Hercules Technology Growth Capital ( (HTGC) ) has released its Q4 earnings. Here is a breakdown of the information Hercules Technology Growth Capital presented to its investors.
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Hercules Capital, Inc. is a leading specialty finance company that provides senior secured venture growth loans to high-growth, innovative companies backed by venture capital and private equity firms, primarily in the technology and life sciences sectors. The company reported record-breaking financial results for the full year 2024, with total investment income reaching $493.6 million, a 7.1% increase from the previous year. Net investment income also saw a 7.2% rise, reaching $325.8 million, driven by a 13% increase in gross fundings totaling $1.81 billion.
In the fourth quarter of 2024, Hercules Capital achieved a net investment income of $81.1 million, or $0.49 per share, providing robust coverage of its base cash distribution. The company demonstrated conservative balance sheet management with a net GAAP leverage of 83.9% and ended the year with over $1.1 billion in available liquidity. Notable achievements included new debt and equity commitments of $619.5 million and net fundings of $362.4 million in Q4.
Key financial metrics highlighted in the report include a 17% return on average equity and an 8.9% return on average assets. Hercules Capital’s portfolio displayed strong credit performance, with a reduction in non-accrual loans. The company announced a new supplemental cash distribution for 2025, emphasizing its commitment to maximizing shareholder returns.
Looking ahead, Hercules Capital’s management remains focused on maintaining credit discipline and expanding the capacity of its private funds. With a strong pipeline of new commitments and a strategic approach to managing liquidity and leverage, the company is well-positioned to continue delivering value to its shareholders.
