Private-Debt Market Offers Rare 12% Yields, But There’s a Catch
- Venture lending focuses on financing cash-burning startups
- Hercules Capital sees core yields of about 12% ahead
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Scott Bluestein has a favorite type of debt investment: companies with no profits, no cash flow, and in some cases even no revenue.
While that may seem like a recipe for disaster for most fixed-income money managers, it’s perfectly normal in the world of venture debt. And few companies in the space have been more successful in recent years than Bluestein’s Hercules Capital Inc., the largest nonbank lender in the business.