WhiteHorse Finance Assets Moved to New Vehicle
WhiteHorse Capital launched a transaction to shift private credit assets into a continuation vehicle.
Updated on Oct. 9, 2026 in Corporate Finance
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WhiteHorse Capital has initiated a credit secondaries transaction to move $680 million in private credit assets into a closed-end continuation vehicle. This strategic move is set to result in the delisting of the public WhiteHorse Finance business development company.
Why it matters
The transaction aims to provide necessary liquidity to existing WhiteHorse investors. It reflects a broader shift toward managing mature portfolios through secondary markets as the BDC currently trades below its book value.
The continuation vehicle transaction involves $680 million in total assets, significantly exceeding the $569 million fair value recorded for the BDC portfolio as of June 30. Bids for the new vehicle are currently arriving in the high 90s.
The players
WhiteHorse Capital
This investment firm is the primary entity managing the credit secondaries transaction and the continuation vehicle.
WhiteHorse Finance
This is the publicly traded business development company that will be delisted as a result of the asset transfer.
Jefferies
This global financial services company is acting as the advisor for the asset transition process.
State Teachers Retirement System of Ohio
This pension fund operates as a joint venture partner for assets included in the continuation vehicle.
The details
WhiteHorse Capital is utilizing Jefferies as the advisor to transition assets from the BDC into a continuation vehicle backed by secondaries investors. The portfolio includes assets held through a joint venture with the State Teachers Retirement System of Ohio.
Timeline
The fair value of the BDC portfolio was recorded on June 30, 2026.
Market Landscape
This move reflects the increasing popularity of GP-led secondaries in the private credit market to provide liquidity for mature funds. It positions WhiteHorse Capital to exit a public market structure while retaining control of the underlying assets through a specialized vehicle.
Public shareholders of WhiteHorse Finance will see the firm delisted, marking a significant shift in their investment access. This transaction is specifically designed to provide liquidity, impacting how current investors may realize the value of their holdings.
The takeaway
Secondary market transactions are becoming an essential tool for private credit firms to manage assets and provide liquidity when public valuations lag. Investors should monitor how these delisting events affect their ongoing participation in similar credit structures.
Further reading
For more on industry asset management trends, visit the Corporate Finance section.
Source note: This article includes information reported by Pitchbook.
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