Hercules Capital, Inc. (HTGC) — Dividend Yield, NAV & Valuation Analysis
HTGC · NYSE
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Overview
Hercules Capital is a leading BDC focused exclusively on venture debt financing for technology and life sciences companies. HTGC provides senior secured loans to venture capital-backed companies that are typically pre-profit or pre-revenue but have strong institutional backing. With a specialization in venture debt, Hercules offers a differentiated BDC investment with higher yield potential and unique exposure to innovation-driven growth companies.
Key Metrics
| Metric | Value |
|---|---|
| 1-Year Total Return | 17.2% |
| 3-Year Total Return | 42.5% |
| 5-Year Total Return | 61% |
| Expense Ratio | 9.5% |
| Leverage Ratio | 1.35x |
| Portfolio Companies | 155 |
| Total Assets | $3.7B |
Discount / Premium to NAV
| Stock Price | $17.63 |
| NAV per Share | $16.8 |
| Premium / (Discount) to NAV | 4.9% |
| Implied per-share NAV gap | $-0.83 |
The premium / discount to NAV compares the current stock price to the per-share net asset value of Hercules Capital, Inc.'s investment portfolio. A negative reading (a discount) means the market is pricing HTGC below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Hercules Capital, Inc. currently trades at a 4.9% premium to NAV.
Investment Strategy
Hercules Capital, Inc. focuses on venture debt, senior secured loans in the technology, life sciences, healthcare, climate tech sectors. The company targets middle-market companies and maintains a portfolio of 155 investments totaling $3.7B in assets.
Management
CEO: Scott Bluestein | Employees: 65
Suitability
HTGC is suitable for income-focused investors seeking quarterly dividend income with a 10.7% yield. The BDC's focus on venture debt provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.