2024-03-29 09:15:00 ET
Summary
- business Development Companies, or BDCs, have benefited from rising interest rates, with Hercules Capital, Inc. seeing its core yield increase from 11.1% to 14.3%.
- BDCs offer retail investors high yield exposure to private companies, while Hercules Capital favors companies backed by venture capital firms.
- Hercules Capital had record investment income and NII in 2023 and has closed significant new debt and equity commitments.
Business Development Companies, known as BDC's, have been reaping the rewards of rising interest rates since Q2 '22.
Hercules Capital, Inc. (HTGC) has seen its core yield rise from 11.1% in Q1 '22 all the way to 14.3% in Q4 '23. 85.9% of HTGC's debt portfolio has floating rates....
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Hercules Capital: Record Year In 2023, 10% Yield