WhiteHorse Finance operates as a business development company focused primarily on senior secured loans to U.S. lower middle market companies, leveraging H.I.G. Capital’s proprietary deal sourcing network for competitive advantage. The company has demonstrated a net income increase of 32.1% from FY2024 to FY2025, driven by its niche portfolio of floating-rate loans indexed to SOFR and supplemented by fee income. Regulatory constraints inherent to its BDC and RIC status shape investment flexibility and distribution policies, while recent credit facility amendments reflect tightened liquidity management yet preserve operational leeway. Share repurchases alongside dividends position capital allocation towards shareholder returns amid a 5.5% ROE metric measured in 2025.