WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended December 31, 2025 NASDAQ: WHF (Common Stock) NASDAQ: WHFCL (7.875% Notes due 2028) Important Information and Forward Looking Statements References in this presentation to "WHF", "WhiteHorse Finance", "we", "us", "our" and "the Company" refer to WhiteHorse Finance, Inc. This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company o ...

Group 1 - The portfolio's total return outperformance indicates a successful investment strategy focused on high-conviction ideas at attractive discounts [1] - Business development companies (BDCs) present a complex asset class for income investors, characterized by high yields [2] - High Yield Investor, led by Samuel Smith, aims to balance safety, growth, yield, and value in its investment approach [2] Group 2 - High Yield Investor offers various portfolio options including core, retirement, and international portfolios, along with trade alerts and educational content [2] - The team at High Yield Investor includes experienced professionals with diverse backgrounds in finance and engineering [2]

Core Viewpoint - Crescent Capital BDC (CCAP) is experiencing significant selling pressure, having declined 12% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - CCAP's current RSI reading is 27.96, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for CCAP will improve, with a 0.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CCAP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8].

Trevor Williams/DigitalVision via Getty Images By Mike Larson Private credit worries. Idiosyncratic loan defaults. They started taking down shares of specialty lenders and Business Development Companies (BDCs) months ago. But diversified financials held firm. Until now. On Friday, the financial ...

Core Viewpoint - Business Development Companies (BDC) are highlighted as a preferred asset class for income-focused investors, particularly for those looking to supplement retirement income through dividends [1]. Group 1 - BDCs are appealing due to their potential for high dividend yields, making them attractive for investors seeking income [1]. - The author emphasizes a long-term investment strategy, focusing on quality over quantity in dividend-paying stocks, including BDCs and REITs [2]. - The goal is to assist lower and middle-class workers in building investment portfolios that generate reliable income through dividends [2].

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a diversified approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a balanced focus on both growth and income [1].

Core Insights - High-yielding dividend stocks excel in growing their dividends, leading to significantly higher total returns compared to those that do not increase dividends or do not pay them [1] Realty Income - Realty Income has a mission to provide a dependable and steadily growing monthly dividend, achieving 31 consecutive years of dividend increases and a 4.2% compound annual growth rate [4] - The current dividend yield for Realty Income is 4.8%, significantly higher than the S&P 500's yield of 1.1%, translating to approximately $48 in annual dividend income from a $1,000 investment [5] - Realty Income has a market capitalization of $62 billion, with a current stock price of $67.12 and a gross margin of 48.73% [6][7] - The REIT plans to invest $8 billion to expand its real estate portfolio this year, which is expected to increase cash flow per share by about 3% [7] Main Street Capital - Main Street Capital operates as a business development company (BDC) that provides debt and equity capital to smaller private companies, generating interest and dividend income [8] - The company is required to pay at least 90% of its taxable income in dividends, maintaining a unique dividend policy that includes a sustainable monthly dividend and periodic supplemental quarterly dividends [9] - Main Street Capital has a market capitalization of $5.1 billion, with a current stock price of $56.75 and a gross margin of 100% [10][11] - The company has increased its monthly dividend by 136% since going public in late 2007, with a current yield of 5.4%, which can increase to 7.4% when including supplemental payments [11] - Main Street Capital's strong balance sheet allows it to cover its dividend payment by 1.4 times, providing room for further expansion [12] Investment Potential - Both Realty Income and Main Street Capital have strong records of increasing their high-yielding monthly dividends, positioning them well for continued robust total returns [13]

Group 1 - Business Development Companies (BDCs) have faced challenges due to elevated interest rates over the past year, with FS KKR Capital Corp (FSK) experiencing a significant pullback compared to its peers [1] - The investment strategy discussed involves a combination of classic dividend growth stocks, BDCs, REITs, and Closed-End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted net investment income (NII) was $1.22 per share, down from $1.52 in 2024 [4] - Annualized net asset income (NAI) return on equity (ROE) for the year was 12.3%, compared to 14.5% in 2024 [5] - Adjusted NAI for Q4 2025 was $0.25 per share, down from $0.30 in Q3 2025 and $0.36 in Q4 2024 [5] - Net asset value (NAV) declined 19% to $7.07 per share as of December 31, 2025, from $8.71 as of September 30, 2025 [6] Business Line Data and Key Metrics Changes - Non-accrual debt investments represented 4% of the portfolio at fair market value and 9.7% at cost, compared to 5.6% at fair market value and 14.4% at cost for Q4 2024 [6] - The portfolio had a fair market value of $1.5 billion invested across 141 companies, with 92.4% in senior secured loans [12] - The average size of new investments in 2025 was $5.8 million, down from $11.7 million at the end of 2024 [13] Market Data and Key Metrics Changes - The weighted average effective yield of the portfolio was 11.1%, down from 11.5% in the previous quarter [13] - Investments during Q4 had a weighted average yield of 9.7%, while exited investments had a yield of 11.1% [13] Company Strategy and Development Direction - The company aims to improve credit quality by focusing on first lien loans, which now account for 87.4% of the portfolio [24] - The strategy includes building a diversified portfolio to reduce concentration risk and leveraging BlackRock's resources [24][25] - The company is actively managing challenged investments to optimize recovery values [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing write-downs but emphasized ongoing efforts to manage the investment portfolio for attractive returns [22] - The company is monitoring the software sector for potential AI disruptions and is focusing on investments that can benefit from such changes [17] Other Important Information - The board declared a first-quarter dividend of $0.17 per share, payable on March 31, 2026 [11] - The company repurchased 515,869 shares during Q4 at an average price of $5.84 per share [11] Q&A Session Summary Question: At what point does it make sense to take more aggressive strategic adjustments? - Management believes the best path forward is to focus on improving credit quality and executing the current investment strategy, which includes increasing first lien loans and diversifying the portfolio [28][29] Question: How should investors view the restructuring of assets? - Management noted that restructurings can vary and that recovery is not always linear, emphasizing the importance of a robust process for managing challenged investments [32] Question: Was there a change in valuation procedures that led to the recent NAV drawdowns? - Management confirmed that there were no changes to the valuation policy and that the recent write-downs were concentrated among a few specific investments [36][39]

BlackRock TCP Capital Corp. Investor presentation Q4 2025 Experienced and tenured investment team Senior Leadership & Executive Team | Philip Tseng (27)* Chairman, Chief Executive Officer and Co-CIO | | | | | | --- | --- | --- | --- | --- | | Senior Leadership & Executive Team | | | | | | Jason Mehring (31) | | Erik Cuellar (28) | Diana Huffman (15) | | | President | | CFO | General Counsel and Secretary | | | Dan Worrell (34) * | | Patrick Wolfe (19) | Charles Park (17) | | | Co-CIO | | COO | CCO | | | Ori ...