Hercules Capital Inc (HTGC) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the Hercules Capital first quarter 2025 Financial Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to turn it over to Michael Hara, Senior Director of Investor Relations for opening comments. Please go ahead.

您好，感謝您的支持。歡迎參加 Hercules Capital 2025 年第一季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄音。現在，我想將開場發言權交給投資者關係高級總監 Michael Hara。請繼續。

Thank you, Kathy. Good afternoon, everyone, and welcome to Hercules conference call for the first quarter of 2025. With us on the call today from Hercules are Scott Bluestein, CEO and Chief Investment Officer; and Seth Meyer, CFO. Hercules' financial results were released just after today's market close and can be accessed from Hercules Investor Relations section at investor.htgc.com. An archived webcast replay will be available on the Investor Relations web page for at least 30 days following the conference call.

謝謝你，凱西。大家下午好，歡迎參加 Hercules 2025 年第一季電話會議。今天與我們一起參加 Hercules 電話會議的有執行長兼首席投資長 Scott Bluestein；以及財務長 Seth Meyer。赫拉克勒斯的財務表現於今日收盤後發布，可從 investor.htgc.com 上的赫拉克勒斯投資者關係部分查閱。電話會議結束後，存檔的網路直播重播將在投資者關係網頁上提供至少 30 天。

During this call, we may make forward-looking statements based on assumptions and current expectations. These forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Actual financial results may differ from the forward-looking statements made during this call for a number of reasons, including, but not limited to, the risks identified in our annual report on Form 10-K and other filings that are publicly available on the SEC's website. Any forward-looking statements made during this call are made only as of today's date, and Hercules assumes no obligation to update any such statements in the future.

在本次電話會議中，我們可能會根據假設和當前預期做出前瞻性陳述。這些前瞻性陳述並非對未來績效的保證，在做出任何投資決策時不應依賴這些前瞻性陳述。由於多種原因，實際財務結果可能與本次電話會議中做出的前瞻性陳述不同，包括但不限於我們在 10-K 表格年度報告和美國證券交易委員會網站上公開的其他文件中確定的風險。本次電話會議中所做的任何前瞻性陳述僅截至今日有效，Hercules 不承擔將來更新任何此類陳述的義務。

And with that, I will turn the call over to Scott.

說完這些，我會把電話轉給史考特。

Thank you, Michael, and thank you all for joining the Hercules Capital Q1 2025 Earnings Call.

謝謝你，邁克爾，也謝謝大家參加 Hercules Capital 2025 年第一季財報電話會議。

Coming off the year of operating performance and continued platform expansion, our momentum accelerated in the first quarter with very strong originations and fundings, which helps drive nearly $270 million of net debt portfolio growth in Q1. During Q1, we took steps to further strengthen our balance sheet and liquidity position with the closing of our bond offering of $287.5 million of 4.75% convertible unsecured notes due 2028. Our low cost of capital relative to our peers and our ample liquidity across the platform continues to put us in an advantageous competitive position especially in market conditions like we are currently experiencing.

繼一年的營運業績和持續的平台擴張之後，我們在第一季的發展勢頭加速，發起和融資非常強勁，這有助於推動第一季淨債務組合成長近 2.7 億美元。在第一季度，我們採取措施進一步加強我們的資產負債表和流動性狀況，並完成了 2.875 億美元、2028 年到期的 4.75% 可轉換無擔保票據的債券發行。與同業相比，我們的資本成本較低，而且我們整個平台的流動性充足，這讓我們繼續處於有利的競爭地位，尤其是在我們目前經歷的市場條件下。

Driven by the growth of both the BDC and our private credit funds business, Hercules Capital is now managing over $5 billion of assets. an increase of 11% year-over-year. Our continued ability to scale and leverage our institutional infrastructure combined, highly diversified asset base and balance sheet should continue to serve us well as we continue to navigate the recent market and macro volatility.

在 BDC 和私人信貸基金業務成長的推動下，Hercules Capital 現管理超過 50 億美元的資產。較去年同期成長11%。我們持續擴大和利用機構基礎設施的能力、高度多樣化的資產基礎和資產負債表應該會繼續為我們提供良好的服務，讓我們能夠繼續應對近期的市場和宏觀波動。

On our most recent earnings call on February 13, we emphasized that we expected higher-than-normal market and macro utility given the change in administration and the ongoing challenges taking place in the global geopolitical environment. We also noted that we anticipated a more favorable new business landscape broadly in the first half of 2025 and that we were positioning the business to be able to take advantage of that.

在我們最近一次於 2 月 13 日召開的財報電話會議上，我們強調，鑑於政府的變動和全球地緣政治環境中持續存在的挑戰，我們預計市場和宏觀效用將高於正常水平。我們也指出，我們預計 2025 年上半年的新業務格局將更加有利，並且我們正在對業務進行定位，以便能夠利用這一優勢。

During [Q1] and subsequent to quarter end, both have played out largely consistent with our expectations. The equity and credit markets have been exceptionally volatile which has helped drive a significant increase in demand of capital from Hercules.

在 [Q1] 期間以及季度末之後，兩者的表現基本上符合我們的預期。股票和信貸市場異常動盪，導致 Hercules 的資本需求大幅增加。

The evolving messaging from the current administration has created a general sense of unease across the global markets. While we are monitoring developments closely, we continue to believe that we are well positioned in this operating environment with a diverse asset base, strong balance sheet, conservative leverage position and exposure to industries that are generally less exposed to the impact of tariffs and related trade policy uncertainty. While we intend to continue to manage our business and balance sheet [decisively], we also plan to take advantage of the attractive market opportunities that we are continuing to see in the market.

現任政府不斷演變的訊息在全球市場引發了普遍的不安情緒。雖然我們正在密切關注事態發展，但我們仍然相信，憑藉多元化的資產基礎、強勁的資產負債表、保守的槓桿率以及對通常較少受到關稅和相關貿易政策不確定性影響的行業的敞口，我們在這種經營環境中處於有利地位。雖然我們打算繼續[果斷地]管理我們的業務和資產負債表，但我們也計劃利用我們在市場上繼續看到的誘人的市場機會。

In Q1, we maintained our high first lien exposure which remained at approximately 91% and continues to be towards the high end of our BDC peers. Strong net debt portfolio growth in Q1 helped drive GAAP leverage up modestly from just under 90% in Q4 to just under 100% in Q1.

在第一季度，我們維持了較高的第一留置權敞口，仍約為 91%，並且繼續處於 BDC 同行的高端水平。第一季強勁的淨債務組合成長推動 GAAP 槓桿率從第四季的略低於 90% 小幅上升至第一季的略低於 100%。

Our Q1 GAAP leverage remains at the low end of our historical target range of 100% and to 115% and below the average of our BDC peers. We ended Q1 with over $1 billion of liquidity across the platform and no material near-term debt maturities, which we believe positions us well to benefit from the more favorable originations market that we are currently seeing.

我們第一季的 GAAP 槓桿率仍處於歷史目標範圍 100% 的低端至 115%，低於 BDC 同行的平均水平。當我們在第一季結束時，整個平台的流動性超過 10 億美元，並且沒有重大的短期債務到期，我們相信這使我們能夠從目前看到的更有利的發起市場中受益。

Let me now recap some of the key highlights of our performance for Q1. In Q1, we originated total gross debt and equity commitments of over $1 billion. And gross fundings of over $539 million. Both of these figures represent the second highest level being achieved in our history. The strong fundings led to net debt portfolio growth of nearly $270 million, the second highest level of net debt portfolio growth for a given quarter.

現在讓我回顧一下我們第一季業績的一些主要亮點。在第一季度，我們產生的債務和股權總承諾額超過 10 億美元。總融資額超過 5.39 億美元。這兩個數字都是我們歷史上達到的第二高水準。強勁的融資使得淨債務組合成長近 2.7 億美元，這是該季度淨債務組合成長的第二高水準。

In Q1, over 55% of our fundings occurred during the final month of the quarter, which limited the NII benefit that we received from those investments in Q1. We anticipate that the near record net debt investment portfolio growth from the first quarter will help drive our core income and NII per share higher over the coming quarters.

在第一季度，我們超過 55% 的融資都發生在該季度的最後一個月，這限制了我們從第一季的這些投資中獲得的 NII 收益。我們預計，第一季接近創紀錄的淨債務投資組合成長將有助於推動我們未來幾季的核心收入和每股淨收入提高。

We generated total investment income of $119.5 million and net investment income of $77.5 million or $0.45 per share. We were able to achieve 113% coverage of our quarterly base distribution of $0.40 per share. We generated a return on equity in Q1 of 15.7% and our portfolio generated a GAAP effective yield of 13% in Q1 and a core yield of 12.6%.

我們產生的總投資收益為 1.195 億美元，淨投資收益為 7,750 萬美元或每股 0.45 美元。我們能夠實現每股 0.40 美元的季度基本分配的 113% 覆蓋率。我們第一季的股本回報率為 15.7%，我們的投資組合在第一季的 GAAP 有效收益率為 13%，核心收益率為 12.6%。

Core yields declined slightly from 12.9% in Q4, largely coming from declining base rates and some spread compression on certain new originations. Our balance sheet with moderate leverage and low cost of leverage remains very well positioned to support our continued growth objectives and provides us with the ability to continue to focus on high-quality originations versus chasing higher-yielding assets, which we believe have more risk.

核心殖利率較第四季的 12.9% 略有下降，主要原因是基準利率下降以及某些新發行債券的利差壓縮。我們的資產負債表具有適度的槓桿率和較低的槓桿成本，仍然非常適合支持我們持續的成長目標，並使我們能夠繼續專注於高品質的發起，而不是追逐我們認為風險更大的高收益資產。

The focus of our origination efforts in Q1, and quarter-to-date Q2, was on maintaining a disciplined approach to capital deployment with an emphasis on diversification and avoidance of certain sectors that we believe will be more challenged in the current operating environment. Our Q1 originations activity placed a slightly greater emphasis on technology companies versus life sciences companies.

我們在第一季和第二季的發起工作重點是保持嚴謹的資本配置方式，強調多元化和避免我們認為在當前營運環境中將面臨更大挑戰的某些產業。我們第一季的發起活動更著重於科技公司而非生命科學公司。

In Q1, approximately 53% of our commitments and 76% of our fundings were to technology companies, while approximately 47% of our new commitments were to life sciences companies. We funded debt capital to 15 different companies in Q1 of which 9 were new borrower relationships. We also increased our capital commitments to several portfolio companies during the quarter, which speaks to our unique ability to scale alongside our borrowers as they grow their businesses, and achieve performance milestones.

在第一季度，我們約有 53% 的承諾和 76% 的資金都投給了科技公司，而約 47% 的新承諾都投給了生命科學公司。我們在第一季向 15 家不同的公司提供了債務資本，其中 9 家是新的借款人關係。本季度，我們也增加了對幾家投資組合公司的資本承諾，這表明我們具有獨特的能力，可以隨著借款人的業務發展和實現業績里程碑而擴大規模。

Our available unfunded commitments were approximately $455.7 million, up slightly from $448.5 million in Q4. The momentum that we saw in originations in Q1 has continued in Q2. Since the close of Q1 and as of April 28, 2025, our deal teams have closed $141 million of new commitments and funded $147.8 million. We have pending commitments of an additional $682.5 million, in signed nonbinding term sheets, and we expect this number to continue to grow as we progress further in Q2. Many quality venture (inaudible) companies that have scale and strong credit profiles are increasingly focused on the balance sheet strength and staying power of their lenders, which has helped drive more new business towards Hercules.

我們可用的未撥付承諾約為 4.557 億美元，略高於第四季的 4.485 億美元。我們在第一季看到的勢頭在第二季度得以延續。自第一季結束後至 2025 年 4 月 28 日，我們的交易團隊已達成 1.41 億美元的新承諾，並提供 1.478 億美元的資金。我們已簽署非約束性條款清單，承諾額外支付 6.825 億美元，我們預計隨著第二季的進一步進展，這一數字將繼續增長。許多擁有規模和良好信用狀況的優質風險投資（聽不清楚）公司越來越關注其貸方的資產負債表實力和持久力，這有助於推動更多新業務進入 Hercules。

We are also beginning to see certain banks move to more of a risk-off posture, which we believe will help drive near-term originations momentum. Given the volatile market backdrop throughout much of Q1, we are pleased with the exit activity that we saw in our portfolio during the quarter. In Q1, we had three M&A events in our portfolio, which included one life sciences portfolio company and two technology portfolio companies announcing acquisitions.

我們也開始看到某些銀行轉向更規避風險的姿態，我們相信這將有助於推動近期的貸款發放動能。鑑於第一季大部分時間市場背景動盪，我們對本季投資組合中的退出活動感到滿意。第一季度，我們的投資組合中有三起併購事件，其中包括一家生命科學投資組合公司和兩家技術投資組合公司宣布收購。

In addition, we had one technology company confidentially filed for their IPO in the quarter. Based on current market conditions, we expect exit activity to remain muted near term, as many companies are pausing discussions while they wait for more policy clarity.

此外，本季還有一家科技公司秘密申請首次公開發行 (IPO)。根據目前的市場狀況，我們預計退出活動短期內將保持低迷，因為許多公司正在暫停討論，等待更多政策明朗。

Early loan repayments decreased significantly in Q1 to approximately $132 million. Approximately 42% of our Q1 prepayments were attributable to existing investments, refinanced and upsized by Hercules as a result of strong performance, and therefore, true early loan repayments were only $75.9 million, which was well below our guidance of $100 million to $200 million for the quarter. While the lower level of early loan prepayments reduced our Q1 NII per share, it resulted in strong net debt portfolio growth in the quarter, which positions us well for strong earnings growth in the coming quarters.

第一季提前償還貸款大幅減少至約 1.32 億美元。我們第一季預付款的約 42% 歸因於現有投資，由於業績強勁，Hercules 對其進行了再融資和增加，因此，實際提前貸款償還額僅為 7,590 萬美元，遠低於我們為本季度設定的 1 億至 2 億美元的預期。雖然提前貸款預付水準較低降低了我們第一季每股淨利息收入，但導致本季淨債務組合強勁成長，這為我們在未來幾季實現強勁獲利成長奠定了基礎。

For Q2 2025, we expect prepayments to be in the range of $200 million to $250 million, although this could change as we progress in the quarter. Credit quality of the debt investment portfolio remained stable quarter-over-quarter. Our weighted average internal credit rating of 2.31 increased slightly from the 2.26 rating in Q4 and remains well within our normal historical range.

對於 2025 年第二季度，我們預計預付款將在 2 億至 2.5 億美元之間，但隨著本季度的進展，這一數字可能會發生變化。債務投資組合的信用品質比去年同期維持穩定。我們的加權平均內部信用評級為 2.31，較第四季的 2.26 略有上升，但仍處於正常歷史範圍內。

Our Grade 1 and 2 credits decreased to 61.1%, compared to 65.9% in Q4. Grade 3 credits increased to 33.9% in Q1 versus 29% in Q4. Our rated 4 credits decreased to 4.1% from 4.6% in Q1, and rated 5 credits increased slightly to 0.9%.

我們的 1 級和 2 級學分下降至 61.1%，而第四季為 65.9%。第一季三級學分比例上升至 33.9%，而第四季為 29%。我們的評級 4 學分從第一季的 4.6% 下降到 4.1%，評級 5 學分則略有上升，達到 0.9%。

In Q1, the number of loans and companies on nonaccrual increased by 1. We had 2 debt investments on nonaccrual with an investment cost and fair value of approximately $72.2 million and $19.6 million, respectively, or 1.8% and 0.5% as a percentage of our total investment portfolio at cost and fair value, respectively.

一季度，未計息貸款及企業數量增加1家。我們有 2 項不提債務投資，投資成本和公允價值分別約為 7,220 萬美元和 1,960 萬美元，占我們總投資組合成本和公允價值的 1.8% 和 0.5%。

With respect to our broader credit book and outlook, we generally remain pleased by what we are seeing on a portfolio level, and our portfolio monitoring remains enhanced. Given the uncertainty of the current tariff and trade-related environment, we have been proactively working to assess any material impact across our credit portfolio.

就我們更廣泛的信貸帳簿和前景而言，我們總體上對投資組合層面的情況感到滿意，並且我們的投資組合監控也得到了加強。鑑於當前關稅和貿易相關環境的不確定性，我們一直在積極評估對我們信貸組合的任何重大影響。

Over 85% of our borrowers are domestic and a higher percentage of the business conducted borrowers is domestic in nature. Additionally, nearly 75% of our borrowers are in the software, services or drug development industries. We believe that this largely insulates the substantial majority of our portfolio from the material negative impacts of the current tariff and trade environment.

我們的借款人中 85% 以上都是國內借款人，而且，我們開展業務的借款人中，很大一部分屬於國內性質。此外，我們有近 75% 的借款人從事軟體、服務或藥物開發行業。我們相信，這在很大程度上使我們的投資組合中的絕大部分免受當前關稅和貿易環境的重大負面影響。

Further, our investment in credit teams have engaged with most of our borrowers to further assess any potential impacts, and we have identified only a very small number of borrowers and that may be directly negatively impacted. At this point, and based on those conversations and what we know as of today, we do not believe that any of our portfolio companies will be negatively impacted to a material degree.

此外，我們的信貸投資團隊已經與大多數借款人進行了接觸，以進一步評估任何潛在影響，並且我們只確定了極少數可能受到直接負面影響的借款人。目前，根據這些對話以及我們今天所了解的情況，我們認為我們的任何投資組合公司都不會受到實質的負面影響。

We do believe that the indirect impact of the current environment has been [sold] to lead to a general slowdown across the broader ecosystem, and this is something that we are watching closely. Subsequent to quarter end, we have noted that the overall fundraising environment for certain companies has slowed and come more challenging. We expect this to particularly impact earlier stage companies and companies that are more directly exposed to the current tariff policy through end markets or the product supply side.

我們確實認為，當前環境的間接影響已經導致整個生態系統普遍放緩，這是我們正在密切關注的事情。季度末之後，我們注意到某些公司的整體融資環境已經放緩，並且變得更具挑戰性。我們預計這將特別影響早期公司以及透過終端市場或產品供應方更直接受到當前關稅政策影響的公司。

During Q1, Hercules had net realized losses of $1.6 million primarily due to the losses on warrant and equity investments and losses from foreign exchange movements. Our net asset value per share in Q1 was $11.55, a slight decrease of 0.9% from Q4 2024. We ended Q1 with strong liquidity of $615.6 million in the BDC, and over $1 billion of liquidity across the platform. We also received an investment-grade credit rating upgrade from Morningstar DBRS from BBB to BBB high. And subsequent to the end of Q1, which upgraded our secured debt rating from BBB- to BBB.

第一季度，Hercules 的淨實現虧損為 160 萬美元，主要原因是認股權證和股權投資的損失以及外匯波動造成的損失。我們第一季的每股淨資產價值為 11.55 美元，較 2024 年第四季略有下降 0.9%。我們在第一季結束時，BDC 的流動性強勁，達到 6.156 億美元，整個平台的流動性超過 10 億美元。我們也獲得了晨星 DBRS 的投資等級信用評級升級，從 BBB 升級至 BBB 高。在第一季結束後，我們將有擔保債務評級從 BBB- 升級至 BBB。

With healthy liquidity, a low cost of debt relative to our peers, and 4 investment-grade corporate credit ratings. We remain well positioned to compete aggressively on quality transactions, which we believe is prudent in the current environment.

流動性良好，債務成本相對於同業較低，並擁有 4 個投資等級企業信用評級。我們仍處於有利地位，可以在優質交易方面積極競爭，我們認為這在當前環境下是謹慎的。

Venture capital investment activity was off to a strong start to 2025, with 91.5 billion invested according to data gathered by PitchBook and VCA. M&A exit activity for U.S. venture capital-backed companies was $22.7 billion. PO activity remained muted with fewer companies going public, but raising more dollars. Consistent with the aggregate data for the ecosystem during Q1, capital raising across our portfolio increased from Q4, with 25 companies raising approximately $2.5 billion in new capital, up from $961 million raised in the prior quarter.

根據 PitchBook 和 VCA 收集的數據，創投活動在 2025 年開局強勁，投資額達 915 億美元。美國創投支持公司的併購退出活動金額為 227 億美元。郵政信箱上市活動依然低迷，上市公司數量減少，但募款卻增加。與第一季生態系統的整體數據一致，我們投資組合的融資金額較第四季度有所增加，其中 25 家公司籌集了約 25 億美元的新資本，高於上一季的 9.61 億美元。

Given our strong sustained operating performance, we exited Q1 with undistributed earnings spillover of nearly $160 million or $0.92 per share per ending shares outstanding. For Q1, we are maintaining our quarterly base distribution of $0.40 and our supplemental distribution of $0.07 per share for a total of $0.47 of shareholder distributions.

鑑於我們持續強勁的經營業績，我們在第一季結束時的未分配盈餘溢出接近 1.6 億美元，即每股期末流通股 0.92 美元。對於第一季度，我們維持每股 0.40 美元的季度基本分配和每股 0.07 美元的補充分配，總計股東分配 0.47 美元。

This is our fifth consecutive year of being able to provide our shareholders with a supplemental distribution on top of our regular quarterly base distribution. In closing, our scale, institutionalized lending platform and our ability to capitalize a rapidly changing competitive and macro environment continues to drive our business forward and our operating performance to record levels.

這是我們連續第五年在常規季度基本分配的基礎上向股東提供補充分配。最後，我們的規模、制度化的借貸平台以及我們利用快速變化的競爭和宏觀環境的能力繼續推動我們的業務向前發展，並將我們的經營業績推向創紀錄的水平。

In Q1, Hercules delivered its eighth consecutive quarter of over $100 million of quarterly core income, which excludes the benefit of prepayment fees or fee accelerations from early repayments. Our success is attributable to this tremendous dedication, efforts and capabilities of our 100-plus employees and the trust that our venture capital and private equity partners place with us every day. We are thankful to the [many] companies, management teams and investors that continue to make Hercules their partner of choice.

第一季度，Hercules 連續第八個季度實現超過 1 億美元的季度核心收入，這還不包括預付費用或提前還款的費用加速收益。我們的成功歸功於我們 100 多名員工的巨大奉獻、努力和能力，以及我們的風險投資和私募股權合作夥伴每天對我們的信任。我們感謝眾多公司、管理團隊和投資者繼續選擇 Hercules 作為合作夥伴。

I will now turn the call over to Seth.

現在我將把電話轉給塞思。

Thank you, Scott, and good afternoon, ladies and gentlemen. Hercules started 2025 by continuing the strong business originations we experienced in Q4 2024. The nearly $270 million of net debt investment portfolio growth in Q1 was supported by are $287.5 million convertible debt issuance in March with a very low coupon rate of 4.75%, helping to keep our weighted average cost of debt just below 5%.

謝謝你，斯科特。女士們、先生們，午安。2025 年伊始，Hercules 延續了 2024 年第四季強勁的業務發展勢頭。第一季淨債投資組合成長近 2.7 億美元，這得益於 3 月發行的 2.875 億美元可轉換債券，票面利率極低，為 4.75%，有助於將我們的加權平均債務成本保持在略低於 5% 的水平。

In addition, we raised approximately $40 million of new capital under our ATM during the quarter, helping us to maintain a conservative leverage position just below 1:1 on both a GAAP and regulatory basis. We continue to maintain strong available liquidity of more than $615 million as of quarter end and more than $1 billion across the platform, including the adviser funds managed by our wholly owned subsidiary, Hercules Adviser, LLC.

此外，我們在本季透過 ATM 籌集了約 4000 萬美元的新資本，幫助我們在 GAAP 和監管基礎上保持略低於 1:1 的保守槓桿率。截至本季末，我們繼續保持強勁的可用流動性，超過 6.15 億美元，整個平台的可用流動性超過 10 億美元，其中包括由我們的全資子公司 Hercules Adviser, LLC 管理的顧問基金。

Based on the performance of the quarter, Hercules Adviser delivered a first quarter dividend of $1.9 million, which when combined with the expense reimbursement of approximately $3.3 million, resulted in approximately $5.2 million in cash delivered to the BDC in Q1, a 15.6% increase compared to Q1 2024. With that in mind, let's review the income statement performance and highlights, NAV unrealized and realized activity, leverage and liquidity, and finally, the financial outlook.

根據本季的表現，Hercules Adviser 在第一季派發了 190 萬美元的股息，加上約 330 萬美元的費用報銷，導致第一季向 BDC 交付了約 520 萬美元的現金，與 2024 年第一季度相比增長了 15.6%。考慮到這一點，讓我們回顧一下損益表的表現和亮點、淨值未實現和已實現的活動、槓桿和流動性，以及最後的財務前景。

First, with the income statement performance and highlights. Total investment income in Q1 was $119.5 million, supported by our growth throughout the prior year in the debt portfolio. Core investment income, a non-GAAP measure, increased to $115.5 million. Core investment income excludes the benefit of income recognized as a result of loan prepayments. Noncore investment income decreased to $4 million driven by a decrease in the early loan repayments during the first quarter.

首先，介紹損益表的表現與亮點。第一季的總投資收入為 1.195 億美元，這得益於我們去年全年債務投資組合的成長。核心投資收入（非 GAAP 指標）增至 1.155 億美元。核心投資收益不包括因提前償還貸款而確認的收益。由於第一季提前貸款償還金額減少，非核心投資收入減少至 400 萬美元。

Net investment income decreased to $77.5 million or $0.45 per share in Q1. Our effective and core yields decreased modestly in the first quarter to 13% and 12.6%, respectively, compared to 13.7% and 12.9% in the prior quarter. The decline in the core yield during the quarter was largely driven by the Fed rate reduction of approximately 50 basis points in the last 2 months of 2024.

第一季淨投資收益下降至 7,750 萬美元，即每股 0.45 美元。我們的第一季有效收益率和核心收益率分別小幅下降至 13% 和 12.6%，而上一季分別為 13.7% 和 12.9%。本季核心殖利率的下降主要是由於聯準會在2024年最後兩個月降息約50個基點所致。

As of quarter end, more than half of our prime-based loans are at the contractual floor after the recent rate cuts and thus the impact of any future rate reductions will be muted. First quarter gross operating expenses $45.3 million compared to $43.5 million in the prior quarter. Net of cost recharge to the RIA, our net operating expenses were $42.1 million. Interest expense and fees remained stable at $22.1 million due to lower utilization of the credit facilities as a result of the ATM activity and due to the issuance of the $287.5 million convertible note in early March.

截至季末，在最近的降息之後，我們一半以上的優惠貸款都處於合約底線，因此未來任何降息的影響都將很小。第一季總營運費用為 4,530 萬美元，而上一季為 4,350 萬美元。扣除向 RIA 返還的成本後，我們的淨營運費用為 4,210 萬美元。由於 ATM 活動導致信貸額度利用率降低以及 3 月初發行了 2.875 億美元的可轉換票據，利息支出和費用保持穩定在 2,210 萬美元。

SG&A increased to $23.2 million, just below my guidance, net of cost recharge to the RIA, the SG&A expenses were $20 million. Our weighted average cost of debt decreased slightly to 4.9% for the quarter. Our ROAE or NII over average equity decreased to $15.7 million for the first quarter and our ROAA or NII over average total assets decreased to 8%.

銷售、一般及行政費用 (SG&A) 增加至 2,320 萬美元，略低於我的預期，扣除 RIA 的成本補償後，銷售、一般及行政費用為 2,000 萬美元。本季我們的加權平均債務成本略微下降至 4.9%。第一季度，我們的 ROAE 或 NII 與平均權益比率下降至 1,570 萬美元，而我們的 ROAA 或 NII 與平均總資產之比下降至 8%。

Switching to the NAV unrealized and realized activity. During the quarter, our NAV per share decreased by $0.11 to $11.55 per share. This represents an NAV decline of 0.9% quarter-over-quarter or less than 1%. The main driver was unrealized depreciation on investments. Our $25.6 million of net unrealized depreciation was primarily attributable to net unrealized depreciation on debt investments due to impairments and a rise in yield spreads.

切換到 NAV 未實現和已實現活動。本季度，我們的每股資產淨值下降 0.11 美元至每股 11.55 美元。這意味著資產淨值環比下降 0.9%，降幅不到 1%。主要驅動因素是未實現的投資折舊。我們的 2,560 萬美元淨未實現折舊主要歸因於因減損和收益率利差上升而導致的債務投資淨未實現折舊。

Focusing on leverage and liquidity, our GAAP and regulatory leverage increased to 99.9% and 85.2%, respectively, compared to the prior quarter due to growth in the balance sheet, largely financed by the convertible debt issuance. Netting out leverage with the cash on the balance sheet, our net GAAP and regulatory leverage was 97.4% and 82.6%, respectively.

重點在於槓桿率和流動性，由於資產負債表的成長（主要由可轉換債券發行提供資金），我們的 GAAP 和監管槓桿比率與上一季相比分別增加至 99.9％ 和 85.2％。用資產負債表上的現金扣除槓桿後，我們的淨 GAAP 和監管槓桿分別為 97.4％ 和 82.6％。

We ended the quarter with $616 million of available liquidity. As a reminder, this excludes capital raised by the funds managed by our wholly owned [RIA] subsidiary. Inclusive of these amounts, the Hercules platform had more than $1 billion of available liquidity. The strong liquidity positions us very well to support our existing portfolio companies and source new opportunities.

本季末，我們擁有 6.16 億美元的可用流動資金。提醒一下，這不包括我們全資子公司 [RIA] 管理的基金所募集的資金。包括這些金額在內，Hercules 平台擁有超過 10 億美元的可用流動資金。強大的流動性使我們能夠很好地支持我們現有的投資組合公司並尋找新的機會。

As mentioned in March, Hercules Capital issued $287.5 million of convertible unsecured notes due in 2028. The with a stated interest rate of 4.75%. The March interest issuance resulted in a higher dilutive share count outstanding as required by GAAP. And thus, a lower diluted change in net assets per share.

正如 3 月所提到的，Hercules Capital 發行了價值 2.875 億美元的可轉換無擔保票據，到期日為 2028 年。規定利率為 4.75%。3 月的利息發行導致流通在外的稀釋性股票數量增加，符合 GAAP 的要求。因此，每股淨資產的稀釋變化較小。

Despite this required disclosure, Hercules Capital intends to settle the principal in cash in 2028. We believe the basic weighted average shares is more relevant measurement of our business performance, and this is the way that we will continue to evaluate our business. As a final point, we continue to opportunistically access the ATM market during the quarter and raised approximately $40 million in the first quarter, resulting in $0.08 of accretion to the NAV per share.

儘管有此揭露要求，Hercules Capital 仍打算在 2028 年以現金結清本金。我們認為基本加權平均股本能夠更準確地衡量我們的業務績效，我們也將繼續以這種方式來評估我們的業務。最後一點，我們在本季繼續抓住機會進入 ATM 市場，並在第一季籌集了約 4,000 萬美元，導致每股資產淨值增加 0.08 美元。

Subsequent to quarter end, to support our continued strong new business momentum, we raised an additional $41 million. Finally, for the outlook points for the second quarter, we expect a core yield of 12% to 12.5%, excluding any future benchmark interest changes.

季度結束後，為了支持我們持續強勁的新業務勢頭，我們又籌集了 4,100 萬美元。最後，對於第二季的展望，我們預期核心殖利率為 12% 至 12.5%，不包括任何未來基準利率的變化。

As a reminder, 98% of our debt portfolio is floating with the floor and presently more than 50% of our prime-based portfolio is at the contractual floor. Although very difficult to predict, as communicated by Scott, we expect $200 million to $250 million in prepayment activity in the second quarter.

提醒一下，我們 98% 的債務投資組合都處於下限水平，目前我們基於主要利率的投資組合中有超過 50% 處於合約下限水平。儘管很難預測，但正如斯科特所說，我們預計第二季的預付款活動將達到 2 億至 2.5 億美元。

We expect our second quarter interest expense to increase commensurately with the growth of the balance sheet in the prior quarter. For the second quarter, we expect gross SG&A expenses of $25 million to $26 million, and an RIA expense allocation of approximately $2.9 million.

我們預計第二季的利息支出將隨著上一季資產負債表的成長而相應增加。對於第二季度，我們預計銷售、一般及行政費用總額為 2,500 萬至 2,600 萬美元，RIA 費用分配約為 290 萬美元。

Finally, we expect the quarterly dividend from the RIA of approximately $1.9 million to $2.1 million per quarter. In closing, the business is positioned well for 2025 after delivering a [stung] first quarter and commitments and fundings. We're excited to see how the rest of 2025 develops.

最後，我們預計 RIA 每季的季度股息約為 190 萬美元至 210 萬美元。最後，在實現第一季業績並做出承諾和融資後，該公司已為 2025 年做好了準備。我們很期待看到 2025 年剩餘時間的發展。

I will now turn the call over to the operator to begin the Q&A portion of the call. Kathy, over to you.

我現在將把電話轉給接線員，開始電話的問答部分。凱西，交給你了。

(Operator Instructions) Brian Mckenna, Citizens.

（操作員指示） Brian Mckenna，市民。

Congrats on another robust quarter of commitments and fundings across the business. And it's great to hear that activity remains pretty elevated post quarter end. I'm curious, what's driving this continuation of strong activity despite the broader macro environment? I'm assuming things may have slowed earlier on in the month and then maybe recovered as April progressed. But any just additional color here would be helpful.

恭喜本季整個業務的承諾和資金再次表現強勁。很高興聽到季度結束後活動仍然保持相當活躍。我很好奇，儘管宏觀環境如此，是什麼推動了這種強勁活動的持續？我估計本月初情況可能會放緩，但隨著四月份的到來可能會有所恢復。但任何額外的顏色在這裡都會有幫助。

Sure. Thanks, Brian. I think what we've shown over the course of the last 20 years is that we tend to broadly outperform in periods of market and macro volatility. If you look at our business, particularly over the last 5 or so years, our primary source of competition has been and continues to be with respect to equity capital, either coming from private venture capital firms, private equity firms or the public equity markets, particularly on the life sciences side.

當然。謝謝，布萊恩。我認為，我們在過去 20 年中表現出來的情況是，在市場和宏觀波動時期，我們往往表現優異。如果你看看我們的業務，特別是過去五年左右，我們的主要競爭來源一直是股權資本，無論是來自私人創投公司、私募股權公司還是公開股權市場，特別是在生命科學方面。

When the markets are more volatile, when macro is more volatile, equity becomes more expensive, equity becomes more dilutive equity becomes scarce, and that provides an opportunity for Hercules to selectively pick and target quality companies that are looking for financing solutions.

當市場波動更大、宏觀經濟波動更大時，股權就會變得更加昂貴、股權的稀釋性會更強、股權就會變得稀缺，這就為 Hercules 提供了一個機會，可以選擇性地挑选和鎖定那些正在尋求融資解決方案的優質公司。

That's the primary driver of the increase in activity. The other increase, as I mentioned, we have seen some banks move to more of a risk-off model, particularly over the last 30 to 60 days that has created a little bit of a void in the market and we're seeing an increasing number of later-stage quality companies that traditionally would bear more towards the bank side of the market, approach Hercules looking for capital solutions.

這是活動增加的主要驅動力。另一個成長，正如我所提到的，我們已經看到一些銀行轉向了更多的風險規避模式，特別是在過去 30 到 60 天裡，這在市場上造成了一點空白，我們看到越來越多的後期優質公司傳統上會更多地承擔銀行方面的市場，接近 Hercules 尋求資本解決方案。

Okay. Great. That's helpful. And then maybe just touching on that a little bit, thinking about yields and spreads, new deals, given that some of the banks pulling back, I mean what do those look like today relative to even the first quarter and then even kind of looking at the core yield that came in towards the upper end of the range. So I mean, what's the expectation for the all-in core yield as well moving forward?

好的。偉大的。這很有幫助。然後可能只是稍微談一下這一點，考慮一下收益率和利差，新交易，考慮到一些銀行撤資，我的意思是，相對於第一季度，今天的這些情況是什麼樣的，然後甚至看看接近區間上限的核心收益率。所以我的意思是，未來全核心報酬率的預期是什麼？

Yes. So a couple of things, Brian. Core yield for the quarter was 12.6%. That was down slightly from 12.9% in Q4 close to 100% of that decline was attributable to the [Q4 '25] basis point Fed cuts. Our guidance for Q2, as Seth mentioned, is 12% to 12.5% core based on everything that we are seeing to date, we are very confident that we will end up in that target range.

是的。有幾件事，布萊恩。本季核心殖利率為 12.6%。這比第四季的 12.9% 略有下降，其中近 100% 的下降可歸因於 [25 年第四季] 聯準會降息基點。正如 Seth 所提到的，根據我們迄今為止所看到的所有情況，我們對第二季的預期是核心成長率為 12% 至 12.5%，我們非常有信心最終達到該目標範圍。

We haven't seen a lot of change in terms of new business onboarding yields over the last maybe 2 to 4 weeks, we've seen potentially a 25 to 50 basis point increase in yields but that really hasn't worked its way into our numbers yet.

在過去的 2 到 4 週內，我們並沒有看到新業務入職收益率發生太大變化，我們看到收益率可能增加了 25 到 50 個基點，但這實際上還沒有體現在我們的數據中。

Crispin Love, Piper Sandler.

克里斯賓·洛夫，派珀·桑德勒。

First, on credit, just two loans on nonaccrual in your book. But are you noticing any changes in behavior from your borrowers, either by actions or conversations you're having with borrowers amid the recent volatility? And what's your confidence in credit remaining stable if it is tougher for portfolio companies to raise equity capital in this environment?

首先，關於信貸，您的帳簿上只有兩筆未計息貸款。但是，在最近的波動中，您是否注意到借款人的行為發生了任何變化，無論是透過行動還是與借款人的對話？如果投資組合公司在這種環境下籌集股權資本變得更加困難，您對信貸保持穩定有何信心？

Yes. So look, overall, I think we remain confident. I mentioned in my prepared remarks that we have a generally speaking, positive outlook with respect to credit across our portfolio. The markets have certainly become more volatile. The operating environment has become more challenging.

是的。所以，總的來說，我認為我們仍然充滿信心。我在準備好的發言中提到，總體而言，我們對整個投資組合的信貸持樂觀態度。市場確實變得更加動盪。經營環境變得更具挑戰性。

And so we're watching really the indirect impact associated with those things on our portfolio. What we've noticed, particularly over the last 30 to 60 days is that companies are sort of freezing decision-making given the uncertainty. So decision-making with respect to potential growth investments decision-making with respect to exploring strategic options, decision-making with respect to capital raise those discussions, those decisions have slowed down. And I think a lot of companies are just looking for clarity and looking for certainty from a policy perspective.

因此，我們正在密切關注這些因素對我們的投資組合的間接影響。我們注意到，特別是在過去 30 到 60 天裡，由於不確定性，公司在某種程度上凍結了決策。因此，有關潛在成長投資的決策、有關探索策略選擇的決策、有關籌集資金的決策、有關討論的決策、有關決策的決策已經放緩。我認為很多公司只是從政策角度尋求清晰度和確定性。

We think that will change hopefully relatively quickly, but that's something that we're watching pretty closely. Quarter-over-quarter, when you look at our credit performance in Q4 relative to Q1, really not much changed. Weighted average credit rating went from 2.26% to $2.31, which is really immaterial. We had some slight movement within our rated 3, rated 4, rated by buckets, but again, nothing material. And then as you pointed out, as of the end of Q1, only 2 loans on nonaccrual that make up 0.5% of our investment book at fair value.

我們認為這種情況有望相對較快地改變，但這是我們正在密切關注的事情。與上一季相比，當您查看我們第四季相對於第一季的信貸表現時，確實沒有太大變化。加權平均信用評級從 2.26% 降至 2.31 美元，這實際上並不重要。我們的評級 3、評級 4 和評級桶內有一些輕微的變動，但同樣沒有什麼實質的變動。正如您所指出的，截至第一季末，只有 2 筆非應計貸款占我們投資帳簿的公允價值的 0.5%。

Great. Appreciate all the color there, Scott. And last quarter, you talked about seeing VCs have a noticeable shift and how they were approaching new investments, focusing more on valuation with prior [Ranch] companies had elevated dilute. Can you give us an update here? Are you continuing to see this broadly and among your portfolio companies? And just what it could mean for debt and equity availability in coming months and quarters, especially with the recent volatility.

偉大的。欣賞那裡的所有色彩，斯科特。上個季度，您談到看到創投發生了明顯的轉變，以及他們如何對待新的投資，更加註重估值，而之前的 [Ranch] 公司已經提高了稀釋度。您能在這裡向我們提供最新消息嗎？您是否繼續在您的投資組合公司中廣泛地看到這種情況？這對未來幾個月和幾個季度的債務和股權可用性意味著什麼，尤其是在最近的波動情況下。

Sure. So the answer to the direct question is yes. We are continuing to see a more deliberate focused atmosphere across the venture capital community, much more selectivity, much more sensitivity with respect to valuation.

當然。因此，對於這個直接的問題，答案是肯定的。我們繼續看到創投界的氛圍更加專注、更有選擇性、對估值更加敏感。

Having said that I would point out that we saw very strong capital raising across our portfolio in Q1. I mentioned this on the call, but I'll reiterate it. In Q1 alone, we had 25 companies raised $2.5 billion of new capital. So despite that emphasis on quality on valuation, we are continuing to see strong volume in our portfolio with respect to capital (inaudible)

話雖如此，我想指出的是，我們在第一季看到了整個投資組合非常強勁的融資勢頭。我在電話中提到過這一點，但我會重申這一點。光是第一季度，我們就有 25 家公司籌集了 25 億美元的新資本。因此，儘管我們強調估值質量，但我們的投資組合在資本方面仍然保持強勁（聽不清楚）

Doug Harter, UBS.

瑞銀的道格·哈特。

As you think about kind of being able to take advantage of the opportunities in the market, how are you balancing increasing leverage, raising additional capital and/or kind of using the third-party funds to kind of manage that growth?

當您考慮如何利用市場機會時，您如何平衡增加槓桿、籌集額外資本和/或使用第三方基金來管理這種成長？

Sure. It's something that we evaluate on a continuous basis. We have always run this business, and we will always run this business focused on driving the best possible total shareholder return. Our leverage despite $270 million of net debt portfolio growth in Q1 remains at the very low end of our historical norm.

當然。我們會持續評估這一點。我們始終致力於經營這項業務，並且我們將始終致力於實現最佳的股東總回報。儘管第一季淨債務組合增加了 2.7 億美元，但我們的槓桿率仍然處於歷史最低水平。

Leverage at the end of Q4 with 0.9% GAAP leverage at the end of Q1 was just under 100%. So still at the very low end of our target range. We remain very well capitalized from a liquidity perspective across the platform, over $600 million of liquidity in the BDC, over $1 billion of liquidity in the private funds. I would also point out that for us and for our shareholders, because of the unique structure of our model where the public BDC owns our registered investment adviser which manages 100% of our private credit fund business, 100% of the benefit that we generate from our private credit fund business accretes to the benefit of our public shareholders.

第四季末的槓桿率為 0.9%，而第一季末的 GAAP 槓桿率略低於 100%。因此仍然處於我們目標範圍的極低端。從整個平台的流動性角度來看，我們的資本仍然非常充足，BDC 的流動性超過 6 億美元，私募基金的流動性超過 10 億美元。我還要指出的是，對於我們和我們的股東而言，由於我們模式的獨特結構，即公共 BDC 擁有我們的註冊投資顧問，該顧問管理我們 100% 的私人信貸基金業務，我們從私人信貸基金業務中獲得的 100% 收益都歸於我們的公共股東的利益。

So irrespective of whether we are putting deals into our public BDC or our private credit fund business, that benefit is accreted up to our public shareholders. With respect to equity capital versus leverage capital, we continue to look opportunistically at a variety of different features. We did the $287.5 million convert in Q1, which was very attractively priced. And we'll continue to look in the market for opportunities that we think can be accretive long term for our shareholders.

因此，無論我們將交易投入公共 BDC 或私人信貸基金業務，該利益都會歸於我們的公共股東。關於股本與槓桿資本，我們持續投機地關注各種不同的特徵。我們在第一季完成了 2.875 億美元的轉換，價格非常有吸引力。我們將繼續在市場上尋找我們認為可以為股東帶來長期增值的機會。

Just one follow-up. How do you think about what is the right spot to be in leverage within your range? Is the low end of the range, kind of the right spot for this type of volatile environment? Or could you move up more towards kind of the midpoint of the range?

僅一個後續行動。您如何看待在您的範圍內槓桿的正確位置？對於這種不穩定的環境來說，該範圍的低端是否合適？或者您能否進一步向上移動到範圍的中間點？

Yes. I think we've proved over the last few years that we're willing to go to a low point to make sure that we're able to be more opportunistic and utilize extra cash on the balance sheet and availability to make sure that we can take advantage of market changes and positions ever since March of 2023.

是的。我認為，過去幾年我們已經證明，我們願意走到低谷，以確保我們能夠更加抓住機會，利用資產負債表上的額外現金和可用性，確保我們能夠利用自 2023 年 3 月以來的市場變化和地位。

We've really kept it at low, kept our powder dry. And so for us, in a market like this, we're looking at maintaining it at the lower end. But as we see the right opportunity, we could drive that up if we see reasons to make deeper investments and slow our leverage increase up.

我們確實一直保持低調，並保持火藥乾燥。因此對我們來說，在這樣的市場中，我們希望將其維持在較低端。但當我們看到合適的機會時，如果我們有理由進行更深入的投資並減緩槓桿率的上升，我們就可以提高這一水平。

Finian O'Shea, WFS.

菲尼安·奧謝（Finian O'Shea），WFS。

Hey, everyone. Scott, earlier in the remarks, I think you had a comment on leaning more into tech. Can you expand on that? And then sort of a part B is the smart sheet --

嘿，大家好。斯科特，在剛才的評論中，我認為你對更多地依賴技術發表了評論。能詳細闡述嗎？然後 B 部分是智慧表--

Operator, do we lose him? Hello? (technical difficulty)

接線員，我們失去他了嗎？你好？（技術難度）

Casey Alexander, Compass Point Research and Trading.

凱西‧亞歷山大 (Casey Alexander)，Compass Point 研究與貿易公司。

Hi. Good afternoon. Can you hear me?

你好。午安.你聽得到我嗎？

Yes. Standby please.

是的。請稍候。

Okay.

好的。

Yes. This is Hercules Capital. Can you put us into our earnings call. I'm sorry, Casey. Okay. (technical difficulty)

是的。這就是 Hercules Capital。您能讓我們參與我們的收益電話會議嗎？對不起，凱西。好的。（技術難度）

Sorry for the technical difficulties. Casey Alexander's line is open, waiting for you.

對於技術問題，我們深感抱歉。Casey Alexander 的線路已開通，恭候您的光臨。

Sure, we're all disappointed that we didn't get to hear the rest of Fin's question. So I'll ask a couple of quick ones and then get out of the way so that you can get back in the queue. On the $56 million in loans that were refinanced, Scott, is it would it be normal for you to pass on any prepayment or fees on those deals in order to facilitate the refinancing?

當然，我們都很失望，因為我們沒有聽到 Fin 的其餘問題。因此，我會快速問幾個問題，然後走開，以便您可以回到隊列中。關於再融資的 5600 萬美元貸款，斯科特，為了促進再融資，您是否會轉嫁這些交易中的任何預付款或費用，這很正常嗎？

Yes. So great question. When we refinanced one of our own borrowers where that company is performing and we are upsizing and expanding that facility, we will generally waive the prepayment penalties would otherwise be due. We do not waive back-end fees or end of term fees. But if there's a portfolio company that is outperforming expectations and we are working with them to upsize and expand the facility, we will generally waive prepayment penalties associated with that refinancing.

是的。這個問題問得真好。當我們為自己的一家借款人進行再融資時，如果該公司表現良好，並且我們正在擴大和擴展該設施，我們通常會免除原本應付的提前還款罰金。我們不免除後端費用或學期結束費用。但如果有一家投資組合公司的表現超出預期，而我們正在與他們合作擴大和擴展融資額度，我們通常會免除與該再融資相關的提前還款罰金。

And so that would also partially explain some of the lower fee income for the quarter?

那麼這是否也能部分解釋本季費用收入較低的原因？

Exactly correct. The combination of what you just said and just the lower overall number with about $75 million of actual outside prepayments versus the guidance that we had given with a significantly higher.

完全正確。結合您剛才所說的內容，以及較低的總體數字（實際外部預付款約為 7500 萬美元），而我們給出的指導金額則要高得多。

Right. And as you look forward and you have kind of some line of sight to $200 million to $250 million in repayments in Q2. Is there some percentage of that, that you would also expect to be refinancings where we might see lower fee income?

正確的。展望未來，您可以看到第二季的還款額將達到 2 億至 2.5 億美元。其中是否有一定比例的資金，您是否也預期會進行再融資，這可能會帶來較低的費用收入？

Not at this time, Casey. Based on what we know as of today and the latest information that we have, that number that we provided, I would say we have a high degree of confidence in, and that's all external.

現在還不行，凱西。根據我們今天所了解的情況和我們掌握的最新信息，對於我們提供的數字，我想說我們高度有信心，而這都是外部的。

Paul Johnson, KBW.

保羅·約翰遜，KBW。

In terms of just some of the gravitation towards later-stage deals and larger deals that you're seeing, what are you seeing in terms of equity cushion in those deals? There are sponsors and VCs putting money in at the same time that they're going to you as a borrower or a lender?

就您所看到的後期交易和更大規模交易的吸引力而言，您認為這些交易中的股權緩衝情況如何？有沒有贊助商和創投公司在向您注資的同時，將您視為借款人或貸款人？

We have not seen much change in terms of how venture capital firms are approaching companies that we're interested in speaking to. We've always said this, and we'll continue to say this, our debt capital is not designed to replace equity capital. It's designed to supplement equity capital. So one of the things that our investment teams, whether it's on the technology side or on the life sciences side, spend a fair amount of time focused on is ensuring that the companies that we are lending to have the ability to continue to raise equity capital.

就創投公司與我們感興趣的公司接觸的方式而言，我們並沒有看到太大的變化。我們一直這樣說，我們會繼續這樣說，我們的債務資本並不是為了取代股權資本。其目的是補充股本。因此，我們的投資團隊（無論是技術方面還是生命科學方面）花費大量時間關注的事情之一就是確保我們貸款的公司有能力繼續籌集股本。

It's not always the case that when we underwrite a new loan, that company is raising equity at the same time. But we do have certain metrics and certain things that we're looking for in terms of RML, minimum liquidity thresholds, recentness or newness of equity capital into the business, and that really drives our decision-making.

當我們承銷一筆新貸款時，該公司並不總是同時籌集股本。但我們確實有某些指標和某些事物，我們在 RML、最低流動性門檻、股權資本進入業務的近期性或新穎性方面尋找這些指標和事物，而這些確實推動著我們的決策。

Got it. Appreciate that. And then along the low lines of just kind of more later-stage companies, which you've consciously done that with your portfolio and shifted more into that later stage. I mean, with all the trouble, I guess, in the VC market today, I mean, does that create an opportunity to go down company size into earlier stage companies? Or it's just too early to say that?

知道了。非常感謝。然後沿著更後期的公司低線，你有意識地對你的投資組合進行這樣的操作，並將更多的資金轉移到後期階段。我的意思是，考慮到當今創投市場存在的所有問題，這是否創造了一個將公司規模縮小到早期階段的機會？還是現在這麼說還太早？

I think it's too early to say that. We have been of the view for the last several years that that's the more difficult challenging part of the market. And I think our approach over the last several years to largely stay away from earlier-stage companies has proven to be the right decision. We do think that medium to long term, there is going to be an opportunity for us to step back into that part of the market. We just want to have a little bit more conviction and a little bit more stability before we decision.

我認為現在這麼說還為時過早。過去幾年我們一直認為這是市場中更具挑戰性的部分。我認為，過去幾年來我們盡量遠離早期公司的做法已被證明是正確的決定。我們確實認為，從中長期來看，我們將有機會重返該市場。我們只是希望在做出決定之前能有更多的信心和穩定性。

(Operator Instructions) Christopher Nolan, Ladenburg Thalmann.

（操作員指示）克里斯多福諾蘭、拉登堡塔爾曼。

Follow-up on Paul's question about the VC market. Ever since Silicon Valley Bank went down, the whole market has sort of been in the doldrums. And I know this is a public forum, but what do you think is -- I mean it's a Mojo. Can you diagnose what you think -- what the ills are, what the cure might be briefly?

跟進保羅關於創投市場的問題。自從矽谷銀行倒閉以來，整個市場一直處於低迷狀態。我知道這是一個公共論壇，但您認為——我的意思是這是一個 Mojo。您能診斷一下您認為的疾病嗎－是什麼病，可以簡單治療什麼？

Yes. I think, Chris, I think we would fundamentally disagree that the market has been in the doldrums since the [SVB] situation of March of '23. We've seen tremendous momentum with respect to our business, since March of 2023, our commitment volumes are up, our funding volumes are up. Our team's assessment is that the quality of the new business that we've originated since March of 2023 is up considerably.

是的。克里斯，我認為我們從根本上不同意自 2023 年 3 月 [SVB] 事件以來市場一直處於低迷狀態。我們的業務發展勢頭強勁，自 2023 年 3 月以來，我們的承諾量和融資量都在增加。我們團隊的評估是，自 2023 年 3 月以來我們開展的新業務的品質大幅提高。

And I think we've demonstrated that in terms of our performance. I would also just point out anecdotally, 2024 was a relatively strong year for VC capital equity investment, $214 billion invested from venture capital investors. That was up from $163 million in 2023. And if you look at the Q1 data in isolation with $92 billion raised, that's arguably the strongest quarter that the industry has seen in quite some time.

我認為我們的表現已經證明了這一點。我還想指出一個軼事，2024 年是創投股權投資相對強勁的一年，創投投資人的投資額達到 2,140 億美元。這一數字高於 2023 年的 1.63 億美元。如果你單獨看第一季的數據，融資額達到 920 億美元，這可以說是該行業相當長一段時間以來最強勁的一個季度。

Where we've seen some signs of softness is more on the fundraising side. So venture capital fundraising activity has slowed considerably over the course of the last several years. Part of that is linked in our assessment to a declining exit environment where M&A is down, IPOs are largely nonexistent. So venture capital firms have not been able to recycle capital to the normal pace that they're used to. But we continue to see a relatively vibrant venture capital ecosystem. It is not without challenges.

我們看到的一些疲軟跡象更多地出現在籌資方面。因此，創投融資活動在過去幾年已大幅放緩。我們的評估顯示，部分原因在於退出環境惡化，其中併購活動減少，IPO 基本上不存在。因此，創投公司無法以其習慣的正常速度循環資本。但我們仍然看到一個相對活躍的創投生態系統。這並非沒有挑戰。

Right now, the macro and geopolitical environment is creating headwinds, I think, for growth companies broadly. But we continue to look at things optimistically and we continue to be excited about the operating environment that we're in.

我認為，目前宏觀和地緣政治環境正在為成長型公司帶來普遍的阻力。但我們繼續以樂觀的態度看待事物，並繼續對我們所處的營運環境感到興奮。

Finian O'Shea, WFS.

菲尼安·奧謝（Finian O'Shea），WFS。

Everyone, can you hear me?

大家聽得到我說話嗎？

Yes, sir.

是的，先生。

Okay. I'm going to try to live up to my friend, Casey's hype here. I want to ask about the life sci portfolio and the global sort of trade tariff developments.

好的。我要努力不辜負我的朋友凱西 (Casey) 的期望。我想問生命科學組合和全球貿易關稅的發展。

Like to what extent does your typical borrower go head-to-head with a Chinese competitor in clinical research, so forth? And has there been any impact there, good or bad?

例如，典型的借款人在臨床研究等方面與中國競爭對手的競爭程度如何？這樣有帶來什麼影響嗎？是好是壞？

Thanks, Fin. And I just want to say, certainly, apologies for the disruption there. I think you were about to ask such a great question that the line just went dead on you.

謝謝，芬。我當然想對造成的干擾表示歉意。我認為你本來要問一個非常好的問題，但話突然斷了。

But in all seriousness, answering the first question that I think you were in the middle of asking last time, so I don't want that to go unaddressed. Our activity in Q1 was slightly weighted towards technology companies about 53% of our commitment activity was to technology companies, 47% to life sciences companies. So there was a shift, but it was not material.

但嚴肅地說，回答您上次問的第一個問題，所以我不想這個問題得不到解決。我們在第一季的活動略微偏向科技公司，約有 53% 的承諾活動針對科技公司，47% 針對生命科學公司。因此確實存在轉變，但並不重要。

The largest driver of that, honestly, was just the volatility that we saw across the public biotech markets in Q1, and that has continued into Q2. the XBI Index, which is the most closely watched index in the public biotech space, very volatile over the course of the last three to four months and down pretty materially.

老實說，最大的驅動因素是我們在第一季看到的公共生物技術市場的波動，而這種波動一直持續到第二季​​。 XBI 指數是公共生技領域最受關注的指數，在過去三到四個月中波動很大，大幅下跌。

And I think that has caused a fair amount of uncertainty across that part of the market for us. With respect to the second part of your question, really not a direct link or correlation between the companies that we're lending to competing with Chinese or other drug development, drug discovery companies. In our view, the volatility is really being driven by two specific things.

我認為這給我們的該部分市場帶來了相當大的不確定性。關於你問題的第二部分，我們所貸款的公司與中國或其他藥物開發、藥物發現公司的競爭之間實際上沒有直接的聯繫或關聯。我們認為，波動實際上是由兩個具體因素所驅動的。

Number one, there has been a tremendous amount of turnover at the FDA. That has created a sense of uncertainty with respect to timing, with respect to approvals, with respect to clarity in terms of clinical trials. We've done a full assessment of our current portfolio, and we do not see any material risk associated with those things. But that has caused the general slowdown and uneasiness across the broader landscape.

首先，FDA 的人員流動非常大。這導致了時間安排、審批以及臨床試驗清晰度的不確定性。我們對目前的投資組合進行了全面評估，並沒有發現與這些相關的任何重大風險。但這已導致整個地區經濟普遍放緩且令人不安。

We saw several very strong opportunities in Q1 that we took advantage of. We've seen several strong opportunities in Q2 in the life sciences side that we plan to take advantage of. And so we're going to continue to be very active on both the tech side and life sciences side.

我們在第一季看到了幾個非常好的機會，並且我們充分利用了這些機會。我們在第二季度看到了生命科學領域的幾個強勁機遇，我們計劃加以利用。因此，我們將繼續在科技和生命科學領域保持活躍。

Then the last part of your question with respect to tariffs and the trade environment, the one sort of piece that we are watching is a majority of drug discovery, drug development companies, bully, source a lot of their APIs from China, -- and so to the extent that those things are included in the tariffs to the extent that those things become a bargaining shift between China, not wanting to or not being willing to send them in quantity to the United States. That would potentially cause some concern. When you look at the materiality of that impact, though, it's pretty small given that, that does not make up a material portion of any of these companies' true costs.

那麼，關於關稅和貿易環境，你問題的最後一部分，我們正在關注的一個方面是，大多數藥物發現、藥物開發公司都霸道地從中國採購大量 API，因此，這些東西被納入關稅的範圍內，成為中國不願或不願意將其大量運往美國的討價還價的轉折點。這可能會引起一些擔憂。然而，當你考慮這種影響的重要性時，它就相當小了，因為它並不構成任何一家公司真實成本的重要組成部分。

Okay. And can I -- I didn't realize you heard half of the first question. We saw smart sheet this quarter I know you've done some of the large sponsor buyouts in the past but just given this is a pretty big bite pretty interesting timing for those.

好的。我可以嗎——我不知道你聽到第一個問題的一半了。我們在本季度看到了智慧表，我知道您過去曾做過一些大型贊助商收購，但考慮到這對這些人來說是一個相當大的時機。

Can you talk about if this is perhaps more of a pivot to those sort of large market flow untrenched deals?

您能否談談這是否可能更多地轉向那些大型市場流量未鎖定的交易？

Sure. Great observation and great question. Not a pivot at all. We have said publicly, and we will reiterate we have a very diversified asset base. We have a very strong team on the technology growth side. We have a very strong team on the life sciences growth side. And we have a dedicated strong team that focuses on more of the private equity sponsor side.

當然。很棒的觀察，很棒的問題。根本不是支點。我們已經公開表示，我們將重申，我們擁有非常多元化的資產基礎。我們在技術成長方面擁有一支非常強大的團隊。我們在生命科學成長方面擁有一支非常強大的團隊。我們擁有一支強大的專業團隊，更專注於私募股權發起方的工作。

We selectively participate in these transactions that we think are strategic, where we have an angle, where we have a particular relationship and understanding of a business, and the loan that you referenced was one of those opportunities that the team felt strong about and we were able to take advantage of it.

我們選擇性地參與那些我們認為具有戰略意義的交易，在這些交易中，我們有一個角度，我們對某個業務有特定的關係和理解，而您提到的貸款就是團隊非常看重的機會之一，我們能夠利用它。

This concludes the question-and-answer session. I'd now like to turn it back to Scott Bluestein, for closing remarks.

問答環節到此結束。現在我想請 Scott Bluestein 作最後發言。

Thank you, Kathy, and thanks to everyone for joining our call today. We look forward to reporting our progress on our Q2 2025 earnings call. Thank you.

謝謝你，凱西，也謝謝大家今天參加我們的電話會議。我們期待在 2025 年第二季財報電話會議上報告我們的進展。謝謝。

Yes. Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.

是的。感謝大家參加今天的會議。這確實結束了程序，您現在可以斷開連接了。