WhiteHorse Finance Propels NAV With $0.18 Share Accretion, Cuts Fee to 17.5%
WhiteHorse Finance reported Q4 2025 NAV growth after repurchasing one million shares, adding roughly $0.18 per share, and completed a term debt securitization to lower borrowing costs. The board declared a $0.25 base dividend plus a $0.01 supplemental distribution for Q1 2026 and reduced its incentive fee to 17.5%.
1. Q4 Financial Performance
WhiteHorse Finance achieved improved earnings and NAV performance in Q4 2025, though net realized losses of $11.3 million were recognized due to restructuring and exits. The weighted average yield on debt investments declined to 11% from 11.6%, and non-accruals rose to 2.4% of the portfolio.
2. Capital Actions and Dividends
The board approved a $0.25 base dividend and a $0.01 supplemental distribution for Q1 2026. Management repurchased approximately one million shares, accreting about $0.18 per share to NAV, and insiders, including the CEO, have been buying shares at current discount levels.
3. Incentive Fee Reduction
The advisor voluntarily lowered its incentive fee on net investment income from 20% to 17.5%, aiming to boost distributable earnings and align management incentives with shareholder returns in the near term.
4. Debt Securitization and Leverage
Completion of a term debt securitization has enhanced the stability and cost profile of secured leverage, positioning the company to benefit from lower funding costs amid competitive market conditions where capital availability outpaces new deal supply.