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Mar 31, 2022
Hercules Capital Q1 2022 Earnings Report
Hercules Capital's financial results for Q1 2022 were announced, highlighting record debt portfolio growth and significant gross debt and equity commitments.
Key Takeaways
Hercules Capital reported a strong start to 2022 with record net debt investment portfolio growth of $190.7 million, driven by record Q1 gross new debt and equity commitments of $615.2 million. The company's NII was $35.8 million, or $0.30 per share. They ended the quarter with $430.3 million in available liquidity.
Net Investment Income (NII) reached $35.8 million, or $0.30 per share.
Total gross debt and equity commitments hit a record Q1 total of $615.2 million.
Available liquidity stood at $430.3 million.
The company experienced a record net debt investment portfolio increase of $190.7 million.
Forward Guidance
Hercules Capital expects continued momentum on originations and benefits from rising interest rates to drive growth of their portfolio and core income, assuming favorable market conditions. They also plan to manage their undistributed earnings spillover and maintain a strong balance sheet.
Positive Outlook
- Continued momentum on originations is expected.
- Rising interest rates are expected to provide benefits.
- Core income and NII are expected to grow.
- Managing a healthy undistributed earnings spillover provides flexibility.
- Maintaining a strong and diversified balance sheet is a key focus.
Challenges Ahead
- Market conditions must remain favorable.
- Equity market volatility requires disciplined underwriting.
- There is no assurance that companies that have yet to complete their IPOs will do so.
- Pending merger announcements might not close.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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