Hercules Capital Hits Record Highs as It Marks 20 Years of Investment Activity
Hercules Capital has announced a year of record operating performance and solid controlled growth, marking 20 years since its inception. The company's latest financial results demonstrate its commitment to serving the capital needs of venture and growth stage ecosystems.
According to Scott Bluestein, CEO and Chief Investment Officer at Hercules Capital, the company set several new financial and performance records in 2024. This includes a record total investment income of $493.6 million, up 7.1% year-over-year, and record net investment income of $325.8 million, an increase of 7.2% year-over-year.
The company's assets under management (AUM) have also grown significantly, reaching approximately $4.8 billion, a 14% increase from the end of 2023. This growth is attributed to the expansion of both its BDC and private credit funds business.
In addition to its impressive financial performance, Hercules Capital has achieved a significant milestone by surpassing the $20 billion mark in cumulative debt commitments since inception. This achievement highlights the company's commitment to serving the capital needs of venture and growth stage companies.
Bluestein emphasized the importance of the company's employees' hard work and dedication, as well as the trust placed in them by borrowers and investors. The CEO also highlighted Hercules Capital's continued focus on always doing what is in the best interest of its shareholders and stakeholders.
The company's strong performance has been recognized by rating agencies, with reaffirmed investment-grade ratings from Fitch, KBRA, Moody's, and Morningstar DBRS. Additionally, Hercules Capital has delivered supplemental distributions to its shareholders for five consecutive years.
Looking ahead to 2025, Bluestein expects higher-than-normal market and macro volatility due to changes in the global geopolitical environment. However, he also anticipates a more favorable new business landscape, particularly for growth stage companies and technology-oriented businesses. The company intends to maintain its defensive approach while maintaining maximum flexibility to take advantage of market opportunities.
