Quarterly report [Sections 13 or 15(d)]

Investments (Tables)

v3.25.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2025
Schedule of Investments [Abstract]  
Schedule of Investments in and Advances to Affiliates
The following table summarizes the Company’s realized gains and losses and changes in unrealized appreciation and depreciation on control and affiliate investments for the three and six months ended June 30, 2025 and 2024.
(in thousands) Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
Portfolio Company(1)
Type Fair Value as of June 30, 2025 Interest & Dividend Income Fee Income Net Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss) Interest & Dividend Income Fee Income Net Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss)
Control Investments
Coronado Aesthetics, LLC Control $ 313  $ —  $ —  $ 267  $ —  $ —  $ —  $ 244  $ — 
Gibraltar Acquisition LLC(2)
Control 60,343  1,096  41  1,444  —  2,663  80  504  — 
Hercules Adviser LLC(3)
Control 44,222  2,100  —  (795) —  4,000  —  2,032  — 
Tectura Corporation Control 10,018  172  —  (1,752) —  342  —  (1,639) — 
Total Control Investments $ 114,896  $ 3,368  $ 41  $ (836) $ —  $ 7,005  $ 80  $ 1,141  $ — 
(in thousands) Three Months Ended June 30, 2024 Six Months Ended June 30, 2024
Portfolio Company(1)
Type Fair Value as of June 30, 2024 Interest & Dividend Income Fee Income Net Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss) Interest & Dividend Income Fee Income Net Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss)
Control Investments
Coronado Aesthetics, LLC Control $ 186  $ —  $ —  $ (97) $ —  $ —  $ —  $ (76) $ — 
Gibraltar Acquisition, LLC(2)
Control 56,811  1,534  36  (1,670) —  2,567  72  (6,291) — 
Hercules Adviser LLC(3)
Control 42,728  1,751  —  844  —  3,503  —  2,015  — 
Tectura Corporation Control 11,534  172  —  (583) —  344  —  17  — 
Total Control Investments $ 111,259  $ 3,457  $ 36  $ (1,506) $ —  $ 6,414  $ 72  $ (4,335) $ — 
(1)In accordance with Rules 3-09, 4-08(g), and Rule 10-01(b)(1) of Regulation S-X, (“Rule 3-09”, “Rule 4-08(g)”, and “Rule 10-01(b)(1)”, respectively), the Company must determine if its unconsolidated subsidiaries are considered “significant subsidiaries”. As of June 30, 2025 and June 30, 2024, there were no unconsolidated subsidiaries that are considered “significant subsidiaries”.
(2)Gibraltar Acquisition LLC is a wholly-owned subsidiary, which is the holding company for their wholly-owned affiliated portfolio companies, Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC. The subsidiary has no significant assets or liabilities, other than their equity and debt investments and equity interest in Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC, respectively.
(3)Hercules Adviser LLC is owned by Hercules Capital Management LLC and presented with Hercules Partner Holdings, LLC which are both wholly owned by the Company. Please refer to “Note 1 - Description of Business” for additional disclosure.
Schedule of Investments Portfolio
The following table shows the fair value of the Company’s portfolio of investments by asset class as of June 30, 2025 and December 31, 2024:
(in thousands) June 30, 2025 December 31, 2024
Investments at
Fair Value		 Percentage of
Total Portfolio		 Investments at
Fair Value		 Percentage of
Total Portfolio
Senior Secured Debt $ 3,912,165  93.7 % $ 3,419,044  93.4 %
Unsecured Debt 66,530  1.6 % 75,557  2.1 %
Preferred Stock 54,649  1.3 % 53,802  1.5 %
Common Stock 101,102  2.4 % 74,855  2.0 %
Warrants 35,547  0.8 % 30,500  0.8 %
Investment Funds & Vehicles 6,493  0.2 % 6,220  0.2 %
Total $ 4,176,486  100.0 % $ 3,659,978  100.0 %
A summary of the Company’s investment portfolio, at value, by geographic location as of June 30, 2025 and December 31, 2024 is shown as follows:
(in thousands) June 30, 2025 December 31, 2024
Investments at
Fair Value		 Percentage of
Total Portfolio		 Investments at
Fair Value		 Percentage of
Total Portfolio
United States $ 3,759,076  90.0 % $ 3,288,737  89.9 %
United Kingdom 131,617  3.2 % 142,183  3.9 %
Netherlands 124,548  3.0 % 59,157  1.6 %
Germany 49,771  1.2 % 49,255  1.3 %
Israel 44,767  1.1 % 88,066  2.4 %
Switzerland 34,255  0.8 % —  0.0 %
Canada 16,321  0.4 % 16,251  0.4 %
Denmark 9,231  0.2 % 9,284  0.3 %
Ireland 4,622  0.1 % 4,649  0.1 %
Singapore 1,915  0.0 % 1,996  0.1 %
Other 363  0.0 % 400  0.0 %
Total $ 4,176,486  100.0 % $ 3,659,978  100.0  %
The following table shows the fair value of the Company’s portfolio by industry sector as of June 30, 2025 and December 31, 2024:
(in thousands) June 30, 2025 December 31, 2024
Investments at
Fair Value		 Percentage of
Total Portfolio 		Investments at
Fair Value		 Percentage of
Total Portfolio
Software $ 1,471,080  35.2 % $ 1,081,100  29.5 %
Drug Discovery & Development 1,035,769  24.8 % 1,080,390  29.5 %
Healthcare Services, Other 755,202  18.1 % 610,184  16.7 %
Consumer & Business Services 375,233  9.0 % 372,641  10.2 %
Defense Technologies 139,991  3.4 % —  0.0 %
Diversified Financial Services 118,110  2.8 % 113,491  3.1 %
Medical Devices & Equipment 75,436  1.8 % 74,962  2.0 %
Electronics & Computer Hardware 50,666  1.2 % 162,888  4.5 %
Biotechnology Tools 34,836  0.8 % 35,434  1.0 %
Communications & Networking 27,937  0.7 % 27,700  0.8 %
Information Services 24,233  0.6 % 24,356  0.7 %
Sustainable and Renewable Technology 22,723  0.5 % 27,696  0.8 %
Manufacturing Technology 20,650  0.5 % 1,162  0.0 %
Space Technologies 15,446  0.4 % 45,700  1.2 %
Consumer & Business Products 8,663  0.2 % 1,497  0.0 %
Semiconductors 345  0.0 % 704  0.0 %
Media/Content/Info 157  0.0 % 63  0.0 %
Drug Delivery 9  0.0 % 10  0.0 %
Total $ 4,176,486  100.0 % $ 3,659,978  100.0 %
The following table summarizes information related to our SBICs as of June 30, 2025 and December 31, 2024.
June 30, 2025 December 31, 2024
Description HC IV SBIC V HC IV SBIC V
Number of investments held 41 23 33 11 
Fair value of investments (in millions) $ 411.9 $ 267.3 $ 377.7 $ 155.6 
Percentage of fair value of investments based on the Company's total investment portfolio 9.9  % 6.4  % 10.3  % 4.3  %
Tangible assets (in millions) $ 416.5 $ 269.8 $ 382.9 $ 157.8 
Percentage of tangible assets based on the Company's total assets 9.7  % 6.3  % 10.0  % 4.1  %
Schedule of Investment Collateral The Company's investments were collateralized as follows as of June 30, 2025 and December 31, 2024:
Percentage of debt investments (at fair value), as of
June 30, 2025 December 31, 2024
Senior Secured First Lien
All assets including intellectual property 69.6  % 67.1  %
All assets with negative pledge on intellectual property 13.5  % 14.2  %
“Last-out” with security interest in all of the assets 7.9  % 9.7  %
Total senior secured first lien position 91.0  % 91.0  %
Second lien 7.3  % 6.8  %
Unsecured 1.7  % 2.2  %
Total debt investments at fair value 100.0  % 100.0  %
Summary of Fair Value and Location of the Company's Derivative Instruments The following is a summary of the fair value and location of the Company’s derivative instruments in the Consolidated Statements of Assets and Liabilities held as of June 30, 2025 and December 31, 2024:
(in thousands) Fair Value
Derivative Instrument Statement Location June 30, 2025 December 31, 2024
Foreign currency forward contract Other assets $ —  $ 538 
Foreign currency forward contract Accounts payable and accrued liabilities 507  — 
Total $ 507  $ 538 
Summary of Net Realized and Unrealized Gains and Losses
Net realized and unrealized gains and losses on derivative instruments recorded by the Company during the three and six months ended June 30, 2025 and 2024 are in the following locations in the Consolidated Statements of Operations:
(in thousands)   Three Months Ended June 30, Six Months Ended June 30,
Derivative Instrument Statement Location 2025 2024 2025 2024
Foreign currency forward contract Net realized gain (loss) - Non-control / Non-affiliate investments $ (1,551) $ (849) $ (1,551) $ (849)
Foreign currency forward contract Net change in unrealized appreciation (depreciation) - Non-control / Non-affiliate investments (205) 725  (1,045) 954 
  Total $ (1,756) $ (124) $ (2,596) $ 105 
Schedule of Investment Interest Income and Fee Income
The Company’s investment portfolio generates interest, fee, and dividend income. The composition of the Company’s interest income and fee income is as follows:
(in thousands) Three Months Ended June 30, Six Months Ended June 30,
  2025 2024 2025 2024
Contractual interest income $ 95,421  $ 87,439  $ 183,238  $ 178,153 
Exit fee interest income 14,790  10,592  25,018  22,472 
PIK interest income 13,635  15,267  27,108  25,164 
Dividend income 2,100  2,100  4,500  3,700 
Other investment income(1)
3,625  2,131  5,279  3,819 
Total interest and dividend income $ 129,571  $ 117,529  $ 245,143  $ 233,308 
Recurring fee income $ 2,754  $ 2,203  $ 5,434  $ 4,658 
Fee income - expired commitments 715  730  1,032  1,377 
Accelerated fee income - early repayments 4,419  4,544  5,361  7,216 
Total fee income $ 7,888  $ 7,477  $ 11,827  $ 13,251 
(1)Other investment income includes OID interest income and interest recorded on other assets.
Schedule of Unamortized Capitalized Fee Income
As of June 30, 2025 and December 31, 2024, unamortized capitalized fee income was recorded as follows:
(in millions) June 30,
2025		 December 31,
2024
Offset against debt investment cost $ 39.7  $ 36.9 
Deferred obligation contingent on funding or other milestone 9.9  9.1 
Total Unamortized Fee Income $ 49.6  $ 46.0 
Schedule of Loan Exit Fees Receivable
As of June 30, 2025 and December 31, 2024, loan exit fees receivable were recorded as follows:
(in millions) June 30,
2025		 December 31,
2024
Included within debt investment cost $ 42.2  $ 39.2 
Deferred receivable related to expired commitments 2.4  3.0 
Total Exit Fees Receivable $ 44.6  $ 42.2