WhiteHorse Finance : Q2 2023 Earnings Presentation

WhiteHorse Finance, Inc.

Earnings Presentation

Quarter Ended June 30, 2023

NASDAQ: WHF (Common Stock)

Important Information and Forward Looking Statements

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 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 offer 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 Brickell Avenue, 31st Floor, Miami, FL 33131, Attention: Investor Relations, or by calling [phone]; 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 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 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 Company invests; the ability of the Company's prospective portfolio companies to achieve their objectives; the relative and absolute performance of the Company's investment 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.

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.

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. 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.

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WhiteHorse Finance Snapshot

Company:		WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company"):
Equity Ticker:		NASDAQ: WHF
Market Cap:		$314.0MM(1)
NAV / Share:		$14.00
Portfolio Fair Value:		$728.4MM
Current Dividend Yield:		10.6%(1)(2); consistent quarterly dividends at or above $0.355 per share since 2012 IPO
External Manager:		Affiliate of H.I.G. Capital, LLC ("H.I.G. Capital" or "H.I.G.")

(1)	Based on August 7, 2023 share price of $13.51.	2
(2)	Based on LTM dividend rate, excluding special dividends, relative to closing share price.

Overview of WhiteHorse Finance, Inc.

• 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 over $58Bn 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 $728.4MM as of June 30, 2023
• Investments across 116 positions in 70 portfolio companies as of June 30, 2023
• • Average Investment Size(2): $5.5MM (Average Debt Investment Size(2): $7.1MM)
  • Largest Portfolio Company Investment(2): $22.1MM
• Invested $2,506MM in 218 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 and second lien term loans.

Portfolio at Fair Value ($MM)

NAV + Cumulative Dividends per share

$819.2
$760.2	$728.4
$690.7
$589.7

$28.45 $29.12

$27.02

$25.48

$23.98

$29.55

$403.5

$415.3

$411.7

$440.7

$469.6

$272.4

$180.5

$15.41 $0.11

$16.69

$1.53

$17.99 $17.70

$2.95

$4.37

$19.42

$5.79

$21.19

$7.21

$8.63	$10.05	$11.47	$12.89	$14.31	$15.05
	$0.20	$0.32	$0.46	$0.51	$0.51

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022 Q2 2023

Note: As of December 31st, of 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

$15.30	$15.16	$15.04	$13.33	$13.63	$13.98	$15.35	$15.23	$15.23	$15.10	$14.30	$14.00
2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	Q2 2023
			Net asset value	Cumulative special dividends paid	Cumulative base dividends paid

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Overview of WhiteHorse Finance, Inc. (continued)

Investment Strategy

Summary Stats:

• 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 65 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
• 10-personinvestment 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

Invested Capital since IPO:

Number of Investments Made:

Average Investment Size:

All-in Yield:

Net Debt / EBITDA of Current Portfolio Companies:

Secured Debt as a % of Total Debt:

$2,506MM(1)

~218(1)

~$5.5MM(2)

13.4%(3)

~4.1x(4)

~100%(5)

Note: As of June 30, 2023, 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-kind.
2. Across 114 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, 2023, is 12.5%. 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.

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