Michael P. Balkin
Horizon Technology FinanceAbout Michael P. Balkin
Michael P. Balkin is Chief Executive Officer of Horizon Technology Finance Corporation (HRZN) and of its external adviser, Horizon Technology Finance Management LLC (HTFM), effective June 5, 2025; he previously served as an independent director of HRZN since June 2023 and became an “interested person” upon assuming the CEO role . He is 66 years old and brings 35 years of investment and portfolio management experience, including Partner and Co‑Manager of the Small‑Cap Growth Fund at William Blair and Partner and Chief Investment Officer at Magnetar Investment Management . HRZN is externally managed and does not pay compensation to executive officers; company-level TSR, revenue, and EBITDA performance metrics specific to Balkin’s tenure are not disclosed in HRZN’s proxy materials .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| William Blair & Co. LLC | Partner and Co‑Manager, Small‑Cap Growth Fund | 1996–2005; 2008–2020 | Led small-cap growth investing; deep experience with technology and growth companies . |
| Magnetar Investment Management (subsidiary of Magnetar Capital) | Partner and Chief Investment Officer | 2005–2008 | Multi-strategy hedge fund CIO; portfolio construction and risk management expertise . |
| Foresight Acquisition Corp. | Chief Executive Officer | 2021 | SPAC leadership; capital markets and deal execution experience . |
| Performance Health Systems, LLC | Chairman and Director | Since Nov 2013 | Operating oversight; fitness/health sector exposure . |
| MPB Enterprises | Chief Executive Officer | Since 2021 | Entrepreneurial leadership; advisory platform . |
External Roles
| Organization | Role | Years | Notes / Committee roles |
|---|---|---|---|
| Affluence Corporation | Director | Since Oct 2024 | Technology holding company director . |
| Innventure, Inc. | Advisor; Director until Oct 2024 | Advisor since Feb 2025; Director until Oct 2024 | Innovation commercialization; board-to-advisor transition . |
| P3 Health Partners Inc. (Nasdaq: PIII) | Strategic Advisor | Since Apr 2023 | Health services advisory . |
| Rail‑Splitter Micro Cap Rebound Fund | Principal | Since 2023 | Micro-cap investing leadership . |
| Wasson Enterprise LLC | Advisor | Since 2021 | Family office advisory . |
| Good Sports | Chairman (non-profit) | N/A | Community/charity leadership . |
Fixed Compensation
HRZN is externally managed; the company does not pay compensation to executive officers. Independent directors receive cash fees (no stock/options); Balkin earned director fees in 2024 prior to becoming CEO. Effective June 5, 2025, as an “interested” director and executive officer of HTFM, Balkin will not receive compensation from HRZN .
| Director Fee Schedule (Independent Directors) | Amount |
|---|---|
| Annual director fee (prior to Apr 26, 2024) | $92,000 . |
| Annual director fee (beginning Apr 26, 2024) | $102,000 . |
| Audit Committee membership | $7,500 . |
| Nominating & Corporate Governance Committee membership | $5,000 . |
| Audit Committee Chair additional fee | $10,000 . |
| Nominating & Corporate Governance Chair additional fee | $7,500 . |
| Lead Independent Director additional fee | $10,000 . |
| Balkin Director Compensation (2024) | Amount |
|---|---|
| Fees Earned or Paid in Cash | $107,000 . |
| Stock/Options/Pension | None . |
Performance Compensation
HRZN does not pay executive compensation; as CEO of HTFM, Balkin’s economic alignment is indirectly tied to the adviser’s fee structure. The Investment Management Agreement provides adviser-level incentives:
| Adviser Fee Component | Key Terms |
|---|---|
| Base Management Fee | 2.00% of gross assets less cash/cash equivalents; 1.60% on amounts over $250 million . |
| Income Incentive Fee | 20% of pre‑incentive fee net investment income above a 1.75% quarterly hurdle, with catch‑up to 2.1875%; subject to three‑year look‑back cap/deferral mechanism . |
| Capital Gains Incentive Fee | 20% of cumulative realized capital gains net of losses/unrealized depreciation, less amounts previously paid . |
These adviser fees can influence portfolio growth, yield targeting, and realized gains; they are not Balkin’s personal pay but represent platform-level “pay-for-performance” economics under which he leads as HTFM CEO .
Equity Ownership & Alignment
| Metric | Value |
|---|---|
| Shares beneficially owned (Balkin) | 30,000 (record/beneficial) . |
| Ownership % of outstanding | <1% (company table denotes less than 1%) . |
| Dollar range of ownership | $100,001–$500,000 . |
| Stock awards/options from HRZN | None awarded in 2024 . |
| Hedging policy | Directors/executives prohibited from hedging Company securities . |
| Pledging disclosure | Not disclosed. |
Notes:
- Shares outstanding on April 11, 2025 were 40,331,962; Balkin’s reported ownership is less than 1% per proxy table .
- HRZN director compensation is cash-only; no equity grants in 2024, reducing mechanical insider selling pressure from vesting events .
Employment Terms
- Appointment and role: Appointed CEO of HRZN effective June 5, 2025; continues as director but becomes “interested person” under the 1940 Act .
- Dual role: Also appointed CEO of HTFM effective June 5, 2025; cannot receive compensation from HRZN in that capacity .
- Governance committees: Upon becoming “interested,” Balkin ceased service on the Compensation Committee and Nominating & Corporate Governance Committee effective June 5, 2025 .
- Arrangements and related parties: No arrangements/understandings for selection; no family relationships; no material interest in transactions requiring disclosure .
- Contract/severance: Executive compensation and any employment terms are at HTFM; HRZN does not pay executive compensation and thus does not disclose HRZN severance/CoC terms for executives .
Board Governance
| Item | Details |
|---|---|
| Board service | Class II Director since June 2023; term expires 2027 . |
| Independence status | Independent director until June 5, 2025; becomes “interested” upon becoming HRZN/HTFM CEO . |
| Committees (pre‑CEO) | Member: Compensation; Nominating & Corporate Governance . |
| Committees (post‑CEO) | No longer serves on Compensation and Nominating & Corporate Governance Committees effective June 5, 2025 . |
| Chair/Lead Independent | Chairman of HRZN Board is Robert D. Pomeroy Jr.; Lead Independent Director is Edmund V. Mahoney . |
| Attendance | In 2024, all directors attended ≥75% of Board/committee meetings (Board: 7; Audit: 5; Nominating: 4; Compensation: 1) . |
| 15(f) compliance | Board composition adjusted to maintain ≥75% independent following adviser change of control; related director resignation aligned to 15(f) . |
Dual-role implications:
- Balkin’s transition from independent director to “interested” executive reduces committee influence and mitigates CEO‑Chairman consolidation risks, as the Chair role remains with Pomeroy; the Board affirmed continued Chair leadership for transition continuity .
Director Compensation
| Component | 2024 Balkin | Structure Notes |
|---|---|---|
| Cash retainer | $107,000 | Annual fee moved from $92k to $102k on Apr 26, 2024; no equity grants; no options; no pensions . |
| Committee fees | Included in total | Audit member $7,500; Nominating member $5,000; Audit Chair $10,000; Nominating Chair $7,500; Lead Independent $10,000 . |
| 2025 onward | $0 from HRZN | As “interested,” Balkin will not receive compensation from HRZN effective June 5, 2025 . |
Say‑on‑Pay & Shareholder Feedback
- HRZN does not pay executive compensation and thus does not present a traditional say‑on‑pay program; independent director fees are set by the Board based on BDC market benchmarks .
Compensation Structure Analysis
- Shift in mix: For Balkin personally, HRZN compensation ceased upon becoming CEO; alignment now flows through adviser-level fees tied to portfolio income and realized gains, potentially strengthening performance linkage at the platform level .
- Equity grants: No HRZN equity awards to directors in 2024; reduces forced selling/vesting pressure .
- Adviser incentives: Hurdle/catch‑up and capital gains fee can influence underwriting standards, yield targets, and realization timing; 15(f) and independent-majority board provide oversight of potential conflicts .
Related Party Transactions
- HRZN and HTFM: Externally managed structure—fees under the Investment Management Agreement; Board reviewed and renewed management agreement and approved new agreement tied to adviser change in control; company reported $12.6m fees in 2024 to the Adviser under the agreement (proxy year context) .
- Co‑investment/affiliates: Company relies on SEC co‑investment exemptive relief; independent director “required majority” oversight to ensure fairness and consistency with policy .
Risk Indicators & Red Flags
- Hedging/pledging: Hedging by directors/executives prohibited; pledging not disclosed .
- Independence shift: Balkin’s change to “interested person” reduces independence; mitigated by ≥75% independent board and removal from key committees .
- Adviser fee incentives: Potential for yield-seeking behavior and timing of gains; Board oversight and fee cap/look‑back mechanisms provide guardrails .
Expertise & Qualifications
- Background and tenure: 35 years in investment management; former CIO (Magnetar) and Partner/Co‑Manager (William Blair); deep small‑cap/technology expertise; HRZN director since June 2023; CEO effective June 5, 2025 .
- Board qualification: Experience enhances Board’s ability to manage and direct HRZN’s affairs per proxy .
- Education: Not disclosed in HRZN proxy materials.
Work History & Career Trajectory
- Investment management (William Blair, Magnetar): Advancement to CIO and portfolio co‑manager roles; sector breadth; risk/portfolio construction .
- Operating/board roles: Performance Health Systems (Chair/Director), advisory roles across public/private companies .
Compensation Committee Analysis
- Composition/independence: Compensation Committee comprised solely of independent directors; Balkin was a member until becoming “interested” on June 5, 2025 .
- Scope: Oversees compensation of independent directors; confirms no HRZN compensation paid to executive officers in externally managed structure .
- Consultant use/peer benchmarks: Committee bases director pay on comparable BDCs and required expertise/time .
Investment Implications
- Alignment: Balkin owns 30,000 shares (<1%) and is prohibited from hedging; he received no HRZN equity grants in 2024—reducing near-term selling pressure from vesting schedules .
- Incentives: With HRZN externally managed, Balkin’s incentives run through HTFM’s fee structure (income hurdle/catch‑up, capital gains fees). This can be constructive if underwriting discipline remains strong; monitor NII coverage and realized gains quality .
- Governance: Independence trade‑off from his dual role is tempered by committee removal and ≥75% independent board under 15(f); Chair continuity (Pomeroy) supports transition stability but warrants continued oversight of advisory conflicts and co‑investment allocations .
- Trading signals: Lack of equity awards and HRZN’s cash-only director pay mean limited forced insider selling; watch Form 4 activity post‑appointment (not disclosed here) and any adviser fee/contract modifications as potential catalysts .