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Dec 31, 2024
Whitehorse Finance Q4 2024 Earnings Report
WhiteHorse Finance reported a decline in investment income and net investment income for Q4 2024, but remains committed to optimizing portfolio performance.
Key Takeaways
WhiteHorse Finance experienced a decrease in total investment income and net investment income in Q4 2024, impacted by portfolio challenges. Despite this, the company maintains a strong position in the non-sponsored market with disciplined underwriting practices.
Total investment income declined to $21.01 million from $22.85 million in the previous quarter.
Net investment income per share decreased to $0.343 from $0.394 in Q3 2024.
A special distribution of $0.245 per share was declared in addition to the regular $0.385 per share.
Net realized losses amounted to $12.29 million, but net unrealized appreciation was $8.22 million.
Whitehorse Finance
Whitehorse Finance
Forward Guidance
WhiteHorse Finance remains focused on its strategic position in the non-sponsored market, expecting stable performance despite ongoing portfolio challenges.
Positive Outlook
- Strong underwriting standards ensure resilience in the current market.
- Majority of portfolio remains stable and performing well.
- Continued investment in the non-sponsored market where risk-adjusted returns are favorable.
- Special distribution declared, reflecting commitment to shareholder returns.
- Variable rate loans provide flexibility in changing interest rate environments.
Challenges Ahead
- Investment income declined compared to the previous quarter.
- Net investment income per share dropped quarter-over-quarter.
- Net realized losses of $12.29 million impacted overall performance.
- Portfolio adjustments led to a decline in total investments at fair value.
- STRS JV investments also declined by $14.84 million.