WhiteHorse Finance Declares Dividend

The current $0.25 quarterly dividend is a continuation of a rate set in the third quarter of 2025. This followed a significant 35% reduction from the previous $0.385 per share, a move management said was necessary to align payouts with the company's earnings power. For the fourth quarter of 2025, WhiteHorse Finance's Net Investment Income (NII) was $6.6 million, or $0.287 per share, which covers the declared dividend. However, for the full year, the company's net investment income saw a material drop, falling 29.8% to $26.1 million from $37.2 million in the prior year. WhiteHorse Finance, a business development company (BDC), focuses its investment strategy on senior secured loans to lower middle-market companies. As of December 31, 2025, its diversified investment portfolio totaled $578.6 million. The company is externally managed by an affiliate of H.I.G. Capital, a global alternative asset manager. Stuart Aronson has served as the Chief Executive Officer of WhiteHorse Finance since 2016. The BDC sector is currently navigating a challenging environment, with sales of non-traded BDCs declining by nearly 40% in January. Broader market turmoil and concerns over private credit have led some other BDCs to also cut their dividends recently. Despite these headwinds, BDCs as an asset class continue to offer high yields compared to other income-generating options. As of the end of 2025, the average yield for BDCs was 11.3%, significantly higher than U.S. high-yield bonds and leveraged loans.