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Hercules Capital Inc. 6.25% Notes due 2033 (HCXY+0.04%) has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024. The report is available for review filing.
The filing details Hercules Capital's focus on providing senior secured loans to high-growth, venture capital-backed companies in technology and life sciences industries. The company aims to increase its net income and net asset value through investments in structured debt and equity instruments.
As of December 31, 2024, Hercules Capital's investment portfolio was valued at approximately $3.66 billion, with a significant portion invested in the software, drug discovery and development, healthcare services, and consumer and business services sectors.
The company reported total investment income of $493.6 million for the year, a 7.1% increase from the previous year. This growth was attributed to higher weighted average principal outstanding and increased dividend income distributions.
Hercules Capital's net investment income for the year was $325.8 million, with a net realized loss of $31.7 million and a net change in unrealized depreciation of $31.2 million.
The company operates as an internally managed, non-diversified closed-end investment company and has elected to be regulated as a business development company under the Investment Company Act of 1940.
Hercules Capital also manages additional funds through its wholly owned subsidiaries, including Hercules Capital Management LLC and Hercules Adviser LLC, which provide investment advisory services to third-party funds.
As of December 31, 2024, Hercules Capital had $1.77 billion in debt outstanding, with an asset coverage ratio of 231.7%, excluding SBA debentures. The company maintains a diverse capital structure to support its investment activities.
Hercules Capital's Board of Directors has authorized the issuance of common stock below net asset value, subject to certain conditions, for a twelve-month period expiring on August 15, 2025.
The company continues to focus on maintaining a strong liquidity position, with $658.8 million in available liquidity as of December 31, 2024, to support its investment objectives and operational needs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hercules Capital Inc. 6.25% Notes due 2033 annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.