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Investments (Tables)
 6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Schedule of Investments in and Advances to Affiliates
The following table summarizes the Company’s realized gains and losses and changes in unrealized appreciation and depreciation on control and affiliate investments for the three and six months ended June 30, 2024 and 2023.
(in thousands)Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Portfolio Company(1)
TypeFair Value as of June 30, 2024Interest & Dividend Income Fee IncomeNet Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss)Interest & Dividend IncomeFee IncomeNet Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss)
Control Investments
Coronado Aesthetics, LLCControl$186 $— $— $(97)$— $— $— $(76)$— 
Gibraltar Acquisition LLC(2)
Control56,811 1,534 36 (1,670)— 2,567 72 (6,291)— 
Hercules Adviser LLC(3)
Control42,728 1,751 — 844 — 3,503 — 2,015 — 
Tectura CorporationControl11,534 172 — (583)— 344 — 17 — 
Total Control Investments$111,259 $3,457 $36 $(1,506)$— $6,414 $72 $(4,335)$— 
(in thousands)Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Portfolio Company(1)
TypeFair Value as of June 30, 2023Interest IncomeFee IncomeNet Change in Unrealized Appreciation (Depreciation)Realized Gain (Loss)Interest IncomeFee IncomeNet Change in Unrealized Appreciation (Depreciation)Realized Gain (Loss)
Control Investments
Coronado Aesthetics, LLCControl$297 $— $— $41 $— $— $— $(22)$— 
Gibraltar Acquisition, LLC(2)
Control44,392 731 19 2,667 — 1,527 38 6,402 — 
Hercules Adviser LLCControl39,161 152 — 2,566 — 302 — 8,008 — 
Tectura CorporationControl7,073 172 — (701)— 342 — (969)— 
Total Control Investments$90,923 $1,055 $19 $4,573 $— $2,171 $38 $13,419 $— 
(1)In accordance with Rules 3-09, 4-08(g), and Rule 10-01(b)(1) of Regulation S-X, (“Rule 3-09”, “Rule 4-08(g)”, and “Rule 10-01(b)(1)”, respectively), the Company must determine if its unconsolidated subsidiaries are considered “significant subsidiaries”. As of June 30, 2024 and June 30, 2023, there were no unconsolidated subsidiaries that are considered “significant subsidiaries”.
(2)Gibraltar Acquisition LLC is a wholly-owned subsidiary, which is the holding company for their wholly-owned affiliated portfolio companies, Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC. The subsidiary has no significant assets or liabilities, other than their equity and debt investments and equity interest in Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC, respectively.
(3)Hercules Adviser LLC is owned by Hercules Capital Management LLC and presented with Hercules Partner Holdings, LLC which are both wholly owned by the Company. Please refer to “Note 1” for additional disclosure.
Schedule of Investments Portfolio
The following table shows the fair value of the Company’s portfolio of investments by asset class as of June 30, 2024 and December 31, 2023:
(in thousands)June 30, 2024December 31, 2023
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
Senior Secured Debt$3,320,419 93.0 %$2,987,577 92.0 %
Unsecured Debt72,090 2.1 %69,722 2.2 %
Preferred Stock46,525 1.3 %53,038 1.6 %
Common Stock93,726 2.6 %99,132 3.1 %
Warrants28,922 0.8 %33,969 1.0 %
Investment Funds & Vehicles6,857 0.2 %4,608 0.1 %
Total$3,568,539 100.0 %$3,248,046 100.0 %
A summary of the Company’s investment portfolio, at value, by geographic location as of June 30, 2024 and December 31, 2023 is shown as follows:
(in thousands)June 30, 2024December 31, 2023
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
United States$3,205,062 89.8 %$2,861,615 88.1 %
United Kingdom164,218 4.6 %222,136 6.9 %
Netherlands92,769 2.6 %89,995 2.8 %
Israel78,516 2.2 %52,868 1.6 %
Canada16,093 0.5 %15,730 0.5 %
Ireland4,476 0.1 %— 0.0 %
Denmark4,183 0.1 %4,173 0.1 %
Singapore1,791 0.1 %— 0.0 %
Germany1,030 0.0 %1,144 0.0 %
Other401 0.0 %385 0.0 %
Total$3,568,539 100.0 %$3,248,046 100.0 %
The following table shows the fair value of the Company’s portfolio by industry sector as of June 30, 2024 and December 31, 2023:
(in thousands)June 30, 2024December 31, 2023
Investments at
Fair Value		Percentage of
Total Portfolio 		Investments at
Fair Value		Percentage of
Total Portfolio
Drug Discovery & Development$1,244,782 34.9 %$1,257,699 38.7 %
Software948,141 26.6 %764,985 23.6 %
Healthcare Services, Other568,751 15.9 %300,079 9.3 %
Consumer & Business Services351,632 9.9 %525,973 16.2 %
Diversified Financial Services111,312 3.1 %114,722 3.5 %
Information Services77,434 2.2 %126,605 3.9 %
Electronics & Computer Hardware76,191 2.1 %20,324 0.6 %
Medical Devices & Equipment55,653 1.6 %22,096 0.7 %
Space Technologies45,498 1.3 %— 0.0 %
Biotechnology Tools35,149 1.0 %48,381 1.5 %
Communications & Networking29,778 0.8 %29,400 0.9 %
Sustainable and Renewable Technology20,301 0.6 %9,581 0.3 %
Manufacturing Technology1,680 0.0 %11,006 0.3 %
Consumer & Business Products1,223 0.0 %2,589 0.1 %
Semiconductors903 0.0 %1,205 0.0 %
Media/Content/Info94 0.0 %12,704 0.4 %
Drug Delivery17 0.0 %21 0.0 %
Surgical Devices— 0.0 %676 0.0 %
Total$3,568,539 100.0 %$3,248,046 100.0 %
Schedule of Investment Collateral The Company's investments were collateralized as follows as of June 30, 2024 and December 31, 2023:
Percentage of debt investments (at fair value), as of
June 30, 2024December 31, 2023
Senior Secured First Lien
All assets including intellectual property61.0 %52.3 %
All assets with negative pledge on intellectual property18.5 %24.0 %
“Last-out” with security interest in all of the assets10.6 %12.5 %
Total senior secured first lien position90.1 %88.8 %
Second lien7.8 %8.9 %
Unsecured2.1 %2.3 %
Total debt investments at fair value100.0 %100.0 %
Summary of Fair Value and Location of the Company's Derivative Instruments The following is a summary of the fair value and location of the Company’s derivative instruments in the Consolidated Statements of Assets and Liabilities held as of June 30, 2024 and December 31, 2023:
(in thousands)Fair Value
Derivative InstrumentStatement LocationJune 30, 2024December 31, 2023
Foreign currency forward contractOther assets$188 $— 
Foreign currency forward contractAccounts payable and accrued liabilities— 766 
Total$188 $766 
Summary of Net Realized and Unrealized Gains and Losses
Net realized and unrealized gains and losses on derivative instruments recorded by the Company during the three and six months ended June 30, 2024 and 2023 are in the following locations in the Consolidated Statements of Operations:
(in thousands) Three Months Ended June 30,Six Months Ended June 30,
Derivative InstrumentStatement Location2024202320242023
Foreign currency forward contractNet realized gain (loss) - Non-control / Non-affiliate investments$(849)$— $(849)$— 
Foreign currency forward contractNet change in unrealized appreciation (depreciation) - Non-control / Non-affiliate investments725 (554)954 (554)
 Total$(124)$(554)$105 $(554)
Schedule of Investment Interest Income and Fee Income
The Company’s investment portfolio generates interest, fee, and dividend income. The composition of the Company’s interest income and fee income is as follows:
(in thousands)Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Contractual interest income$87,439 $86,147 $178,153 $168,938 
Exit fee interest income10,592 14,054 22,472 23,436 
PIK interest income15,267 5,819 25,164 11,347 
Dividend income2,100 — 3,700 — 
Other investment income(1)
2,131 2,966 3,819 5,162 
Total interest and dividend income$117,529 $108,986 $233,308 $208,883 
(1)Other investment income includes OID interest income and interest recorded on other assets.
(in thousands)Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Recurring fee income$2,203 $2,135 $4,658 $4,175 
Fee income - expired commitments730 108 1,377 351 
Accelerated fee income - early repayments4,544 5,002 7,216 7,912 
Total fee income$7,477 $7,245 $13,251 $12,438 
Schedule of Unamortized Capitalized Fee Income
As of June 30, 2024 and December 31, 2023, unamortized capitalized fee income was recorded as follows:
(in millions)June 30,
2024		December 31,
2023
Offset against debt investment cost$38.1 $32.9 
Deferred obligation contingent on funding or other milestone10.5 9.4 
Total Unamortized Fee Income$48.6 $42.3 
Schedule of Loan Exit Fees Receivable
As of June 30, 2024 and December 31, 2023, loan exit fees receivable were recorded as follows:
(in millions)June 30,
2024		December 31,
2023
Included within debt investment cost$36.8 $35.9 
Deferred receivable related to expired commitments5.2 4.3 
Total Exit Fees Receivable$42.0 $40.2