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Schedule 12-14s - CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES (Tables)

12 Months Ended

Dec. 31, 2024

Investments in and Advances to Affiliates [Abstract]

Schedule of Investments in and Advances to Affiliates, Schedule of Investments

(in thousands)
Portfolio Company						Investment(1)						Amount of Interest, Dividends and Fees Credited to Income(2)						Realized Gain (Loss)						Fair Value as of December 31, 2023						Gross Additions(3)						Gross Reductions(4)						Net Change in Unrealized Appreciation/ (Depreciation)						Fair Value as of December 31, 2024
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(8)						Preferred Stock						$	—					$	—					$	260					$	—					—						$	(191)					$	69
						Common Stock						—						—						2						—						—						(2)						—
Gibraltar Acquisition LLC (5)						Unsecured Debt						5,447						—						34,478						1,734						—						—						36,212
						Member Units						—						—						28,034						—						—						(4,983)						23,051
Hercules Adviser LLC(6)						Unsecured Debt						7,410						—						12,000						—						—						—						12,000
						Member Units						—						—						28,713						—						—						1,477						30,190
Total Majority Owned Control Investments												$	12,857					$	—					$	103,487					$	1,734					$	—					$	(3,699)					$	101,522
Other Control Investments
Tectura Corporation(7)						Senior Debt						$	692					$	—					$	8,250					$	—					$	—					$	(223)					$	8,027
						Preferred Stock						—						—						3,263						—						—						360						3,623
						Common Stock						—						—						4						—						—						3						7
Total Other Control Investments												$	692					$	—					$	11,517					$	—					$	—					$	140					$	11,657
Total Control Investments												$	13,549					$	—					$	115,004					$	1,734					$	—					$	(3,559)					$	113,179

(1)Stock and warrants are generally non-income producing and restricted.

(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.

(5)As of March 31, 2018, the Company's investment in Gibraltar Acquisition LLC became classified as a control investment as a result of obtaining a controlling financial interest. 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.

(6)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 - Description of Business” for additional disclosure.

(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.

(8)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

As of and for the year ended December 31, 2023

(in thousands)
Portfolio Company						Investment(1)						Amount of Interest and Fees Credited to Income(2)						Realized Gain (Loss)						Fair Value as of December 31, 2022						Gross Additions(3)						Gross Reductions(4)						Net Change in Unrealized Appreciation/ (Depreciation)						Fair Value as of December 31, 2023
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(8)						Preferred Stock						$	—					$	—					$	313					$	—					$	—					$	(53)					$	260
						Common Stock						—						—						6						—						—						(4)						2
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)(5)						Unsecured Debt						3,439						—						21,700						9,912						—						2,866						34,478
						Member Units						—						—						15,244						6,000						—						6,790						28,034
Hercules Adviser LLC(6)						Unsecured Debt						608						—						12,000						—						—						—						12,000
						Member Units						—						—						19,153						—						—						9,560						28,713
Total Majority Owned Control Investments												$	4,047					$	—					$	68,416					$	15,912					$	—					$	19,159					$	103,487
Other Control Investments
Tectura Corporation(7)						Senior Debt						$	690					$	—					$	8,042					$	—					$	(13,263)					$	13,471					$	8,250
						Preferred Stock						—						—						—						13,263						—						(10,000)						3,263
						Common Stock						—						—						—						—						—						4						4
Total Other Control Investments												$	690					$	—					$	8,042					$	13,263					$	(13,263)					$	3,475					$	11,517
Total Control Investments												$	4,737					$	—					$	76,458					$	29,175					$	(13,263)					$	22,634					$	115,004

(1)Stock and warrants are generally non-income producing and restricted.

(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.

(5)As of March 31, 2018, the Company's investment in Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC) became classified as a control investment as a result of obtaining a controlling financial interest. 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.

(6)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 - Description of Business” for additional disclosure.

(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.

(8)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

As of and for the year ended December 31, 2024

(in thousands)
Portfolio Company						Industry						Type of Investment(1)						Maturity Date						Interest Rate and Floor						Principal or Shares						Cost						Value(2)
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC						Medical Devices & Equipment						Preferred Series A Equity																		5,000,000						$	250					$	69
						Medical Devices & Equipment						Common Stock																		180,000						—						—
Total Coronado Aesthetics, LLC																																				$	250					$	69
Gibraltar Acquisition LLC (3)						Diversified Financial Services						Unsecured Debt						September 2026						FIXED 3.45%, PIK Interest 8.05%						$	26,569					26,337						26,337
						Diversified Financial Services						Unsecured Debt						September 2026						FIXED 11.95%						$	10,000					9,875						9,875
						Diversified Financial Services						Member Units																		1						34,006						23,051
Total Gibraltar Acquisition, LLC																																				$	70,218					$	59,263
Hercules Adviser LLC(4)						Diversified Financial Services						Unsecured Debt						June 2025						FIXED 5.00%						$	12,000					12,000						12,000
						Diversified Financial Services						Member Units																		1						35						30,190
Total Hercules Adviser LLC																																				$	12,035					$	42,190
Total Majority Owned Control Investments (5.10%)*																																				$	82,503					$	101,522
Other Control Investments
Tectura Corporation						Consumer & Business Services						Senior Secured Debt						January 2027						FIXED 8.25%						$	8,250					$	8,250					$	8,027
						Consumer & Business Services						Common Stock																		414,994,863						900						7
						Consumer & Business Services						Preferred Series BB Equity																		1,000,000						—						17
						Consumer & Business Services						Preferred Series C Equity																		3,235,298						13,263						3,606
Total Tectura Corporation																																				$	22,413					$	11,657
Total Other Control Investments (0.59%)*																																				$	22,413					$	11,657
Total Control Investments (5.69%)*																																				$	104,916					$	113,179

*Value as a percent of net assets

(1)Stock and warrants are generally non-income producing and restricted.

(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.

(3)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.

(4)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 - Description of Business” for additional disclosure.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

As of and for the year ended December 31, 2023

(in thousands)
Portfolio Company						Industry						Type of Investment(1)						Maturity Date						Interest Rate and Floor						Principal or Shares						Cost						Value(2)
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC						Medical Devices & Equipment						Preferred Series A Equity																		5,000,000						$	250					$	260
						Medical Devices & Equipment						Common Stock																		180,000						—						2
Total Coronado Aesthetics, LLC																																				$	250					$	262
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)(3)						Diversified Financial Services						Unsecured Debt						September 2026						FIXED 11.50%						$	25,000					24,663						24,663
						Diversified Financial Services						Unsecured Debt						September 2026						FIXED 11.95%						$	10,000					9,815						9,815
						Diversified Financial Services						Member Units																		1						34,006						28,034
Total Gibraltar Business Capital, LLC																																				$	68,484					$	62,512
Hercules Adviser LLC(4)						Diversified Financial Services						Unsecured Debt						June 2025						FIXED 5.00%						$	12,000					12,000						12,000
						Diversified Financial Services						Member Units																		1						35						28,713
Total Hercules Adviser LLC																																				$	12,035					$	40,713
Total Majority Owned Control Investments (5.74%)*																																				$	80,769					$	103,487
Other Control Investments
Tectura Corporation						Consumer & Business Services						Senior Secured Debt						July 2024						FIXED 8.25%						$	8,250					$	8,250					$	8,250
						Consumer & Business Services						Common Stock																		414,994,863						900						4
						Consumer & Business Services						Preferred Series BB Equity																		1,000,000						—						12
						Consumer & Business Services						Preferred Series C Equity																		3,235,298						13,263						3,251
Total Tectura Corporation																																				$	22,413					$	11,517
Total Other Control Investments (0.64%)*																																				$	22,413					$	11,517
Total Control Investments (6.38%)*																																				$	103,182					$	115,004

*Value as a percent of net assets

(1)Stock and warrants are generally non-income producing and restricted.

(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.

(3)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.

(4)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 - Description of Business” for additional disclosure.

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- Definition

A tabular presentation of the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates, as prescribed by the SEC. It reflects specified information about ownership, financial results from, and financial position in such entities. Includes the tabular presentations that disaggregate investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates.

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