Dec 31, 2022

Whitehorse Finance Q4 2022 Earnings Report

WhiteHorse Finance reported its highest quarterly Core NII since IPO in 2012.

Key Takeaways

WhiteHorse Finance reported net investment income of $11.1 million, or $0.476 per share, and core net investment income of $11.1 million, or $0.476 per share for Q4 2022. The company's investment portfolio totaled $760.2 million and the STRS JV investment portfolio totaled $284.3 million.

Net Asset Value of $332.4 million, or $14.30 per share.

Investment portfolio totaling $760.2 million.

STRS JV investment portfolio totaling $284.3 million.

Net investment income and Core net investment income of $11.1 million, or $0.476 per share.

Total Revenue
$25.9M
Previous year: $18.5M
+40.5%
EPS
$0.476
Previous year: $0.322
+47.8%
Cash and Equivalents
$26.3M
Previous year: $22.5M
+16.9%
Total Assets
$796M
Previous year: $851M
-6.4%

Whitehorse Finance

Whitehorse Finance

Forward Guidance

WhiteHorse is equipped to take advantage of the current lender friendly market conditions as our pipeline activity remains high, and our three-tier architecture continues to provide the BDC differentiated sourcing capabilities.

Positive Outlook

  • Positive impact of an interest rate environment on debt portfolio
  • Investments in existing portfolio were underwritten at modest leverage levels
  • Portfolio remains overwhelmingly represented by non-cyclical or light cyclical borrowers
  • Increased capital commitments to joint venture by $25 million
  • Pipeline activity remains high

Challenges Ahead

  • Marked down some assets during the quarter
  • Challenging economic backdrop
  • Being cautious in the face of a weakening economy
  • Focus on credits with compelling risk return characteristics
  • Meticulous in deal selection