WhiteHorse Finance, Inc. · NASDAQ:WHF
WhiteHorse Finance — Investor Presentation (March 2017)
17 slides from WhiteHorse Finance's investor presentation, Mar 14, 2017
Slide 1: Investor Presentation March 2017
Investor Presentation March 2017 WhiteHorse Finance, Inc. NASDAQ: WHF
Slide 2: Forward-looking statements
1 References in this presentation to “WHF”, “we”, “us”, “our” and “the Company” refer to WhiteHorse Finance, Inc. 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 forwar
Slide 3: WhiteHorse Finance Snapshot
2 WhiteHorse Finance Snapshot Company / Ticker: WhiteHorse Finance, Inc. / NASDAQ: WHF (“WhiteHorse Finance” or the “Company”) : Current Share Price: $ 13.15 (1 ) : Market Cap: $ 240.7MM (1 ) : Price / NAV: 0.96x (1 )(2) Portfolio Fair Value: $ 411.7MM (2 ) : Current Dividend Yield: 10.8% ( 1) ; con
Slide 4: H.I.G. WhiteHorse Highlights
3 H.I.G. WhiteHorse Highlights Leading Lower Mid - Cap Market Position ▪ H.I.G. brings over 20 years of experience and ~$21Bn of capital committed (1) primarily across a number of synergistic lower mid - cap strategies Unique Deal Sourcing Infrastructure ▪ Robust direct origination platform has enab
Slide 5: WhiteHorse Finance Overview
▪ Consistent, “better than market” deal flow generated through H.I.G.’s proprietary sourcing network - Proprietary deal sourcing consisting of sponsored and non - sponsored opportunities - Experienced team able to underwrite more complex non - sponsored opportunities ▪ Over 1,000 opportunities revie
Slide 6: H.I.G. Capital Overview
Note: As of December 31, 2016 (1) Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates 5 H.I.G. Capital Overview ▪ Leading global alternative asset manager focused on the lower mid - cap market, defined as companies with $50MM to $350MM of enterprise value − Found
Slide 7: Lower Mid-Cap Market Overview
6 Lower Mid - Cap Market Overview Unstructured and Inefficient Market ▪ Sourcing lower mid - cap lending opportunities requires access to an extensive network of relationships in the small - business community (as opposed to the established investment banking sources for larger companies) Specialize
Slide 8: Self-Originated Lower Mid-Cap vs Broadly Syndicated Market
7 Self - Originated Lower Mid - Cap Broadly Syndicated and Secondary Market Value Add for Investors ▪ Proprietary deals with limited competition, resulting in above market risk - return dynamics ▪ Larger, more liquid investments; competition among a large number of participants often drives down yie
Slide 9: WhiteHorse Finance Portfolio Investment Characteristics
8 WhiteHorse Finance Portfolio Investment Characteristics Investments by Sector Investments by Type As of December 31, 2016; based on fair value of investments; numbers may not add due to rounding Yield Protection Loan Composition 100% of WHF loans are senior secured 99.8% of floating loans have LIB
Slide 10: WhiteHorse Finance Performance Summary
WhiteHorse Finance Performance Summary Summary Stats: Invested Capital since IPO: $750MM Number of Investments: ~ 66 Average Investment Size: ~$ 11.1 mm All - in Yield : 11.8% Net Debt / EBITDA of Portfolio Companies: ~ 3.4x (1) Secured Debt as a % of Total Debt : 100% $750MM invested through WhiteH
Slide 11: Origination Pipeline Funnel
Origination Pipeline Funnel (1) Dedicated origination resources provide wide - ranging access to proprietary opportunities in the lower middle market Opportunities Reviewed Initial Due Diligence Term Sheets Delivered Closed Transactions 10 164 2,334 32 617 (1) Origination Pipeline figures reflect 20
Slide 12: WhiteHorse Differentiated Deal Flow
WhiteHorse Differentiated Deal Flow As a result of its proprietary sourcing network, the WhiteHorse Finance portfolio has generated higher yields at lower leverage than the broader middle market All - in Yield of Invested Capital (1) Leverage Multiple of Invested Capital (2) » Compared to the broade
Slide 13: Rigorous Credit Process
Rigorous Credit Process Institutionalized processes for evaluating, monitoring and working out credits Fundamental Analysis » Structured approach to deal evaluation » Assesses industry, company, management, and macro factors » Emphasizes cash flow and downside protection Investment Committee » Broad
Slide 14: Appendix
13 Appendix
Slide 15: Historical Quarterly Operating Highlights
14 Historical Quarterly Operating Highlights (USD amounts in millions, except per share data) (1) Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Total Investment Income 11.3$ 12.2$ 11.7$ 11.9$ 13.4$ 13.1
Slide 16: Historical Quarterly Balance Sheet Highlights
15 Historical Quarterly Balance Sheet Highlights (USD amounts in millions, except per share data) Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Assets Investments at Fair Value 391.3$ 387.5$ 376.1$ 415.
Slide 17: WhiteHorse Finance – Senior Team Bios
16 WhiteHorse Finance – Senior Team Bios Title Years of Experience Highlights John Bolduc ▪ Chairman of the Board ▪ Member of the Investment Committee 25 ▪ Leads H.I.G. Capital’s c redit platform ▪ Previous experience at Bain & Company and Chemed Corporation Stuart Aronson ▪ Chief Executive Officer
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