Hercules Capital Inc (HTGC) 2025 Q2 法說會逐字稿

Good afternoon. My name is Jess, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hercules Capital second-quarter 2025 financial results conference call. (Operator Instructions)

午安.我叫傑西，今天我將擔任你們的會議主持人。現在，我歡迎大家參加 Hercules Capital 2025 年第二季財務業績電話會議。（操作員指示）

Please be advised that today's conference may be recorded. I will now turn the call over to Michael Hara, Managing Director of Investor Relations.

請注意，今天的會議可能會被錄音。現在我將把電話轉給投資者關係董事總經理 Michael Hara。

Please go ahead, sir.

先生，請繼續。

Thank you, Jess. Good afternoon, everyone, and welcome to Hercules conference call for the second 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 following the conference call.

謝謝你，傑西。大家下午好，歡迎參加 Hercules 2025 年第二季電話會議。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 和財務長 Seth Meyer。Hercules 的財務表現已於今日收盤後發布，可造訪 Hercules 投資者關係網站 investor.htgc.com 取得。電話會議結束後，投資者關係網頁上將提供已存檔的網路直播回放。

During this call, we may make forward-looking statements based on our own 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.

在本次電話會議中，我們可能會根據我們自己的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。

Actual financial results may differ from 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.

實際財務結果可能因多種原因而有所不同，包括但不限於我們在 10-K 表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'll 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 Q2 2025 earnings call. Hercules wrapped up the first half of 2025 by delivering another strong quarter of record fundings and record operating performance while maintaining our balance sheet strength and robust liquidity, allowing us to remain focused on high-quality originations.

謝謝你，邁克爾，也謝謝大家參加 Hercules Capital 2025 年第二季財報電話會議。2025 年上半年，Hercules 再創佳績，創造了創紀錄的融資額和營運業績，同時保持了資產負債表的強勁和強勁的流動性，使我們能夠繼續專注於高品質的發起。

After originating over $1 billion of new commitments in Q1, our momentum continued in Q2 with our second consecutive quarter of originations of over $1 billion. Our record fundings led to $192.1 million of net debt portfolio growth in Q2 and a new record with over $461.9 million in the first half of 2025.

繼第一季發起超過 10 億美元的新承諾後，我們在第二季度繼續保持這一勢頭，連續第二個季度發起超過 10 億美元的新承諾。我們的創紀錄融資額使得第二季淨債務組合成長了 1.921 億美元，並在 2025 年上半年創下了超過 4.619 億美元的新紀錄。

During the second quarter, we took additional steps to further strengthen our balance sheet and liquidity position with the closing of our institutional investment-grade bond offering of $350 million of 6% unsecured notes due 2030.

在第二季度，我們採取了額外措施，進一步加強我們的資產負債表和流動性狀況，完成了 3.5 億美元的機構投資等級債券發行，發行期為 2030 年，票面利率為 6% 的無擔保票據。

We also extended and upsized our credit facility led by MUFG to $440 million. Our staggered liability maturity stack, low cost of capital relative to our peers and ample liquidity across our platform continues to put us in an advantageous competitive position.

我們也將由三菱日聯金融集團 (MUFG) 主導的信貸額度擴大至 4.4 億美元。我們的交錯負債期限結構、相對於同業的低資本成本以及整個平台的充足流動性使我們繼續處於有利的競爭地位。

Post Q2, we announced the first close of our adviser subsidiary's fourth private credit fund. Hercules Advisors LLC now manages four funds with approximately $1.6 billion in committed equity and debt capital. As a reminder, Hercules Advisors LLC is a wholly owned subsidiary of Hercules Capital, an internally managed BDC. And as a result, 100% of the earnings and value of that business benefit our public shareholders and stakeholders.

第二季後，我們宣布顧問子公司的第四支私募信貸基金首次關閉。Hercules Advisors LLC 目前管理著四隻基金，承諾的股權和債務資本約為 16 億美元。提醒一下，Hercules Advisors LLC 是 Hercules Capital 的全資子公司，是一家內部管理的 BDC。因此，該業務的 100% 收益和價值都惠及我們的公眾股東和利害關係人。

Our strong Q2 performance was highlighted by several new records, including record total gross fundings of $709.1 million, an increase of 53.7% year-over-year, record total investment income of $137.5 million, an increase of 10% year-over-year and record net investment income of $88.7 million or $0.50 per share, an increase of 7.7% year-over-year.

我們第二季的強勁表現突顯了幾個新的記錄，包括創紀錄的 7.091 億美元的總融資額，同比增長 53.7%；創紀錄的 1.375 億美元的總投資收入，同比增長 10%；創紀錄的 8870 萬美元或每股 0.50 美元的淨投資收入，同比增長 7.7%。

Our first half performance was highlighted by several new records, including record first half 2025 total investment income of $257 million, record first half 2025 net investment income of $166.2 million, record first half 2025 total gross new debt and equity commitments of $2.02 billion and record first half 2025 total gross fundings of $1.25 billion.

我們上半年的業績創下了多項新紀錄，包括 2025 年上半年總投資收入創下 2.57 億美元的新紀錄、2025 年上半年淨投資收入創下 1.662 億美元的新紀錄、2025 年上半年新債務和股權承諾總額創下 20.2 億美元的新紀錄、2025 年上半年新債務和股權承諾總額創下 20.2 億美元的新融資總紀錄。

Our performance results are driven by our leadership position within the growth stage lending market, the longevity, consistency and scale of the Hercules Capital platform and our unwavering commitment to always doing what we believe is in the best interest of our shareholders and stakeholders.

我們的績效成果源自於我們在成長階段貸款市場中的領導地位、Hercules Capital 平台的長久性、一致性和規模，以及我們始終堅定不移地致力於做我們認為最符合股東和利益相關者利益的事情。

In our public comments during the first quarter of 2025, we noted that we anticipated a more favorable new business landscape broadly, and that we were positioning the business to be able to take advantage of that. It has played out largely consistent with our expectations.

在 2025 年第一季的公開評論中，我們指出，我們預計新業務前景將更加有利，並且我們正在對業務進行定位，以便能夠利用這一點。事情的發展與我們的預期基本一致。

While the equity and credit markets have remained volatile, we have noted a general improvement in overall market sentiment subsequent to our last earnings call. Management teams appear less hesitant, investors are active and companies seem to be navigating the market choppiness and changing messaging from the current administration more effectively. We believe that certain sectors, geographies and end markets are positioned better right now, and our recent and near-term originations will reflect that.

儘管股票和信貸市場仍然動盪，但我們注意到，自上次收益電話會議以來，整體市場情緒普遍有所改善。管理團隊似乎不再猶豫，投資者也更加活躍，企業似乎正在應對市場波動，並更有效地改變現任政府的訊息。我們相信，某些產業、地區和終端市場目前處於更有利的位置，我們近期和近期的起源將反映這一點。

Despite strong originations and record fundings, we have maintained a conservative and defensive balance sheet. In Q2, we maintained our high first lien exposure, which remained at approximately 91% and continues to be towards the high end of our BDC peers. GAAP leverage decreased modestly to just over 90%, 97% in Q2, down from 99.9% in Q1. Our Q2 GAAP leverage typical historical range of 100% to 115% and below the average of our BDC peers.

儘管發起業務強勁且融資額創下紀錄，我們仍保持保守和防禦性的資產負債表。在第二季度，我們保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。GAAP 槓桿率小幅下降至略高於 90%，第二季為 97%，低於第一季的 99.9%。我們第二季的 GAAP 槓桿率典型歷史範圍為 100% 至 115%，低於 BDC 同業的平均值。

We ended Q2 with over $1 billion of liquidity across our platform and no material near-term debt maturities, which we believe continues to position us very well.

當我們在第二季結束時，整個平台的流動資金超過 10 億美元，並且沒有重大的短期債務到期，我們相信這將繼續為我們帶來非常有利的地位。

Let me now recap some of the key highlights of our performance for Q2. In Q2, we originated total gross debt and equity commitments of over $1 billion and record gross fundings of over $709 million. We generated record total investment income of $137.5 million and record net investment income of $88.7 million or $0.50 per share.

現在讓我回顧一下我們第二季度業績的一些主要亮點。在第二季度，我們發起的總債務和股權承諾超過 10 億美元，總融資額超過 7.09 億美元。我們創造了創紀錄的總投資收益 1.375 億美元，創紀錄的淨投資收益 8,870 萬美元或每股 0.50 美元。

We were able to achieve 125% coverage of our quarterly base distribution of $0.40 per share. We generated a return on equity in Q2 of 17.1%, and our portfolio generated a GAAP effective yield of 13.9% in Q2 and a core yield of 12.5%, which was relatively flat compared to Q1.

我們能夠實現每股 0.40 美元的季度基本分配的 125% 覆蓋率。我們在第二季的股本報酬率為 17.1%，我們的投資組合在第二季的 GAAP 有效收益率為 13.9%，核心收益率為 12.5%，與第一季相比相對持平。

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 transactions versus chasing higher-yielding assets, which we believe have more risk.

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交易，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 Q2 was on maintaining a disciplined approach to capital deployment while being selectively aggressive on certain opportunities where we felt that we had a competitive advantage.

我們第二季的發起工作重點是保持嚴謹的資本配置方式，同時選擇性地積極掌握我們認為具有競爭優勢的某些機會。

Our Q2 originations activity were well balanced between life sciences and tech companies. In Q2, approximately 53% of our commitments and fundings were to life sciences companies, while approximately 47% of our commitments and fundings were to tech companies.

我們第二季的發起活動在生命科學公司和科技公司之間實現了良好的平衡。在第二季度，我們約有 53% 的承諾和資金用於生命科學公司，而約有 47% 的承諾和資金用於科技公司。

We funded debt capital to 26 different companies in Q2, of which 11 were new borrower relationships. Year-to-date, through the end of Q2, we have added 20 new borrowers to the Hercules portfolio. We also increased our capital commitments to several portfolio companies during the quarter. Our available unfunded commitments were approximately $471.5 million, up slightly from $455.7 million in Q1.

我們在第二季向 26 家不同的公司提供了債務資本，其中 11 家是新的借款人關係。截至今年第二季末，我們已為 Hercules 投資組合增加了 20 名新借款人。本季我們也增加了對幾家投資組合公司的資本承諾。我們的可用未撥付承諾約為 4.715 億美元，略高於第一季的 4.557 億美元。

Since the close of Q2 and as of July 28, 2025, our deal teams have closed $44.2 million of new commitments and funded $33.5 million. We have pending commitments of an additional $480 million in signed non-binding term sheets, and we expect this number to continue to grow as we progress in Q3. Q3 is historically our slowest quarter for new originations, and we expect that to be the case again this year.

自第二季結束以來，截至 2025 年 7 月 28 日，我們的交易團隊已完成 4,420 萬美元的新承諾，並提供 3,350 萬美元的資金。我們在簽署的非約束性條款清單中還有 4.8 億美元待定承諾，我們預計隨著第三季的進展，這一數字將繼續增長。從歷史上看，第三季度是我們新業務發起最慢的季度，我們預計今年仍將如此。

While that is typical for the venture and growth stage markets generally, we have chosen to be even more selective and patient recently given some of our recent market observations. In certain sectors, we have seen an abundance of liquidity and the desire for asset growth, leading to transactions that we do not believe reflect appropriate risk-adjusted returns. As we have always done, we intend to remain disciplined and focused on the long term, and we remain bullish on our pipeline and expectations for funding activity over the coming quarters.

雖然這對於創投和成長階段市場來說很常見，但根據我們最近的一些市場觀察，我們最近選擇更加謹慎和耐心。在某些領域，我們看到了過多的流動性和對資產成長的渴望，導致我們認為交易未能反映適當的風險調整回報。正如我們一直以來所做的那樣，我們打算保持紀律並著眼於長期發展，並且我們仍然對未來幾季的融資管道和預期持樂觀態度。

We are generally pleased with the exit activity that we saw in our portfolio during the second quarter. In Q2, we had three M&A events in our portfolio, which included one life sciences portfolio company and two technology portfolio companies announcing acquisitions. That brings us to 6 M&A events in our portfolio year-to-date through the end of Q2.

總體而言，我們對第二季投資組合的退出活動感到滿意。第二季度，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。截至第二季末，我們的投資組合中今年迄今已發生 6 起併購事件。

In addition, we had one technology company complete their IPO in the quarter. Based on current market conditions and improving corporate sentiment, we expect exit activity to accelerate towards year-end. Early loan repayments increased as expected in Q2 to approximately $267 million.

此外，本季還有一家科技公司完成了 IPO。根據當前的市場狀況和不斷改善的企業情緒，我們預計退出活動將在年底加速。第二季提前償還貸款金額如預期增加至約 2.67 億美元。

Even with the higher level of early loan repayments, we still achieved strong net debt portfolio growth given the record funding levels in the quarter, which continues to position us well for strong core earnings growth in the second half of 2025.

即使提前還款水平較高，鑑於本季度創紀錄的融資水平，我們仍然實現了強勁的淨債務組合增長，這為我們在 2025 年下半年實現強勁的核心盈利增長奠定了良好的基礎。

For Q3 2025, we expect pre-payments to be similar to Q2 and in the range of $200 million to $250 million, although this could change as we progress in the quarter. The credit quality of the debt investment portfolio improved quarter-over-quarter. Our weighted average internal credit rating of 2.26 decreased slightly from the 2.31 rating in Q1 and remains within our normal historical range.

對於 2025 年第三季度，我們預計預付款將與第二季度相似，在 2 億至 2.5 億美元之間，但隨著本季度的進展，這可能會發生變化。債務投資組合的信用品質較上月改善。我們的加權平均內部信用評級為 2.26，較第一季的 2.31 略有下降，但仍處於正常歷史範圍內。

Our Grade 1 and Grade 2 credits increased to 62.9% compared to 61.1% in Q1. Grade 3 credits increased slightly to 34.7% in Q2 versus 33.9% in Q1. Our rated 4 credits decreased to 2.4% from 4.1% in Q1, and we did not have any rated 5 credits as of Q2 quarter end.

我們的一級和二級學分從第一季的 61.1% 上升至 62.9%。三級學分在第二季略有上升，從第一季的 33.9% 上升至 34.7%。我們的評級 4 學分從第一季的 4.1% 下降到 2.4%，截至第二季末，我們沒有任何評級 5 學分。

In Q2, the number of loans and companies on non-accrual decreased by 1. We had one debt investment on nonaccrual with an investment cost and fair value of approximately $9.8 million and $7.9 million, respectively, or 0.2% as a percentage of our total investment portfolio at cost and value.

二季度，未計息貸款及企業數量減少1家。我們有一項非應計債務投資，其投資成本和公允價值分別約為 980 萬美元和 790 萬美元，占我們總投資組合成本和價值的 0.2%。

During the second quarter, we concluded our workout efforts with our 3 rated five loans from Q1, including Koros, a legacy loan that had been impaired and on non-accrual status since Q2 of 2024. The resulting realized loss on those three positions was $6.5 million less than our previous quarter's impairment, and there was a positive impact to net asset value during Q2 as a result.

在第二季度，我們完成了第一季 3 筆評級貸款的清理工作，其中包括 Koros，這是一筆自 2024 年第二季度以來一直處於減損狀態且未計提狀態的遺留貸款。這三個部位的實際損失比我們上一季的減損減少了 650 萬美元，因此對第二季的淨資產價值產生了積極影響。

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 ongoing uncertainty of the current tariff and trade-related environment, we continue to proactively 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持續不確定性，我們將繼續積極評估信貸組合中的任何重大影響。

Based on what we know as of today and continued conversations with our borrowers, we continue to believe that none of our portfolio companies will be negatively impacted by the current tariff situation to a material degree. Our net asset value per share in Q2 was $11.84, an increase of 2.5% from Q1 2025. We ended Q2 with strong liquidity of $785.6 million in the BDC and over $1 billion of liquidity across the Hercules platform.

根據我們目前所了解的情況以及與借款人的持續對話，我們仍然相信，我們的投資組合公司不會受到當前關稅狀況的重大負面影響。我們第二季的每股淨資產價值為 11.84 美元，比 2025 年第一季成長 2.5%。我們在第二季結束時，BDC 的流動性強勁，達到 7.856 億美元，整個 Hercules 平台的流動性超過 10 億美元。

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

憑藉健康的流動性、相對於同業較低的債務成本以及四個投資級企業信用評級，我們仍處於有利地位，可以在優質交易中積極競爭，我們認為這是當前環境下的審慎做法。

Venture capital investment activity continues to demonstrate a healthy pace with $69.9 billion invested in Q2 and $162.8 billion invested for the first half of 2025, according to data gathered by PitchBook NBCA. M&A exit activity in Q2 for US venture capital-backed companies was $32.2 billion. IPO activity improved but remained muted during the second quarter.

根據 PitchBook NBCA 收集的數據，創投活動持續呈現健康步伐，第二季投資額為 699 億美元，2025 年上半年投資額為 1,628 億美元。美國創投支持公司第二季的併購退出活動金額為 322 億美元。第二季 IPO 活動有所改善，但依然低迷。

Consistent with the aggregate data for the ecosystem, during Q2, capital raising across our portfolio remained strong with 19 companies raising over $1.1 billion in new capital during the second quarter. For the first half of 2025, we've had 45 companies raise over $3.8 billion in new capital.

與生態系統的整體數據一致，在第二季度，我們投資組合中的資本籌集依然強勁，19 家公司在第二季度籌集了超過 11 億美元的新資本。2025 年上半年，我們已經有 45 家公司籌集了超過 38 億美元的新資本。

Given our strong sustained operating performance, we exited Q2 with undistributed earnings spillover of $134.1 million or $0.74 per ending share outstanding. For Q2, 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，我們在第二季結束時的未分配盈餘溢出為 1.341 億美元，即每股期末流通股 0.74 美元。對於第二季度，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。

Our Q2 net investment income covered our base distribution by 125% and our full distribution, including our $0.07 supplemental distribution by over 106%. This is our 20th consecutive quarter of being able to provide our shareholders with a supplemental distribution in addition to our regular quarterly base distribution.

我們第二季的淨投資收益涵蓋了我們的基本分配的 125%，以及我們的全部分配，包括我們的 0.07 美元的補充分配，覆蓋率超過 106%。這是我們連續第 20 季除了常規季度基本分配外還能向股東提供補充分配。

In closing, our scale institutionalized lending platform and our ability to capitalize on a rapidly changing competitive and macro environment continues to drive our business forward and our operating performance to record levels. In Q2, Hercules delivered its ninth consecutive quarter of over $100 million of quarterly core income, which excludes the benefit of prepayment fees or fee accelerations from early repayments.

最後，我們規模化的製度化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。在第二季度，Hercules 連續第九個季度實現超過 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。

Our success is attributable to the 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 choice.

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、管理團隊和投資者的選擇。

I will now turn the call over to Seth.

現在我將把電話轉給塞斯。

Thank you, Scott, and good afternoon, ladies and gentlemen. The second quarter for Hercules Capital was very busy across our balance sheet. As Scott shared, the business activity during the quarter year-to-date has been exceptional and record-breaking for our platform. To support the growth of our investment portfolio, we've added to the more than $325 million of capital raised in the first quarter by raising another $500 million split between $350 million of institutional 6% unsecured notes and nearly $150 million of highly accretive capital via our ATM. In addition, we increased our available liquidity by renewing our MUFG-led credit facility and upsizing it to $440 million based on strong demand.

謝謝你，斯科特。女士們、先生們，午安。Hercules Capital 的第二季在資產負債表上表現非常活躍。正如斯科特所說，今年迄今為止的季度業務活動對於我們的平台來說非常出色且破紀錄。為了支持我們投資組合的成長，我們在第一季籌集的超過 3.25 億美元的資本基礎上，又透過我們的 ATM 籌集了 5 億美元，其中 3.5 億美元為機構 6% 無擔保票據，近 1.5 億美元為高增值資本。此外，我們還透過更新由三菱日聯金融集團 (MUFG) 主導的信貸額度並將其增加至 4.4 億美元（基於強勁的需求），增加了可用流動資金。

These activities helped us maintain our weighted average cost of debt at approximately 5% and our conservative leverage position remaining below 1:1 on both GAAP and a regulatory basis, supported by the full deployment of our most recent SBIC license.

這些活動幫助我們將加權平均債務成本維持在 5% 左右，並將我們的保守槓桿率保持在 1:1 以下（無論是按照 GAAP 還是監管標準），這得益於我們最新的 SBIC 許可證的全面部署。

We continue to maintain strong available liquidity of more than $785 million as of quarter end and more than $1 billion across the platform, including the adviser funds managed by our wholly-owned subsidiary, Hercules Capital LLC. Based on the performance of the quarter, Hercules Adviser delivered a second quarter dividend of $2.1 million, which when combined with the expense reimbursement of $3.4 million resulted in approximately $5.5 million in NII contribution to the BDC in Q2.

我們繼續保持強勁的可用流動性，截至季末超過 7.85 億美元，整個平台超過 10 億美元，包括由我們的全資子公司 Hercules Capital LLC 管理的顧問基金。根據本季的表現，Hercules Adviser 派發了 210 萬美元的第二季股息，加上 340 萬美元的費用報銷，第二季向 BDC 貢獻了約 550 萬美元的 NII。

With that in mind, let's review the following areas: the income statement performance and highlights, the NAV, unrealized and realized activity, leverage and liquidity; and finally, the financial outlook. Turning to the income statement performance and highlights.

考慮到這一點，讓我們回顧以下領域：損益表表現和亮點、資產淨值、未實現和已實現活動、槓桿和流動性；最後是財務前景。轉向損益表的表現和亮點。

Total investment income in Q2 was a record $137.5 million, a 15% quarter-over-quarter increase, supported by our debt portfolio that has grown to $4 billion as of the second quarter. Core investment income, a non-GAAP measure, increased to a record $124.6 million. Core investment income excludes the benefit of income recognized as a result of loan prepayments.

第二季的總投資收入達到創紀錄的 1.375 億美元，較上季成長 15%，這得益於我們的債務投資組合（截至第二季已成長至 40 億美元）。核心投資收入（非 GAAP 指標）增至創紀錄的 1.246 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。

Net investment income increased quarter-over-quarter 14.6% to $88.7 million or $0.50 per share in Q2. Our effective and core yields were 13.9% and 12.5%, respectively, compared to 13% and 12.6% in the prior quarter. As of quarter end, approximately half of our prime-based loans are at the contractual floor and thus the impact of any future rate reductions will be muted.

第二季淨投資收入季增 14.6% 至 8,870 萬美元或每股 0.50 美元。我們的有效收益率和核心收益率分別為 13.9% 和 12.5%，而上一季分別為 13% 和 12.6%。截至本季末，我們大約一半的優惠利率貸款處於合約底線，因此未來任何利率下調的影響都將很小。

Second quarter gross operating expenses were $52.2 million compared to $45.3 million in the prior quarter. Net of costs recharged to the RIA, our net operating expenses were $48.7 million. Interest expense and fees increased to $25.7 million due to the growth of the business and corresponding increase of leverage. SG&A increased to $26.5 million, above my guidance on the growth of the business. Net of costs recharged to the RIA, the SG&A expenses were $23 million.

第二季總營運費用為 5,220 萬美元，而上一季為 4,530 萬美元。扣除向 RIA 收取的成本後，我們的淨營運費用為 4,870 萬美元。由於業務成長和相應的槓桿率上升，利息支出和費用增加至 2,570 萬美元。銷售、一般及行政費用增加至 2,650 萬美元，高於我對業務成長的預期。扣除向 RIA 收取的費用後，銷售、一般及行政費用為 2,300 萬美元。

Our weighted average cost of debt increased slightly to 5%. Our ROAE or NII over average equity increased to 17.1% for the second quarter, and ROAA or NII over average total assets increased to 8.6%.

我們的加權平均債務成本略為上升至5%。第二季度，我們的 ROAE 或 NII 與平均權益比率上升至 17.1%，ROAA 或 NII 與平均總資產比率上升至 8.6%。

Switching to the NAV activity. During the quarter, our NAV per share increased by $0.29 per share to $11.84 per share. This represents an NAV per share increase of 2.5% quarter-over-quarter. The main driver accretion due to use of the ATM. Our realized loss of $57.6 million was primarily from restructure or sale of three previously impaired debt positions, two of which were on non-accrual as of the first quarter.

切換到 NAV 活動。本季度，我們的每股資產淨值增加了 0.29 美元，達到每股 11.84 美元。這意味著每股淨資產值比上一季成長 2.5%。主要驅動因素是由於使用 ATM 而增加的。我們實現的 5,760 萬美元損失主要來自重組或出售三個先前受損的債務頭寸，其中兩個截至第一季度尚未提列。

The [realized loss $54.6 million] from these three positions was lower than the previous quarter impairment of [$16.1 million].

這三個職位的[已實現損失 5,460 萬美元]低於上一季的減值[1610萬美元]。

Our $47.8 million of net unrealized depreciation which primarily attributable to $53.8 million of reversal of previous quarter depreciation of realization event as mentioned earlier, $7 million of net unrealized depreciation attributable to valuation improvements in privately and publicly held equity warrant and investment funds, including foreign exchange movements. This was personally offset by $13 million of net unrealized depreciation on debt investments primarily from collateral-based impairments one position.

我們的 4,780 萬美元淨未實現折舊主要歸因於前面提到的上一季折舊實現事件的 5,380 萬美元逆轉，700 萬美元淨未實現折舊歸因於私人和公開持有的股權認股權證和投資基金的估值改善，包括外匯變動。這被債務投資的 1,300 萬美元淨未實現折舊所抵消，主要來自基於抵押品的減值。

The reversal of prior unrealized depreciation resulted in a net realized loss of $57.6 million, primarily due to the losses on debt and warrant investments and losses from foreign exchange movements.

先前未實現折舊的逆轉導致淨實現損失 5,760 萬美元，主要由於債務和認股權證投資損失以及外匯變動造成的損失。

On leverage and liquidity, our GAAP and regulatory leverage decreased to 97.4% and 81.1%, respectively, compared to the prior quarter due to the use of the ATM to support the growth in the balance sheet. Netting out leverage with cash on the balance sheet, our net GAAP and regulatory leverage was 95% and 78.7%, respectively.

在槓桿率和流動性方面，由於使用 ATM 支持資產負債表的成長，我們的 GAAP 和監管槓桿比率與上一季相比分別下降至 97.4％ 和 81.1％。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 95％ 和 78.7％。

We ended the quarter with a little over more than $785 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.

本季結束時，我們的可用流動資金略高於 7.85 億美元。提醒一下，這不包括我們全資 RIA 子公司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。

The strong liquidity positions us very well to support our existing portfolio companies and source new opportunities.

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 June, Hercules Capital issued $350 million of institutional 6% unsecured notes due in 2030 and renewed and increased our credit facility led by MUFG to $440 million.

如上所述，6 月份，Hercules Capital 發行了價值 3.5 億美元的 6% 無擔保機構票據，到期日為 2030 年，並且續簽了由 MUFG 牽頭的信貸額度並將其增加至 4.4 億美元。

As a final point, we continued to opportunistically access the ATM market during the quarter and raised approximately $149 million in the second quarter, resulting in $0.28 NAV per share.

最後一點，我們本季繼續抓住機會進入 ATM 市場，並在第二季籌集了約 1.49 億美元，每股淨值為 0.28 美元。

On the outlook, for the third quarter, we expect our core yield to be at the high end of our guidance range of 12% to 12.5%, excluding any future benchmark interest rate changes. As a reminder, 98% of our debt portfolio is floating with a floor and presently, approximately 50% of our prime-based portfolio is at its contractual floor.

展望第三季度，我們預計核心收益率將達到指導範圍的高端 12% 至 12.5%（不包括任何未來基準利率變化）。提醒一下，我們 98% 的債務投資組合都處於浮動底線，目前，我們約 50% 的優質投資組合處於合約底線。

Although difficult to predict, as communicated by Scott, we expect $200 million to $250 million in prepayment and activity in the third quarter. We expect our third quarter interest expense to increase compared to the prior quarter based on the debt portfolio growth during the first half of the year.

儘管很難預測，但正如斯科特所說，我們預計第三季的預付款和活動金額為 2 億至 2.5 億美元。根據今年上半年債務組合的成長，我們預計第三季的利息支出將比上一季增加。

For the third quarter, we expect SG&A expenses of $24 million to $25 million and an RIA expense allocation of approximately $3 million.

對於第三季度，我們預計銷售、一般及行政費用為 2,400 萬至 2,500 萬美元，RIA 費用分配約為 300 萬美元。

Finally, we expect a quarterly dividend from the RIA of approximately $1.9 million to $2.1 million per quarter. In closing, the steps we have taken to strengthen our balance sheet will help us continue scaling our platform and ensure we are well positioned for the remainder of 2025.

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，我們為加強資產負債表而採取的措施將有助於我們繼續擴大平台規模，並確保我們在 2025 年剩餘時間內處於有利地位。

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

我現在將把電話轉給接線員，開始我們通話的問答部分。

Jess, over to you.

傑西，交給你了。

(Operator Instructions)

（操作員指示）

Crispin Love, Piper Sandler.

克里斯賓·洛夫，派珀·桑德勒。

Thank you and good afternoon. Your debt fundings have been extremely strong year-to-date. On the fundings outlook or commentary, you seemed a little cautious on the immediate near term, but positive on longer-term funding.

謝謝，下午好。今年迄今為止，您的債務融資一直非常強勁。在融資前景或評論方面，您似乎對近期融資有些謹慎，但對長期融資持樂觀態度。

So as you look forward to the fourth quarter and into '26, do you think funding levels that you put up late last year and the beginning of this year, are those types of levels attainable based on what you're seeing today? Or any reasons why you may pull back for an extended period of time on the funding basis?

因此，當您展望第四季和 26 年時，您是否認為根據您今天看到的情況，您去年年底和今年年初設定的融資水平可以達到？或有什麼原因導致您可能會在較長時間內撤回融資？

Thanks for the question, Crispin. No sense that there's going to be a pullback. I think what we did in the second half of last year is likely indicative of what we'll do in the second half of this year. Q3 is typically, as we've mentioned several times, several years in a row, our slowest quarter. In addition to it just being sort of a seasonally slow Q3, we have pulled back slightly to start the quarter just given some of the observations that we're making in terms of the current market environment.

謝謝你的提問，克里斯平。沒有任何跡象表明會出現回調。我認為我們去年下半年所做的事情很可能預示著我們今年下半年將會做的事情。正如我們多次提到的那樣，第三季通常是我們連續幾年業績最慢的一個季度。除了第三季的季節性放緩之外，根據我們對當前市場環境的一些觀察，我們在本季開始時還略有回落。

But we are very bullish with respect to our overall funding activity for the second half of this year, and we expect to end 2025 with both record fiscal year commitments and record fiscal year gross fundings.

但我們對今年下半年的整體融資活動非常樂觀，我們預計 2025 財年承諾和財年總融資額都將創下歷史新高。

Great. I appreciate that, Scott. And then just building on that a little bit, can you discuss the competitive environment you're seeing in venture lending from other non-banks as well as the bank space? Have you seen meaningful changes in the landscape? You alluded to -- or I believe you did a little bit that some lenders might be behaving a little bit irrationally in the third quarter.

偉大的。我很感激，斯科特。然後在此基礎上，您能否討論一下您在其他非銀行機構以及銀行領域的風險貸款中看到的競爭環境？您是否看到過景觀中有意義的變化？您曾暗示——或者我相信您確實暗示過——一些貸款機構在第三季度的行為可能有點不理性。

Is that right? And if so, can you just dig a little bit deeper into that?

是嗎？如果是的話，您能否更深入地探討一下？

Sure. I would not characterize what we're seeing necessarily as anything specific to banks or non-banks. We continue to see certain banks that we compete with from time to time. We also, as I think you now, Crispin, we continue to partner with certain commercial banks for certain profile of transaction.

當然。我不會將我們所看到的情況描述為銀行或非銀行所特有的現象。我們時不時會看到與我們競爭的某些銀行。正如克里斯平所說，我們現在還在繼續與某些商業銀行合作，以進行某些類型的交易。

On the non-bank side, we've seen a handful of lenders recently, particularly in certain sectors, be very aggressive with respect to a lack of structure and a willingness to go well below our threshold from a yield perspective. And so that's what has caused us to be a little bit more patient to start Q3.

在非銀行方面，我們最近看到一些貸款機構，特別是某些行業的貸款機構，在缺乏結構方面表現得非常激進，並且願意從收益率的角度遠低於我們的門檻。所以，這讓我們在開始第三季時更有耐心。

We don't think that's a permanent shift. We think that's largely a result of just an abundance of liquidity in the system and some managers desperate for asset growth. We've always taken a long-term approach to the space.

我們不認為這是一個永久性的轉變。我們認為，這主要是由於系統內流動性過剩以及一些管理者迫切希望實現資產成長。我們始終對該領域採取長遠的方針。

That's what we're going to continue to do. We're still finding pockets. We expect Q3 to be strong, but seasonally slow, and we expect the second half of the year to be strong from my earlier comments.

這就是我們要繼續做的事情。我們仍在尋找口袋。我們預計第三季將會表現強勁，但受到季節性因素的影響會比較緩慢，根據我先前的評論，我們預計下半年的表現將會強勁。

Great, thanks Scott. I appreciate the color and take my question.

太好了，謝謝斯科特。我很欣賞這個顏色並回答了我的問題。

Thanks, Cris

謝謝，克里斯

(Operator Instructions)

（操作員指示）

Brian McKenna, Citizens.

布萊恩·麥肯納，公民。

Great thanks. And first off, just congrats on another impressive quarter here. The business has clearly inflected in terms of size and scale. And I think results the last couple of quarters also highlight the meaningful share you've taken within the industry. But I'm curious, as you reach these new levels of scale and as the business continues to perform incredibly well, I mean, what does all of this mean for attracting and retaining top talent? I'm assuming it's been a very positive dynamic, and you'll continue to hire at a strong clip, but any thoughts here would be great.

非常感謝。首先，恭喜您又一個令人印象深刻的季度。業務在規模和範圍方面已發生明顯變化。我認為過去幾季的業績也凸顯了你們在業界所佔據的重要份額。但我很好奇，當你們達到這些新的規模水平並且業務繼續表現得非常好時，我的意思是，這一切對於吸引和留住頂尖人才意味著什麼？我認為這是一個非常積極的動態，並且你將繼續以強勁的速度招聘，但任何想法都會很棒。

Sure. Thanks for the comment and the compliment, Brian, certainly appreciate it. Our culture continues to be of utmost important to us. I think if you look at this business, particularly over the last five-plus years, we've done a tremendous job in terms of not only attracting talent to the platform but retaining the strong talent that we have. And that will continue to be a focus for us.

當然。感謝您的評論和讚美，Brian，我非常感激。我們的文化對我們來說仍然至關重要。我認為，如果你看一下這項業務，特別是過去五年多來，我們不僅在吸引人才加入平台方面做得非常出色，而且在留住現有優秀人才方面也做得非常出色。這將繼續成為我們關注的重點。

We have a really high bar with respect to new hires, particularly at the senior level. We're not afraid to make new hires, but we are very selective when we do so. If you think about sort of the environment, particularly over the last two to three years in the immediate aftermath of the SVB situation, we hired a handful of individuals who have been very accretive to the platform over the last year or so, we've added some significant senior talent to the originations team in certain markets. And then we are just recently year-to-date have continued to do so selectively.

我們對新進員工，尤其是高階員工，有著非常高的標準。我們不畏招募新員工，但招募時我們會非常謹慎。如果你考慮當時的環境，特別是在矽谷銀行事件發生後的兩三年裡，我們僱用了一些在過去一年左右的時間裡為平台做出巨大貢獻的個人，我們為某些市場的發起團隊增加了一些重要的高級人才。從今年至今，我們一直在選擇性地這樣做。

So continuing to focus on finding the right talent to add to the platform, focused on particular sectors, focused on particular geographies, but maintaining a corporate culture where our employees want to be here, want to stay with the platform and want to continue to help us drive the company forward is of the utmost importance to us.

因此，繼續專注於尋找合適的人才加入平台，專注於特定行業，專注於特定地區，但保持一種企業文化，讓我們的員工願意留在這裡，願意留在平台上，願意繼續幫助我們推動公司前進，這對我們來說至關重要。

Okay. That's really helpful. I appreciate it, Scott. And then just on the RIA, it's great to see the first close for Fund four. Just a few related questions to that, if you have detail here.

好的。這真的很有幫助。我很感激，斯科特。然後就在 RIA 上，很高興看到第四檔基金的首次收盤。如果您有詳細信息，請問與此相關的幾個問題。

How much equity capital did you raise in the first close? And then what's the hard cap or target for that fund? Of the $1.6 billion of AUM that RIA is now managing, how much of that is equity capital versus debt? And then just a little bit bigger picture, looking at the platform today, the existing infrastructure and the team in place, I mean, how much more AUM can you manage longer term?

您在首次收盤時募集了多少股本？那麼該基金的硬上限或目標是多少？RIA 目前管理的 16 億美元 AUM 中，有多少是股權資本，有多少是債務？然後從更大的角度來看，看看今天的平台、現有的基礎設施和現有的團隊，我的意思是，長期來看你還能管理多少 AUM？

Sure. So a couple of questions there, Brian. Consistent with our approach to Funds 1, 2 and 3, given that it is a wholly-owned subsidiary underneath the BDC, we do not disclose individual equity commitments or debt commitments per fund. What we do disclose is the aggregate number when we have certain meaningful events. So as of the most recent data that we've publicly disclosed, between the four funds, we have approximately $1.6 billion of committed equity and debt capital.

當然。布萊恩，我有幾個問題。與我們對基金 1、2 和 3 的態度一致，鑑於它是 BDC 旗下的全資子公司，我們不會揭露每個基金的單獨股權承諾或債務承諾。當我們發生某些有意義的事件時，我們確實會揭露總數。根據我們公開揭露的最新數據，四檔基金中我們已承諾的股權和債務資本約為 16 億美元。

I think we've been pretty clear that the leverage in our private fund business is generally consistent with the leverage in our public BDC business.

我認為我們已經非常清楚，我們的私募基金業務的槓桿率與我們的公共 BDC 業務的槓桿率基本一致。

So if you would sort of back into what the equity commitments are versus what the debt commitments are, we continue to think that the private fund platform and vehicle is a tremendous growth opportunity for us. It is flexible capital. We are raising money from strong long-term institutional investors. We continue to see opportunities to raise capital, and we will continue to do so as long as we think we can prudently put it to work. Given that the BDC is internally managed, this has never been and will never be a growth at all cost mentality.

因此，如果您回顧股權承諾與債務承諾的區別，我們仍然認為私募基金平台和工具對我們來說是一個巨大的成長機會。它是靈活資本。我們正在從強大的長期機構投資者那裡籌集資金。我們繼續看到籌集資金的機會，只要我們認為能夠謹慎地利用它，我們就會繼續這樣做。鑑於 BDC 是內部管理的，這從來不是、也永遠不會是一種不惜一切代價追求成長的心態。

But if we see pockets, if we see opportunities to deliver strong risk-adjusted returns for our investors, we'll take advantage of that.

但如果我們看到機會，如果我們看到為投資者帶來強勁風險調整回報的機會，我們就會利用這一點。

All right, great. I'll leave it there. Congrats again.

好的，太好了。我就把它留在那裡。再次恭喜。

Thanks, Brian.

謝謝，布萊恩。

Corey Johnson, UBS.

瑞銀的科里·約翰遜。

This is actually Douglas Harter from UBS.

這其實是瑞銀的道格拉斯·哈特。

Given your comments about the strong pipeline for funding in the second half, can you talk about kind of how you think about funding that, whether that be through increasing leverage from current levels or using the ATM or both?

鑑於您對下半年強勁融資管道的評論，您能否談談您對融資的看法，是透過增加當前水準的槓桿還是使用 ATM，或者兩者兼而有之？

Sure. So I think we're in really good position, Doug, with respect to liquidity. If you look at just the BDC, ended Q2 with $785 million of available liquidity. If you look at it across the platform, inclusive of the private fund business, a little bit over $1 billion of liquidity. We ended the quarter sub-100% from a GAAP leverage perspective.

當然。因此，道格，我認為就流動性而言，我們處於非常有利的地位。如果只看 BDC，第二季末其可用流動資金為 7.85 億美元。如果你從整個平台來看，包括私募基金業務，流動性略高於 10 億美元。從 GAAP 槓桿率角度來看，本季我們的槓桿率低於 100%。

We ended the quarter sub-82% from a regulatory leverage perspective. So no imminent plans to raise additional capital. We think the business is very well capitalized, strong balance sheet, very conservative balance sheet, and that should put us into a position to, again, gradually take leverage up.

從監管槓桿角度來看，本季末我們的監管槓桿率低於 82%。因此，近期沒有籌集額外資本的計劃。我們認為該業務資本充足，資產負債表強勁，資產負債表非常保守，這應該使我們能夠再次逐步提高槓桿率。

And if we see pockets of opportunity to deploy more capital than our current pipeline shows, obviously, we have the ATM. But we are very sensitive to using the ATM despite where the stock trades.

如果我們發現部署比現有管道更多的資本的機會，顯然我們就有 ATM。但無論股票在哪裡交易，我們對使用 ATM 都非常敏感。

We use the ATM on an as-needed basis to maintain our leverage ratios. Right now, we're a little bit undelivered relative to where we would like to be. So we would anticipate taking that leverage ratio up back to that 100%, 105% range before using the ATM again.

我們根據需要使用 ATM 來維持我們的槓桿率。目前，我們離想要達到的目標還有點距離。因此，我們預計在再次使用 ATM 之前，槓桿率會恢復到 100% 至 105% 的範圍。

Just to clarify that last comment, that $100 million, $105 million, is that on a GAAP basis or a regulatory basis?

只是為了澄清最後一則評論，1 億美元、1.05 億美元是基於 GAAP 還是監管基礎？

That's a GAAP basis.

這是 GAAP 基礎。

Great, thank you.

太好了，謝謝。

Casey Alexander, Compass Point.

凱西‧亞歷山大 (Casey Alexander)，指南針點。

That was my question. My question was just asked and answered.

這就是我的問題。我的問題剛剛被提出並得到回答。

Thank you.

謝謝。

Finian O'Shea, Wells Fargo.

富國銀行的菲尼安‧奧謝 (Finian O’Shea)。

Hey everyone, good afternoon. Just hitting on a couple of smaller items in the details. In recent periods, it looks like there's a lot less equity co-investment and also less principal repayment. So seeing the trends there if you're, to a lesser extent, investing in or lending to amortizing structures as is the case historically and whether or not you find the equity co-invest attractive? Thanks.

大家好，下午好。只是談到細節中的幾個較小的事項。最近一段時間，股權共同投資似乎少了很多，本金還少了很多。那麼，如果您在較小程度上像歷史上的情況一樣投資或借貸攤銷結構，那麼您是否看到了那裡的趨勢，以及您是否發現股權共同投資具有吸引力？謝謝。

Sure. Thanks, Fin. So with respect to amortization in principle, I would make sort of two comments. Number one, over the last two to three years, initial interest-only periods have extended slightly relative to where they once were. So that's certainly a component.

當然。謝謝，芬。因此，關於攤銷原則，我想提出兩點評論。第一，在過去的兩到三年裡，最初的只付利息期限相對於以前有所延長。所以這當然是一個組成部分。

The other component is in the majority of transactions that we do, we allow our portfolio companies to earn interest-only extensions based on specific preset performance milestones.

另一個因素是，在我們進行的大多數交易中，我們允許我們的投資組合公司根據特定的預設績效里程碑獲得僅付利息的延期。

Thankfully, many of our companies continue to achieve those preset milestones. As those companies achieve those milestones, they're able to earn into additional interest-only extensions. So we look at that as an indicator of strong performance across the portfolio.

值得慶幸的是，我們的許多公司繼續實現這些預設的里程碑。當這些公司實現這些里程碑時，他們就能夠獲得額外的僅付利息的擴展。因此，我們將其視為整個投資組合表現強勁的指標。

And then with respect to the second point, we have been a little bit more judicious with respect to equity investments, with respect to RTIs, with respect to co-investments. And that's just largely been a function of valuation relative to our assessment.

關於第二點，我們在股權投資、RTI 和共同投資方面更加謹慎。這在很大程度上只是相對於我們的評估的估值函數。

We think the market has become relatively frothy from an equity perspective. Where we see pockets of opportunity in the portfolio, we are continuing to make equity investment decisions, but we're just being a little bit more judicious in terms of equity investments in the current environment.

我們認為，從股票角度來看，市場已經變得相對泡沫化。當我們在投資組合中看到機會時，我們會繼續做出股權投資決策，但在當前環境下，我們在股權投資方面會更明智。

Okay. That's helpful. And just sort of tying in there, like if there's a frame of time where you don't do equity co-invest, is there -- is the ATM in part a tool to shore up NAV as it has been to some extent in the last few years?

好的。這很有幫助。而且只是有點連結在一起，比如說，如果在一段時間內你不進行股權共同投資，那麼 ATM 是否在某種程度上是一種支撐 NAV 的工具，就像過去幾年一樣？

We don't think about it that way. We think of the ATM as something that we can use sporadically to help us maintain a strong, conservative, defensive balance sheet. We don't use the ATM to drive net asset value.

我們可不這麼認為。我們認為 ATM 是一種可以偶爾使用的東西，可以幫助我們維持強勁、保守、防禦性的資產負債表。我們不使用 ATM 來推動淨資產價值。

All for me, thanks so much.

這一切都是為了我，非常感謝。

Thanks, Fin

謝謝，Fin

Christopher Nolan, Ladenburg Thalmann.

克里斯多福諾蘭、拉登堡塔爾曼。

Hi Scott, thank you for taking my questions and apologies if I missed it, but given all the changing currents with all the tariffs and these tariff deals announced, how does Hercules stand to benefit given many of these countries are going to be supposedly making large dollar investments into the United States?

你好，斯科特，謝謝你回答我的問題，如果我沒注意到，我深感抱歉，但考慮到所有關稅和這些關稅協議的變化趨勢，鑑於許多國家據稱將對美國進行大規模投資，赫拉克勒斯將如何受益？

Yeah. I think it's a great question, and it's something we've spent a lot of time thinking about as an organization. I think our current assessment, and this can change daily just based on the changing messaging. But our current assessment is that the biggest driver of positivity for our portfolio companies will be increased interest and investment in the United States.

是的。我認為這是一個很好的問題，作為一個組織，我們花了很多時間思考這個問題。我認為我們目前的評估每天都會根據不斷變化的信息而改變。但我們目前的評估是，對我們投資組合公司而言，最大的正面驅動力將是對美國的興趣和投資的增加。

In a lot of these tariff deals or trade deals or just deals in general, you're seeing things announced where these countries are committing to certain investments in US infrastructure, US technology, et cetera. And so we think just from a portfolio perspective, the increased investment into the US markets will be a net positive for technology-oriented growth stage businesses broadly.

在許多關稅協議、貿易協議或一般協議中，你會看到這些國家宣布承諾對美國基礎設施、美國技術等進行一定的投資。因此，我們認為，僅從投資組合的角度來看，增加對美國市場的投資將對技術導向的成長階段企業產生正面影響。

Okay. And then for my follow-up for Seth. Congratulations on the low coupon for the $350 million raise, given the new credit facility. Has there been any sort of changes on the advance rates?

好的。然後是我對 Seth 的後續跟進。鑑於新的信貸安排，恭喜您以較低的票面利率籌集了 3.5 億美元。預付款率有變化嗎？

Yeah. Thanks a lot, Chris. So it isn't new. It's an extension of an existing. We just upsized it as well.

是的。非常感謝，克里斯。所以這並不是什麼新鮮事。它是現有內容的延伸。我們也剛剛擴大了它的尺寸。

And MUFG and the other lenders have worked with us to actually improve the conditions each and every time we renew the facility and improve the availability for us. So there's no change in the advance rates, although there are categories associated with it where they give us a better opportunity to increase the overall average advance rate.

三菱日聯金融集團和其他貸款機構與我們合作，在每次更新貸款時實際改善條件，提高我們的可用性。因此，預付率沒有變化，儘管與之相關的類別為我們提供了更好的機會來提高整體平均預付率。

Right, okay, thank you guys.

好的，好的，謝謝大家。

Thanks Chris.

謝謝克里斯。

Paul Johnson, KBW.

保羅·約翰遜，KBW。

Yeah, thanks for taking my question. Most of might have been asked, but I just ask with the recent IPO activity, understanding that the (inaudible) issuance is still at a pretty low level, but it's still recovering. But with performance we've seen (inaudible), Figma, do you think that that's changed sort of BC's mindset in terms of kind of the exit pathway and potentially looking closer at the IPO route versus just the buyout, even if it means potentially like a lower multiple than kind of where the peak valuation was?

是的，感謝您回答我的問題。大多數人可能都被問過，但我只是問一下最近的 IPO 活動，了解到（聽不清楚）發行量仍然處於相當低的水平，但仍在恢復。但是，根據我們所看到的表現（聽不清楚），Figma，您是否認為這改變了 BC 在退出途徑方面的思維方式，並且可能更密切地關注 IPO 途徑而不僅僅是收購，即使這意味著潛在的倍數低於峰值估值？

Yes, it's a great question. I think our assessment is that it's still too early to make that assessment. We did see some improvement in terms of you mentioned a couple of the names, including the one from today. But that's really early just in terms of sort of that projecting out to be an indicator of what's to come and what's going to change potentially with respect to VC sentiment. Our perspective is the bar right now continues to be really high for successful IPOs for growth stage companies.

是的，這是一個很好的問題。我認為我們的評估是現在做出這項評估還為時過早。就您提到的幾個名字而言，我們確實看到了一些改進，包括今天提到的那個名字。但這還為時過早，只能作為對未來發展和創投情緒潛在變化的指標來預測。我們的觀點是，目前對於成長階段公司成功進行 IPO 的門檻仍然很高。

And so when you look at the sort of the types of companies that are going public, it's really the top of the top in terms of quality. So when we think about sort of the broader markets, I think we continue to view the M&A market as likely the largest driver going forward of exit activity. But we do think that the backdrop in Q2 with respect to IPOs is helpful as long as it's sustained through the second half of the year.

因此，當您查看即將上市的公司類型時，您會發現它們在品質方面確實是頂尖的。因此，當我們考慮更廣泛的市場時，我認為我們仍然認為併購市場可能是未來退出活動的最大驅動力。但我們確實認為，只要第二季的 IPO 背景能夠持續到下半年，它就會有所幫助。

I appreciate it. That's all for me. Congrats on great quarter.

我很感激。對我來說就這些了。恭喜本季取得如此出色的成績。

Thanks, Paul.

謝謝，保羅。

Thank you. I'm showing no further questions. I would now like to turn the call back over to Scott Bluestein for any closing remarks.

謝謝。我沒有其他問題。現在我想將電話轉回給 Scott Bluestein 做最後一次發言。

Thank you, Jess, and thanks to everyone for joining our call today. We look forward to reporting our progress on our Q3 2025 earnings call.

謝謝你，傑西，也謝謝大家今天參加我們的電話會議。我們期待在 2025 年第三季財報電話會議上報告我們的進展。

This does conclude today's Hercules Capital second quarter 2025 financial results conference call. You may now disconnect your line and have a wonderful day.

今天的 Hercules Capital 2025 年第二季財務業績電話會議就此結束。現在您可以斷開線路並享受美好的一天。