5 Best BDC Stocks to Buy Right Now

3. Hercules Capital, Inc. (NYSE:HTGC)

Number of Hedge Fund Holders: 23

On April 22, Citizens analyst Devin Ryan lowered the firm’s price recommendation on Hercules Capital, Inc. (NYSE:HTGC) to $22 from $24. It reiterated an Outperform rating on the shares. In a research note, he described Q1 as a key period for private capital. He said attention is shifting back to underlying fundamentals, even with recent volatility and concerns around non-traded BDC flows. He pointed out that valuation multiples are at multi-cycle lows, while fundamentals continue to hold up. He highlighted strength in institutional fundraising, deployment, and monetization. As the gap between perception and actual performance narrows, the firm expects valuations to recover.

Earlier in April, Hercules Capital announced a new all-time record of debt and equity commitments for the first quarter of 2026. For the three months ended March 31, 2026, the company originated $1.81 billion in new commitments across 16 new and 12 existing portfolio companies.

Hercules Capital, Inc. (NYSE:HTGC) is a specialty finance company focused on providing senior secured venture growth loans to high-growth, venture-backed companies across technology and life sciences sectors.