WHF

WhiteHorse is an externally managed (H.I.G. WhiteHorse Advisers) BDC that direct-lends senior secured, mostly floating-rate SOFR loans to lower-middle-market companies. The single most important number is the gap between price and book: $259.8M of net assets over 22.2M shares is ~$11.70 NAV per share against a $6.65 quote — roughly 0.57x NAV, a ~43% discount. That discount, plus a 10.7x P/E on $0.62 diluted EPS and net income that actually rose +32.1% to $14.3M in FY2025, is the value case. Management is leaning into it: $7.42M of buybacks below NAV are accretive to book value per share, and shares outstanding fell 4.3%.

But the discount is not free — it is pricing real deterioration. Stockholders' equity fell 9.2% YoY and total assets fell 9.1%, so the portfolio is shrinking and NAV is bleeding, the classic signature of credit markdowns and repayments not being redeployed. The accumulated deficit deepened 35.7% to -$69.4M, ROE is a subpar 5.5% (below any reasonable cost of equity), and net income remains choppy and lower than earlier in the cycle ($30.1M in 2021 → $10.9M in 2024 → $14.3M in 2025). Cash is a thin $7.03M, down 43.4%, against $324M of long-term debt.