Investments (Tables)

6 Months Ended

Jun. 30, 2026

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 six months ended June 30, 2026 and 2025.


(in thousands)				Three Months Ended June 30, 2026								Six Months Ended June 30, 2026
Portfolio Company(1)	Type	Fair Value as of June 30, 2026		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	$	222	$	—	$	—	$	64	$	—	$	—	$	—	$	4	$	—
Gibraltar Acquisition LLC(2)	Control	62,744		1,141		31		845		—		2,269		66		1,058		—
Hercules Adviser LLC(3)	Control	48,535		2,152		—		(602)		—		4,253		—		(2,739)		—
Tectura Corporation	Control	9,032		171		—		(754)		—		341		—		(309)		—
Total Control Investments		$	120,533	$	3,464	$	31	$	(447)	$	—	$	6,863	$	66	$	(1,986)	$	—


(in thousands)				Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
Portfolio Company(1)	Type	Fair Value as of June 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	$	313	$	—	$	—	$	267	$	—	$	—	$	—	$	244	$	—
Gibraltar Acquisition LLC(2)	Control	60,343		1,096		41		1,444		—		2,663		80		504		—
Hercules Adviser LLC(3)	Control	44,222		2,100		—		(795)		—		4,000		—		2,032		—
Tectura Corporation	Control	10,018		172		—		(1,752)		—		342		—		(1,639)		—
Total Control Investments		$	114,896	$	3,368	$	41	$	(836)	$	—	$	7,005	$	80	$	1,141	$	—

(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 June 30, 2026 and June 30, 2025, 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 June 30, 2026 and December 31, 2025:


(in thousands)	June 30, 2026				December 31, 2025

	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
Senior Secured Debt	$	4,299,681	93.8	%	$	4,209,798	94.2	%
Unsecured Debt	76,543		1.7	%	69,614		1.6	%
Preferred Stock	55,378		1.2	%	52,735		1.2	%
Common Stock	93,924		2.0	%	86,275		1.9	%
Warrants	51,295		1.1	%	41,162		0.9	%
Investment Funds & Vehicles	7,049		0.2	%	7,063		0.2	%
Total	$	4,583,870	100.0	%	$	4,466,647	100.0	%

A summary of the Company’s investment portfolio, at value, by geographic location as of June 30, 2026 and December 31, 2025 is shown as follows:


(in thousands)	June 30, 2026				December 31, 2025
	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
United States	$	4,104,784	89.5	%	$	4,035,927	90.4	%
United Kingdom	137,001		3.0	%	118,031		2.7	%
Netherlands	115,762		2.5	%	117,344		2.6	%
Israel	67,569		1.5	%	67,280		1.5	%
Germany	59,775		1.3	%	50,386		1.1	%
Switzerland	48,731		1.1	%	35,504		0.8	%
Sweden	21,054		0.5	%	18,244		0.4	%
Canada	17,978		0.4	%	16,841		0.4	%
Ireland	10,764		0.2	%	4,729		0.1	%
Singapore	—		0.0	%	1,827		0.0	%
Other(1)	452		0.0	%	534		0.0	%
Total	$	4,583,870	100.0	%	$	4,466,647	100.0	%

(1)The Company’s investment portfolio based in Denmark has been consolidated with “Other”. Prior year amounts have been reclassified to conform to the current presentation.

The following table shows the fair value of the Company’s portfolio by industry sector as of June 30, 2026 and December 31, 2025:


(in thousands)	June 30, 2026				December 31, 2025
	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
Application Software	$	1,125,910	24.6	%	$	1,087,954	24.3	%
Drug Discovery & Development	1,027,017		22.4	%	1,039,712		23.3	%
Healthcare Services, Other	879,316		19.2	%	838,508		18.8	%
Consumer & Business Services	393,498		8.6	%	449,631		10.1	%
System Software	376,427		8.2	%	472,144		10.6	%
Defense Technologies	253,604		5.5	%	140,458		3.1	%
Diversified Financial Services	111,279		2.4	%	105,896		2.4	%
Medical Devices & Equipment	98,666		2.1	%	77,257		1.7	%
Electronics & Computer Hardware	66,766		1.5	%	66,992		1.5	%
Space Technologies	54,568		1.2	%	47,816		1.1	%
Consumer & Business Products	42,331		0.9	%	8,810		0.2	%
Sustainable and Renewable Technology	41,254		0.9	%	35,759		0.8	%
Communications & Networking	34,677		0.8	%	26,263		0.6	%
Biotechnology Tools	30,009		0.7	%	23,164		0.5	%
Information Services	27,421		0.6	%	25,889		0.6	%
Manufacturing Technology	20,866		0.4	%	20,190		0.4	%
Semiconductors	198		0.0	%	158		0.0	%
Media/Content/Info	50		0.0	%	32		0.0	%
Drug Delivery	13		0.0	%	14		0.0	%
Total	$	4,583,870	100.0	%	$	4,466,647	100.0	%

The following table summarizes information related to our SBICs as of June 30, 2026 and December 31, 2025.


	June 30, 2026						December 31, 2025
Description	HC IV			SBIC V			HC IV			SBIC V
Number of investments held	39			36			39			28
Fair value of investments (in millions)	$	400.7		$	288.0		$	404.8		$	277.6
Percentage of fair value of investments based on the Company's total investment portfolio	8.7		%	6.3		%	9.1		%	6.2		%
Tangible assets (in millions)	$	406.5		$	293.4		$	421.2		$	283.1
Percentage of tangible assets based on the Company's total assets	8.7		%	6.3		%	9.2		%	6.2		%

Schedule of Investment Collateral

The Company's investments were collateralized as follows as of June 30, 2026 and December 31, 2025:


	Percentage of debt investments (at fair value), as of
	June 30, 2026		December 31, 2025
Senior Secured First Lien
All assets including intellectual property	75.1	%	72.8	%
All assets with negative pledge on intellectual property	5.2	%	9.5	%
“Last-out” with security interest in all of the assets	6.5	%	7.0	%

Total senior secured first lien position	86.8	%	89.3	%
Second lien	11.5	%	9.1	%
Unsecured	1.7	%	1.6	%
Total debt investments at fair value	100.0	%	100.0	%

Schedule 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 June 30, 2026 and December 31, 2025:


(in thousands)		Fair Value
Derivative Instrument	Statement Location	June 30, 2026		December 31, 2025
Foreign currency forward contract	Other assets	$	354	$	50

	Total	$	354	$	50

Schedule 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 six months ended June 30, 2026 and 2025 are in the following locations in the Consolidated Statements of Operations:


(in thousands)		Three Months Ended June 30,				Six Months Ended June 30,
Derivative Instrument	Statement Location	2026		2025		2026		2025
Foreign currency forward contract	Net realized gain (loss) - Non-control / Non-affiliate investments	$	25	$	(1,551)	$	25	$	(1,551)
Foreign currency forward contract	Net change in unrealized appreciation (depreciation) - Non-control / Non-affiliate investments	(168)		(205)		304		(1,045)
	Total	$	(143)	$	(1,756)	$	329	$	(2,596)

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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Contractual interest income	$	104,135	$	95,421	$	208,217	$	183,238
Exit fee interest income	16,245		14,790		30,943		25,018
PIK interest income	12,342		13,635		25,256		27,108
Dividend income	2,100		2,100		4,200		4,500
Other investment income(1)	3,220		3,625		5,829		5,279
Total interest and dividend income	$	138,042	$	129,571	$	274,445	$	245,143

Recurring fee income	$	3,275	$	2,754	$	6,187	$	5,434
Fee income - expired commitments	747		715		1,310		1,032
Accelerated fee income - early repayments	7,050		4,419		8,708		5,361
Total fee income	$	11,072	$	7,888	$	16,205	$	11,827

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

Schedule of Unamortized Capitalized Fee Income

As of June 30, 2026 and December 31, 2025, unamortized capitalized fee income was recorded as follows:


(in millions)	June 30, 2026		December 31, 2025
Offset against debt investment cost	$	42.8	$	42.5
Deferred obligation contingent on funding or other milestone	10.4		9.8
Total Unamortized Fee Income	$	53.2	$	52.3

Schedule of Loan Exit Fees Receivable

As of June 30, 2026 and December 31, 2025, loan exit fees receivable were recorded as follows:


(in millions)	June 30, 2026		December 31, 2025
Included within debt investment cost	$	43.6	$	48.6
Deferred receivable related to expired commitments	4.4		4.5
Total Exit Fees Receivable	$	48.0	$	53.1

- 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