Is HTGC (Hercules Capital, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HTGC is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Hercules Capital, Inc.'s core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 81.06% exceeds the ≤33% threshold. Its interest income of 92.83% exceeds the ≤5% limit.

Hercules Capital, Inc. (HTGC) is a prominent business development company specializing in venture debt and growth capital. The firm primarily provides senior secured loans and debt financing to privately held, venture-backed companies across various stages of development, from startups to established enterprises. For Muslim investors using HalalStocks.co.uk, Hercules Capital is classified as Not Halal (Haram) and should be avoided. The stock fails three out of the four AAOIFI screening criteria, failing both the core business activity check and crucial financial ratios related to debt and interest. From an Islamic finance perspective, the company's financial structure is highly problematic. HTGC derives 92.83% of its revenue from impermissible interest income, and its debt-to-market capitalization stands at a prohibitive 81.1%, well above the 33% maximum allowed for shariah compliance. Because Hercules Capital's fundamental business model is built on conventional lending and interest generation, there is no scholarly debate regarding its non-compliance. Halal investors must strictly exclude this stock from their portfolios and look toward equity-focused, non-financial sectors instead. Hercules Capital, Inc. operates in the Financial Services sector under the Asset Management industry and is headquartered in Palo Alto, CA, US. The company is led by CEO Scott Bluestein and employs approximately 100 people.

HTGC was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. HTGC passed 1 of these 4 screens.

HTGC was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.