Horizon Technology Finance announces leadership transition

FARMINGTON, Conn. - Horizon Technology Finance Corporation (NASDAQ: HRZN), a specialty finance company providing capital to technology and life science sectors with a market capitalization of $305 million and annual revenue of $98.3 million, has announced a forthcoming change in its executive leadership. According to InvestingPro data, the company has been facing challenges with its stock price declining over 26% in the past year. Robert D. Pomeroy, Jr. will retire from his role as CEO on June 5, 2025, and Gerald A. Michaud will step down as President. Michael P. Balkin, who has been an independent director since June 2023, will succeed Mr. Pomeroy as CEO.

Mr. Pomeroy is set to continue his involvement with the company as Chairman of the Board of Directors. Mr. Michaud will also maintain an active role with Horizon through the end of the year. The leadership transition is part of Horizon’s strategic planning for succession and is designed to ensure a smooth transfer of responsibilities. Notable during their tenure, the company has maintained dividend payments for 16 consecutive years, currently offering an impressive 17.48% dividend yield, as reported by InvestingPro, which offers comprehensive analysis of over 1,400 US stocks.

Michael P. Balkin brings over thirty years of experience to his new role, including his time as a Partner and Co-Manager of the Small-Cap Growth Fund at William Blair and as Partner and Chief Investment Officer at Magnetar Investment Management. He joins at a crucial time when the company faces certain financial challenges, with InvestingPro data showing short-term obligations exceeding liquid assets and a current ratio of 0.71. His expertise in investment and portfolio management, particularly with small-cap and technology companies, is expected to guide Horizon through its next growth phase.

The outgoing CEO, Mr. Pomeroy, praised Mr. Balkin’s appointment, expressing confidence in his ability to lead Horizon’s expansion and drive value for stockholders. Theodore L. Koenig, Chairman and CEO of Monroe Capital, Horizon’s affiliate, also commended the planned succession, highlighting the collaborative efforts of the management team and Board of Directors to facilitate this transition.

Mr. Balkin expressed his commitment to building upon the foundation established by his predecessors, focusing on diversification, risk mitigation, and portfolio growth, while adhering to Horizon’s investment objective of maximizing returns through current income and capital appreciation from debt investments and associated warrants.

Horizon Technology Finance, headquartered in Farmington, Connecticut, with additional offices in California, is known for providing secured loans to venture capital and private equity-backed companies in various industries. The company’s investment strategy aims to generate income from its debt investments and capitalize on the appreciation of warrants received in the process. For deeper insights into Horizon’s financial health and investment potential, investors can access detailed analysis and additional ProTips through InvestingPro’s comprehensive research reports.

This announcement contains forward-looking statements, which involve risks and uncertainties. Horizon has stated that it does not intend to update any forward-looking statements, which speak only as of the date of the press release. This news is based on a press release statement.

In other recent news, Horizon Technology Finance Corporation reported fourth-quarter earnings that did not meet analyst expectations, with net investment income at $0.27 per share, falling short of the consensus estimate of $0.32 per share. The company’s revenue for the quarter was $23.55 million, slightly below the anticipated $23.8 million. For the full year 2024, Horizon’s net investment income was $1.32 per share, covering its regular monthly distributions. The company’s total investment portfolio was valued at $697.9 million as of December 31, 2024. Horizon also announced significant loan originations in the first quarter of 2025, totaling over $100 million, with notable loans to companies in high-growth sectors. Additionally, Horizon amended its loan agreements to extend borrowing capabilities and adjust interest rates, aiming to optimize its financial structure. Meanwhile, Keefe, Bruyette & Woods adjusted Horizon’s stock price target to $8.00, maintaining an Underperform rating, citing challenges in venture capital fundraising and impacts on net asset value. Despite these challenges, Horizon’s management remains focused on actively managing its investment positions to maximize value.

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