Horizon Technology Finance Corporation (HRZN) and CR Financial Holdings, Inc., the holding company for Roth Capital Partners, have announced a new joint venture that will commit $100 million in capital to provide growth‑capital financing to small‑ and micro‑cap public companies in the United States.
Horizon’s recent financial results highlight the strategic importance of the partnership. In the fourth quarter of 2025, the company reported net investment income of $8.3 million, or $0.18 per basic share, falling short of the $0.30 estimate. Revenue also missed expectations, and the company has experienced a 46% decline in revenue growth over the past three years, with a net margin of –36.86%. These figures illustrate the pressure Horizon faces from a challenging market environment and the need for new revenue streams.
The joint venture expands Horizon’s reach into a multi‑billion‑dollar market that is often underserved by traditional lenders. By combining Horizon’s venture‑loan expertise with CRFH’s network of publicly traded small‑cap issuers, the alliance aims to generate additional fee income and diversify Horizon’s client base beyond its traditional focus on private companies. This diversification is particularly valuable given Horizon’s recent revenue and margin challenges, as it opens a new source of growth that can help offset headwinds in its core private‑company lending business.
Shareholders of Horizon have also approved a merger with Monroe Capital Corporation, an affiliate that manages $24 billion in private credit assets. The merger is expected to provide significant additional capital, boost net investment income, and improve Horizon’s net asset value over time, thereby strengthening the combined entity’s ability to pursue larger venture‑lending opportunities and support the joint venture’s capital commitments.
Management has expressed confidence in the partnership. CEO Mike Balkin said, "We are excited to partner with CRFH on this new joint venture, which we believe will provide publicly traded, small‑ and micro‑cap companies a compelling option for growth financing." Byron Roth, Chairman of CR Financial Holdings, added, "Our new joint venture with Horizon provides us an excellent opportunity to expand our capabilities and offer additional capital solutions to publicly traded companies."
Together, the joint venture and the Monroe Capital merger represent a coordinated effort by Horizon to strengthen its balance sheet, broaden its market reach, and create new fee‑based revenue streams in a sector where demand for growth capital remains strong despite broader market volatility.
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