8-K

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: November 7, 2019

(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 November 7, 2019, WhiteHorse Finance, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2019. 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 this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure

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

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

Forward-Looking Statements

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

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1	Press Release of WhiteHorse Finance, Inc. dated November 7, 2019
99.2	Earnings Presentation of WhiteHorse Finance, Inc.

SIGNATURE

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

Dated: November 7, 2019	WHITEHORSE FINANCE, INC.
	By:	/s/ Joyson C. Thomas
		Joyson C. Thomas
		Chief Financial Officer

EX-99.1

Exhibit 99.1

WhiteHorse Finance, Inc. Announces Third Quarter 2019 Earnings Results

NEW YORK, NY, November 7, 2019 – WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (NASDAQ: WHF) today announced its financial results for the quarter ended September 30, 2019.

Third Quarter 2019 Summary Highlights

· Net Asset Value of $315.5 million, or $15.36 per share

· Investment portfolio⁽¹⁾ totaling $527.5 million

· STRS JV investment portfolio totaling $54.9 million

· Gross investment additions⁽²⁾ of $80.5 million, including new originations of $47.0 million and $32.8 million of fundings for refinancings and add-ons to existing investments

· Net investment income of $8.7 million, or $0.421 per share

· Core net investment income of $8.3 million, or $0.403 per share⁽³⁾

· Third quarter distribution of $0.355 per share

(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC (“STRS JV”), an unconsolidated joint venture, totaling $24.4 million, at fair value.

(2) Excludes investments made in STRS JV for the quarter.

(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 third quarter, we transferred 5 assets into our recently-launched joint venture, increasing our investment by $24.4 million. Following the close of the third quarter we contributed another 4 assets into the JV, allowing us to quickly ramp up and directly originate into the JV portfolio going forward, offering a wider range of sourcing opportunities. In addition to the JV transfers, we added four new first-lien originations and 3 add-on investments to our portfolio during the quarter to stabilize NAV relative to the JV asset transfers. Our fourth quarter pipeline is as strong as it has ever been, which we credit to our differentiated three-tiered sourcing infrastructure backed by H.I.G. that offers stable and attractive risk-adjusted returns and ultimately enhance shareholder value.”

Portfolio and Investment Activity

As of September 30, 2019, the fair value of WhiteHorse Finance’s investment portfolio was $527.5 million, compared with $534.8 million as of June 30, 2019. The portfolio at September 30, 2019 consisted of 65 positions across 48 companies with a weighted average effective yield of 11.0% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV) was $9.9 million with the overall portfolio comprised of 80% in first lien secured loans, 12% in second lien secured loans, 3% in equity and 5% in investments in STRS JV. All loans were substantially all variable-rate investments (primarily indexed to LIBOR), with nearly all performing floating rate investments having interest rate floors.

During the three months ended September 30, 2019, WhiteHorse Finance launched the operations of its joint venture by transferring assets totaling $56.4 million in exchange for a net investment in STRS JV of $24.4 million as well as cash proceeds of $32 million.

In addition to the transactions with STRS JV, WhiteHorse Finance made investments in four new portfolio companies totaling $47.0 million. Also, the Company added $8.9 million to existing portfolio companies, exclusive of refinancing. Proceeds from sales and repayments, including net fundings on revolvers but exclusive of refinancing, totaled approximately $31.4 million for the quarter, driven by a full repayment of Planet Fit Indy 10 LLC of $19.2 million and a partial paydown of $7.4 million from its investment in CHS Therapy, LLC. In addition, WhiteHorse Finance participated in two refinancings of existing investments. The Company refinanced its $7.5 million first lien investment to Honors Holdings, LLC, increasing its position by adding a net $1.7 million. The Company also participated in the recapitalization of its $17.1 million first lien investment to Clarus Commerce, LLC, by reducing its position by a net $2.4 million to new borrower Marlin DTC-LS Midco 2, LLC. The Company remained highly selective in deploying new investments.

WHF STRS Ohio Senior Loan Fund LLC

As of September 30, 2019, STRS JV’s portfolio totaled $54.9 million, consisted of 5 portfolio companies and had a weighted average effective yield of 8.6%.

Results of Operations

For the three months ended September 30, 2019, net investment income was approximately $8.7 million, compared with approximately $3.8 million for the same period in the prior year, representing an increase of approximately 128.9%. The increase in net investment income for the year-over-year period was primarily attributable to an increase in non-recurring fee income and a decrease in the amount of capital gains incentive fees recorded.

For the three months ended September 30, 2019, WhiteHorse Finance reported net realized and unrealized losses on investments of approximately $1.8 million. This compares with net realized and unrealized gains on investments of $15.7 million for the three months ended September 30, 2018. The decrease in net realized and unrealized gains on investments for the year-over-year period was primarily attributable to the unrealized gain recognized in the prior year due to the mark-up of the Company’s equity investment in Aretec Group, Inc. (which was sold in the fourth quarter of 2018).

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $6.9 million for the three months ended September 30, 2019, which compares with a net increase of $19.5 million for the three months ended September 30, 2018.

WhiteHorse Finance’s NAV was $315.5 million, or $15.36 per share, as of September 30, 2019, as compared with $315.9 million, or $15.38 per share, as of June 30, 2019.

Liquidity and Capital Resources

As of September 30, 2019, WhiteHorse Finance had cash and cash equivalents of $22.2 million, as compared with $50.4 million as of June 30, 2019, inclusive of restricted cash. As of September 30, 2019, the Company also had $29.7 million of undrawn capacity under its revolving credit facility.

Distributions

On September 13, 2019, the Company declared a distribution of $0.355 per share for the quarter ended September 30, 2019, consistent for the twenty-eighth consecutive quarter since the Company’s IPO. The distribution was paid on October 3, 2019 to shareholders of record as of September 23, 2019. In addition, the Company also declared a special distribution of $0.195 per share, which will be payable on December 10, 2019 to stockholders of record as of October 31, 2019.

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

Conference Call

WhiteHorse Finance will host a conference call to discuss its second quarter results at 10:00 a.m. ET on Thursday, November 7, 2019. 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 # 8954769. Investors may also access the call on the investor relations portion of the Company’s website at www.whitehorsefinance.com.

If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call’s completion through November 14, 2019. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID # 8954769. 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 $34 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 for the quarters ended September 30, 2019 and September 30, 2018. Additionally, the Company did not refinance any of its indebtedness for the quarter ended September 30, 2019.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2019 and September 30, 2018 (in thousands, except per share data):

	September 30, 2019						September 30, 2018
	Amount			Per Share Amounts			Amount		Per Share Amounts
Net investment income	$	8,655		$	0.421		$	3,777	$	0.184
Net impact of costs associated with refinancing of indebtedness		-			-			259		0.012
Accrual for capital gains incentive fee		(360	)		(0.018	)		3,137		0.153
Net impact of excise tax expense related to net realized gains and losses		-			-			-		-
Core net investment income	$	8,295		$	0.403		$	7,173	$	0.349

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

	September  30, 2019		December  31, 2018
	(Unaudited)
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments	$	493,460	$	459,399
Non-controlled affiliate company investments		9,673		10,165
Controlled affiliate company investments		24,410		-
Total investments, at fair value (amortized cost $535,213 and $477,839, respectively)		527,543		469,564
Cash and cash equivalents		9,827		24,148
Restricted cash and cash equivalents		12,335		9,584
Interest receivable		6,952		4,616
Amounts receivable on unsettled investment transactions		9,219		5,608
Prepaid expenses and other receivables		158		575
Total assets	$	566,034	$	514,095
Liabilities
Debt	$	231,966	$	175,953
Management and incentive fees payable		7,717		11,193
Distributions payable		7,294		7,294
Amounts payable on unsettled investment transactions		-		445
Accounts payable and accrued expenses		2,417		2,322
Interest payable		1,067		1,562
Advances received from unfunded credit facilities		79		30
Total liabilities		250,540		198,799
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 authorized		21		21
Paid-in capital in excess of par		301,557		301,557
Accumulated undistributed earnings		13,916		13,718
Total net assets		315,494		315,296
Total liabilities and total net assets	$	566,034	$	514,095
Number of shares outstanding		20,546,032		20,546,032
Net asset value per share	$	15.36	$	15.35

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Investment income
From non-controlled/non-affiliate company investments
Interest income	$	14,865		$	13,843		$	42,104		$	40,871
Fee income		2,246			875			6,328			3,855
From non-controlled affiliate company investments
Dividend income		301			600			888			1,851
From controlled affiliate company investments
Interest income		343			-			343			-
Total investment income		17,755			15,318			49,663			46,577
Expenses
Interest expense		3,495			3,283			9,744			8,649
Base management fees		2,834			2,761			8,240			7,813
Performance-based incentive fees		1,714			4,865			5,520			10,900
Administrative service fees		159			175			475			525
General and administrative expenses		660			572			1,875			1,843
Total expenses, before fees waived		8,862			11,656			25,854			29,730
Base management fees waived		-			(115	)		(397	)		(115	)
Total expenses, net of fees waived		8,862			11,541			25,457			29,615
Net investment income before excise tax		8,893			3,777			24,206			16,962
Excise tax		238			-			712			-
Net investment income after excise tax		8,655			3,777			23,494			16,962
Realized and unrealized gains (losses) on investments
Net realized gains (losses)
Non-controlled/non-affiliate company investments		(2	)		17			(2,020	)		90
Net realized gains (losses)		(2	)		17			(2,020	)		90
Net change in unrealized appreciation (depreciation)
Non-controlled/non-affiliate company investments		(1,882	)		(1,164	)		1,042			(2,125	)
Non-controlled affiliate company investments		28			16,832			(492	)		37,442
Controlled affiliate company investments		56			-			56			-
Net change in unrealized appreciation (depreciation)		(1,798	)		15,668			606			35,317
Net realized and unrealized gains on investments		(1,800	)		15,685			(1,414	)		35,407
Net increase in net assets resulting from operations	$	6,855		$	19,462		$	22,080		$	52,369
Per Common Share Data
Basic and diluted earnings per common share	$	0.34		$	0.95		$	1.08		$	2.55
Dividends and distributions declared per common share	$	0.36		$	0.36		$	1.07		$	1.07
Basic and diluted weighted average common shares outstanding		20,546,032			20,545,726			20,546,032			20,536,591

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2019

(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%	9.04%	03/26/18	03/27/23		9,727	$	9,727	$	9,727			3.08	%
	(0.50% Floor)
Air Freight & Logistics
Access USA Shipping, LLC
First Lien Secured Term Loan	L+ 8.00%	10.04%	02/08/19	02/08/24		5,724		5,649		5,673			1.80
	(1.50% Floor)
Application Software
Newscycle Solutions, Inc.
First Lien Secured Term Loan	L+ 7.00%	9.04%	06/14/19	12/29/22		5,330		5,233		5,224			1.66
	(1.00% Floor)
First Lien Secured Revolving Loan(7)	L+ 7.00%	9.06%	06/14/19	12/29/22		241		238		237			0.08
	(1.00% Floor)
						5,571		5,471		5,461			1.74
Automotive Retail
Team Car Care Holdings, LLC
First Lien Secured Term Loan(12)	base rate+ 7.99%	10.32%	02/26/18	02/23/23		16,837		16,580		16,837			5.34
	(1.00% Floor)
Broadcasting
Alpha Media, LLC
First Lien Secured Term Loan	L+ 6.00%	8.15%	08/14/18	02/25/22		5,629		5,506		5,623			1.78
	(1.00% Floor)
Multicultural Radio Broadcasting, Inc.
First Lien Secured Term Loan	L+ 8.00%	10.04%	12/28/17	12/28/22		16,588		16,373		16,588			5.26
	(1.00% Floor)
Rural Media Group, Inc.
First Lien Secured Term Loan	L+ 7.71%	9.97%	12/29/17	12/29/22		7,133		7,043		7,048			2.23
	(1.00% Floor)
						29,350		28,922		29,259			9.27
Cable & Satellite
Bulk Midco, LLC
First Lien Secured Term Loan	L+ 7.31%	9.68%	06/08/18	06/08/23		15,000		14,834		13,950			4.42
	(1.00% Floor)
Communications Equipment
Sorenson Communications, LLC
First Lien Secured Term Loan	L+ 6.50%	8.60%	03/15/19	03/15/24		5,119		4,978		5,100			1.62
	(0.00% Floor)
Construction & Engineering
SFP Holding, Inc.
First Lien Secured Term Loan	L+ 6.25%	8.35%	07/26/19	09/01/22		6,172		6,172		6,172			1.96
	(1.00% Floor)
First Lien Secured Delayed Draw Loan(7)	L+ 6.25%	8.45%	07/26/19	09/01/22		2,637		2,637		2,637			0.84
	(6.25% Floor)
First Lien Secured Revolving Loan(7)	L+ 6.25%	8.41%	07/26/19	09/01/22		193		193		193			0.06
						9,002		9,002		9,002			2.86
Data Processing & Outsourced Services
FPT Operating Company, LLC/
TLabs Operating Company, LLC
First Lien Secured Term Loan	L+ 8.25%	10.35%	06/07/19	06/07/24		25,063		24,825		24,437			7.75
	(1.00% Floor)
Department Stores
Mills Fleet Farm Group, LLC
First Lien Secured Term Loan	L+ 7.00%	9.04%	10/24/18	10/24/24		14,888		14,635		14,186			4.50
	(1.00% Floor)	(0.75% PIK)
Distributors
Crown Brands, LLC
First Lien Secured Term Loan	L+ 8.00%	10.04%	01/28/19	01/25/24		5,801		5,676		5,669			1.80
	(1.50% Floor)
First Lien Secured Delayed Draw Loan(7)	L+ 8.00%	10.04%	01/28/19	01/25/24		-		-		(1	)		-
	(1.50% Floor)
						5,801		5,676		5,668			1.80
Diversified Support Services
ImageOne Industries, LLC
First Lien Secured Term Loan	L+ 10.00%	12.04%	01/11/18	01/11/23		7,183		7,019		6,824			2.16
	(1.00% Floor)	(4.00% PIK)
First Lien Secured Revolving Loan(4)(12)	L+ 5.75%	9.33%	07/22/19	12/12/22		787		787		787			0.25
NNA Services, LLC
First Lien Secured Term Loan	L+ 7.00%	9.10%	10/16/18	10/16/23		9,954		9,793		9,894			3.14
	(1.50% Floor)
						17,924		17,599		17,505			5.55

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

September 30, 2019

(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
Food Retail
AG Kings Holdings, Inc.
First Lien Secured Term Loan(8)	L+ 11.95%	14.05%	08/10/16	08/10/21		13,046	$	12,837	$	8,480			2.69	%
	(1.00% Floor)	(2.00%PIK)
Crews of California, Inc.
First Lien Secured Term Loan	L+ 11.00%	13.04%	11/20/14	11/20/19		9,313		9,308		9,265			2.94
	(1.00% Floor)	(1.00%PIK)
First Lien Secured Revolving Loan	L+ 11.00%	13.04%	06/05/15	11/20/19		5,211		5,207		5,184			1.64
	(1.00% Floor)	(1.00%PIK)
First Lien Secured Delayed Draw Loan	L+ 11.00%	13.04%	03/27/15	11/20/19		2,675		2,673		2,661			0.84
	(1.00% Floor)	(1.00%PIK)
						30,245		30,025		25,590			8.11
Health Care Facilities
Grupo HIMA San Pablo, Inc.
First Lien Secured Term Loan A	L+ 9.00%	11.27%	05/15/19	04/30/19		3,855		3,855		3,276			1.04
	(1.50% Floor)
First Lien Secured Term Loan B	L+ 9.00%	11.27%	02/01/13	04/30/19		13,511		13,511		11,484			3.64
	(1.50% Floor)
Second Lien Secured Term Loan(8)	N/A	15.75%	02/01/13	07/31/18		1,028		1,024		-			-
		(2.00%PIK)
						18,394		18,390		14,760			4.68
Health Care Services
CHS Therapy, LLC
First Lien Secured Term Loan A	L+ 8.50%	10.63%	06/14/19	06/14/24		7,663		7,526		7,539			2.39
	(1.50% Floor)
PMA Holdco, LLC
First Lien Secured Term Loan	L+ 7.75%	9.85%	06/28/18	06/28/23		12,854		12,650		12,785			4.05
	(1.00% Floor)
						20,517		20,176		20,324			6.44
Home Furnishings
Sure Fit Home Products, LLC
First Lien Secured Term Loan	L+ 9.75%	11.86%	10/26/18	07/13/22		5,320		5,240		5,107			1.62
	(1.00% Floor)
Human Resources & Employment Services
Pluto Acquisition Topco, LLC
First Lien Secured Term Loan	L+ 6.56%	8.81%	01/31/19	01/31/24		12,417		12,202		12,304			3.90
	(1.50% Floor)
Internet & Direct Marketing Retail
Marlin DTC-LS Midco 2, LLC
First Lien Secured Term Loan	L+ 6.00%	8.04%	07/01/19	07/01/25		966		947		948			0.30
	(1.00% Floor)
First Lien Secured Revolving Loan(7)	L+ 6.00%	8.04%	07/01/19	07/01/25		-		-		-			-
	(1.00% Floor)
Potpourri Group, Inc.
First Lien Secured Term Loan	L+ 8.25%	10.35%	07/03/19	07/03/24		18,881		18,480		18,540			5.88
	(0.00% Floor)
						19,847		19,427		19,488			6.18
Internet Services & Infrastructure
London Trust Media Incorporated
First Lien Secured Term Loan	L+ 8.00%	10.26%	02/01/18	02/01/23		10,494		10,389		10,494			3.33
	(1.00% Floor)
StackPath, LLC & Highwinds Capital, Inc.
First Lien Secured Term Loan	L+ 9.50%	12.14%	04/03/19	02/02/24		15,533		15,314		14,368			4.55
	(1.00% Floor)	(12.39%PIK)
						26,027		25,703		24,862			7.88
Investment Banking & Brokerage
Arcole Acquisition Corp(5)
First Lien Secured Term Loan A	L+ 8.25%	10.37%	11/29/18	11/30/23		5,326		5,244		5,193			1.65
	(1.00% Floor)
First Lien Secured Term Loan B	L+ 14.50%	16.62%	11/29/18	11/30/23		1,821		1,794		1,803			0.58
	(1.00% Floor)	(1.50%PIK)
JVMC Holdings Corp. (f/k/a RJO Holdings Corp)
First Lien Secured Term Loan	L+ 6.50%	8.54%	02/28/19	02/28/24		16,407		16,262		16,407			5.20
	(1.00% Floor)
						23,554		23,300		23,403			7.42
IT Consulting & Other Services
AST-Applications Software Technology LLC
First Lien Secured Term Loan	L+ 8.00%	10.04%	01/10/17	01/10/23		4,246		4,193		4,119			1.31
	(1.00% Floor)	(1.00%PIK)
Leisure Facilities
Honors Holdings, LLC
First Lien Secured Term Loan	L+ 6.88%	8.99%	09/06/19	09/06/24		9,405		9,257		9,254			2.93
	(0.00% Floor)
First Lien Secured Delayed Draw Loan(7)	L+ 6.88%	8.99%	09/06/19	09/06/24		-		-		(15	)		-
	(0.00% Floor)
Lift Brands, Inc.
First Lien Secured Term Loan	L+ 7.00%	9.10%	04/16/18	04/16/23		10,776		10,616		10,276			3.26
	(1.00% Floor)
First Lien Secured Revolving Loan(7)	L+ 6.00%	11.00%	04/16/18	04/16/23		203		200		176			0.06
	(1.00% Floor)
						20,384		20,073		19,691			6.25
Office Services & Supplies
Empire Office, Inc.
First Lien Secured Term Loan	L+ 6.75%	8.79%	04/12/19	04/12/24		12,383		12,158		12,186			3.86
	(1.50% Floor)
Other Diversified Financial Services
Sigue Corporation(4)
Second Lien Secured Term Loan(4)	L+ 12.00%	14.10%	12/27/13	04/30/20		24,904		24,903		24,655			7.81
	(1.00% Floor)

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

September 30, 2019

(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
Packaged Foods & Meats
Lenny & Larry's, LLC
First Lien Secured Term Loan	L+ 7.98%	10.01%	05/15/18	05/15/23		12,303	$	12,126	$	11,934		3.78	%
	(1.00% Floor)	(1.18%PIK)
Poultry Holdings, LLC
First Lien Secured Term Loan	L+ 5.75%	7.79%	06/28/19	06/28/25		7,827		7,677		7,670		2.43
	(1.00% Floor)
						20,130		19,803		19,604		6.21
Personal Products
Sunless, Inc.
First Lien Secured Term Loan	L+ 6.00%	8.05%	08/13/19	08/13/24		4,877		4,782		4,781		1.52
	(0.00% Floor)
First Lien Secured Revolving Loan(7)	L+ 6.00%	8.05%	08/13/19	08/13/24		-		-		-		-
	(0.00% Floor)
						4,877		4,782		4,781		1.52
Research & Consulting Services
Nelson Worldwide, LLC
First Lien Secured Term Loan	L+ 8.75%	11.09%	01/09/18	01/09/23		13,692		13,467		13,349		4.23
	(1.00% Floor)
Restaurants
LS GFG Holdings Inc.
First Lien Secured Term Loan	L+ 6.00%	8.04%	11/30/18	11/19/25		10,262		9,991		9,876		3.13
	(0.00% Floor)
Specialized Finance
Golden Pear Funding Assetco, LLC(5)
Second Lien Secured Term Loan	L+ 10.50%	12.60%	09/20/18	03/20/24		17,500		17,216		17,441		5.53
	(1.00% Floor)
Oasis Legal Finance, LLC(5)
Second Lien Secured Term Loan	L+ 10.75%	12.85%	09/09/16	03/09/22		20,000		19,822		20,000		6.34
	(1.00% Floor)
WHF STRS Ohio Senior Loan Fund LLC
Subordinated Note(4)(5)(7)(13)(14)	L+ 6.50%	8.59%	07/19/19	N/A		19,484		19,484		19,484		6.18
						56,984		56,522		56,925		18.05
Trading Companies & Distributors
Vessco Holdings, LLC
First Lien Secured Term Loan	L+ 6.50%	8.65%	08/22/19	08/22/24		14,175		13,902		13,897		4.40
	(1.50% Floor)
Technology Hardware, Storage & Peripherals
Source Code Midco, LLC
First Lien Secured Term Loan	L+ 8.25%	10.52%	05/04/18	05/04/23		20,531		20,121		20,531		6.51
	(1.00% Floor)
Trucking
Sunteck / TTS Holdings, LLC
Second Lien Secured Term Loan	L+ 9.00%	11.12%	12/15/16	06/15/22		3,500		3,470		3,500		1.11
	(1.00% Floor)
Total Debt Investments						522,395		515,746		505,757		160.35
Equity Investments
Advertising
Fluent, Inc. (f/k/a Cogint, Inc.)(4)(9)	N/A	N/A	11/28/17	N/A		187		560		536		0.17
Diversified Support Services
Quest Events, LLC Preferred Units(4)	N/A	N/A	12/28/18	12/08/25		317		317		317		0.10
ImageOne Industries, LLC Common A Units(4)	N/A	N/A	09/20/19	12/08/25		149		-		-		-
						466		317		317		0.10
Food Retail
Crews of California, Inc. Warrants (4)	N/A	N/A	11/20/14	12/31/24		-		-		15		-
Nicholas & Associates, LLC Warrants(4)	N/A	N/A	11/20/14	12/31/24		3		-		314		0.10
Pinnacle Management Group, LLC Warrants(4)	N/A	N/A	11/20/14	12/31/24		3		-		314		0.10
RC3 Enterprises, LLC Warrants(4)	N/A	N/A	11/20/14	12/31/24		3		-		314		0.10
						9		-		957		0.30
Health Care Services
PMA Holdco, LLC Warrants(4)	N/A	N/A	06/28/18	06/28/28		8		-		454		0.14
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		3,818		1.21
						165		2,890		3,818		1.21
Specialized Finance
NMFC Senior Loan Program I LLC Units (4)(5)(6)	N/A	N/A	08/13/14	08/31/21		10,000		10,029		9,673		3.07
WHF STRS Ohio Senior Loan Fund LLC(4)(5)(7)(13)	N/A	N/A	07/19/19	08/31/21		4,871		4,871		4,927		1.56
						14,871		14,900		14,600		4.63
Trading Companies & Distributors
Vessco Holdings, LLC(4)	N/A	N/A	08/22/19	12/31/22		489		800		800		0.25
Trucking
Fox Rent A Car, Inc. Warrants(4)	N/A	N/A	10/26/16	12/31/22		-		-		304		0.10
Total Equity Investments						16,195		19,467		21,786		6.90
Total Investments						538,590	$	535,213	$	527,543		167.25	%

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

September 30, 2019

(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, or the U.S. Prime Rate as published by the Wall Street Journal (“Prime” or “P”). The one, three and six-month LIBOR were 2.0%, 2.1% and 2.1%, respectively, as of September 30, 2019. The Prime was 5.0% as of September 30, 2019.

(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 86% of total assets as of the date of the consolidated schedule of investments.

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

(7) The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of September 30, 2019.

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

(9) The fair value of the investment was determined using observable inputs. There are no legal restrictions on sales of the investment.

(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 167% of the Company’s net assets or 93% of the Company’s total assets, are subject to legal restrictions on sales.

(11) Except as otherwise noted, the fair value of each investment was determined using significant unobservable inputs.

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

(13) Investment is a controlled affiliate investment as defined by the 1940 Act. On January 14, 2019, the Company entered into an agreement (as described in Note 3 hereto) 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.

(14) Security is perpetual in nature with no defined maturity date.

Contacts

Stuart Aronson

WhiteHorse Finance, Inc.

212-506-0500

saronson@higwhitehorse.com

or

Joyson Thomas

WhiteHorse Finance, Inc.

305-379-2322

jthomas@higwhitehorse.com

or

Sean Silva

Prosek Partners

646-818-9122

ssilva@prosek.com

Source: WhiteHorse Finance, Inc.

EX-99.2

Exhibit 99.2

Earnings Presentation Quarter Ended September 30, 2019 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 and quarterly reports on Form 10 - Q, 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 investi ng 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 Compan y’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 Company’s business prospects and the prospects of its pr ospective portfolio companies; the impact of investments that the Company expects to make; the impact of increased competition; the Company’s contractual ar ran gements and relationships with third parties; the dependence of the Company’s future success on the general economy and its impact on the industries in wh ich the Company invests; the ability of the Company’s prospective portfolio companies to achieve their objectives; the relative and absolute performance o f t he Company’s investment adviser; the Company’s expected financings and investments; the adequacy of the Company’s cash resources and working capital; the timi ng 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,” “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 urities and Exchange Commission, 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 th e annual reports on Form 10 - K and quarterly 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: $286.6MM (1) NAV / Share: $15.36 Portfolio Fair Value: $527.5MM Current Dividend Yield: 10.2% (1 )(2) ; consistent quarterly dividends of $0.355 per share since 2012 IPO (1) Based on October 31, 2019 share price of $ 13.95. (2) Based on current annualized 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 leading glo ba l alternative asset manager with more than $34Bn 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 $527.5MM as of September 30, 2019 ▪ Investments across 48 (2) portfolio companies as of September 30, 2019 − Average Investment Size (3) : $8.0MM (Average Debt Investment Size (3) : $9.9MM) − Largest Portfolio Company Investment (3) : $28.5MM ▪ Invested $1,432MM in 115 transactions since December 2012 IPO ▪ In January 2019, WhiteHorse Finance, Inc. entered into an agreement with State Teachers Retirement System of Ohio (“STRS Ohio”), a public pension fund established under Ohio law to create WHF STRS Ohio Senior Loan Fund, LLC (“STRS JV”), a joint venture, which invests pri mar ily in senior secured first and second lien term loans. In July 2019, STRS JV commenced operations. $180.5 $272.4 $403.5 $415.3 $411.7 $440.7 $469.6 $527.5 2012 2013 2014 2015 2016 2017 2018 2019 Q3 $15.30 $15.16 $15.04 $13.33 $13.63 $13.98 $15.35 $15.36 $0.11 $1.53 $2.95 $4.37 $5.79 $7.21 $8.63 $9.70 $15.41 $16.69 $17.99 $17.70 $19.42 $21.19 $23.98 $25.06 2012 2013 2014 2015 2016 2017 2018 2019 Q3 Net asset value Cumulative dividends paid

4 Overview of WhiteHorse Finance, Inc. (continued) Note: As of September 30, 2019 unless otherwise noted. (1) As of September 30, 2019. (2) Reflects life - to - date since IPO, and may exclude follow - on transactions and investments in STRS JV made via asset transfers in - kind. (3) Across 63 investments. Does not include investments in STRS JV. (4) 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 September 30, 2019 is 10.5%. Weighted average effective yield is computed by dividing (a) annualized interest income (includi ng interest income resulting from the amortization of fees and discounts) by (b) the weighted average cost of investments. (5) Measured at origination based on WHF’s underwriting leverage. Does not include investments in STRS JV. (6) Does not include 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 40 dedicated deal professionals sourced through direct coverage of financial sponsors and intermediaries as of September 30, 2019 ▪ 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 (1) : Invested Capital since IPO: $1,432MM (2) Number of Investments Made: ~115 (2) Average Investment Size: ~$8.0 MM (3) All - in Yield : 11.0% (4) Net Debt / EBITDA of Current Portfolio Companies: ~3.6x (5) Secured Debt as a % of Total Debt : 100% (6) Investment Strategy

5 Summary of Quarterly Results Fiscal Quarter Highlights ▪ Total investments at fair value decreased to $527.5 million in Q3 2019 as compared to $534.8 million in Q2 2019. ▪ The Company made investments in 4 new portfolio companies for gross additions of $47.0 million and funded 3 add - on investments for $8.9 million. ▪ The Company transferred five assets to the STRS JV totaling $56.4 million in exchange for investments in STRS JV of $24.4 million and cash proceeds of $32.0 million. ▪ The weighted average effective yield on income producing investments at the end of Q3 2019 was approximately 11.0% as compared to 11.3% at the end of the prior quarter. ▪ Q3 net investment income (“NII”) was ~$8.7 million, or $0.421 per share, which compares to Q2 NII of ~$7.2 million, or $0.352 pe r share. ▪ Q3 Core NII (1) , after adjusting for the ~$0.4 million capital gains incentive fee accrual, was ~ $8.3 million, or $0.403 per share, compared with the quarterly distribution of $0.355 per share. This compares with Q2 Core NII of $7.4 million, or $0.362 per share. ▪ Net unrealized losses for Q3 2019 were ~$1.8 million and were primarily driven by price adjustments in the portfolio including markdowns on Grupo HIMA San Pablo, Inc., AG Kings Holdings Inc ., Fox Rent A Car, and Fluent, partially offset by a markup on StackPath , LLC. ▪ NAV per share at the end of Q3 2019 decrease d to $15.36 per share from $15.38 per share reported at the end of Q2 2019. ▪ Leverage levels decreased slightly during the quarter, and leverage was approximately 0.75x at the end of Q3 2019 as compared to 0.79x at the end of Q2 2019. Cash on - hand at the end of Q3 2019 was $22.2 million; resulting in net leverage of 0.68x as compared to 0.63x at the end of Q2 2019. ▪ STRS JV commenced operations on July 19, 2019. As of September 30, 2019, STRS JV had total assets of $58 million and total l iab ilities of $50 million. For the quarter ended September 30, 2019, STRS JV had a weighted average effective yield of 8.6 %; the Company expects its investments in STRS JV, once fully ramped, to yield 12 - 15% on the Company’s invested capital in STRS JV. (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 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 (USD in MM, expect per share data) Total Investment Income (1) 14.7$ 15.3$ 16.7$ 15.9$ 16.0$ 17.8$ Expenses Interest Expenses 2.8 3.3 3.0 3.1 3.2 3.5 Base Management Fees (2) 2.6 2.6 2.5 2.4 2.6 2.8 Performance-based Incentive Fees 3.9 4.9 1.2 1.8 2.1 1.7 Other Expenses 0.7 0.7 1.9 1.1 0.9 1.1 Total Expenses 10.0 11.5 8.6 8.3 8.8 9.1 Net Investment Income 4.6$ 3.8$ 8.0$ 7.6$ 7.2$ 8.7$ Net Realized and Unrealized Gain / (Loss) 14.4 15.7 (3.1) (0.6) 1.0 (1.8) Net Increase in Net Assets from Operations 19.1$ 19.5$ 4.9$ 7.0$ 8.2$ 6.9$ Per Share Net Investment Income (NII) 0.22$ 0.18$ 0.39$ 0.37$ 0.35$ 0.42$ Core NII (3) 0.33$ 0.35$ 0.40$ 0.37$ 0.36$ 0.40$ Net Realized and Unrealized Gain / (Loss) 0.71$ 0.77$ (0.15)$ (0.03)$ 0.06$ (0.08)$ Earnings 0.93$ 0.95$ 0.24$ 0.34$ 0.41$ 0.34$ Dividends Declared 0.355$ 0.355$ 0.355$ 0.355$ 0.355$ 0.355$ Core NII Dividend Coverage 93% 98% 112% 103% 102% 114%

7 Quarterly Balance Sheet Highlights Note: Numbers may not foot due to rounding Unaudited Quarterly Financials Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 (USD in MM, expect per share data) Assets Investments at Fair Value 511.4$ 509.6$ 469.6$ 468.4$ 534.8$ 527.5$ Cash and Equivalents (1) 18.6 26.6 33.7 36.9 50.4 22.2 Other Assets 8.5 5.6 10.8 16.2 7.9 16.3 Total Assets 538.5$ 541.8$ 514.1$ 521.5$ 593.1$ 566.0$ Liabilities Debt (net of issuance costs) 215.3 195.7 176.0 176.2 245.8 232.0 Other Liabilities 17.9 28.5 22.8 30.3 31.4 18.6 Total Liabilities 233.2$ 224.2$ 198.8$ 206.5$ 277.2$ 250.5$ Total Net Assets 305.3$ 317.7$ 315.3$ 315.0$ 315.9$ 315.5$ Total Liabilities and Net Assets 538.5$ 541.8$ 514.1$ 521.5$ 593.1$ 566.0$ Net Asset Value per Share 14.87$ 15.46$ 15.35$ 15.33$ 15.38$ 15.36$ Leverage Ratio (2) 0.71x 0.62x 0.57x 0.57x 0.79x 0.75x Net Leverage Ratio (3) 0.65x 0.54x 0.46x 0.45x 0.63x 0.68x Gross Fundings (4) 78.6 45.3 67.2 49.7 76.5 81.6 Exits and Repayments (4) (50.4) (64.0) (105.6) (52.3) (12.3) (89.1) Net Fundings 28.2$ (18.7)$ (38.3)$ (2.6)$ 64.2$ (7.5)$ (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 non-cash transactions (e.g., PIK, equity issuances).

Portfolio Highlights 8 Note: Not a guarantee of future performance or investment pace. (1) Calculated based on funded principal amounts of debt investments. (2) 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. Weighted average effective yield for entire portfolio, including equities and STRS JV, as of the end of Q2 2018, Q3 2018, Q4 2018, Q1 2019, Q2 2019 and Q3 2019 were 11.4 %, 11.3%, 11.8%, 11.6, 10.7 %,and 10.5 % respectively . (3) Investments in STRS JV classified as sponsor for purposes of portfolio composition. Source: Company filings ($ in MM, except per share data) Portfolio Investment Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Total Fair Value of Investments 511.4$ 509.6$ 469.6$ 468.4$ 534.8$ 527.5$ Number of Portfolio Investments 52 49 53 56 67 65 Number of Portfolio Companies 36 36 39 41 47 48 Average Investment Size 9.8$ 10.4$ 8.9$ 8.4$ 8.0$ 8.0$ Average Debt Investment Size 10.3$ 10.6$ 10.1$ 9.5$ 8.8$ 9.9$ Fair Value as a Percentage of Principal(1) 97.3% 97.0% 96.4% 96.8% 96.9% 96.7% Total Portfolio Effective Yield (2) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Weighted average effective yield on income-producing debt investments 12.0% 11.9% 11.9% 11.7% 11.3% 11.0% Portfolio Composition - Floating vs. Fixed Investments (Debt Investments at Fair Value) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Percentage of fixed rate investments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Percentage of floating rate investments 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Portfolio Composition - Sponsor vs. Non-Sponsor (Fair Value) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Sponsor 34.1% 33.8% 44.1% 46.1% 45.4% 48.2% Non-Sponsor 65.9% 66.2% 55.9% 53.9% 54.6% 51.8% Total Portfolio Composition by Instrument Type (Fair Value) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 First lien secured loans 60.3% 63.5% 76.5% 80.0% 84.7% 79.7% Second lien secured loans 28.2% 21.7% 20.7% 17.2% 12.3% 12.4% STRS JV 4.6% Equity 11.5% 14.8% 2.8% 2.9% 3.0% 3.2% Investments on Non-Accrual Status (Debt Investments) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Fair Value of Investments on Non-accrual Status 0.1$ 0.1$ 0.1$ 0.1$ 21.3$ 8.5$ Cost of Investments on Non-accrual Status 1.0$ 1.0$ 1.0$ 1.0$ 28.8$ 13.9$ % of Investments on Non-accrual Status (Fair Value) 0.0% 0.0% 0.0% 0.0% 4.0% 1.6% % of Investments on Non-accrual Status (Cost) 0.2% 0.2% 0.2% 0.2% 5.4% 2.6%

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 ) ( 1) % Non Accruals (Based on Fair Value ) (2) 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) Investments in STRS JV classified as sponsor for purposes of portfolio composition. (2) Except as otherwise indicated, non - zero values <0.05%. 88.4% 96.1% 97.1% 99.8% 99.9% 100.0% 100.0% 11.6% 3.9% 2.9% 0.2% 0.1% 0.0% 0.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2013 2014 2015 2016 2017 2018 2019 Q3 Floating Fixed 52% 55% 52% 60% 52% 77% 80% 48% 40% 43% 33% 39% 21% 12% 0% 5% 5% 7% 9% 3% 8% 5% 2013 2014 2015 2016 2017 2018 2019 Q3 % First Lien Loans % Second Lien Loans % Equity STRS JV 60% 33% 28% 32% 32% 44% 48% 40% 67% 72% 68% 68% 56% 52% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2013 2014 2015 2016 2017 2018 2019 Q3 Sponsor Non-Sponsor 1.7% 1.7% 1.7% 4.0% 1.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 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 % of Investments on NonAccrual

10 Note: As of September 30, 2019, 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 5.4% 4.6% 4.6% 3.9% 3.8% 3.5% 3.4% 3.3% 3.2% 3.1% 61.1% Sigue Corporation Future Payment Technologies, L.P. STRS JV Source Code Midco, LLC Oasis Potpourri Group, Inc. Crews of California, Inc. Golden Pear Funding Assetco, LLC Team Car Care Holdings, LLC (Heartland Auto) Multicultural Radio Broadcasting, Inc. Other 9.4% 5.8% 5.7% 5.3% 4.9% 4.9% 4.7% 4.1% 4.1% 3.9% 3.9% 3.9% 39.5% Specialized Finance Broadcasting Other Diversified Financial Services Food Retail Internet Services & Infrastructure Data Processing & Outsourced Services Investment Banking & Brokerage Health Care Services Technology Hardware, Storage & Peripherals Leisure Facilities Packaged Foods & Meats Internet & Direct Marketing Retail Other STRS JV

Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage (1) From IPO to September 30, 2019 11 Core NII (2) to Dividend Coverage 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) 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 $0.01 Covered by $0.01 Missed by $0.00 Covered by $0.04 Covered by $0.00 Covered by $0.00 Covered by $0.02 Missed by $0.07 (3) Covered by $0.07 Missed by $0.02 Missed by $0.03 Missed by $0.01 Covered by $0.04 Covered 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 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% 11.0% 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 Borrower Leverage through WHF Security Effective Yield $0.35 $0.37 $0.35 $0.40 $0.36 $0.36 $0.38 $0.29 $0.33 $0.42 $0.33 $0.35 $0.40 $0.37 $0.36 $0.40 $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 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 Core NII per share Dividends per share Covered by $0.05

Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace. (1) As of September 30, 2019 WHF had $3.33MM of deferred debt issuance costs (2) Gross leverage excluding cash 3 Current Debt Outstanding (as of September 30, 2019) ($ in MM) Commitment Outstanding (1) Weighted Average Interest Rate Maturity Additional Information Revolving Credit Facility $200.0 ($235.0 with Accordion) $170.3 L+2.75% payable quarterly 2021 Amended July 2019 for Minimum Utilization Private Notes $30.0 $30.0 6.00% payable semi - annually; unsecured 2023 Senior Notes $35.0 $35.0 6.50% payable quarterly; unsecured 2025 NASDAQ: WHFBZ Total Debt $265.0 $235.3 Total Shareholders’ Equity/Net Assets $315.5 NA Funding Profile 1 2 Gross Debt to Equity (2) 1.0x - 1.25x Target Leverage 0.78x 0.79x 0.70x 0.74x 0.77x 0.68x 0.65x 0.64x 0.63x 0.71x 0.62x 0.57x 0.57x 0.79x 0.75x 0.00x 0.20x 0.40x 0.60x 0.80x 1.00x 1.20x 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 Debt/ Equity

13 Appendix

Origination Footprint ( September 30, 2019) 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 40 investment and origination professionals ▪ Regional footprint with 18 dedicated direct lending originators in 11 North American offices ▪ Global platform of approximately 380 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 Los Angeles Miami New York Boston Chicago Atlanta Stamford San Francisco Existing offices with senior originators Puerto Rico Headquarters of a portfolio company Dallas Washington, D.C. Toronto Vancouver 14

Origination Pipeline Funnel (1) 15 Note: Percentages may not add up to 100% due to rounding. (1) Origination Pipeline figures reflect 2014 through September 30, 2019 Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance Over 40 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 Total % of Sourced 4,998 100.0% 1,413 28.3% 339 6.8% 83 1.7% Deals being sourced by more than 375 Investment Professionals across H.I.G.’s platform

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