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Schedule 12-14s - CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES (Tables)
 12 Months Ended
Dec. 31, 2023
Investments in and Advances to Affiliates [Abstract]  
Schedule of Investments in and Advances to Affiliates, Schedule of Investments
(in thousands)
Portfolio Company
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 December 31, 2023
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC (8)
Preferred Stock$— $— $313 $— — $(53)$260 
 Common Stock— — 6 — — (4)2 
Gibraltar Acquisition LLC (pka as Gibraltar Business Capital, LLC) (5)
Unsecured Debt3,439 — 21,700 9,912 — 2,866 34,478 
 Member Units— — 15,244 6,000 — 6,790 28,034 
Hercules Adviser LLC (6)
Unsecured Debt608 — 12,000 — — — 12,000 
Member Units— — 19,153 — — 9,560 28,713 
Total Majority Owned Control Investments$4,047 $— $68,416 $15,912 $— $19,159 $103,487 
Other Control Investments
Tectura Corporation(7)
Senior Debt$690 $— $8,042 $— $(13,263)$13,471 $8,250 
 Preferred Stock— — — 13,263 — (10,000)3,263 
 Common Stock— — — — — 4 4 
Total Other Control Investments $690 $— $8,042 $13,263 $(13,263)$3,475 $11,517 
Total Control Investments$4,737 $— $76,458 $29,175 $(13,263)$22,634 $115,004 
(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.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of and for the year ended December 31, 2022
(in thousands)
Portfolio Company
Investment (1)
Amount of Interest and Fees Credited to Income (2)
Realized Gain (Loss) Fair Value as of December 31, 2021
Gross Additions (3)
Gross Reductions (4)
Net Change in Unrealized Appreciation/ (Depreciation) Fair Value as of December 31, 2022
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC (9)
Preferred Stock$— $— $500 $— — $(187)$313 
Common Stock— — 65 — — (59)6 
Gibraltar Business Capital, LLC (5)
Unsecured Debt3,453 — 23,212 82 — (1,594)21,700 
Preferred Stock— — 19,393 — — (5,256)14,137 
Common Stock— — 1,225 — — (118)1,107 
Hercules Adviser LLC (6)
Unsecured Debt546 — 8,850 3,150 — — 12,000 
Member Units— — 11,990 — — 7,163 19,153 
Total Majority Owned Control Investments$3,999 $— $65,235 $3,232 $— $(51)$68,416 
Other Control Investments
Tectura Corporation(7)
Senior Debt$690 $— $8,269 $— $— $(227)$8,042 
Preferred Stock— — — — — — — 
Common Stock— — — — — — — 
Total Other Control Investments$690 $— $8,269 $— $— $(227)$8,042 
Total Control Investments$4,689 $— $73,504 $3,232 $— $(278)$76,458 
Affiliate Investments
Black Crow AI, Inc. (8)
Preferred Stock$— $3,772 $1,120 $— $(1,000)$(120)$— 
Pineapple Energy LLC (8)
Senior Debt1,204 (2,014)7,747 — (7,780)33 — 
Common Stock— — 591 — (4,767)4,176 — 
Total Affiliate Investments$1,204 $1,758 $9,458 $— $(13,547)$4,089 $— 
Total Control and Affiliate Investments$5,893 $1,758 $82,962 $3,232 $(13,547)$3,811 $76,458 
(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 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 September 30, 2022, Black Crow AI, Inc. and Pineapple Energy LLC were no longer affiliates as defined under the 1940 Act.
(9)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.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of and for the year ended December 31, 2023
(in thousands)
Portfolio CompanyIndustry
Type of Investment (1)
Maturity DateInterest Rate and FloorPrincipal
or Shares		Cost
Value (2)
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLCMedical Devices & EquipmentPreferred Series A Equity5,000,000$250 $260 
Medical Devices & EquipmentCommon Stock180,000— 2 
Total Coronado Aesthetics, LLC$250 $262 
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(3)
Diversified Financial ServicesUnsecured DebtSeptember 2026
Interest rate FIXED 11.50%
$25,000 24,663 24,663 
Diversified Financial ServicesUnsecured DebtSeptember 2026
Interest rate FIXED 11.95%
$10,000 9,815 9,815 
Diversified Financial ServicesMember Units134,006 28,034 
Total Gibraltar Acquisition, LLC$68,484 $62,512 
Hercules Adviser LLC(4)
Diversified Financial ServicesUnsecured DebtJune 2025
Interest rate FIXED 5.00%
$12,000 12,000 12,000 
Diversified Financial ServicesMember Units135 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 CorporationConsumer & Business ServicesSenior Secured DebtJuly 2024
Interest rate FIXED 8.25%
$8,250 $8,250 $8,250 
Consumer & Business ServicesCommon Stock414,994,863 900 4 
Consumer & Business ServicesPreferred Series BB Equity1,000,000 — 12 
Consumer & Business ServicesPreferred Series C Equity3,235,29813,263 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” for additional disclosure.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of and for the year ended December 31, 2022
(in thousands)
Portfolio CompanyIndustry
Type of Investment (1)
Maturity DateInterest Rate and Floor
Principal or Shares
Cost
Value (2)
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLCMedical Devices & EquipmentPreferred Series A Equity5,000,000$250 $313 
Medical Devices & EquipmentCommon Stock180,000— 6 
Total Coronado Aesthetics, LLC$250 $319 
Gibraltar Business Capital, LLCDiversified Financial ServicesUnsecured DebtSeptember 2026
Interest rate FIXED 14.50%
$15,000 14,715 12,802 
Diversified Financial ServicesUnsecured DebtSeptember 2026
Interest rate FIXED 11.50%
$10,000 9,852 8,898 
Diversified Financial ServicesPreferred Series A Equity10,602,75226,122 14,137 
Diversified Financial ServicesCommon Stock830,0001,884 1,107 
Total Gibraltar Business Capital, LLC$52,573 $36,944 
Hercules Adviser LLCDiversified Financial ServicesUnsecured DebtJune 2025
Interest rate FIXED 5.00%
$12,000 12,000 12,000 
Diversified Financial ServicesMember Units135 19,153 
Total Hercules Adviser LLC$12,035 $31,153 
Total Majority Owned Control Investments (4.88%)*
$64,858 $68,416 
Other Control Investments
Tectura CorporationConsumer & Business ServicesSenior Secured DebtJuly 2024
PIK Interest 5.00%
$10,680 $240 $— 
Consumer & Business ServicesSenior Secured DebtJuly 2024
Interest rate FIXED 8.25%
$8,250 8,250 8,042 
Consumer & Business ServicesSenior Secured DebtJuly 2024
PIK Interest 5.00%
$13,023 13,023 — 
Consumer & Business ServicesPreferred Series BB Equity1,000,000— — 
Consumer & Business ServicesCommon Stock414,994,863900 — 
Total Tectura Corporation$22,413 $8,042 
Total Other Control Investments (0.58%)*
$22,413 $8,042 
Total Control Investments (5.46%)*
$87,271 $76,458 
*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.