Hercules Technology Growth Capital, Inc. (NYSE: HTGC), the leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and energy and renewables technology industries, at all stages of development, today announced its quarter-to-date Q4 2013 portfolio update.
Citing the buoyant market for public equities, the Company said five Hercules portfolio companies have successfully completed IPOs in 2013 and four additional portfolio companies have filed Registration Statements for a potential IPO. The Company also noted that M&A activity within its portfolio has been even more robust with the acquisition of 19 Hercules portfolio companies during this past year.
“2013 has been an exciting year for Hercules, punctuated by a record number of liquidity events within our investment portfolio,” said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. “We are proud to be the venture debt lender of choice for so many promising and innovative venture capital-backed, entrepreneurial companies.”
Portfolio gains and record growth in Net Investment Income led to an increased dividend in every quarter of 2013. Hercules’ shares have generated total returns of approximately 60%+ YTD, when including dividend payments and stock appreciation through mid-December 2013. The Company’s market cap now exceeds $1.0 billion, and is expected to finish 2013 with a strong liquidity position of more than $300 million to pursue new investment as it enters into 2014.“These liquidity events, which enhanced our already strong liquidity position, coupled with the BBB+ (investment grade) rating Kroll assigned to Hercules’ bonds have culminated in strong total shareholder returns for our investors. “In early December, Hercules celebrated its 10 th anniversary. We have now completed approximately $4.0 billion in commitments to over 260 innovative, venture- backed companies since inception, demonstrating our leadership position as one of the largest and well-capitalized BDCs focused on the venture capital marketplace,” Henriquez continued. “To deploy this liquidity, the Company has been actively building its team of investment professionals, adding five senior executives in just the past few months, opening a new office in New York City, and expanding our California and Virginia offices. The significant depth of experience, out-of-the-box entrepreneurial thinking and hard work of our team will continue to help drive Hercules to new heights within the BDC sector in 2014 and beyond.” New Originations for Quarter-to-Date Q4 2013: As of December 19, 2013, Hercules has originated approximately $121.3 million of debt and equity commitments to new and existing portfolio companies.