Record Fundings and Operating Performance
Hercules Capital achieved record fundings in Q2 2025 with over $709.1 million, a 53.7% increase year-over-year. Net investment income also reached a new record of $88.7 million or $0.50 per share, a 7.7% increase year-over-year.
Strong Balance Sheet and Liquidity
The company closed a $350 million institutional investment-grade bond offering and extended its credit facility to $440 million. Hercules ended Q2 with over $1 billion in liquidity across the platform.
Growth in Managed Funds
Hercules Adviser LLC, a wholly-owned subsidiary, manages four funds with approximately $1.6 billion in committed equity and debt capital.
Robust Investment and Income Growth
Total investment income for Q2 was a record $137.5 million, a 10% increase year-over-year. First half 2025 total investment income reached $257 million, and net investment income was $166.2 million, setting new records.
Improved Portfolio Credit Quality
The credit quality of the debt investment portfolio improved, with no loans rated as 5 and a decrease in nonaccrual loans.
Successful Talent Retention and Acquisition
Hercules has been successful in retaining and attracting top talent, particularly following market events like the SVB situation.