Quarterly report pursuant to Section 13 or 15(d)

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

v3.24.1.u1
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES (Tables)
 3 Months Ended
Mar. 31, 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 March 31, 2024
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(8)
Preferred Stock $ —  $ —  $ 260  $ —  $ —  $ 22  $ 282 
  Common Stock —  —  2  —  —  (1) 1 
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(5)
Unsecured Debt 1,069  —  34,478  40  —  —  34,518 
  Member Units —  —  28,034  —  —  (4,621) 23,413 
Hercules Adviser LLC(6)
Unsecured Debt 1,752  —  12,000  —  —  —  12,000 
  Member Units —  —  28,713  —  —  1,171  29,884 
Total Majority Owned Control Investments   $ 2,821  $ —  $ 103,487  $ 40  $ —  $ (3,429) $ 100,098 
Other Control Investments
Tectura Corporation(7)
Senior Debt $ 172  $ —  $ 8,250  $ —  $ —  $ —  $ 8,250 
  Preferred Stock —  —  3,263  —  —  593  3,856 
  Common Stock —  —  4  —  —  7  11 
Total Other Control Investments   $ 172  $ —  $ 11,517  $ —  $ —  $ 600  $ 12,117 
Total Control Investments $ 2,993  $ —  $ 115,004  $ 40  $ —  $ (2,829) $ 112,215 
(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 Three Months Ended March 31, 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 March 31, 2023
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC (8)
Preferred Stock $ —  $ —  $ 313  $ —  $ —  $ (60) $ 253 
  Common Stock —  —  6  —  —  (3) 3 
Gibraltar Acquisition, LLC (pka Gibraltar Business Capital, LLC)(5)
Unsecured Debt 815  —  21,700  22  —  2,867  24,589 
  Preferred Stock —  —  14,137  —  —  805  14,942 
  Common Stock —  —  1,107  —  —  63  1,170 
Hercules Adviser LLC (6)
Unsecured Debt 150  —  12,000  —  —  —  12,000 
  Member Units —  —  19,153  —  —  5,442  24,595 
Total Majority Owned Control Investments   $ 965  $ —  $ 68,416  $ 22  $ —  $ 9,114  $ 77,552 
Other Control Investments
Tectura Corporation(7)
Senior Debt $ 170  $ —  $ 8,042  $ —  $ —  $ (268) $ 7,774 
  Preferred Stock —  —  —  —  —  —  — 
  Common Stock —  —  —  —  —  —  — 
Total Other Control Investments   $ 170  $ —  $ 8,042  $ —  $ —  $ (268) $ 7,774 
Total Control Investments $ 1,135  $ —  $ 76,458  $ 22  $ —  $ 8,846  $ 85,326 
(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.
(6)Hercules Adviser LLC is a wholly-owned subsidiary providing investment management and other services to the Adviser Funds and other External Parties.
(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 March 31, 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  $ 282 
  Medical Devices & Equipment Common Stock     180,000 —  1 
Total Coronado Aesthetics, LLC   $ 250  $ 283 
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  24,689  24,689 
  Diversified Financial Services Unsecured Debt September 2026
Interest rate FIXED 11.95%
 $ 10,000  9,830  9,829 
Diversified Financial Services Member Units 1  34,006  23,413 
Total Gibraltar Acquisition, LLC   $ 68,525  $ 57,931 
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  29,884 
Total Hercules Adviser LLC   $ 12,035  $ 41,884 
Total Majority Owned Control Investments (5.31%)*
   $ 80,810  $ 100,098 
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  11 
  Consumer & Business Services Preferred Series BB Equity     1,000,000 —  24 
  Consumer & Business Services Preferred Series C Equity     3,235,298 13,263  3,832 
Total Tectura Corporation   $ 22,413  $ 12,117 
Total Other Control Investments (0.64%)*
   $ 22,413  $ 12,117 
Total Control Investments (5.95%)*
   $ 103,223  $ 112,215 
*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.