Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES (Tables)

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CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES (Tables)
 9 Months Ended
Sep. 30, 2024
Investments in and Advances to Affiliates [Abstract]  
Schedule of Investments in and Advances to Affiliates
(in thousands)
Investment(1)
Amount of Interest, Dividends, and Fees Credited to Income(2)
Realized Gain (Loss) Fair Value as of
December 31, 2023
Gross Additions(3)
Gross Reductions(4)
Net Change in Unrealized Appreciation/ (Depreciation) Fair Value as of September 30, 2024
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(8)
Preferred Stock $ —  $ —  $ 260  $ —  $ —  $ 58  $ 318 
  Common Stock —  —  2  —  —  (1) 1 
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(5)
Unsecured Debt 4,034  —  34,478  1,155  —  —  35,633 
  Member Units —  —  28,034  —  —  (6,365) 21,669 
Hercules Adviser LLC(6)
Unsecured Debt 5,457  —  12,000  —  —  —  12,000 
  Member Units —  —  28,713  —  —  2,720  31,433 
Total Majority Owned Control Investments   $ 9,491  $ —  $ 103,487  $ 1,155  $ —  $ (3,588) $ 101,054 
Other Control Investments
Tectura Corporation(7)
Senior Debt $ 518  $ —  $ 8,250  $ —  $ —  $ —  $ 8,250 
  Preferred Stock —  —  3,263  —  —  524  3,787 
  Common Stock —  —  4  —  —  2  6 
Total Other Control Investments   $ 518  $ —  $ 11,517  $ —  $ —  $ 526  $ 12,043 
Total Control Investments $ 10,009  $ —  $ 115,004  $ 1,155  $ —  $ (3,062) $ 113,097 
(1)Stock and warrants are generally non-income producing and restricted.
(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.
(5)As of March 31, 2018, the Company's investment in Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC) became classified as a control investment as a result of obtaining a controlling financial interest. 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.
(6)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.
(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.
(8)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company
Schedule 12 – 14
HERCULES CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
For the Nine Months Ended September 30, 2023 (unaudited)
(in thousands)
Investment(1)
Amount of Interest and Fees Credited to Income(2)
Realized Gain (Loss) Fair Value as of
December 31, 2022
Gross Additions(3)
Gross Reductions(4)
Net Change in Unrealized Appreciation/ (Depreciation) Fair Value as of September 30, 2023
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(8)
Preferred Stock $ —  $ —  $ 313  $ —  $ —  $ (68) $ 245 
  Common Stock —  —  6  —  —  (4) 2 
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)(5)
Unsecured Debt 2,359  —  21,700  9,872  —  2,867  34,439 
  Member Units —  —  15,244  4,500  —  1,809  21,553 
Hercules Adviser LLC(6)
Unsecured Debt 455  —  12,000  —  —  —  12,000 
  Member Units —  —  19,153  —  —  9,515  28,668 
Total Majority Owned Control Investments   $ 2,814  $ —  $ 68,416  $ 14,372  $ —  $ 14,119  $ 96,907 
Other Control Investments
Tectura Corporation(7)
Senior Debt $ 516  $ —  $ 8,042  $ —  $ —  $ (1,799) $ 6,243 
  Preferred Stock —  —  —  —  —  —  — 
  Common Stock —  —  —  —  —  —  — 
Total Other Control Investments   $ 516  $ —  $ 8,042  $ —  $ —  $ (1,799) $ 6,243 
Total Control Investments $ 3,330  $ —  $ 76,458  $ 14,372  $ —  $ 12,320  $ 103,150 
(1)Stock and warrants are generally non-income producing and restricted.
(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.
(5)As of March 31, 2018, the Company's investment in Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC) became classified as a control investment as a result of obtaining a controlling financial interest. 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.
(6)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" for additional disclosure.
(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.
(8)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company.
Schedule 12 – 14
HERCULES CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of September 30, 2024 (unaudited)
(in thousands) Industry
Type of Investment(1)
Maturity Date Interest Rate and Floor Principal or Shares Cost
Value(2)
Portfolio Company
Control Investments      
Majority Owned Control Investments      
Coronado Aesthetics, LLC Medical Devices & Equipment Preferred Series A Equity     5,000,000 $ 250  $ 318 
  Medical Devices & Equipment Common Stock     180,000 —  1 
Total Coronado Aesthetics, LLC   $ 250  $ 319 
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(3)
Diversified Financial Services Unsecured Debt September 2026
FIXED 3.45%, PIK Interest 8.05%
 $ 26,033  25,774  25,774 
  Diversified Financial Services Unsecured Debt September 2026
FIXED 11.95%
 $ 10,000  9,859  9,859 
Diversified Financial Services Member Units 1  34,006  21,669 
Total Gibraltar Acquisition, LLC   $ 69,639  $ 57,302 
Hercules Adviser LLC(4)
Diversified Financial Services Unsecured Debt June 2025
FIXED 5.00%
 $ 12,000  12,000  12,000 
  Diversified Financial Services Member Units     1 35  31,433 
Total Hercules Adviser LLC   $ 12,035  $ 43,433 
Total Majority Owned Control Investments (5.46%)*
   $ 81,924  $ 101,054 
Other Control Investments      
Tectura Corporation Consumer & Business Services Senior Secured Debt January 2027
FIXED 8.25%
 $ 8,250  $ 8,250  $ 8,250 
  Consumer & Business Services Common Stock 414,994,863  900  6 
  Consumer & Business Services Preferred Series BB Equity     1,000,000 —  15 
  Consumer & Business Services Preferred Series C Equity     3,235,298 13,263  3,772 
Total Tectura Corporation   $ 22,413  $ 12,043 
Total Other Control Investments (0.65%)*
   $ 22,413  $ 12,043 
Total Control Investments (6.11%)*
   $ 104,337  $ 113,097 
*Value as a percent of net assets
(1)Stock and warrants are generally non-income producing and restricted.
(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.
(3)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.
(4)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 12 – 14
HERCULES CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of and for the year ended December 31, 2023
(in thousands) Industry
Type of Investment(1)
Maturity Date Interest Rate and Floor Principal or Shares Cost
Value(2)
Portfolio Company
Control Investments      
Majority Owned Control Investments      
Coronado Aesthetics, LLC Medical Devices & Equipment Preferred Series A Equity     5,000,000 $ 250  $ 260 
  Medical Devices & Equipment Common Stock     180,000 —  2 
Total Coronado Aesthetics, LLC   $ 250  $ 262 
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)(3)
Diversified Financial Services Unsecured Debt September 2026
Interest rate FIXED 11.50%
 $ 25,000  24,663  24,663 
  Diversified Financial Services Unsecured Debt September 2026
Interest rate FIXED 11.95%
 $ 10,000  9,815  9,815 
  Diversified Financial Services Member Units     1 34,006  28,034 
Total Gibraltar Acquisition, LLC   $ 68,484  $ 62,512 
Hercules Adviser LLC(4)
Diversified Financial Services Unsecured Debt June 2025
Interest rate FIXED 5.00%
 $ 12,000  12,000  12,000 
  Diversified Financial Services Member Units     1 35  28,713 
Total Hercules Adviser LLC   $ 12,035  $ 40,713 
Total Majority Owned Control Investments (5.74%)*
 $ 80,769  $ 103,487 
Other Control Investments      
Tectura Corporation Consumer & Business Services Senior Secured Debt July 2024
Interest rate FIXED 8.25%
 $ 8,250  $ 8,250  $ 8,250 
  Consumer & Business Services Common Stock 414,994,863  900  4 
  Consumer & Business Services Preferred Series BB Equity     1,000,000 —  12 
  Consumer & Business Services Preferred Series C Equity     3,235,298 13,263  3,251 
Total Tectura Corporation   $ 22,413  $ 11,517 
Total Other Control Investments (0.64%)*
 $ 22,413  $ 11,517 
Total Control Investments (6.38%)*
   $ 103,182  $ 115,004 
*Value as a percent of net assets
(1)Stock and warrants are generally non-income producing and restricted.
(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.
(3)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.
(4)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.