For more than 20 years, Hercules Capital (HTGC) has produced superior returns for investors. Last week, the business development corporation (BDC) issued a press release celebrating the fact that it had accumulated $25 billion in debt commitments, noting that Hercules is “the largest and leading specialty financing provider to innovative venture, growth, and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms.”
Hercules Capital provides a list of select achievements since the company’s 2004 launch. These bullets also come from the press release:
- Approximately a 21-year 41.5% compound annual growth rate in cumulative commitments
- More than 700 highly diversified portfolio companies have chosen Hercules as their growth financing partner
- Partnered with more than 1,000 different venture capital and private equity sponsors who have backed the innovative growth portfolio companies we have financed
- Over 270 Hercules portfolio companies have experienced an IPO or M&A liquidity event
- ~$5.5 billion in total assets under management (“AUM”), as of September 30, 2025
- Over 60 investment professionals located in the key venture capital markets
The HTGC total return since its IPO is 1,050%. I also like to look at total returns since mid-2020, as markets emerged from the pandemic. Since June 1, 2020, the HTGC share price has been up 56.9%, and the total return is 199.6%.
Hercules Capital’s regular quarterly dividend has increased by 25% since 2020, rising from $0.32 per share to $0.40 per share. The regular dividend yields 9.0% currently. The company has also paid $1.71 per share in supplemental dividends since 2020.
I believe HTGC will continue to increase its regular dividend. Any supplemental dividends are a bonus.
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