Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Investor Presentation (June 2016)
16 slides from Whitehorse Finance's investor presentation, Jun 13, 2016
Slide 1: Investor Presentation June 2016
Investor Presentation June 2016 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 fut ure 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: $10.91 (1 ) : Market Cap: $200MM (1 ) : Price / Book: 0.82x (1)(2) Portfolio Fair Value: $417MM (2 ) : Current Dividend Yield: 13.0% ( 1 ) ; consisten
Slide 4: WhiteHorse Finance Overview
3 WhiteHorse Finance Overview Investment Strategy ▪ Generate attractive risk - adjusted returns through debt investments in performing small - cap companies ▪ Primarily target directly originated senior secured loans sourced through H.I.G.’s deal flow network ▪ Opportunistically invest in credits wh
Slide 5: H.I.G. Capital Overview
Note: As of March 31, 2016 (1) Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates 4 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 1
Slide 6: H.I.G. Capital Platform Overview
5 H.I.G. Capital Platform Overview ▪ Small - Cap Buyouts ▪ Middle Market Buyouts Leveraged Buyouts ▪ Venture Capital ▪ Bio - Tech ▪ Growth Equity Growth Equity ▪ CLOs / Structured Credit ▪ Senior Loan Funds AUM: $8.6Bn Real Estate ▪ Opportunistic equity and debt investments across all property types
Slide 7: Small-Cap Market Overview
6 Small - Cap Market Overview Unstructured and Inefficient Market ▪ Sourcing small - 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) Specialized Lendin
Slide 8: Self-Originated Small-Cap vs Broadly Syndicated Market
7 Self - Originated Small - Cap Broadly Syndicated and Secondary Market Value Add for Investors ▪ Proprietary deals with limited competition, generally resulting in above market risk - return dynamics ▪ Larger, more liquid investments; competition among a large number of participants often drives do
Slide 9: WhiteHorse Finance Portfolio Composition
8 WhiteHorse Finance Portfolio Composition ▪ Self - originated, proprietary transactions sourced through H.I.G.’s deal flow network − “Off market” opportunities primarily to non - sponsored, small - cap companies − Compelling risk - adjusted returns resulting from limited competition Direct Originat
Slide 10: WhiteHorse Finance Portfolio Investment Characteristics
Health Care Facilities 13% Specialized Consumer Services 4% Broadcasting 4% Data Processing & Outsourced Services 9% Department Stores 2% Research & Consulting Services 3% Specialized Finance 5% Other 9% Distributors 2% Consumer Finance 14% Advertising 11% Electronic Equipment & Instruments 2% Oil &
Slide 11: Updates / Developments since December 2012 IPO
10 Updates / Developments since December 2012 IPO Investment Portfolio Activity: ▪ Approximately $670MM of capital invested across ~60 new and existing portfolio companies ▪ Investment portfolio of $417.2MM across 31 companies as of March 31, 2016 ▪ ~95% of the portfolio is composed of senior secure
Slide 12: Summary Highlights
11 Summary Highlights Leading Small - Cap Market Position ▪ Over 20 years of experience and ~$20Bn of capital committed (1) primarily across a number of synergistic small - cap strategies Unique Deal Sourcing Infrastructure ▪ Robust origination platform has enabled the Company to deploy ~$670MM sinc
Slide 13: Appendix
ee Appendix ’ A—~_~ _
Slide 14: Historical Quarterly Operating Highlights
13 Historical Quarterly Operating Highlights (USD amounts in millions, except per share data) Q2 15 (unaudited) Q3 15 (unaudited) Q4 15 (unaudited) Q1 16 (unaudited) Total Investment Income 12.2$ 11.7$ 11.9$ 13.4$ Expenses Interest Expenses 1.7 1.7 1.7 1.9 Accelerated Amortization related to Refinan
Slide 15: Historical Quarterly Balance Sheet Highlights
14 Historical Quarterly Balance Sheet Highlights (USD amounts in millions, except per share data) Q2 15 (unaudited) Q3 15 (unaudited) Q4 15 (audited) Q1 16 (unaudited) Assets Investments at Fair Value 387.5$ 376.1$ 415.3$ 417.2$ Cash and Equivalents (1) 27.3 25.9 22.8 21.1 Other Assets 7.5 7.1 7.1 7
Slide 16: WhiteHorse Finance – Senior Team Bios
15 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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