Whitehorse Finance, Inc. · NASDAQ:WHF

Whitehorse Finance — Deutsche Bank BDC One-on-One Day 2014

18 slides from Whitehorse Finance's conference presentation, Oct 9, 2014

1. Slide 1: WhiteHorse Finance, Inc. Investor Presentation

   WhiteHorse Finance, Inc. Investor Presentation October 2014 NASDAQ: WHF

2. Slide 2: Forward Looking Statements

   Forward Looking Statements 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

3. Slide 3: WhiteHorse Finance Snapshot

   WhiteHorse Finance Snapshot Company / Ticker: WhiteHorse Finance, Inc. / NASDAQ: WHF (“WhiteHorse Finance” or the “Company”): Current Share Price: $14.27(1): Market Cap: $214MM(1): Price / Book: 0.94x(1)(2) Portfolio Fair Value: $347MM(2): Current Dividend Yield: 10.0%(1); consistent quarterly divid

4. Slide 4: WhiteHorse Finance Overview

   WhiteHorse Finance Overview  Generate attractive risk-adjusted returns through debt investments in performing small-cap companies Investment Strategy  Primarily target directly originated senior secured loans sourced through H.I.G.’s deal flow network  Opportunistically invest in credits where th

5. Slide 5: H.I.G. Capital Overview

   H.I.G. Capital Overview  Leading global alternative asset manager focused on the small-cap market, defined as companies with $50MM to $350MM of enterprise value − Founded in 1993; over $15Bn under management Investment Approach Global Footprint  Differentiated, value-added strategy and deep experi

6. Slide 6: H.I.G. Capital Platform Overview

   H.I.G. Capital Platform Overview H.I.G. Capital Family of Funds Leveraged Growth Real Estate Credit Buyouts Equity  Small-Cap  Venture Capital  Opportunistic AUM: $6.9Bn Buyouts equity and debt  Bio-Tech  CLOs / investments  Special Situation  Middle Market Structured Credit  Growth Equity a

7. Slide 7: Small-Cap Market Overview

   Small-Cap Market Overview  Sourcing small-cap lending opportunities requires access to an extensive network Unstructured and of relationships in the small-business community (as opposed to the established Inefficient Market investment banking sources for larger companies)  As a result of small-cap

8. Slide 8: Compelling Small-Cap Lending Opportunities

   Compelling Small-Cap Lending Opportunities  With access to H.I.G. Capital’s sourcing network, the Company is able to capitalize on more attractive self- originated small-cap transactions Broadly Syndicated and Self-Originated Small-Cap Secondary Market  Proprietary deals with limited competition,

9. Slide 9: WhiteHorse Finance Portfolio Composition

   WhiteHorse Finance Portfolio Composition As of June 30, 2014 Fair Value: $347.1MM Number of Companies: 27 Avg. Investment Size: $12.9MM Direct Originations Club Deals / Syndications Transitory  Self-originated, proprietary transactions sourced  Includes credits in which the Company derives  Short

10. Slide 10: WhiteHorse Finance Portfolio Investment Characteristics

    WhiteHorse Finance Portfolio Investment Characteristics Investments by Sector Investments by Type Homefurnishing Retail Cable, Internet, VOIP Integrated 1% Metal & Glass Containers Communications Services Telecommunication 1% Services Structured Products 1% 2% Oil & Gas Exploration & Highly diversif

11. Slide 11: Hypothetical Dividend Coverage Calculation

    WhiteHorse Finance Hypothetical Dividend Coverage Calculation (USD amounts in millions, except per share data) (1) As of Net Capital Invested @ 11% Yield Jun-14 $75 million $100 million $125 million $150 million Investments @ Fair Value $ 347.1 $ 422.0 $ 430.0 $ 435.0 $ 445.0 Net Leverage Outstandin

12. Slide 12: Updates / Developments since December 2012 IPO

    Updates / Developments since December 2012 IPO  Raised $30MM publicly traded Senior Notes in July 2013 IPO/ Financing:  Extended maturity and lowered interest rate on the Unsecured Term Loan (1)  Extended maturity and reduced borrowing costs on the Senior Credit Facility  Over $360MM of capital

13. Slide 13: Summary Highlights

    Summary Highlights Leading Small-Cap  Over 20 years of experience and $15Bn of capital committed primarily across a Market Position number of synergistic small-cap strategies Unique Deal Sourcing  Robust origination platform has enabled the Company to deploy over $360MM Infrastructure since Decemb

14. Slide 14: Appendix

    Appendix 13 iol WHITEHORSE FINANCE

15. Slide 15: Historical Quarterly Operating Highlights

    Historical Quarterly Operating Highlights (USD amounts in millions, except per share data) Q3 13 Q4 13 Q1 14 Q2 14 (unaudited) (unaudited) (unaudited) (unaudited) Total Investment Income $ 11.1 $ 8.6 $ 8.3 $ 9.0 Expenses Interest Expenses 1.4 1.3 1.4 1.4 Base Management Fees 1.2 1.3 1.4 1.7 Incentiv

16. Slide 16: Historical Quarterly Balance Sheet Highlights

    Historical Quarterly Balance Sheet Highlights (USD amounts in millions, except per share data) Q3 13 Q4 13 Q1 14 Q2 14 (unaudited) (audited) (unaudited) (unaudited) Assets Investments at Fair Value $ 214.7 $ 272.4 $ 286.9 $ 347.1 (1) Cash and Equivalents 132.4 96.0 40.2 10.8 Other Assets 6.0 5.7 6.0

17. Slide 17: Net Leverage Ratio

    Net Leverage Ratio Net Leverage Ratio Trends (1) 0.70x 0.63x 0.62x 0.58x 0.59x 0.60x BDC Subset Avg- 0.57x 0.55x 0.51x 0.50x 0.47x 0.40x 0.30x 0.25x 0.19x 0.20x WHF Avg- 0.17x 0.10x 0.05x 0.02x 0.00x 0.00x Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 WHF BDC Subset  The Company has historically operat

18. Slide 18: WhiteHorse Finance – Senior Team Bios

    WhiteHorse Finance – Senior Team Bios Years of Title Experience Highlights  Chairman of the Board  Leads H.I.G. Capital’s credit platform John Bolduc  Member of the Investment 24  Previous experience at Bain & Company and Chemed Corporation Committee  Founding partner of WhiteHorse Capital, a l

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