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Debt (Tables)
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Schedule of Available and Outstanding Debt
As of September 30, 2025 and December 31, 2024, the Company had the following available and outstanding debt:
(in thousands)September 30, 2025December 31, 2024
 Total AvailablePrincipal
Outstanding
Carrying Value(1)
Total AvailablePrincipal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$350,000 $350,000 $340,717 $350,000 $279,000 $271,371 
February 2025 Notes— — — 50,000 50,000 49,981 
June 2025 Notes— — — 70,000 70,000 69,919 
June 2025 3-Year Notes— — — 50,000 50,000 49,926 
March 2026 A Notes50,000 50,000 49,961 50,000 50,000 49,889 
March 2026 B Notes50,000 50,000 49,957 50,000 50,000 49,880 
September 2026 Notes325,000 325,000 324,057 325,000 325,000 323,321 
January 2027 Notes350,000 350,000 348,263 350,000 350,000 347,265 
2028 Convertible Notes287,500 287,500 279,747 — — — 
June 2030 Notes350,000 350,000 342,219 — — — 
2031 Asset-Backed Notes88,639 88,639 88,391 119,475 119,475 118,769 
2033 Notes40,000 40,000 39,124 40,000 40,000 39,043 
MUFG Bank Facility(2)
440,000 66,000 66,000 400,000 116,000 116,000 
SMBC Facility(2)(3)(5)
475,000 222,866 222,702 475,000 283,790 283,591 
Total$2,806,139 $2,180,005 $2,151,138 $2,329,475 $1,783,265 $1,768,955 
(1)Except for the SMBC Facility and MUFG Bank Facility, all carrying values represent the principal amount outstanding less the remaining unamortized debt issuance costs and unaccreted premium or discount, if any, associated with the debt as of the balance sheet date.
(2)Availability subject to the Company meeting the borrowing base requirements.
(3)“Total Available” includes $175.0 million of available commitment through the letter of credit facility as of September 30, 2025 and December 31, 2024.
(4)As of September 30, 2025 and December 31, 2024, the total available debt under the SBA Debentures was $350.0 million, of which $175.0 million was available to HC IV and $175.0 million was available to SBIC V.
(5)In November 2024, the Company amended its SMBC Facility and converted a portion of the existing revolver facility into a term loan facility in connection therewith. As of September 30, 2025, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million respectively. As of December 31, 2024, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million, respectively.
The overall weighted average interest cost, cost of debt and debt outstanding for the Company for the three and nine months ended September 30, 2025 and 2024 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Weighted average interest cost
4.4 %4.6 %4.3 %4.4 %
Weighted average cost of debt(1)
5.1 %5.1 %4.9 %5.0 %
Weighted average debt outstanding
$2,128,248 $1,736,913 $2,029,422 $1,696,442 
(1)Cost of debt includes interest and fees.
The Company held the following SBA debentures outstanding principal balances as of September 30, 2025 and December 31, 2024:
(in thousands)
Issuance/Pooling Date		Maturity Date
Interest Rate(1)
September 30, 2025December 31, 2024
March 26, 2021September 1, 20311.58%$37,500 $37,500 
June 25, 2021September 1, 20311.58%16,200 16,200 
July 28, 2021September 1, 20311.58%5,400 5,400 
August 20, 2021September 1, 20311.58%5,400 5,400 
October 21, 2021March 1, 20323.21%14,000 14,000 
November 1, 2021March 1, 20323.21%21,000 21,000 
November 15, 2021March 1, 20323.21%5,200 5,200 
November 30, 2021March 1, 20323.21%20,800 20,800 
December 20, 2021March 1, 20323.21%10,000 10,000 
December 23, 2021March 1, 20323.21%10,000 10,000 
December 28, 2021March 1, 20323.21%5,000 5,000 
January 14, 2022March 1, 20323.21%4,500 4,500 
January 21, 2022March 1, 20323.21%20,000 20,000 
November 8, 2024March 1, 20355.09%30,000 30,000 
December 6, 2024March 1, 20355.09%33,600 33,600 
December 12, 2024March 1, 20355.09%8,400 8,400 
December 20, 2024March 1, 20355.09%32,000 32,000 
February 5, 2025March 1, 20355.09%6,000 — 
March 28, 2025September 1, 20354.66%10,000 — 
April 25, 2025September 1, 20354.66%15,000 — 
May 9, 2025September 1, 20354.66%5,000 — 
June 5, 2025September 1, 20354.66%17,000 — 
June 12, 2025September 1, 20354.66%3,000 — 
June 25, 2025September 1, 20354.66%15,000 — 
Total SBA Debentures  $350,000 $279,000 
(1)Interest rates are determined initially at issuance and reset to a fixed rate at the debentures pooling date. The rates are inclusive of annual SBA charges.
Schedule of Debt Issuance Costs, Net of Accumulated Amortization
Debt issuance costs, net of accumulated amortization, were as follows as of September 30, 2025 and December 31, 2024:
(in thousands)September 30, 2025December 31, 2024
SBA Debentures$9,283 $7,629 
February 2025 Notes— 19 
June 2025 Notes— 81 
June 2025 3-Year Notes— 74 
March 2026 A Notes39 111 
March 2026 B Notes43 120 
September 2026 Notes943 1,679 
January 2027 Notes1,737 2,735 
2028 Convertible Notes7,753 — 
June 2030 Notes7,781 — 
2031 Asset-Backed Notes248 706 
2033 Notes876 957 
MUFG Bank Facility(1)
3,803 1,770 
SMBC Facility(1)(2)
2,417 2,693 
Total$34,923 $18,574 
(1)The MUFG Bank Facility and SMBC Facility are line-of-credit arrangements, the debt issuance costs associated with these instruments are included within Other assets on the Consolidated Statements of Assets and Liabilities in accordance with ASC Subtopic 835-30.
(2)As part of the November 2024 amendment of the SMBC Facility, the existing revolver facility was split into a revolver facility and a term loan facility. As of September 30, 2025, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.2 million and the term loan is $0.2 million. As of December 31, 2024, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.5 million and the term loan is $0.2 million.
Components of Interest Expense, Related Fees and Cash Paid for Interest Expense for Debt
For the three and nine months ended September 30, 2025, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands)Three Months Ended September 30, 2025Nine Months Ended September 30, 2025
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$3,381 $295 $— $3,676 $5,892 $8,806 $785 $— $9,591 $9,863 
February 2025 Notes— — — — — 202 19 — 221 1,070 
June 2025 Notes— — — — — 1,274 81 — 1,355 1,508 
June 2025 3-Year Notes— — — — — 1,433 74 — 1,507 1,500 
March 2026 A Notes562 23 — 585 1,125 1,687 71 — 1,758 2,250 
March 2026 B Notes569 25 — 594 1,138 1,706 77 — 1,783 2,276 
September 2026 Notes2,174 204 — 2,378 4,266 6,523 611 — 7,134 8,532 
January 2027 Notes3,079 208 — 3,287 5,906 9,236 621 — 9,857 11,812 
2028 Convertible Notes3,763 353 — 4,116 6,487 8,315 781 — 9,096 6,487 
June 2030 Notes5,441 221 — 5,662 — 6,348 258 — 6,606 — 
2031 Asset-Backed Notes(2)
1,243 69 — 1,312 1,241 4,206 229 — 4,435 4,139 
2033 Notes625 27 — 652 625 1,875 81 — 1,956 1,875 
MUFG Bank Facility1,191 259 798 2,248 1,210 5,736 1,083 1,997 8,816 5,719 
SMBC Facility2,161 203 319 2,683 1,897 9,470 614 767 10,851 9,764 
Total$24,189 $1,887 $1,117 $27,193 $29,787 $66,817 $5,385 $2,764 $74,966 $66,795 
(1)Interest expense includes amortization of OID for the three months ended September 30, 2025, of $42 thousand, $126 thousand, $311 thousand, $191 thousand, and $34 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the nine months ended September 30, 2025, of $125 thousand, $377 thousand, $690 thousand, $223 thousand, and $109 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three and nine months ended September 30, 2025, we have recognized $84 thousand and $120 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes.
For the three and nine months ended September 30, 2024, the components of interest expense, related fees, and cash paid for interest expense for debt were as follows:
(in thousands)Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$1,149 $147 $— $1,296 $2,300 $3,424 $439 $— $3,863 $4,575 
July 2024 Notes202 24 — 226 2,504 2,706 172 — 2,878 5,008 
February 2025 Notes535 29 — 564 1,070 1,605 86 — 1,691 2,140 
June 2025 Notes755 40 — 795 — 2,263 121 — 2,384 1,508 
June 2025 3-Year Notes750 38 — 788 — 2,250 116 — 2,366 1,500 
March 2026 A Notes563 24 — 587 1,125 1,688 71 — 1,759 2,250 
March 2026 B Notes568 25 — 593 1,138 1,706 77 — 1,783 2,276 
September 2026 Notes2,174 205 — 2,379 4,266 6,523 612 — 7,135 8,531 
January 2027 Notes3,080 208 — 3,288 5,906 9,236 622 — 9,858 11,812 
2031 Asset-Backed Notes1,903 100 — 2,003 1,856 5,710 300 — 6,010 5,568 
2033 Notes625 27 — 652 625 1,875 81 — 1,956 1,875 
MUFG Bank Facility4,105 443 329 4,877 3,875 8,181 1,328 1,572 11,081 7,596 
SMBC Facility3,961 180 174 4,315 4,020 9,989 540 599 11,128 9,582 
Total$20,370 $1,490 $503 $22,363 $28,685 $57,156 $4,565 $2,171 $63,892 $64,221 
(1)Interest expense includes amortization of OID for the three months ended September 30, 2024 of $42 thousand, $126 thousand, and $47 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the nine months ended September 30, 2024 of $125 thousand, $377 thousand, and $141 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively.
Summary of SBIC Investments
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, 2025December 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 Debt68,149 1.6%75,557 2.1%
Preferred Stock51,822 1.2%53,802 1.5%
Common Stock111,460 2.6%74,855 2.0%
Warrants40,675 0.9%30,500 0.8%
Investment Funds & Vehicles6,639 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, 2025December 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%
Netherlands118,026 2.8%59,157 1.6%
United Kingdom117,032 2.7%142,183 3.9%
Israel61,553 1.4%88,066 2.4%
Germany50,419 1.2%49,255 1.3%
Switzerland34,078 0.8%— 0.0%
Canada16,659 0.4%16,251 0.4%
Denmark9,536 0.2%9,284 0.3%
Ireland4,716 0.1%4,649 0.1%
Singapore1,711 0.0%1,996 0.1%
Other363 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, 2025December 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 & Development988,816 23.0%1,080,390 29.5%
Healthcare Services, Other833,492 19.3%610,184 16.7%
Consumer & Business Services433,323 10.1%372,641 10.2%
Defense Technologies140,622 3.3%— 0.0%
Diversified Financial Services104,221 2.4%113,491 3.1%
Medical Devices & Equipment76,389 1.8%74,962 2.0%
Electronics & Computer Hardware51,080 1.2%162,888 4.5%
Space Technologies34,019 0.8%45,700 1.2%
Communications & Networking27,535 0.6%27,700 0.8%
Information Services23,988 0.5%24,356 0.7%
Biotechnology Tools22,326 0.5%35,434 1.0%
Sustainable and Renewable Technology21,300 0.5%27,696 0.8%
Manufacturing Technology20,419 0.5%1,162 0.0%
Consumer & Business Products8,716 0.2%1,497 0.0%
Semiconductors339 0.0%704 0.0%
Media/Content/Info93 0.0%63 0.0%
Drug Delivery12 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, 2025December 31, 2024
DescriptionHC IVSBIC VHC IVSBIC V
Number of investments held40233311 
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 portfolio9.6 %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 assets9.4 %6.3 %10.0 %4.1 %