TriplePoint Venture Growth BDC Corp. Announces Third Quarter 2024 Financial Results
Net Investment Income of
Declares Fourth Quarter 2024 Distribution of
Third Quarter 2024 Highlights
-
Signed
$93.4 million of term sheets with venture growth stage companies atTriplePoint Capital LLC (“TPC”), and TPVG closed$41.0 million of new debt commitments; -
Funded
$33.0 million in debt investments to four portfolio companies with a 13.4% weighted average annualized yield at origination; - Achieved a 15.7% weighted average annualized portfolio yield on debt investments for the quarter1;
-
Earned net investment income of
$13.8 million , or$0.35 per share; -
Generated
$8.8 million of net realized and unrealized gains, resulting in a net increase in net assets resulting from operations of$22.6 million , or$0.57 per share; - Realized an 15.4% return on average equity, based on net investment income during the quarter;
-
Eight debt portfolio companies raised an aggregate
$655.6 million of capital in private financings during the quarter; -
Held debt investments in 44 portfolio companies, warrants in 95 portfolio companies and equity investments in 48 portfolio companies as of
September 30, 2024 ; - Improved debt investment portfolio weighted average investment ranking to 2.17 as of quarter’s end;
-
Increased net asset value to
$364.3 million , or$9.10 per share, as ofSeptember 30, 2024 , an increase of 3.2% from prior quarter; -
Total liquidity of
$338.6 million and total unfunded commitments of$74.0 million ; -
Renewed the Revolving Credit Facility to, among other things, extend the revolving period to
November 30, 2025 and the scheduled maturity date toMay 30, 2027 , as well as set total commitments to$300 million ; - Ended the quarter with a 1.11x gross leverage ratio;
-
Declared a fourth quarter distribution of
$0.30 per share, payable onDecember 27, 2024 ; bringing total declared distributions to$16.05 per share since the Company’s initial public offering; and -
Subsequent to quarter-end, the Company’s investment adviser agreed to waive the portion of its quarterly income incentive fee if and to the extent that, after payment of such income incentive fee, the Company’s net investment income per share for such quarter is below the quarterly distribution per share for such quarter. The income incentive fee waiver will be effective commencing with the quarter ending
March 31, 2025 until and including the quarter endingDecember 31, 2025 .
Year to Date 2024 Highlights
-
Earned net investment income of
$41.9 million , or$1.08 per share; -
Generated total investment income of
$82.9 million ; -
Paid distributions of
$1.10 per share; -
Signed
$412.2 million of term sheets with venture growth stage companies at TPC and TPVG closed$103.0 million of new debt commitments to venture growth stage companies; -
Funded
$85.2 million in debt investments to 10 portfolio companies with a 14.5% weighted average annualized portfolio yield at origination; -
23 portfolio companies raised an aggregate
$1.7 billion of capital in private financings; - Achieved a 15.6% weighted average annualized portfolio yield on total debt investments 1 ;
-
In
April 2024 ,DBRS, Inc. issued TPVG’s investment grade rating, with a BBB (low) Long-Term Issuer rating, with a stable trend outlook; -
Raised
$19.4 million of net proceeds under the ATM Program; and -
Estimated undistributed taxable earnings from net investment income (or “spillover income”) of
$41.5 million , or$1.03 per share, as ofSeptember 30, 2024 .
1 Please see the last table in this press release, titled "Weighted Average Portfolio Yield on Debt Investments," for more information on the calculation of the weighted average annualized portfolio yield on debt investments.
“During the third quarter, we made progress executing our plan for positioning TPVG for the future despite the continued challenging conditions in the venture capital markets,” said
“We are pleased with the success of TPVG portfolio companies raising capital,” said
PORTFOLIO AND INVESTMENT ACTIVITY
During the three months ended
As of
The following table shows the total portfolio investment activity for the three and nine months ended
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Beginning portfolio at fair value |
|
$ |
713,770 |
|
|
$ |
941,955 |
|
|
$ |
802,145 |
|
|
$ |
949,276 |
|
New debt investments, net(a) |
|
|
32,672 |
|
|
|
12,428 |
|
|
|
83,555 |
|
|
|
98,967 |
|
Scheduled principal amortization |
|
|
(4,618 |
) |
|
|
(20,031 |
) |
|
|
(39,314 |
) |
|
|
(38,288 |
) |
Principal prepayments and early repayments |
|
|
(35,739 |
) |
|
|
(52,250 |
) |
|
|
(117,820 |
) |
|
|
(89,400 |
) |
Net amortization and accretion of premiums and discounts and end-of-term payments |
|
|
756 |
|
|
|
38 |
|
|
|
3,343 |
|
|
|
9,528 |
|
Payment-in-kind coupon |
|
|
4,224 |
|
|
|
3,265 |
|
|
|
11,833 |
|
|
|
7,946 |
|
New warrant investments |
|
|
124 |
|
|
|
1,334 |
|
|
|
560 |
|
|
|
1,502 |
|
New equity investments |
|
|
916 |
|
|
|
384 |
|
|
|
1,716 |
|
|
|
1,320 |
|
Proceeds from dispositions of investments |
|
|
— |
|
|
|
— |
|
|
|
(22,142 |
) |
|
|
(3,173 |
) |
Net realized gains (losses) on investments |
|
|
(5,019 |
) |
|
|
(25,545 |
) |
|
|
(32,913 |
) |
|
|
(23,682 |
) |
Net change in unrealized gains (losses) on investments |
|
|
13,888 |
|
|
|
8,600 |
|
|
|
30,011 |
|
|
|
(43,818 |
) |
Ending portfolio at fair value |
|
$ |
720,974 |
|
|
$ |
870,178 |
|
|
$ |
720,974 |
|
|
$ |
870,178 |
|
(a) Debt balance is net of fees and discounts applied to the loan at origination.
SIGNED TERM SHEETS
During the three months ended
UNFUNDED COMMITMENTS
As of
RESULTS OF OPERATIONS
Total investment and other income was
Operating expenses for the third quarter of 2024 were
For the third quarter of 2024, the Company recorded net investment income of
During the third quarter of 2024, the Company recognized net realized losses on investments of
Net change in unrealized gains on investments for the third quarter of 2024 was
The Company’s net increase in net assets resulting from operations for the third quarter of 2024 was
CREDIT QUALITY
The Company maintains a credit watch list with portfolio companies placed into one of five credit categories, with Clear, or 1, being the highest rating and Red, or 5, being the lowest. Generally, all new loans receive an initial grade of White, or 2, unless the portfolio company’s credit quality meets the characteristics of another credit category.
As of
The following table shows the credit categories for the Company’s debt investments at fair value as of
|
|
|
|
|
||||||||||||
Credit Category (dollars in thousands) |
|
Fair Value |
|
Percentage of Total Debt Investments |
|
Number of Portfolio Companies |
|
Fair Value |
|
Percentage of Total Debt Investments |
|
Number of Portfolio Companies |
||||
Clear (1) |
|
$ |
72,188 |
|
12.0 |
% |
|
4 |
|
$ |
100,309 |
|
13.8 |
% |
|
7 |
White (2) |
|
|
392,092 |
|
64.8 |
|
|
29 |
|
|
471,195 |
|
64.5 |
|
|
28 |
Yellow (3) |
|
|
107,822 |
|
17.8 |
|
|
6 |
|
|
117,792 |
|
16.1 |
|
|
8 |
Orange (4) |
|
|
32,519 |
|
5.4 |
|
|
4 |
|
|
40,091 |
|
5.5 |
|
|
5 |
Red (5) |
|
|
56 |
|
— |
|
|
1 |
|
|
908 |
|
0.1 |
|
|
1 |
|
|
$ |
604,677 |
|
100.0 |
% |
|
44 |
|
$ |
730,295 |
|
100.0 |
% |
|
49 |
NET ASSET VALUE
As of
LIQUIDITY AND CAPITAL RESOURCES
As of
DISTRIBUTION
On
RECENT DEVELOPMENTS
Since
-
TPC’s direct originations platform entered into
$70.0 million of additional non-binding signed term sheets with venture growth stage companies.
CONFERENCE CALL
The Company will host a conference call at
ABOUT
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements. Forward-looking statements are not guarantees of future performance, investment activity, financial condition or results of operations and involve a number of substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Actual events, investment activity, performance, condition or results may differ materially from those in the forward-looking statements as a result of a number of factors, including as a result of changes in economic, market or other conditions, and the impact of such changes on the Company’s and its portfolio companies’ results of operations and financial condition, and those factors described from time to time in the Company’s filings with the
Consolidated Statements of Assets and Liabilities (in thousands, except per share data) |
|||||||
|
|
|
|
||||
Assets |
(unaudited) |
|
|
||||
Investments at fair value (amortized cost of |
$ |
720,974 |
|
|
$ |
802,145 |
|
Cash and cash equivalents |
|
48,283 |
|
|
|
153,328 |
|
Restricted cash |
|
289 |
|
|
|
18,254 |
|
Deferred credit facility costs |
|
4,575 |
|
|
|
2,714 |
|
Prepaid expenses and other assets |
|
4,224 |
|
|
|
2,384 |
|
Total assets |
$ |
778,345 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Revolving Credit Facility |
$ |
10,000 |
|
|
$ |
215,000 |
|
2025 Notes, net |
|
69,895 |
|
|
|
69,738 |
|
2026 Notes, net |
|
199,373 |
|
|
|
199,041 |
|
2027 Notes, net |
|
124,326 |
|
|
|
124,117 |
|
Other accrued expenses and liabilities |
|
10,480 |
|
|
|
24,623 |
|
Total liabilities |
$ |
414,074 |
|
|
$ |
632,519 |
|
|
|
|
|
||||
Net assets |
|
|
|
||||
Preferred stock, par value |
$ |
— |
|
|
$ |
— |
|
Common stock, par value |
|
400 |
|
|
|
376 |
|
Paid-in capital in excess of par value |
|
514,668 |
|
|
|
492,934 |
|
Total distributable earnings (loss) |
|
(150,797 |
) |
|
|
(147,004 |
) |
Total net assets |
$ |
364,271 |
|
|
$ |
346,306 |
|
Total liabilities and net assets |
$ |
778,345 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Shares of common stock outstanding (par value |
|
40,049 |
|
|
|
37,620 |
|
Net asset value per share |
$ |
9.10 |
|
|
$ |
9.21 |
|
Consolidated Statements of Operations (in thousands, except per share data) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
||||||||
Investment income |
|
|
|
|
|
|
|
||||||||
Interest income from investments |
$ |
25,951 |
|
|
$ |
34,070 |
|
|
$ |
81,069 |
|
|
$ |
100,825 |
|
Other income |
|
564 |
|
|
|
1,668 |
|
|
|
1,826 |
|
|
|
3,693 |
|
Total investment and other income |
$ |
26,515 |
|
|
$ |
35,738 |
|
|
$ |
82,895 |
|
|
$ |
104,518 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Base management fee |
$ |
3,418 |
|
|
$ |
4,596 |
|
|
$ |
11,552 |
|
|
$ |
13,403 |
|
Income incentive fee |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense and amortization of fees |
|
7,148 |
|
|
|
9,297 |
|
|
|
22,861 |
|
|
|
28,486 |
|
Administration agreement expenses |
|
580 |
|
|
|
579 |
|
|
|
1,838 |
|
|
|
1,720 |
|
General and administrative expenses |
|
1,584 |
|
|
|
2,162 |
|
|
|
4,732 |
|
|
|
4,389 |
|
Total operating expenses |
$ |
12,730 |
|
|
$ |
16,634 |
|
|
$ |
40,983 |
|
|
$ |
47,998 |
|
|
|
|
|
|
|
|
|
||||||||
Net investment income |
$ |
13,785 |
|
|
$ |
19,104 |
|
|
$ |
41,912 |
|
|
$ |
56,520 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains/(losses) |
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on investments |
$ |
(5,040 |
) |
|
$ |
(25,556 |
) |
|
$ |
(32,693 |
) |
|
$ |
(23,730 |
) |
Net change in unrealized gains (losses) on investments |
|
13,889 |
|
|
|
8,600 |
|
|
|
30,011 |
|
|
|
(43,818 |
) |
Net realized and unrealized gains/(losses) |
$ |
8,849 |
|
|
$ |
(16,956 |
) |
|
$ |
(2,682 |
) |
|
$ |
(67,548 |
) |
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations |
$ |
22,634 |
|
|
$ |
2,148 |
|
|
$ |
39,230 |
|
|
$ |
(11,028 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share information (basic and diluted) |
|
|
|
|
|
|
|
||||||||
Net investment income per share |
$ |
0.35 |
|
|
$ |
0.54 |
|
|
$ |
1.08 |
|
|
$ |
1.59 |
|
Net increase (decrease) in net assets per share |
$ |
0.57 |
|
|
$ |
0.06 |
|
|
$ |
1.01 |
|
|
$ |
(0.31 |
) |
Weighted average shares of common stock outstanding |
|
39,954 |
|
|
|
35,609 |
|
|
|
38,782 |
|
|
|
35,453 |
|
Total distributions declared per share |
$ |
0.30 |
|
|
$ |
0.40 |
|
|
$ |
1.10 |
|
|
$ |
1.20 |
|
Weighted Average Portfolio Yield
on Debt Investments
Ratios (Percentages, on an annualized basis)(1) |
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Weighted average portfolio yield on debt investments(2) |
|
15.7 |
% |
|
15.1 |
% |
|
15.6 |
% |
|
14.8 |
% |
Coupon income |
|
12.7 |
% |
|
11.6 |
% |
|
12.2 |
% |
|
11.7 |
% |
Accretion of discount |
|
0.9 |
% |
|
0.9 |
% |
|
0.9 |
% |
|
0.9 |
% |
Accretion of end-of-term payments |
|
1.3 |
% |
|
1.6 |
% |
|
1.4 |
% |
|
1.7 |
% |
Impact of prepayments during the period |
|
0.8 |
% |
|
1.0 |
% |
|
1.1 |
% |
|
0.5 |
% |
(1) Weighted average portfolio yields on debt investments for periods shown are the annualized rates of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The calculation of weighted average portfolio yields on debt investments excludes any non-income producing debt investments, but includes debt investments on non-accrual status. The weighted average yields reported for these periods are annualized and reflect the weighted average yields to maturities.
(2) The weighted average portfolio yields on debt investments reflected above do not represent actual investment returns to the Company’s stockholders.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106536633/en/
INVESTOR RELATIONS AND MEDIA
212-477-8438
lberman@igbir.com
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