Q2 2024 Hercules Capital Inc Earnings Call Transcript
Key Points
- Hercules Capital Inc (HTGC) achieved record total gross fundings of $1.07 billion for the first half of 2024, marking the first time in its 20-year history to surpass $1 billion in gross fundings in the first half of a calendar year.
- The company generated record total investment income of $125 million in Q2 2024, up nearly 8% year over year.
- Hercules Capital Inc (HTGC) maintained a strong liquidity position with $482 million available at the end of Q2 2024.
- The company achieved a return on equity of 19.2% in Q2 2024.
- Hercules Capital Inc (HTGC) received approval for its fourth SBIC license, providing access to $175 million of additional growth capital.
- Net asset value per share decreased by 1.7% from Q1 2024, ending at $11.43 per share.
- The company experienced net realized losses of $5.8 million in Q2 2024, primarily due to losses on debt investments and foreign exchange rate fluctuations.
- Hercules Capital Inc (HTGC) reported a slight decrease in core yield to 13.7% in Q2 2024, attributed to more first lien exposure and heavier payoffs from legacy higher-yielding assets.
- The company had two loans on nonaccrual status, with an investment cost and fair value of approximately $91.8 million and $32.1 million, respectively.
- There is an expectation of higher than normal market and macro volatility in the second half of 2024 due to the presidential election and potential changes in the global geopolitical environment.
Good day, everyone, and thank you for standing by. Welcome to Hercules Capital second quarter 2024 financial results and conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions)
And please be advised that today's conference is being recorded. I will hand the call over to the Managing Director of Investor Relations, Michael Hara. Please go ahead.
Thank you, Carmen. Good afternoon, everyone, and welcome to Hercules conference call for the second quarter 2024. With us on the call today from Hercules are Scott Bluestein, CEO and Chief Investment Officer; and Seth Meyer, CFO.
Hercules' financial results were released just after today's market close and can be accessed from Hercules' Investor Relations section at investor.htgc.com. An archived webcast replay will be available on the Investor Relations webpage for at least 30 days following the conference call.
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