Hercules Capital

-4.4%

1. Interest Rate Risk: Hercules Capital is exposed to interest rate risk as it charges floating rate interests on its private debt investments, which means that changes in interest can significantly affect Hercules Capital’s financial results.

2. Credit Risk: As an alternative finance provider, Hercules Capital is exposed to credit risk. This means that if borrowers no longer meet their loan agreement terms, either due to financial trouble or because they failed to repay the loan, HDGC can suffer losses.

3. Equity Price Risk: Hercules Capital is also exposed to equity price risk, as the value of its equity securities investments may fluctuate due to changes in market prices. Furthermore, the actual value of a security can be different from its estimated value.

4. Interest Rate Sensitivity Risk: Changes in the key economic variables such as inflation, demand for capital, supply of capital, and cost of capital can also affect investment return of HTGC.

5. Regulatory Risk: Government regulations can have a direct impact on Hercules Capital’s business by altering rules, laws, or regulations to which the companies are exposed. This can lead to changes in the way of its operations, increased costs, or a decrease in its ability to conduct business.