Hercules Capital, Inc. (NYSE:HTGC) Q2 2020 Earnings Conference Call July 30, 2020 5:00 PM ET Company Participants Michael Hara – Investor Relations and Corporate Communications Scott Bluestein – Chief Executive Officer and Chief Investment Officer Seth Meyer – Chief Financial Officer Conference Call Participants Crispin Love – Piper Sandler Finian O'Shea – Wells Fargo Chris York – JMP Securities Mike Smyth – B. Riley John Hecht – Jefferies Christopher Nolan – Ladenburg Thalmann Henry Coffey – Wedbush Casey ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization) 400 ...

July 30, 2020 SECOND QUARTER 2020 INVESTOR PRESENTATION Financing the Growth of Tomorrow's Companies TodayTM IMPORTANT NOTICE: FORWARD LOOKING STATEMENTS This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the "safe harbor" provisions ...

Hercules Capital, Inc. (NYSE:HTGC) Q1 2020 Results Earnings Conference Call May 4, 2020 5:00 PM ET Company Participants Michael Hara - Managing Director of Investor Relations Scott Bluestein - Chief Executive Officer, Chief Investment Officer Seth Meyer - Chief Financial Officer Conference Call Participants Tim Hayes - B. Riley FBR Chris York - JMP Securities John Hecht - Jefferies Finian O'Shea - Wells Fargo Ryan Lynch - KBW Christopher Nolan - Ladenburg Thalmann Casey Alexander - Compass Point Operator La ...

Investment Portfolio Valuation - The total fair value of the investment portfolio was approximately $2.3 billion as of March 31, 2020, unchanged from December 31, 2019[306]. - The fair value of the debt investment portfolio increased to approximately $2.2 billion at March 31, 2020, compared to approximately $2.1 billion at December 31, 2019[306]. - The fair value of the equity portfolio decreased to approximately $94.5 million at March 31, 2020, down from approximately $145.0 million at December 31, 2019[306]. - The ending portfolio value as of March 31, 2020, was $2,302.5 million, a decrease from $2,314.5 million at December 31, 2019[312]. - Approximately 8.1% of the company's total assets, or $193.3 million, were held in tangible assets through its wholly owned SBIC as of March 31, 2020[301]. - The portfolio companies are primarily in high-margin, high-growth sectors, with 88.9% of the fair value composed of investments in five industries, including 30.1% in "Drug Discovery & Development" and 28.0% in "Software"[321]. - As of March 31, 2020, approximately 96.1% of total assets were invested in portfolio companies with fair values determined in good faith by the board[413]. Investment Income and Returns - Total investment income for the three months ended March 31, 2020 was approximately $73.6 million, compared to approximately $58.8 million for the same period in 2019, representing a year-over-year increase of 25.0%[329]. - Interest income for the three months ended March 31, 2020 totaled approximately $66.2 million, an increase from approximately $55.5 million in the same period of 2019, primarily due to an increase in the weighted average principal outstanding of loans[330]. - Fee income from commitment, facility, and loan-related fees for the three months ended March 31, 2020 was approximately $7.4 million, up from approximately $3.3 million in the same period of 2019, reflecting a 124.2% increase[334]. - The total return for investors was approximately (44.5%) for the three months ended March 31, 2020, compared to 17.2% for the same period in 2019[320]. Debt and Financing - The company aims to maximize total return by generating current income from debt investments and capital appreciation from warrant and equity-related investments[300]. - The company is focused on providing senior secured loans to high-growth, innovative venture capital-backed companies in technology-related industries[297]. - The weighted average cost of debt decreased to approximately 5.2% for the three months ended March 31, 2020, down from 5.8% in the same period in 2019, primarily due to a reduction in higher yielding debt instruments[339]. - The company had approximately $134.7 million of unfunded commitments available at the request of portfolio companies as of March 31, 2020[392]. - The company had $1.3 billion in total contractual obligations as of March 31, 2020[395]. Operational Performance - The company received approximately $167.5 million in aggregate principal repayments during the three months ended March 31, 2020, with approximately $150.5 million being early principal repayments[311]. - New fundings and restructures amounted to $233.6 million for the three months ended March 31, 2020, compared to $1,025.7 million for the year ended December 31, 2019[312]. - The company recorded $76.3 million of net unrealized depreciation on investments for the three months ended March 31, 2020, compared to a net unrealized appreciation of $28.0 million in 2019[347]. - The net change in net assets resulting from operations was a decrease of approximately $28.7 million for the three months ended March 31, 2020, compared to an increase of $61.6 million in 2019[353]. - Both basic and fully diluted net change in net assets per common share were $(0.27) for the three months ended March 31, 2020, compared to $0.64 per share in 2019[354]. Expenses and Costs - General and administrative expenses increased to $6.1 million for the three months ended March 31, 2020, up from $4.2 million in 2019, mainly due to higher income taxes, rent, and legal expenses[340]. - Employee compensation and benefits rose to $8.2 million for the three months ended March 31, 2020, compared to $6.6 million in 2019, driven by increased variable compensation[341]. - Interest and fees on borrowings totaled approximately $16.3 million for the three months ended March 31, 2020, compared to $15.6 million for the same period in 2019, reflecting an increase due to new note issuances[338]. Capital Management - The company may seek to raise additional equity or debt capital through various means, including registered offerings and securitization of investments[357]. - The company has authorized a stock repurchase plan permitting up to $25.0 million of common stock repurchases, although no repurchases occurred during 2019[367]. - The company closed the June 2019 Equity Offering, generating net proceeds of $70.5 million before expenses[372]. - As of March 31, 2020, the company had $438.2 million in available liquidity, including $34.3 million in cash and cash equivalents[379]. - The company issued $105.0 million in July 2024 Notes, generating net proceeds of approximately $103.5 million[374]. - The company issued $50.0 million in February 2025 Notes, generating net proceeds of approximately $49.4 million[375]. Distribution Policy - The company intends to maintain a variable distribution policy, distributing approximately 90% - 100% of taxable quarterly income[401]. - The company plans to distribute taxable income to avoid corporate-level federal income tax while maintaining its qualification as a RIC[406]. - It is expected that a cash distribution of $0.32 per share will be paid to shareholders on May 21, 2020[419]. - The distributions announced in 2019 were 100% from current and accumulated earnings and profits[402]. Risk Management - The company did not engage in any hedging activities during the first quarter of 2020 but may use standard hedging instruments in the future to mitigate interest rate fluctuations[425]. - The company has not conducted interest rate or foreign currency hedging activities[425]. - Based on hypothetical changes in benchmark interest rates, the impact of changes in interest income and expenses under different basis point changes indicates that a 200 basis point change could result in a net income change of approximately $15.2 million[424]. - The weighted average investment grading of debt investments was 2.34 as of March 31, 2020, compared to 2.15 at December 31, 2019, indicating a slight increase in perceived risk[327].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 814-00702 HERCULES CAPITAL, INC. (Exact name of Registrant as specified in its charter) Maryland 74-3113410 (State or other jurisdiction o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization) 400 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization) 40 ...

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Title of each class Name of each exchange on which registered New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...