Hercules Technology Growth Capital announced year-to-date net realized gains of approximately $8.7 million from its portfolio company investments.
Through the first half of 2015, Hercules had recorded net realized gains of approximately $2.1 million comprised primarily from the sale of investments in four portfolio companies.
During Q3.15 Synopsys announced and completed its acquisition of Hercules portfolio company, Atrenta. Financial terms of the deal were not disclosed. The company recognized a net realized gain of approximately $2.6 million from the transaction, generating an internal rate of return of approximately 27.1% from its equity and warrant gains, and a fully realized IRR of approximately 16.0% from its loan repayments and equity/warrant gains.
In addition, during the third quarter, the company has net realized gains of an additional $4.0 million from the sale of investments in three other undisclosed companies.
Hercules anticipates providing additional details of the companies and the associated net realized gains in the company’s third quarter 2015 10-Q filing with the SEC.
“I am delighted to see the exceptional progress Hercules continues to make in 2015 as evidenced by our year-to-date net realized gains of approximately $8.7 million. The monetization of our equity and warrant portfolios is a key indicator of the importance of the Hercules brand and reputation within the venture capital community and our ability to work with outstanding entrepreneurs,” stated Manuel A. Henriquez, chairman and chief executive officer of Hercules. “Our team’s deep industry expertise and relationship with many of the top tier venture capital firms is a key cornerstone of the Hercules’ originations platform and provides Hercules with its competitive advantage in identifying and investing in select innovative high-growth venture-capital backed companies, enhancing our potential to participate in more successful exits. Transactions, such as Atrenta, serve to further validate this competitive advantage and ability, providing an opportunity for our shareholders to participate in the embedded upside potential still remaining in our existing warrant and equity portfolios comprised of approximately 131 and 47 different holdings, respectively, in various high growth pre-IPO or M&A companies.”