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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