ARCC vs. HTGC: Which BDC Has More Upside Amid Market Uncertainty?

Ares Capital Corporation (ARCC) and Hercules Capital, Inc. (HTGC) are two leading Business Development Companies (BDCs) that provide debt financing to private companies. While ARCC focuses on middle-market firms across various industries, HTGC carves out a niche in venture debt, targeting high-growth technology and life sciences sectors.In today’s environment of elevated interest rates, sluggish economic activity and ongoing ambiguity surrounding potential Trump-era tariffs, BDCs face mounting headwinds. Su ...