9 Other Liabilities 18.6 19.3 16.1 22.0 19.3 21.2 Total Liabilities 250.5$ 318.3$ 307.2$ 274.7$ 311.2$ 406.1$ Total Net Assets 315.5$ 313.0$ 284.7$ 300.2$ 314.6$ 312.9$ Total Liabilities and Net Assets 566.0$ 631.2$ 591.9$ 574.9$ 625.8$ 719.0$ Net Asset Value per Share 15.36$ 15.23$ 13.86$ 14.61$ 15.31$ 15.23$ Leverage Ratio (2) 0.75x 0.97x 1.04x 0.86x 0.94x 1.25x Net Leverage Ratio (3) 0.68x 0.88x 0.94x 0.79x 0.87x 1.20x Gross Fundings (4) 81.6 155.4 27.6 39.3 59.3 176.5 Exits and Repayments (4) (89.1) (95.8) (33.6) (67.7) (28.1) (84.4) Net Fundings (7.5)$ 59.6$ (6.0)$ (28.4)$ 31.2$ 92.1$

Portfolio Highlights 8 Note: 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 fro m the amortization of fees and discounts) by (b) the weighted average cost of investments. (4) In Q1 2020, BW Gas & Convenience Holdings, LLC was changed from Sponsor to Non - Sponsor classification for all periods report ed. (5) Includes STRS JV Subordinated Note. Source: Company filings ($ in MM, except per share data) Portfolio Investment Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total Fair Value of Investments 527.5$ 589.7$ 557.1$ 547.4$ 595.3$ 690.7$ Number of Portfolio Investments 65 66 65 68 73 99 Number of Portfolio Companies 48 51 52 53 54 67 Average Investment Size(1) 8.0$ 8.7$ 8.2$ 7.6$ 7.7$ 6.6$ Average Borrower Size(1) 10.7 11.1 10.1 9.6 10.3 9.7 Average Debt Investment Size(1) 9.2$ 10.0$ 9.3$ 8.8$ 8.8$ 7.3$ Fair Value as a Percentage of Principal(1)(2) 96.7% 95.6% 92.2% 92.0% 93.5% 94.4% Total Portfolio Effective Yield (3) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Weighted average effective yield on income-producing debt investments(1) 11.1% 10.4% 9.9% 9.6% 9.9% 9.9% Weighted average effective yield on total portfolio 10.5% 9.9% 9.1% 8.6% 9.2% 9.4% Portfolio Composition - Floating vs. Fixed Investments (Debt Investments at Fair Value)(1) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Percentage of fixed rate investments 0.0% 0.0% 0.0% 0.4% 0.4% 0.2% Percentage of floating rate investments 100.0% 100.0% 100.0% 99.6% 99.6% 99.8% Portfolio Composition - Sponsor vs. Non-Sponsor (Fair Value)(1)(4) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Sponsor 46.6% 53.1% 49.4% 50.7% 52.4% 58.1% Non-Sponsor 53.4% 46.9% 50.6% 49.3% 47.6% 41.9% Total Portfolio Composition by Instrument Type (Fair Value) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 First lien secured loans 79.7% 81.0% 80.4% 82.9% 83.1% 85.2% Second lien secured loans 12.4% 10.5% 9.7% 5.5% 5.0% 4.0% Subordinated debt 0.1% 0.0% STRS JV 4.6% 5.6% 7.6% 8.9% 8.5% 7.4% Equity 3.2% 2.8% 2.4% 2.7% 3.3% 3.4% Investments on Non-Accrual Status (Debt Investments) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Fair Value of Investments on Non-accrual Status 8.5$ 7.7$ 20.7$ 39.0$ 18.7$ 11.6$ Cost of Investments on Non-accrual Status 13.9$ 13.9$ 31.6$ 38.8$ 21.7$ 14.7$ % of Investments on Non-accrual Status (Based on Fair Value of Debt Investments) (5) 1.7% 1.4% 3.9% 7.4% 3.3% 1.8% % of Investments on Non-accrual Status (Based on Cost of Debt Investments)(5) 2.7% 2.4% 5.5% 7.2% 3.8% 2.2%

Portfolio Trends Historical Portfolio Trends 9 % Floating and % Fixed (Based on Fair Value) % Instrument Type (Based on Fair Value) % Sponsored / Non - Sponsored (Based on Fair Value) % 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) Except as otherwise indicated, non - zero values <0.05%. Based on fair value of debt investments, including STRS JV Subordinated N ote. 88.4% 96.1% 97.1% 99.8% 99.9% 100.0% 100.0% 99.8% 11.6% 3.9% 2.9% 0.2% 0.1% 0.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2013 2014 2015 2016 2017 2018 2019 2020 Floating Fixed 52% 55% 52% 60% 52% 77% 81% 85% 48% 40% 43% 33% 39% 21% 11% 4% 5% 5% 7% 9% 3% 3% 3% 6% 7% 2013 2014 2015 2016 2017 2018 2019 2020 % First Lien Loans % Second Lien Loans % Equity STRS JV 60% 33% 28% 32% 32% 44% 53% 58% 40% 67% 72% 68% 68% 56% 47% 42% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2013 2014 2015 2016 2017 2018 2019 2020 Sponsor Non-Sponsor 4.1% 1.7% 1.4% 3.9% 7.4% 3.3% 1.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 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 % of Investments on NonAccrual

10 Note: As of December 31, 2020, 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. Composition by Borrower (Based on Fair Value) Composition by Industry (1) (Based on Fair Value) 100% of WHF loans are senior secured Borrower and Industry Diversity 7.2% 3.3% 3.1% 3.1% 2.6% 2.2% 2.2% 2.1% 2.0% 2.0% 70.3% STRS JV Future Payment Technologies, L.P. Source Code Midco, LLC AG Kings Holdings Inc. Potpourri Group, Inc. Team Car Care Holdings, LLC (Heartland Auto) PG Dental New Jersey Parent, LLC Atlas Intermediate Holdings LLC ALM Media, LLC Bulk Midco, LLC Other 6.2% 5.8% 5.7% 5.6% 5.1% 5.1% 4.4% 4.1% 3.5% 3.4% 3.2% 3.2% 44.6% Health Care Services Data Processing & Outsourced Services Internet & Direct Marketing Retail Technology Hardware, Storage & Peripherals Specialized Finance Research & Consulting Services Application Software Construction & Engineering Automotive Retail Food Retail Leisure Facilities Diversified Support Services Other STRS JV

Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage (1) From IPO to December 31, 2020 11 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 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 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 r es ults 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 resul ts 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 acc essing the earnings releases posted to the Company’s website at http://www.whitehorsefinance.com (3) Does not include special dividends. (4) WHF’s dividend coverage was impacted in 3Q 2017 by the timing of deployment of the equity issuance of ~$31mm in June 2017. Source: Company filings Covered by $0.01 Missed by $0.10 Covered by $0.00 Covered by $0.02 Missed by $0.07 (4) Covered by $0.07 Missed by $0.02 Missed by $0.03 Missed by $0.01 Covered by $0.04 Covered by $0.01 Covered by $ 0.03 Covered by $ 0.05 Covered by $ 0.03 Missed by $0.09 $0.36 $0.38 $0.29 $0.33 $0.42 $0.33 $0.35 $0.40 $0.37 $0.36 $0.40 $0.39 $0.27 $0.26 $0.38 $0.35 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 Q1'17 Q2'17 Q3'17 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 Core NII per share Dividends per share Missed by $0.01 2.8x 2.4x 4.1x 3.4x 3.4x 2.1x 4.5x 3.0x 3.8x 2.3x 3.1x 2.7x 3.0x 3.6x 2.9x 3.4x 3.2x 3.5x 3.4x 3.4x 3.2x 3.3x 3.3x 3.5x 3.6x 3.6x 3.6x 3.6x 3.7x 3.8x 3.7x 3.8x 15.5% 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% 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 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Borrower Leverage through WHF Security Effective Yield

Yield & Interest Rate Economic Analysis 12 (1) Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting fro m 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 excl udi ng 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. 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% 11.4% 11.4% 11.5% 11.5% 11.5% 11.5% 11.4% 11.5% 11.4% 11.0% 10.7% 10.0% 9.5% 9.1% 9.4% 9.4% 7.9% 7.5% 7.5% 7.8% 7.2% 6.8% 7.1% 6.7% 6.0% 5.7% 5.7% 5.5% 5.2% 5.4% 6.2% 6.1% 3.9% 4.4% 4.4% 4.1% 4.7% 5.1% 4.7% 5.2% 5.7% 5.6% 5.4% 4.9% 4.7% 4.2% 3.7% 3.8% 1.0% 1.2% 1.3% 1.4% 1.7% 2.1% 2.3% 2.5% 2.7% 2.6% 2.3% 2.3% 1.7% 1.0% 0.3% 0.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Q1'17 Q2'17 Q3'17 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 Effective Yield(1) Income Yield(2) Net Investment Spread(3) Weighted Average Cost of Debt(4) 3-Month London Interbank Offered Rate ("LIBOR")

Investment Performance Ratings 13 Investment Performance Ratings (% of Portfolio at Fair Value) Rating 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 1 6.3% 2.3% 2.2% 2.3% 14.4% 22.2% 2 100.0% 92.4% 100.0% 90.3% 87.0% 83.9% 80.1% 83.3% 65.3% 61.9% 62.1% 61.1% 3 7.6% 7.9% 13.0% 16.1% 13.6% 13.1% 31.3% 29.3% 21.5% 15.0% 4 0.0% 0.0% 0.0% 0.0% 2.6% 0.6% 0.6% 5 1.8% 0.0% 1.3% 1.2% 3.9% 1.4% 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 Definitions Rating Definition 1 The portfolio company's risk of loss has been reduced relative to initial expectations. 2 The portfolio company is meeting initial expectations with regard to performance and outlook. 3 The investment's risk of loss has increased relative to initial expectation. 4 Investment principal is at a material risk of not being fully repaid. 5 Investment is in payment default and has significant risk of not receiving full repayment.

Net Asset Value Trends 14 *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 the changes in NAV per share of common stock for each quarter excluding the impact of special dividends that were paid and sh ows the pro forma to the Company’s NAV per share after payment of regular distributions . Net Asset Value Per Share $15.43 $15.55 15.00 15.30 15.16 15.04 13.33 13.63 13.98 15.35 15.23 15.23 $13.00 $13.50 $14.00 $14.50 $15.00 $15.50 $16.00 Net Asset Value if No Special Dividends Were Paid* Net Asset Value

NAV Per Share Bridge 15 Net Realized and Unrealized Gains : $0.06 Note: N umbers 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 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 acc rua l 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. Additional information on core net investment income and a reconciliation of core net investment income to its most directly com parable 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 . So urce : Company filings Dividend Coverage: ($0.01)

Leverage Migration 16 9/30/2020 QtQ Change 12/31/2020 Outstanding Debt: Outstanding Debt: $296.1 +$94.1 $390.2 Net borrowings to fund purchases NAV: NAV: $314.6 ($1.7) $312.9 Driven by special dividend Leverage Ratio: Leverage Ratio: 0.94x 1.25x Note: Numbers may not foot due to rounding. ($ in MM) Borrowings $162.4 Acquisition of Investments $176.5 Sales & Principal Payments 84.4 Debt Paydown 68.5 Net Investment Income 6.9 Dividend Payment 9.9 Balance Sheet Cash 7.0 Other Balance Sheet Changes 5.8 Total $260.6 Total $260.6 Sources Uses

Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace. (1) As of December 31, 2020 WHF had $5.4MM of deferred debt issuance costs. (2) Gross leverage excluding cash. 3 Current Debt Outstanding (as of Dece mber 31, 2020) ($ in MM) Commitment Outstanding (1) Weighted Average Interest Rate Maturity Additional Information Revolving Credit Facility $285.0 ($65 Accordion Feature) $265.2 L+2.50% payable quarterly 2024 2023 Private Notes $30.0 $30.0 6.00% payable semi - annually; unsecured 2023 2025 Private Notes $40.0 $40.0 5.375% payable semi - annually; unsecured 2025 2025 Public Notes $35.0 $35.0 6.50% payable quarterly; unsecured 2025 NASDAQ: WHFBZ 2026 Private Notes $10.0 $10.0 5.375% payable semi - annually; unsecured 2026 2027 Private Notes $10.0 $10.0 5.625% payable quarterly; unsecured 2027 Total Debt $410.0 $390.2 3.73% weighted average cost of debt Total Shareholders’ Equity/Net Assets $312.9 NA Funding Profile 17 Gross Debt to Equity (2) 1.0x - 1.25x Target Leverage 0.68x 0.65x 0.64x 0.63x 0.71x 0.62x 0.57x 0.57x 0.79x 0.75x 0.97x 1.04x 0.86x 0.94x 1.25x 0.00x 0.50x 1.00x Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Debt/ Equity ($ in MM)

18 Appendix

19 COVID - 19 Portfolio Exposure 4Q20 WhiteHorse Finance, Inc. STRS JV Note: Fair values are as of December 31, 2020 and may not foot due to rounding; percentages may not add up to 100% due to rou ndi ng. (1) Categories of High, Moderate, Low/Moderate and Low can and will change over time as more data becomes available. These catego riz ations are based on estimates and current information available as March 2, 2021 and are subject to change without notice. (2) Within any given category, there is variation in the amount of exposure. For example, not all Lows or Moderates are the same . (3) Low/Moderate category is used for portfolio companies where impact so far has been low, but it is believed that this might ri se to moderate over time. ($ in MM) High , 7.3% Moderate , 15.5% Low/Moderate , 3.2% Low , 66.6% High , 0.6% Moderate , 0.7% Low/Moderate , 1.0% Low , 5.1% STRS JV, 7.4% WHF Fair Value % of FV Very High $ - 0.0% High 50.5 7.3% Moderate 107.1 15.5% Low/Moderate 21.9 3.2% Low 460.1 66.6% STRS JV 51.2 7.4% Total $ 690.7 100.0% STRS JV Fair Value % of FV Very High $ - 0.0% High 14.5 8.3% Moderate 16.3 9.3% Low/Moderate 22.9 13.1% Low 120.9 69.3% Total $ 174.6 100.0%

Origination Footprint ( Decem ber 31 , 2020) 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 45 investment and origination professionals ▪ Regional footprint with 19 dedicated direct lending originators in 12 North American offices ▪ Global platform of approximately 435 investment 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 m idd le market 20

Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace. May not foot due to rounding. (1) As of Dec ember 31, 2020 STRS JV had $ 1.5 of deferred debt issuance costs. 3 ($ in MM) Commitment Outstanding (1) Weighted Average Interest Rate Maturity Revolving Credit Facility $125.0 ($125 Accordion Feature) $95.7 L+2.55% payable quarterly 2024 Subordinated Note $100.0 $68.5 L+6.50% payable quarterly N/A Total Debt $225.0 $164.1 4.42% weighted average cost of debt Equity $25.0 $17.1 N/A N/A STRS JV Key Terms and Funding Profile 21 Key Terms ▪ WHF and STRS Ohio have c ommitted to provide up to $125 million in subordinated notes and equity to STRS JV, with STRS Ohio providing $50 million and WHF providing $75 million. ▪ WHF and STRS Ohio share voting control 50%/50% . ▪ Equity ownership 60% WHF and 40% STRS ▪ An affiliate of H.I.G. provides day - to - day administrative oversight Current Debt Outstanding (as of Dec ember 31, 2020) ($ in MM)

22 Note: As of December 31, 2020, unless otherwise noted; percentages may not add up to 100% due to rounding. (1) Industry classifications based on GICS. Composition by Borrower (Based on Fair Value) Composition by Industry (1) (Based on Fair Value) 100% of STRS JV loans are senior secured STRS JV Borrower and Industry Diversity 7.7% 7.4% 6.6% 6.4% 6.3% 5.9% 5.8% 5.7% 5.5% 5.3% 37.3% Marlin DTC-LS Midco 2, LLC (Clarus) SFP Holding, Inc. (Summit) Pluto Acquisition Topco, LLC Geo Logic Systems Ltd. TOUR Intermediate Holdings, LLC Quest Events, LLC Drew Foam Companies Inc FR Flow Control CB LLC LHS Borrower, LLC SmartSign Holdings LLC Other 14.10% 11.40% 11.30% 7.70% 6.60% 6.40% 6.30% 5.90% 5.70% 5.30% 4.60% 4.50% 10.20% Packaged Foods & Meats Construction & Engineering Building Products Internet & Direct Marketing Retail Human Resource & Employment Services Data Processing & Outsourced Services Investment Banking & Brokerage Diversified Support Services Industrial Machinery Advertising Systems Software Insurance Brokers Other

Origination Pipeline Funnel (1) 23 Note: Percentages may not add up to 100% due to rounding. (1) Origination Pipeline figures reflect 2014 through December 31, 2020. Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance Over 45 WhiteHorse deal professionals dedicated to sourcing and underwriting for WHF 25 person business development team seeks opportunities from H.I.G.’s proprietary database of over 21,000 contacts (telephonic salesforce) ▪ With access to H.I.G. Capital’s extensive sourcing network, the Company is able to capitalize on attractive self - originated lowe r 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 Typical Underwriting Process: 3 - 6 months Opportunities Reviewed Initial Due Diligence Term Sheets Delivered Closed Transactions Deals being sourced by more than 435 Investment Professionals across H.I.G.’s platform 6,446 100.0% 1,629 25.3% 418 6.5% 133 2.1% Total % of Sourced

24 Corporate Data Board of Directors Investment Committee Corporate Officers Research Coverage Corporate Counsel John Bolduc Sami Mnaymneh Stuart Aronson Sarkis Sherbetchyan Dechert LLP Chairman of the Board Founder and Co-CEO of H.I.G. Capital Chief Executive Officer B. Riley FBR New York, NY Stuart Aronson Anthony Tamer Marco Collazos Melissa Wedel Corporate Headquarters Director Founder and Co-CEO of H.I.G. Capital Chief Compliance Officer J.P. Morgan 1450 Brickell Avenue 31st Floor Jay Carvell Stuart Aronson Joyson Thomas Mickey Schleien Miami, FL 33131 Director Chief Executive Officer and Director Chief Financial Officer Ladenburg Thalmann & Co. Inc. Transfer Agent Kevin F. Burke Mark Bernier Chris Kotowski American Stock Transfer & Independent Director Managing Director of WhiteHorse Capital Oppenheimer & Co. Trust Company, LLC New York, NY Rick P. Frier John Bolduc Robert Dodd Independent Director Chairman of the Board, Executive Managing Raymond James Investor Relations Contact Director of H.I.G. Capital 1450 Brickell Avenue Rick D. Puckett 31st Floor Independent Director Jay Carvell Attention: Investor Relations Managing Director of WhiteHorse Capital Miami, FL 33131 G. Stacy Smith (305) 381-6999 Independent Director Javier Casillas Managing Director of WhiteHorse Capital Independent Registered Public Accounting Firm Pankaj Gupta Crowe LLP Managing Director of WhiteHorse Capital New York, NY David Indelicato Securities Listing Managing Director of WhiteHorse Capital NASDAQ: WHF Brian Schwartz Please visit our website at: Co-President of H.I.G. Capital www.whitehorsefinance.com John Yeager Managing Director of WhiteHorse Capital

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Form 8-K WhiteHorse Finance, Inc. For: Mar 02

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