Quarterly report [Sections 13 or 15(d)]

Investments (Tables)

v3.26.1
Investments (Tables)
 6 Months Ended
Jun. 30, 2026
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, 2026 and 2025.
(in thousands) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026
Portfolio Company(1)
Type Fair Value as of June 30, 2026 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 $ 222  $ —  $ —  $ 64  $ —  $ —  $ —  $ 4  $ — 
Gibraltar Acquisition LLC(2)
Control 62,744  1,141  31  845  —  2,269  66  1,058  — 
Hercules Adviser LLC(3)
Control 48,535  2,152  —  (602) —  4,253  —  (2,739) — 
Tectura Corporation Control 9,032  171  —  (754) —  341  —  (309) — 
Total Control Investments $ 120,533  $ 3,464  $ 31  $ (447) $ —  $ 6,863  $ 66  $ (1,986) $ — 
(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  $ — 
(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, 2026 and June 30, 2025, 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, 2026 and December 31, 2025:
(in thousands) June 30, 2026 December 31, 2025
Investments at
Fair Value		 Percentage of
Total Portfolio		 Investments at
Fair Value		 Percentage of
Total Portfolio
Senior Secured Debt $ 4,299,681  93.8 % $ 4,209,798  94.2 %
Unsecured Debt 76,543  1.7 % 69,614  1.6 %
Preferred Stock 55,378  1.2 % 52,735  1.2 %
Common Stock 93,924  2.0 % 86,275  1.9 %
Warrants 51,295  1.1 % 41,162  0.9 %
Investment Funds & Vehicles 7,049  0.2 % 7,063  0.2 %
Total $ 4,583,870  100.0 % $ 4,466,647  100.0 %
A summary of the Company’s investment portfolio, at value, by geographic location as of June 30, 2026 and December 31, 2025 is shown as follows:
(in thousands) June 30, 2026 December 31, 2025
Investments at
Fair Value		 Percentage of
Total Portfolio		 Investments at
Fair Value		 Percentage of
Total Portfolio
United States $ 4,104,784  89.5 % $ 4,035,927  90.4 %
United Kingdom 137,001  3.0 % 118,031  2.7 %
Netherlands 115,762  2.5 % 117,344  2.6 %
Israel 67,569  1.5 % 67,280  1.5 %
Germany 59,775  1.3 % 50,386  1.1 %
Switzerland 48,731  1.1 % 35,504  0.8 %
Sweden 21,054  0.5 % 18,244  0.4 %
Canada 17,978  0.4 % 16,841  0.4 %
Ireland 10,764  0.2 % 4,729  0.1 %
Singapore —  0.0 % 1,827  0.0 %
Other(1)
452  0.0 % 534  0.0 %
Total $ 4,583,870  100.0 % $ 4,466,647  100.0  %
(1)The Company’s investment portfolio based in Denmark has been consolidated with “Other”. Prior year amounts have been reclassified to conform to the current presentation.
The following table shows the fair value of the Company’s portfolio by industry sector as of June 30, 2026 and December 31, 2025:
(in thousands) June 30, 2026 December 31, 2025
Investments at
Fair Value		 Percentage of
Total Portfolio 		Investments at
Fair Value		 Percentage of
Total Portfolio
Application Software $ 1,125,910  24.6 % $ 1,087,954  24.3 %
Drug Discovery & Development 1,027,017  22.4 % 1,039,712  23.3 %
Healthcare Services, Other 879,316  19.2 % 838,508  18.8 %
Consumer & Business Services 393,498  8.6 % 449,631  10.1 %
System Software 376,427  8.2 % 472,144  10.6 %
Defense Technologies 253,604  5.5 % 140,458  3.1 %
Diversified Financial Services 111,279  2.4 % 105,896  2.4 %
Medical Devices & Equipment 98,666  2.1 % 77,257  1.7 %
Electronics & Computer Hardware 66,766  1.5 % 66,992  1.5 %
Space Technologies 54,568  1.2 % 47,816  1.1 %
Consumer & Business Products 42,331  0.9 % 8,810  0.2 %
Sustainable and Renewable Technology 41,254  0.9 % 35,759  0.8 %
Communications & Networking 34,677  0.8 % 26,263  0.6 %
Biotechnology Tools 30,009  0.7 % 23,164  0.5 %
Information Services 27,421  0.6 % 25,889  0.6 %
Manufacturing Technology 20,866  0.4 % 20,190  0.4 %
Semiconductors 198  0.0 % 158  0.0 %
Media/Content/Info 50  0.0 % 32  0.0 %
Drug Delivery 13  0.0 % 14  0.0 %
Total $ 4,583,870  100.0 % $ 4,466,647  100.0 %
The following table summarizes information related to our SBICs as of June 30, 2026 and December 31, 2025.
June 30, 2026 December 31, 2025
Description HC IV SBIC V HC IV SBIC V
Number of investments held 39 36 39 28 
Fair value of investments (in millions) $ 400.7 $ 288.0 $ 404.8 $ 277.6 
Percentage of fair value of investments based on the Company's total investment portfolio 8.7  % 6.3  % 9.1  % 6.2  %
Tangible assets (in millions) $ 406.5 $ 293.4 $ 421.2 $ 283.1 
Percentage of tangible assets based on the Company's total assets 8.7  % 6.3  % 9.2  % 6.2  %
Schedule of Investment Collateral The Company's investments were collateralized as follows as of June 30, 2026 and December 31, 2025:
Percentage of debt investments (at fair value), as of
June 30, 2026 December 31, 2025
Senior Secured First Lien
All assets including intellectual property 75.1  % 72.8  %
All assets with negative pledge on intellectual property 5.2  % 9.5  %
“Last-out” with security interest in all of the assets 6.5  % 7.0  %
Total senior secured first lien position 86.8  % 89.3  %
Second lien 11.5  % 9.1  %
Unsecured 1.7  % 1.6  %
Total debt investments at fair value 100.0  % 100.0  %
Schedule 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, 2026 and December 31, 2025:
(in thousands) Fair Value
Derivative Instrument Statement Location June 30, 2026 December 31, 2025
Foreign currency forward contract Other assets $ 354  $ 50 
Total $ 354  $ 50 
Schedule 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, 2026 and 2025 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 2026 2025 2026 2025
Foreign currency forward contract Net realized gain (loss) - Non-control / Non-affiliate investments $ 25  $ (1,551) $ 25  $ (1,551)
Foreign currency forward contract Net change in unrealized appreciation (depreciation) - Non-control / Non-affiliate investments (168) (205) 304  (1,045)
  Total $ (143) $ (1,756) $ 329  $ (2,596)
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,
  2026 2025 2026 2025
Contractual interest income $ 104,135  $ 95,421  $ 208,217  $ 183,238 
Exit fee interest income 16,245  14,790  30,943  25,018 
PIK interest income 12,342  13,635  25,256  27,108 
Dividend income 2,100  2,100  4,200  4,500 
Other investment income(1)
3,220  3,625  5,829  5,279 
Total interest and dividend income $ 138,042  $ 129,571  $ 274,445  $ 245,143 
Recurring fee income $ 3,275  $ 2,754  $ 6,187  $ 5,434 
Fee income - expired commitments 747  715  1,310  1,032 
Accelerated fee income - early repayments 7,050  4,419  8,708  5,361 
Total fee income $ 11,072  $ 7,888  $ 16,205  $ 11,827 
(1)Other investment income includes OID interest income and interest recorded on other assets.
Schedule of Unamortized Capitalized Fee Income
As of June 30, 2026 and December 31, 2025, unamortized capitalized fee income was recorded as follows:
(in millions) June 30,
2026		 December 31,
2025
Offset against debt investment cost $ 42.8  $ 42.5 
Deferred obligation contingent on funding or other milestone 10.4  9.8 
Total Unamortized Fee Income $ 53.2  $ 52.3 
Schedule of Loan Exit Fees Receivable
As of June 30, 2026 and December 31, 2025, loan exit fees receivable were recorded as follows:
(in millions) June 30,
2026		 December 31,
2025
Included within debt investment cost $ 43.6  $ 48.6 
Deferred receivable related to expired commitments 4.4  4.5 
Total Exit Fees Receivable $ 48.0  $ 53.1