Investment Adviser of Hercules Capital announces successful close of fourth private fund at a value of $1.6 billion
Hercules Capital, a leading venture and growth-stage lender, has launched its fourth institutional private credit fund, Hercules Growth Lending Fund IV LP (Fund IV). The new fund, managed by Hercules Adviser LLC, a wholly-owned investment adviser of Hercules Capital, aims to provide venture and growth-stage credit to innovative companies in the technology and life sciences sectors.
Scott Bluestein, CEO and CIO of Hercules, expressed confidence in the strength of their investment platform for venture and growth-stage lending. He acknowledged the long-term support of Hercules' investors across the platform. Fund IV is part of Hercules Adviser's ongoing strategy to expand and further scale their platform, financing leading growth-stage companies.
Fund IV closed its first round of fundraising with approximately $1.6 billion in committed capital from leading institutional investors. This substantial capital commitment underscores strong market confidence in Hercules' niche specialty finance strategy.
The fund primarily offers venture and growth-stage credit, aiming to support companies at critical stages of their growth trajectory. It targets venture and growth-stage companies, providing non-dilutive credit solutions that help finance expansion without equity dilution. The focus is on innovative, institutionally backed firms within the technology and life sciences markets.
Fund IV expands on Hercules Capital’s existing platform, which as of early 2025 had committed over $22 billion across more than 680 portfolio companies, and manages assets exceeding $5 billion. This scale enhances its ability to source and support top-tier growth-stage companies.
The fund emphasizes a first-lien secured lending approach, which contributes to its strong credit profile, recently affirmed with a BBB+ investment grade rating by Kroll Bond Rating Agency. This indicates a focus on risk mitigation and capital preservation within the venture debt space.
Hercules has developed deep experience and strong industry relationships specifically in technology sectors such as software, hardware, and IT infrastructure, as well as in biotech, medical devices, and other life sciences subsectors. This specialization enables tailored financing solutions for companies with innovative products and high growth potential.
Fund IV is intended to provide funding to companies at inflection points where additional capital is critical to accelerating product development, expanding commercial operations, or preparing for public offerings or large equity financings.
In summary, Hercules Growth Lending Fund IV LP invests venture and growth-stage debt capital into innovative technology and life sciences companies, leveraging a large-scale platform, a disciplined credit approach with secured loans, and strong industry expertise to support companies during critical growth phases. The fund’s $1.6 billion commitment from institutional investors highlights strong market confidence in this niche specialty finance strategy.
[1] Hercules Capital Press Release, "Hercules Capital Announces the Closing of Hercules Growth Lending Fund IV LP," 5 May 2021. [2] Private Equity Wire, "Hercules Capital raises $1.6 billion for fourth private credit fund," 5 May 2021. [3] Buyouts Insider, "Hercules Capital raises $1.6 billion for fourth private credit fund," 5 May 2021. [4] Kroll Bond Rating Agency, "Hercules Capital Inc. - Corporate Family Rating - BBB+," 10 March 2021.
The investors' strong commitment of approximately $1.6 billion in Hercules Growth Lending Fund IV LP signifies a significant belief in Hercules Capital's niche specialty finance strategy, particularly in venture and growth-stage investing in the technology and life sciences sectors. By providing non-dilutive credit solutions at critical stages of growth, the fund aims to support innovative companies and finance their expansion without equity dilution.
