v3.26.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Debt Information
As of September 30, 2026 and December 31, 2025, the Company had the following available and outstanding debt:
(in thousands)September 30, 2026December 31, 2025
Total AvailablePrincipal
Outstanding
Carrying Value(1)
Total AvailablePrincipal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$425,000 $350,000 $341,889 $350,000 $350,000 $341,012 
March 2026 A Notes— — — 50,000 50,000 49,984 
March 2026 B Notes— — — 50,000 50,000 49,983 
September 2026 Notes— — — 325,000 325,000 324,302 
January 2027 Notes350,000 350,000 349,593 350,000 350,000 348,596 
2028 Convertible Notes287,500 287,500 282,405 287,500 287,500 280,412 
February 2029 Notes300,000 300,000 295,257 — — — 
June 2030 Notes350,000 350,000 343,919 350,000 350,000 342,694 
2031 Asset-Backed Notes49,660 49,660 49,660 64,636 64,636 64,530 
July 2031 Notes
325,000 325,000 317,419 — — — 
2033 Notes40,000 40,000 39,232 40,000 40,000 39,151 
MUFG Bank Facility(2)
440,000 241,000 241,000 440,000 168,000 168,000 
SMBC Facility(2)(3)(5)
475,000 290,219 290,096 475,000 277,934 277,780 
Total$3,042,160 $2,583,379 $2,550,470 $2,782,136 $2,313,070 $2,286,444 
(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 and/or capital commitment requirements.
(3)“Total Available” includes $175.0 million of available commitment through the letter of credit facility as of September 30, 2026 and December 31, 2025.
(4)As of September 30, 2026, the total available debt under the SBA Debentures was $425.0 million, of which $175.0 million was available to HC IV and $250.0 million was available to SBIC V, subject to compliance with certain conditions. As of December 31, 2025, 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. As of September 30, 2026, HC IV has issued the entire $175.0 million and SBIC V has issued $175.0 million in SBIC Debentures.
(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, 2026, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.9 million respectively. As of December 31, 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.
The overall weighted average interest cost, cost of debt and debt outstanding for the Company for the three and nine months ended September 30, 2026 and 2025 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Weighted average interest cost(1)
4.7 %4.4 %4.6 %4.3 %
Weighted average cost of debt(2)
5.4 %5.1 %5.2 %4.9 %
Weighted average debt outstanding
$2,457,332 $2,128,248 $2,429,053 $2,029,422 
(1)Interest cost consists of contractual interest on borrowings.
(2)Cost of debt includes interest, amortization of debt issuance costs and discounts, and fees.
The Company held the following SBA debentures outstanding principal balances as of September 30, 2026 and December 31, 2025:
(in thousands)
Issuance/Pooling Date		Maturity Date
Interest Rate(1)
September 30, 2026December 31, 2025
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 6,000 
March 28, 2025September 1, 20354.66%10,000 10,000 
April 25, 2025September 1, 20354.66%15,000 15,000 
May 9, 2025September 1, 20354.66%5,000 5,000 
June 5, 2025September 1, 20354.66%17,000 17,000 
June 12, 2025September 1, 20354.66%3,000 3,000 
June 25, 2025September 1, 20354.66%15,000 15,000 
Total SBA Debentures$350,000 $350,000 
(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, 2026 and December 31, 2025:
(in thousands)September 30, 2026December 31, 2025
SBA Debentures$8,111 $8,988 
March 2026 A Notes— 16 
March 2026 B Notes— 17 
September 2026 Notes— 698 
January 2027 Notes407 1,404 
2028 Convertible Notes5,095 7,088 
February 2029 Notes4,743 — 
June 2030 Notes6,081 7,306 
2031 Asset-Backed Notes— 106 
July 2031 Notes
7,581 — 
2033 Notes768 849 
MUFG Bank Facility(1)
2,772 3,537 
SMBC Facility(1)(2)
1,604 2,214 
Total$37,162 $32,223 
(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, 2026, the debt issuance costs, net of accumulated amortization of the revolver facility is $1.5 million and the term loan is $0.1 million. As of December 31, 2025, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.0 million and the term loan is $0.2 million.
Schedule of Components of Interest Expense, Related Fees and Cash Paid for Interest Expense for Debt
For the three and nine months ended September 30, 2026, 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, 2026Nine Months Ended September 30, 2026
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$3,325 $295 $— $3,620 $6,651 $9,867 $876 $— $10,743 $12,993 
March 2026 A Notes— — — — — 393 16 — 409 1,125 
March 2026 B Notes— — — — — 398 17 — 415 1,138 
September 2026 Notes1,836 172 — 2,008 4,266 6,185 578 — 6,763 8,531 
January 2027 Notes3,079 207 — 3,286 5,906 9,236 621 — 9,857 11,813 
2028 Convertible Notes3,724 354 — 4,078 6,828 11,174 1,062 — 12,236 13,656 
February 2029 Notes4,148 316 — 4,464 8,025 10,627 809 — 11,436 8,025 
June 2030 Notes5,381 216 — 5,597 — 16,263 654 — 16,917 10,500 
2031 Asset-Backed Notes(2)
623 — — 623 624 2,221 71 — 2,292 2,209 
July 2031 Notes
3,950 156 — 4,106 — 3,950 156 — 4,106 — 
2033 Notes618 27 — 645 625 1,868 81 — 1,949 1,875 
MUFG Bank Facility1,509 259 763 2,531 1,260 5,778 777 1,881 8,436 5,724 
SMBC Facility1,691 203 347 2,241 1,266 8,200 609 790 9,599 7,930 
Total$29,884 $2,205 $1,110 $33,199 $35,451 $86,160 $6,327 $2,671 $95,158 $85,519 
(1)Interest expense includes amortization of OID for the three months ended September 30, 2026, of $35 thousand, $126 thousand, $311 thousand, $180 thousand, $189 thousand, and $139 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, February 2029 Notes, June 2030 Notes, and July 2031 Notes, respectively. Interest expense includes amortization of OID for the nine
months ended September 30, 2026, of $118 thousand, $377 thousand, $932 thousand, $461 thousand, $572 thousand, $33 thousand, and $139 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, February 2029 Notes, June 2030 Notes, 2031 Asset-Backed Notes, and July 2031 Notes, respectively.
(2)During the three and nine months ended September 30, 2026, the Company has recognized zero and $2 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes.
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, the Company has recognized $84 thousand and $120 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes.
Schedule of SBIC Investments
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, 2026December 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 Debt77,146 1.6%69,614 1.6%
Preferred Stock57,771 1.2%52,735 1.2%
Common Stock89,063 1.8%86,275 1.9%
Warrants46,290 1.0%41,162 0.9%
Investment Funds & Vehicles6,802 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, 2026December 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 Kingdom131,959 2.7%118,031 2.7%
Netherlands114,239 2.4%117,344 2.6%
Israel68,634 1.4%67,280 1.5%
Germany58,410 1.2%50,386 1.1%
Switzerland48,514 1.0%35,504 0.8%
Sweden21,386 0.4%18,244 0.4%
Canada18,109 0.4%16,841 0.4%
Ireland10,901 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, 2026December 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 & Development1,021,317 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 Technologies312,021 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 & Equipment118,674 2.5%77,257 1.7%
Diversified Financial Services112,078 2.3%105,896 2.4%
Biotechnology Tools79,433 1.6%23,164 0.5%
Electronics & Computer Hardware67,947 1.4%66,992 1.5%
Space Technologies61,742 1.3%47,816 1.1%
Energy Technologies(1)
59,307 1.2%30,346 0.7%
Consumer & Business Products41,387 0.9%8,810 0.2%
Manufacturing Technology39,350 0.8%20,190 0.4%
Communications & Networking33,652 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%
Semiconductors329 0.0%158 0.0%
Media/Content/Info44 0.0%32 0.0%
Drug Delivery14 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, 2026December 31, 2025
DescriptionHC IVSBIC VHC IVSBIC V
Number of investments held37393928 
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 portfolio8.3 %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 assets8.4 %6.6 %9.2 %6.2 %