Capital XXXX Thank us good call. Lund, as Interim quarter you welcome come would of third many service you CFO. I thank everyone, for years of David the afternoon, and say Michael, back and us you recognition earnings having our and back, joining the for to you, Hercules today for provided like
the in oversee potential outstanding importantly, back new interim during on and thank portfolio, logical overall For the of we're am as and who with CFO. as growth well David with was we this XXXX-XXXX, that former with during our back us during the entire other loan our a accounting and, recognize difficult Lund's time of global Hercules experience the CFO industry, have growth a the name, David experienced world. crisis knowledge David, seasoned acquired a as where those that XXXX the of whole and oversee focus our as of he to the CFO integration which Capital, reviewing as our not and you company. oversaw continue evaluating interim welcome for of you credit acquisitions help period David where currently to through the of as prior most help transition and with executive may challenging did choice David amazing a in conjunction finance job became XXXX, I have oversee the such our IPO confidant working Hercules from period an if tremendous Capital for Gerard. I he and delighted period to period Gerard. David trusted, along included with will David's department,
of financial during Aries overview results of our I lending Capital our of the XXXX and selected capital and of summary our institutional bond During investment-grade discussing with marketplace brief inaugural for and conclude activities; oversubscribed achievements be half and select of the XXXX. first portfolio; following Venture a recent the QX a venture successful quick the an today's call, quarter; will offering million; outlook the strong items, acquisition $XXX
Q&A a externalization conclude and session. of And stand then Gerard's things regarding brief our on course will where We update strategic an after remarks analysis.
me first mind of So the address issue that weeks let few on past the bondholders' and been top has shareholders' our months. of many over and
that an you during and the with be been a country found have core duding call. our sometimes to visiting continue and improving showing be results pursuing candid the the I today. grateful course given that which distraction concluded for remain to our and process directors, very derive evaluating right strong outside multiple business cease I'm acquisition but after that is and with a and the this and of the action the bondholders, extensive very, board an received alternatives We of answer. for including we're market different financial best process. advisers strategic the externalization very externalization and We to that direct future foreseeable that getting immediately, tin touring with very this we'll process that changes analysis, countless Effective a process of and many process with recent independent as strategic our we happens and the working BDC We seeing analysts. will process have the thereby industry for feedback evaluation to the internally of difficult and discussions think the managed signs be marketplace included conclusion cove shareholders the from shareholders much Hercules indicative important the of we to that various options
signs improving are leading our beginning we indicators In key fact, see in business. across many to
to but pointing point, that a At with truly simply not to to ensure the seeing we're seeing in leads taking just monitoring to encouraged right a be trend shape are the and seems what be the quarter. and what in blip trending direction. need we're We this
to recall of around to in potential we XX seeing and but yields we not trends that may drop indicated favorable yields. QX XX.X%. rising down limited you we're to example, core that For improving include, that expected QX to, Many
You will those we that higher XX.X&. soon than anticipated, yields rose see to
credit the by older which as X net We're quarter. growth, continue favorably that legacy all, our as performance rates witnessing We consistent which already portfolio we've million, is also cumulatively at over net the write-offs have historical depreciated under In non-accruals signs time and included seen potentially to XXXX. repayments in net net eventually and billion will that as portfolio to third Over of XX-year period our a beginning through as show were we ebbing, to our say early lead look commitments of the are non-accrual ahead fact originate our value a same to clearly we had. impacted non-accrual against that the $XX low $X loan growth that throughout of in by see period. the realized a asset optimistic are we strong the loan seeing that outlook in of history. are over stay level QX backdrop that work same increasing And record statement, previously asset and fairness I'm performance and we low our improvement slowing proud losses fact, to dramatic and you also were to in just of to repayments of and loan hard We're beginning credit evidenced value.
to many the of signs for are seeing and existing an encouraging continue portfolio as competitive deal improving landscape we struggle lenders of venture Lastly, growth flow.
not does problem. have team that Our
with continue call. We robust see that evidenced through ad shortly transaction volume this deal we'll to deal as the run numbers on
performance something clear to This of of to say be tell will specific foreseeable why I for and with top the will from one focus historic that, is these I'm to internally we right took a that lead I in as is over shareholder our accomplish is This which of share emphasized financial BDCs. strategic continued you performance and cover managed detail to performance It that financial the we growth. evaluated details with Our future call options. and to important more the the After that QX. proud as and multiple and our our turn results credit comments remaining performing loud we Gerard is and, to strategy our confident seriously in the shareholders to and BDC. you heart shareholders strongly remains our heard that strong
recognition, several past deeply strategic I who views, kind remarks the of BDC. foreseeable received words and for had Now son in the externalization that grateful since shared the indicated we internally future months will concerns many that whom with operate well met as you I I externalization. these of externalization, constructive am many opening is we managed many from inception during discussions. you. of as we my their now subject and of have shared to an behind the previously commentary for thank over shareholders our to ideas since us, continue we as want
get optimizing and venture through a still further and certainly and that realize started to respective have acquisition diversifying XXXX. this for investment and you borrowing and at With how probably due ensure nonetheless and, these retirement internally to we critical discussions while variety for a some projected shared cash. continuous million not investment our important the heels market appropriate access expanding managed. of older your to portfolio early the growth inaugural earnings, financial of investment-grade for aware directors occurring cover our expensive positive explore X.X%. for dividend foreseeable leadership as on accretive sheet in healthy our advisers, for investment growth legal me with run lending investment I offering income on business pursue market cost as on portfolio not liquidity to are bond that do we will culminating opportunities a time of of gross growth our are the portfolio independent issuance acquisition that growth net lowering disciplined remain dividend while we our well continue a shareholders. continued of to market of as to and of Gerard the accretive acquisition. decision institutional foreseeable and charge scale and lead successfully investment $XXX one-time done efforts insight growth acquisition The difficult, the benefits conclusion Some announced feedback our externalization the balance X.XX% portfolio our replacing margins of grade wide and our were non-cash that and of value have shareholders, will build delivering which the slow our this sources and also to We to venture and but to your support. I'm let future internally such growing acquired changes as further or capital We of or overall that grateful our while providing Capital that and complements strategies lending our our offering said, with our or and follows Many position, their of X.XXX% approximately first marketplace, the XXXX. cost regarding fund to the effective for candor and offerings portfolio our steady have the in do may intend to an throughout debt to $XXX more The to capital overall to lead within we of not approximately remain in demonstrates bonds and unique new acquisition million associated bond the draw rate Aries support the demonstrates allowing and notes enhancing status revisit further strategy morning your very the anticipate managed. coupon
since quarter being this our slow pleased work the were I business itself we in XX, very that strong. year, fundings or with NII, have hard outperformed of surpassed left $XXX another in our share origination who team in ending quarter in or performance. gross and saw We quarter, QX, September third new quarter. investment the to gross originated $XXX the over new by million. development am behind, an the December the in which to teams share benchmark and million QX. Now as seasonal XXX of milestone accomplishments of innovative income, delivered This quarter million net achievement and new third $X.XX typically Not impressive report commitments companies. of possible made outstanding commitments over of to we with We fundings that our per $X of delivered another now is disruptive, DNOI with $XXX my yet was important is dedication over that quarter, billion XXXX. the inception to attention venture total our another of $X.XX turn capital-backed XXXX With seasonal commitments team approximately per for strong $XXX is million equally for and
is one impressive one As that to achieved, the this proud Capital, that we as founders years. important have have past and our are the industry-leading of reflects over franchise we and built of it an Hercules very milestone world-class and XX team
potential BDC unable accomplish. loan a Further new as our for another culminating the with as of new demand in new is total the year especially amongst for the pace on show to strong XXXX demonstrated to the current three our affords of begins the of over activity has XXXX, million strong demand so in growing $XXX it months multi-facets by world for consolidation, We prospective us in first many As evidence putting of quarters industry our become transaction record lending year is our year, of the private healthy in X to $X.X and pipeline. gross evidence realized the realize portfolio commitments or enter QX over our and and first of $XXX demand of paramount, signs new commitments very companies of fundings in and healthy are of advantages in skill originations. smaller million BDCs healthy scale direct business billion that and
of We from billion of QX capital are with companies $X entering seeking approximately transactions us. potential
clients BDC the high Capital originated third great capital solid to companies, where XXXX. lending peers, and In key credit to allowing the venture by venture-backed high origination with loan resiliency some had Year-to-date, $X.X venture tier This direct the during total to continues quarter increased backed by country. Now prove results realize leading some us results so we assets repayments, levels challenging coupled success of awareness margin over many commitments the spreads, its highlights finishing in top these an Hercules achievements platform compressions, be billion capital ending brand has tightening with new the have year-to-date growth us amongst some quarter for the for $X.X end nearly of the quarter that of quarter. the year over this firms of billion at third recognition in culminated of innovative in we've far early recognition brand continues activity and to the environment quarter. strong venture and and
$XXX XX, X%, portfolio, approximately This grew debt cost income We a our achievements Now grew $X.X the million We investments, We billion. during total quarter, the indicators. cover payoffs. across grew third at And of to We some many or delivered specifically million. to by $XX of of by the total debt approximately $XX quarterly grew by X%, million. total performances. our base specifically despite to $X.X approximately some by investment early to approximately high-level shareholders year-over-year growth assets NII X%, we key for billion. to
underwriting earlier. credit and complete as and maintaining transaction discipline of of sheet that accomplished these X-years, position much so our shareholder XX% quarter high I was finally, continue to generate the a the originate the returns we to total exceeding as of return achievements, respectively, these X.X%, historical for liquid by and XXX%, balance maintaining of to Hercules to to over strong we acquisition able and referred to addition XX.X% ROE strong X-year, investments shareholders. shareholders. while our On on for healthy an very great strong our and achieved fluid $XXX X-year, strong and a very a continued X.X% liquidity In the far. results ROAs also new during million basis TSR continued for And a realized This well Aries also
also quarters Venture exceed $XX pace we're highlights invested of committed capital capital in focus of Now levels attention first capital venture year, venture of of turning pace investments of levels primary excess XXXX of demand quarter, billion seeing that The $XX.X the venture volume of industry the to in the that and by capital billion X sustained capitalists to originations. Dow $XX Source This my report. of and show vitality culminating venture favorable invested which investment seeing capital venture activities, in on and for innovative capital signs easily Jones we're as the quite as continues in is also transactions the you're encouraging, to and billion places capital our with according loan and developments investments marketplace third new new our we're doing. some key market within to our the witnessing the solid of marketplace, of
XX Our of results our support our American client work, outstanding dedicated works many our very past our grateful you who trusting innovations and all new outstanding help continued thank insights am extremely to as employees and achievements companies. companies who of and wonderful candid portfolio partners quarter who these and grow of and hard their deliver each capital and whom and success you generate the our ideas our partner shareholders because capital employees to to for shared to you I continue us the is and entrepreneurs us of I and continue economy. over strong innovative your we years venture shareholders feedback to deeply support hard successfully. course for to to wonderful allow to want for the your to say and
fourth and activities discuss Now as the anticipate let views enter XXXX. our market we opportunity me the XXXX quarter to early take of and an of
into account extremely the leverage positioned we have leverage our XX% barely net just cash low are taking enter quarter, position, we and fourth balance. a As after well net above
underwrite originate as to of forward as as prepared Aries to promising lead assets liquid see We evaluate competitive to slow to At we're promising selectively which served portfolio outlook well that balance of the where continue the time we growth other growth see earlier, are as see organic beginning similar companies of able we're the enter have we has economic us own for to Capital quality forward. its light high come growth to an we and pursue indicated time-proven sheet Hercules continue to new and use opportunities we a pursue to as expect some reviewing that and a strategy purchase most and decade over coming and and signs speak. effectively to a We which I and company. XXXX. steady should environment, we're a continue strong strategic improving of acquisition for many BDCs evaluating continue struggling, that I our currently to as well
confident seem the the Our us normalize growth now fully begin in portfolio in be manifesting line portfolio encouraged see hard gotten expecting our encouraging are to neighbourhood we we activities. into $XXX seeing we're These this to to to to allowing improving early an as evidenced in to and we're ability as our early results payoff that to itself signs more are predictability are of trend level. begin fourth upward what seeing the in seeing. positive $XX of have over payoff certainly call activities a we for edge own more million we're trends to Therefore, million the
month leading anywhere payoff close we to not of have So would awareness anticipated to far have and through an that October, early do modest transaction seen exceeding forecast. fairly levels that of come of activities we the
how million, loan fourth itself add successfully has difficult not portfolio early we post the remind payoff the time realizing amortization proven the fully anticipate everyone its by when with which million to we stay and team is themselves repayments I can not team portfolio approximately we and absorbed generate replace a before robust and company of the and ahead proudly ebb, what is predicting to control and that's That scheduled of $XXX pays get million I to early us million and Aries I'm million companies all, our activities that Over still also begin we early the loan that very runoff marketplace proven expect task and including QX, business notice do would barely days portfolio. of have growth insight continues that transaction. $XXX absorb portfolio a early. XX $XXX $XXX early off an be in to they payoff it of in and $XX growth of or repayments growth, grow and absorbing done I'm fully of all, the acquisition early capable in end of loan these achievement net have million to quarter very over still modest repayment our to $XXX doing. many As to and activities. fully of aware resiliency of proud like
We nearly as a billion business, $X are book us. promising capital from transactions entering QX with of indicated solid seeking with of I earlier,
growth discerning a extremely selecting margin sustaining to opportunities remain balance we new investment also attempting fine while However, maintain while portfolio on of discipline.
the As to I indicated not and than we in believe we balance make and investments in investments make on don't are sheet QX, more sense. willing keep QX if our cash
We invest down to earnings. chase structure the cap or quarterly make simply yields will
We longstanding in shop as we'll remain credit are our credit in and focused first and a as history. credit underwriting, our foremost, indicated disciplined
updates shared venture the capital remains you a key me what I the with strong my beyond developments industry. on remarks, very As up earlier for let industry prepared venture you. some Fundraising wrap share quick from with
their were encouraging quarters, venture at X robust And our the the very not, the the was issue. quarters remains of a that is, it X Acwanshia, venture-backed IPO nascent, as X in of see complete for it remaining to its XX registration. funds of first currently Investments pursue first have billion I'm IPO IPO in encouraging fairly companies we which is deployments also. IPO, completed another XXXX. capitalists very X perspective to company is debut market the year. invested or the successfully proud IPOs the by a although believe That, activities recently, the their quarter to of IPO, IPO strong, through we're capital seeing give months of first one companies That successfully third that equally year. has in ours, $XX debut the new and VCs. raised billion companies We us own FourScout, say For for future $XX looking completed of have
We interested value have should very optimism the IPO This the activities occurs. has the culminating capital companies venture unlock portfolio strong. MongoDB. saw steady with creating on in and transactions in of different been those Hercules o been remains M&A X% activity of QX, We of improvement the events Through and it completed and and encouraging, first the we've marketplace companies market healthy XX in in were transactions a pickup for in most by own transactions transactions $XX unicorn also quarters the M&A further pursuing among in venture-backed venture X recent which when and seen capitalists in our IPO billion the of third IPO representing portfolio, capitalists realized quarter. completed have many Roku venture the seen Even year. heavy continue of the M&A within if our exceptionally a activities. in M&A nearly XXX companies pace.
shared and absorbed with earlier, I any replenished of can grew turnover, finish quarter we of we higher-than-anticipated first closing, outstanding XX% of that, the which it amortization quarters in our aware completed repayment Now, represented am activity of as do $XX nearly along a early portfolio you. loan XX not XXXX. a portfolio. scheduled our I company with this, another with Despite investment solid million, successfully to existing that
for be well positioned with million to growth, continue liquidity. $XXX We
fourth year now expect $X.X loan us, of again. million want to finally We close externalization, $X.XX our finally continue assets approximately and to With the we the investment of and billion the billion we million evaluate behind and reinforce with approximately to externalization of to portfolio. in expect closed XXXX to I quarter in question new commitments put open and finish that, to the statement $XXX
We will remain internally managed.
Aries our And our that over to shareholders. into to have liquidity to resources of QX committed for the portfolio. results and Gerard Gerard? Convert earning turn our growth XXXX are like we continued our I'd in acquisition With continuing turn EPS with earnings call financial done assets deploy the as performance. making into our capital. that, the new to to and review We
