Hercules Capital Logs $1.81B Q1 Commitments, $706M Fundings, 56% Life Sciences, 44% Tech
HTGC•Hercules Capital reported record Q1 new commitments of $1.81 billion and gross fundings of $706 million, deploying 56% to life sciences and 44% to technology businesses. CEO Scott Bluestein said ongoing market volatility and lower venture valuations spurred growth-stage firms into private credit, driving elevated originations.
1. Record Q1 Commitments and Fundings
Hercules Capital posted a record $1.81 billion in new commitments and $706 million in gross fundings in the first quarter, with CEO Scott Bluestein forecasting sustained elevated originations throughout the year.
2. Deployment by Sector
Of the $706 million deployed, approximately 56% financed life sciences ventures while 44% supported technology businesses, with a strategic emphasis on defense tech, space tech, cybersecurity and networking communications companies.
3. Market Dynamics Driving Demand
Bluestein attributed the surge in originations to market volatility and lower venture valuations that prompted growth-stage companies to favour private credit over equity, and noted that many non-dedicated private credit arms pulled back from venture lending in this environment.
4. Portfolio Quality and Strategic Focus
Portfolio health remains strong with only one debt investment on non-accrual, representing 0.2% of gross cost and 0.1% of fair value, as the firm focuses on companies using AI technologies rather than pure-play AI investments.
