Investments (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2026 and 2025.


(in thousands)				Three Months Ended September 30, 2026								Nine Months Ended September 30, 2026
Portfolio Company(1)	Type	Fair Value as of September 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	$	180	$	—	$	—	$	(42)	$	—	$	—	$	—	$	(38)	$	—
Gibraltar Acquisition LLC(2)	Control	62,136		1,153		32		(242)		—		3,422		98		816		—
Hercules Adviser LLC(3)	Control	49,942		2,238		—		(742)		—		6,491		—		(3,481)		—
Tectura Corporation	Control	9,772		174		—		740		—		515		—		431		—
Total Control Investments		$	122,030	$	3,565	$	32	$	(286)	$	—	$	10,428	$	98	$	(2,272)	$	—
Affiliate Investments
Annex Cloud	Affiliate	$	3,036	$	—	$	—	$	(289)	$	5	$	—	$	—	$	(289)	$	5
Total Affiliate Investments		3,036		—		—		(289)		5		—		—		(289)		5
Total Control & Affiliate Investments		$	125,066	$	3,565	$	32	$	(575)	$	5	$	10,428	$	98	$	(2,561)	$	5


(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)	$	—

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


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

	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
Senior Secured Debt	$	4,568,831	94.3	%	$	4,209,798	94.2	%
Unsecured Debt	77,146		1.6	%	69,614		1.6	%
Preferred Stock	57,771		1.2	%	52,735		1.2	%
Common Stock	89,063		1.8	%	86,275		1.9	%
Warrants	46,290		1.0	%	41,162		0.9	%
Investment Funds & Vehicles	6,802		0.1	%	7,063		0.2	%
Total	$	4,845,903	100.0	%	$	4,466,647	100.0	%

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


(in thousands)	September 30, 2026				December 31, 2025
	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
United States	$	4,373,284	90.3	%	$	4,035,927	90.4	%
United Kingdom	131,959		2.7	%	118,031		2.7	%
Netherlands	114,239		2.4	%	117,344		2.6	%
Israel	68,634		1.4	%	67,280		1.5	%
Germany	58,410		1.2	%	50,386		1.1	%
Switzerland	48,514		1.0	%	35,504		0.8	%
Sweden	21,386		0.4	%	18,244		0.4	%
Canada	18,109		0.4	%	16,841		0.4	%
Ireland	10,901		0.2	%	4,729		0.1	%
Singapore	—		0.0	%	1,827		0.0	%
Other(1)	467		0.0	%	534		0.0	%
Total	$	4,845,903	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 September 30, 2026 and December 31, 2025:


(in thousands)	September 30, 2026				December 31, 2025
	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
Application Software(1)	$	1,124,669	23.2	%	$	1,045,146	23.4	%
Drug Discovery & Development	1,021,317		21.1	%	1,039,712		23.3	%
Healthcare Services, Other(1)	909,478		18.8	%	776,321		17.4	%
Consumer & Business Services(1)	367,226		7.6	%	441,467		9.9	%
Defense Technologies	312,021		6.4	%	140,458		3.1	%
Cybersecurity(1)	200,668		4.1	%	163,932		3.7	%
Healthcare Technology & Digital Health(1)	136,408		2.8	%	126,476		2.8	%
System Software(1)	121,824		2.5	%	308,613		6.9	%
Medical Devices & Equipment	118,674		2.5	%	77,257		1.7	%
Diversified Financial Services	112,078		2.3	%	105,896		2.4	%
Biotechnology Tools	79,433		1.6	%	23,164		0.5	%
Electronics & Computer Hardware	67,947		1.4	%	66,992		1.5	%
Space Technologies	61,742		1.3	%	47,816		1.1	%
Energy Technologies(1)	59,307		1.2	%	30,346		0.7	%
Consumer & Business Products	41,387		0.9	%	8,810		0.2	%
Manufacturing Technology	39,350		0.8	%	20,190		0.4	%
Communications & Networking	33,652		0.7	%	26,263		0.6	%
Financial Technologies(1)	26,576		0.5	%	8,971		0.2	%
Sustainable and Renewable Technology(1)	8,000		0.2	%	5,413		0.1	%
Information Services(1)	3,759		0.1	%	3,200		0.1	%
Semiconductors	329		0.0	%	158		0.0	%
Media/Content/Info	44		0.0	%	32		0.0	%
Drug Delivery	14		0.0	%	14		0.0	%
Total	$	4,845,903	100.0	%	$	4,466,647	100.0	%

(1)Effective September 30, 2026, the Company added the “Cybersecurity”, “Energy Technologies”, “Financial Technologies” and “Healthcare Technology & Digital Health” industry categories, which include investments previously classified within “Application Software”, “Consumer & Business Services”, “Healthcare Services, Other”, “Information Services”, “Sustainable and Renewable Technology” and “System Software”. Prior period amounts have been reclassified to conform to the current period presentation.

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


	September 30, 2026						December 31, 2025
Description	HC IV			SBIC V			HC IV			SBIC V
Number of investments held	37			39			39			28
Fair value of investments (in millions)	$	402.2		$	319.9		$	404.8		$	277.6
Percentage of fair value of investments based on the Company's total investment portfolio	8.3		%	6.6		%	9.1		%	6.2		%
Tangible assets (in millions)	$	417.4		$	324.5		$	421.2		$	283.1
Percentage of tangible assets based on the Company's total assets	8.4		%	6.6		%	9.2		%	6.2		%

Schedule of Investment Collateral

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


	Percentage of debt investments (at fair value), as of
	September 30, 2026		December 31, 2025
Senior Secured First Lien
All assets including intellectual property	77.1	%	72.8	%
All assets with negative pledge on intellectual property	5.0	%	9.5	%
“Last-out” with security interest in all of the assets	5.9	%	7.0	%
Equipment-Only Lien	0.8	%	0.0	%
Total senior secured first lien position	88.8	%	89.3	%
Second lien	9.5	%	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 September 30, 2026 and December 31, 2025:


(in thousands)		Fair Value
Derivative Instrument	Statement Location	September 30, 2026		December 31, 2025
Foreign currency forward contract	Other assets	$	338	$	50

	Total	$	338	$	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 nine months ended September 30, 2026 and 2025 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	2026		2025		2026		2025
Foreign currency forward contract	Net realized gain (loss) - Non-control / Non-affiliate investments	$	(38)	$	—	$	(13)	$	(1,551)
Foreign currency forward contract	Net change in unrealized appreciation (depreciation) - Non-control / Non-affiliate investments	(16)		593		288		(452)
	Total	$	(54)	$	593	$	275	$	(2,003)

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,
	2026		2025		2026		2025
Contractual interest income	$	106,863	$	97,533	$	315,080	$	280,771
Exit fee interest income	12,294		14,246		43,237		39,264
PIK interest income	10,563		14,475		35,819		41,583
Dividend income	2,100		2,100		6,300		6,600
Other investment income(1)	2,406		2,803		8,235		8,082
Total interest and dividend income	$	134,226	$	131,157	$	408,671	$	376,300

Recurring fee income	$	3,395	$	2,945	$	9,582	$	8,379
Fee income - expired commitments	338		454		1,648		1,486
Accelerated fee income - early repayments	2,156		3,537		10,864		8,898
Total fee income	$	5,889	$	6,936	$	22,094	$	18,763

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

Schedule of Unamortized Capitalized Fee Income

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


(in millions)	September 30, 2026		December 31, 2025
Offset against debt investment cost	$	43.9	$	42.5
Deferred obligation contingent on funding or other milestone	9.5		9.8
Total Unamortized Fee Income	$	53.4	$	52.3

Schedule of Loan Exit Fees Receivable

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


(in millions)	September 30, 2026		December 31, 2025
Included within debt investment cost	$	52.9	$	48.6
Deferred receivable related to expired commitments	4.4		4.5
Total Exit Fees Receivable	$	57.3	$	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.

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