XML 42 R30.htm IDEA: XBRL DOCUMENT

Investments (Tables)

9 Months Ended

Sep. 30, 2025

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 nine months ended September 30, 2025 and 2024.


(in thousands)				Three Months Ended September 30, 2025								Nine Months Ended September 30, 2025
Portfolio Company(1)	Type	Fair Value as of September 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	$	344	$	—	$	—	$	31	$	—	$	—	$	—	$	275	$	—
Gibraltar Acquisition LLC(2)	Control	60,193		1,123		44		(118)		—		3,786		124		386		—
Hercules Adviser LLC(3)	Control	43,510		2,100		—		(712)		—		6,100		—		1,320		—
Tectura Corporation	Control	8,276		174		—		(1,742)		—		516		—		(3,381)		—
Total Control Investments		$	112,323	$	3,397	$	44	$	(2,541)	$	—	$	10,402	$	124	$	(1,400)	$	—


(in thousands)				Three Months Ended September 30, 2024								Nine Months Ended September 30, 2024
Portfolio Company(1)	Type	Fair Value as of September 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	$	319	$	—	$	—	$	133	$	—	$	—	$	—	$	57	$	—
Gibraltar Acquisition, LLC(2)	Control	57,302		1,359		36		(74)		—		3,926		108		(6,365)		—
Hercules Adviser LLC(3)	Control	43,433		1,954		—		705		—		5,457		—		2,720		—
Tectura Corporation	Control	12,043		174		—		509		—		518		—		526		—
Total Control Investments		$	113,097	$	3,487	$	36	$	1,273	$	—	$	9,901	$	108	$	(3,062)	$	—

(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 September 30, 2025 and September 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 September 30, 2025 and December 31, 2024:


(in thousands)	September 30, 2025				December 31, 2024

	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
Senior Secured Debt	$	4,027,409	93.5	%	$	3,419,044	93.4	%
Unsecured Debt	68,149		1.6	%	75,557		2.1	%
Preferred Stock	51,822		1.2	%	53,802		1.5	%
Common Stock	111,460		2.6	%	74,855		2.0	%
Warrants	40,675		0.9	%	30,500		0.8	%
Investment Funds & Vehicles	6,639		0.2	%	6,220		0.2	%
Total	$	4,306,154	100.0	%	$	3,659,978	100.0	%

A summary of the Company’s investment portfolio, at value, by geographic location as of September 30, 2025 and December 31, 2024 is shown as follows:


(in thousands)	September 30, 2025				December 31, 2024
	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
United States	$	3,892,061	90.4	%	$	3,288,737	89.9	%
Netherlands	118,026		2.8	%	59,157		1.6	%
United Kingdom	117,032		2.7	%	142,183		3.9	%
Israel	61,553		1.4	%	88,066		2.4	%
Germany	50,419		1.2	%	49,255		1.3	%
Switzerland	34,078		0.8	%	—		0.0	%
Canada	16,659		0.4	%	16,251		0.4	%
Denmark	9,536		0.2	%	9,284		0.3	%
Ireland	4,716		0.1	%	4,649		0.1	%
Singapore	1,711		0.0	%	1,996		0.1	%
Other	363		0.0	%	400		0.0	%
Total	$	4,306,154	100.0	%	$	3,659,978	100.0	%

The following table shows the fair value of the Company’s portfolio by industry sector as of September 30, 2025 and December 31, 2024:


(in thousands)	September 30, 2025				December 31, 2024
	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
Software	$	1,519,464	35.3	%	$	1,081,100	29.5	%
Drug Discovery & Development	988,816		23.0	%	1,080,390		29.5	%
Healthcare Services, Other	833,492		19.3	%	610,184		16.7	%
Consumer & Business Services	433,323		10.1	%	372,641		10.2	%
Defense Technologies	140,622		3.3	%	—		0.0	%
Diversified Financial Services	104,221		2.4	%	113,491		3.1	%
Medical Devices & Equipment	76,389		1.8	%	74,962		2.0	%
Electronics & Computer Hardware	51,080		1.2	%	162,888		4.5	%
Space Technologies	34,019		0.8	%	45,700		1.2	%
Communications & Networking	27,535		0.6	%	27,700		0.8	%
Information Services	23,988		0.5	%	24,356		0.7	%
Biotechnology Tools	22,326		0.5	%	35,434		1.0	%
Sustainable and Renewable Technology	21,300		0.5	%	27,696		0.8	%
Manufacturing Technology	20,419		0.5	%	1,162		0.0	%
Consumer & Business Products	8,716		0.2	%	1,497		0.0	%
Semiconductors	339		0.0	%	704		0.0	%
Media/Content/Info	93		0.0	%	63		0.0	%
Drug Delivery	12		0.0	%	10		0.0	%
Total	$	4,306,154	100.0	%	$	3,659,978	100.0	%

The following table summarizes information related to our SBICs as of September 30, 2025 and December 31, 2024.


	September 30, 2025						December 31, 2024
Description	HC IV			SBIC V			HC IV			SBIC V
Number of investments held	40			23			33			11
Fair value of investments (in millions)	$	411.3		$	272.5		$	377.7		$	155.6
Percentage of fair value of investments based on the Company's total investment portfolio	9.6		%	6.3		%	10.3		%	4.3		%
Tangible assets (in millions)	$	416.3		$	276.3		$	382.9		$	157.8
Percentage of tangible assets based on the Company's total assets	9.4		%	6.3		%	10.0		%	4.1		%

Schedule of Investment Collateral

The Company's investments were collateralized as follows as of September 30, 2025 and December 31, 2024:


	Percentage of debt investments (at fair value), as of
	September 30, 2025		December 31, 2024
Senior Secured First Lien
All assets including intellectual property	72.4	%	67.1	%
All assets with negative pledge on intellectual property	10.4	%	14.2	%
“Last-out” with security interest in all of the assets	7.6	%	9.7	%
Total senior secured first lien position	90.4	%	91.0	%
Second lien	7.9	%	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 September 30, 2025 and December 31, 2024:


(in thousands)		Fair Value
Derivative Instrument	Statement Location	September 30, 2025		December 31, 2024
Foreign currency forward contract	Other assets	$	86	$	538

	Total	$	86	$	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 nine months ended September 30, 2025 and 2024 are in the following locations in the Consolidated Statements of Operations:


(in thousands)		Three Months Ended September 30,				Nine Months Ended September 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)
Foreign currency forward contract	Net change in unrealized appreciation (depreciation) - Non-control / Non-affiliate investments	593		(1,356)		(452)		(402)
	Total	$	593	$	(1,356)	$	(2,003)	$	(1,251)

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Contractual interest income	$	97,533	$	90,288	$	280,771	$	268,441
Exit fee interest income	14,246		12,047		39,264		34,519
PIK interest income	14,475		12,706		41,583		37,870
Dividend income	2,100		2,100		6,600		5,800
Other investment income(1)	2,803		1,909		8,082		5,728
Total interest and dividend income	$	131,157	$	119,050	$	376,300	$	352,358

Recurring fee income	$	2,945	$	2,423	$	8,379	$	7,081
Fee income - expired commitments	454		413		1,486		1,790
Accelerated fee income - early repayments	3,537		3,362		8,898		10,578
Total fee income	$	6,936	$	6,198	$	18,763	$	19,449

(1)Other investment income includes OID interest income and interest recorded on other assets.

Schedule of Unamortized Capitalized Fee Income

As of September 30, 2025 and December 31, 2024, unamortized capitalized fee income was recorded as follows:


(in millions)	September 30, 2025		December 31, 2024
Offset against debt investment cost	$	41.6	$	36.9
Deferred obligation contingent on funding or other milestone	11.2		9.1
Total Unamortized Fee Income	$	52.8	$	46.0

Schedule of Loan Exit Fees Receivable

As of September 30, 2025 and December 31, 2024, loan exit fees receivable were recorded as follows:


(in millions)	September 30, 2025		December 31, 2024
Included within debt investment cost	$	42.8	$	39.2
Deferred receivable related to expired commitments	3.6		3.0
Total Exit Fees Receivable	$	46.4	$	42.2

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details