Scott Bluestein, CEO of Hercules Capital, announced new annual records for total investment income and net investment income in 2025. Despite a declining rate environment, Hercules achieved 120% coverage of its quarterly base distribution and maintained a $0.82 per share spillover income. The company is confident in its trajectory and ability to generate strong results in 2026, with an expectation of higher market and macro volatility.
Driven by growth in its BDC and private credit funds business, Hercules Capital managed over $5.7 billion in assets in 2025. The company saw record new debt and equity commitments, gross fundings, total investment income, and net investment income, all showing significant increases year over year. With a focus on disciplined underwriting and credit quality, Hercules remains confident in its ability to navigate market volatility and capitalize on new opportunities in 2026.
Hercules Capital reported consistent and growing quarterly dividends from its RIA, with record platform-level assets under management exceeding $5.7 billion in 2025. The company is prepared for a more favorable originations market in 2026, with expectations of strategic M&A, capital markets activity, and support for the innovation economy. Hercules maintains a defensive balance sheet approach while remaining flexible to seize market opportunities.
In Q4, Hercules originated record total gross debt and equity commitments, generating significant investment income and net investment income. The company’s disciplined underwriting approach and liquidity position position it well for strong core earnings growth in 2026. Hercules expects core yield to remain stable in Q1, with an outlook for increased prepayments and continued focus on asset diversification and credit quality.
Hercules Capital’s balance sheet remains well-positioned to support growth objectives, with moderate leverage and low cost of leverage. The company raised over $1 billion in its private fund business in 2025, emphasizing institutional capital flexibility and strong performance benefits. Hercules continues to focus on high-quality originations and prudent underwriting metrics to drive long-term success and shareholder value.
In Q4, Hercules generated net asset value per share of $12.13, an increase from Q3 2025. The company maintained solid liquidity and credit quality in its debt investment portfolio. With a focus on software and AI-related investments, Hercules aims to capitalize on market opportunities while maintaining conservative underwriting standards. The company’s robust portfolio monitoring and disciplined approach position it well for continued success.
Hercules Capital expects strong growth opportunities in 2026, with a focus on targeted deal structures and maintaining credit quality. The company remains vigilant in monitoring market trends and credit performance, with a commitment to providing shareholders with sustainable returns and long-term value. Hercules’ strategic approach to investment and risk management sets the stage for continued growth and success in the coming year.
Read more at Yahoo Finance: Hercules HTGC Q4 2025 Earnings Call Transcript