Specialty finance company Hercules Capital has reached $20 billion in total debt commitments since its founding in December 2003, with its first deal originated in 2004. Over the last 20 years, the company has partnered with 650 technology and life sciences portfolio companies and more than 1,000 venture capital and private equity firms.
“2024 marks our 20th year investing in the venture and growth stage asset class, over which time we’ve committed more than $20.0 billion in capital, representing a remarkable milestone for our company,” Scott Bluestein, CEO and chief investment officer of Hercules Capital, said. “Our scale, institutionalized lending platform and our ability to capitalize on competitive, rapidly changing macro environments continue to drive our business forward and our operating performance to record levels. Our multiple decade track record of success is attributable to the tremendous dedication, efforts and capabilities of our employees, and the trust that our venture capital and private equity partners place with us every day. As an internally managed platform, we offer solutions, strategic agility and shareholder alignment that differentiate us from the broader industry. We are thankful to the many companies, management teams and investors that continue to make Hercules their partner of choice.”
In addition to reaching the $20 billion milestone, since inception, Hercules Capital has achieved a 20-year 42.6% compound annual growth rate in cumulative commitments, accrued approximately $4.5 billion of assets under management and assisted with more than 250 portfolio company IPO and/or M&A exit events
Today, the company has more than 110 full-time employees with offices in eight states and two countries. According to the company, nearly 50% of its senior leaders, which includes its managing directors on the investment team and senior executives, are women or people of diverse ethnic backgrounds. In addition, the company’s 50-plus member origination team is led by individuals with an average of more than 10 years of industry experience.
During its history, Hercules Capital has earned investment grade corporate ratings from Fitch, Moody’s, KBRA and DBRS. In addition, inclusive of the Adviser Funds managed by Hercules Adviser, the company’s wholly-owned subsidiary, Hercules Capital had more than $1 billion of available liquidity, GAAP leverage of 87.1% and regulatory leverage of 77.4% as of year-end 2023.
In 2023, Hercules Capital set a company record with total gross fundings of $1.6 billion on gross new debt and equity commitments of $2.17 billion. The company funded 32 new portfolio companies funded during the year, bringing its current portfolio to 125 active loan portfolio companies. The company’s average deal size in 2023 was $46 million, with deals ranging from $3.7 million to $150 million.
Hercules Capital has delivered total shareholder returns in 75 consecutive quarters and $1.87 billion in dividends paid since its IPO in June 2005. HTGC has traded at a premium to net asset value for 98.4% of the trading days in the past 10 years (ending March 31). In addition to the company’s regular quarterly base distribution, it has paid a supplemental distribution to shareholders in 14 consecutive quarters. In total, the company has recorded a 112.4% total shareholder return over the last five years as of year-end 2023.
