The following is a summary of the Hercules Capital, Inc. (HTGC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Hercules Capital reported managed assets of over $4.5 billion, showing a 14.7% increase compared to the previous year.

• The company hit a record in Q1 with the origination of gross debt, equity commitments, and gross fundings at $956 million and $605.2 million respectively.

• Total investment income amounted to $121.6 million for Q1, a growth of around 16% year-over-year.

• This period saw a GAAP effective yield of 14.9% and a core yield of 14%.

• Hercules reported Q1 net realized gains of $8.2 million and raised $66 million through ATM.

• The company finished Q1 with strong liquidity at $498.1 million.

Business Progress:

• Hercules Capital funded debt capital to 24 companies in Q1, establishing nine new borrower relationships.

• There was increased demand from life sciences companies, comprising about 65% of Hercules' Q1 fundings.

• The company anticipates a strong market with continuous investment activity and robust year-on-year growth in originations.

• A substantial increase in prepayments is expected in Q2, potentially hitting the high-end guidance of between $200 million and $300 million.

• Hercules Capital will maintain a slow and careful increase in leverage throughout 2024.

• Strategic investments have been made in all business areas over the past two years, with a clear emphasis on maintaining a strong balance sheet, healthy liquidity, and a conservative approach towards leverage.

More details: Hercules Capital IR

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