TriplePoint Venture Growth BDC Corp. Announces Third Quarter 2023 Financial Results
- Net investment income of $0.54 per share for Q3 2023
- Declared a Q4 2023 distribution of $0.40 per share
- Signed $58.1 million of term sheets and closed $5.6 million of new debt commitments
- Funded $12.7 million in debt investments to five portfolio companies
- Received $37.3 million of loan principal prepayments
- Achieved a 15.1% weighted average annualized portfolio yield on total debt investments for the quarter
- None.
Net Investment Income of
DECLARES FOURTH QUARTER 2023 DISTRIBUTION OF
Third Quarter 2023 Highlights
-
Signed
of term sheets with venture growth stage companies at TriplePoint Capital LLC (“TPC”) and TPVG closed$58.1 million of new debt commitments to venture growth stage companies;$5.6 million -
Funded
in debt investments to five portfolio companies with a$12.7 million 14.2% weighted average annualized yield at origination; -
Received
of loan principal prepayments;$37.3 million -
Achieved a
15.1% weighted average annualized portfolio yield on total debt investments for the quarter; -
Earned net investment income of
, or$19.1 million per share;$0.54 -
Generated total investment income of
;$35.7 million -
Realized a record
20.0% return on average equity, based on net investment income during the quarter; -
Three debt portfolio companies raised an aggregate
of capital in private financings during the quarter;$46.8 million - Held debt investments in 54 portfolio companies, warrants in 106 portfolio companies and equity investments in 48 portfolio companies as of September 30, 2023;
- Debt investment portfolio weighted average investment ranking of 2.10 as of quarter’s end;
-
Raised
of net proceeds under the at-the-market equity offering program (“ATM Program”) from the issuance of 563,565 shares of common stock;$6.2 million -
Net asset value of
, or$374.1 million per share, as of September 30, 2023;$10.37 -
Total liquidity of
and total unfunded commitments of$262.5 million ;$141.9 million - Ended the quarter with a 1.62x gross leverage ratio; and
-
Declared a fourth quarter distribution of
per share, payable on December 29, 2023; bringing total declared distributions to$0.40 per share since the Company’s initial public offering.$14.65
Year to Date 2023 Highlights
-
Earned net investment income of
, or$56.5 million per share;$1.59 -
Generated total investment income of
;$104.5 million -
Paid distributions of
per share;$1.20 -
Signed
of term sheets with venture growth stage companies at TPC and TPVG closed$370.9 million of new debt commitments to venture growth stage companies;$27.3 million -
Funded
in debt investments to 19 portfolio companies with a$100.9 million 14.7% 1 weighted average annualized portfolio yield at origination and funded in direct equity investments in private rounds of financing to three portfolio companies;$0.2 million -
16 debt portfolio companies raised an aggregate
of capital in private financings;$436.9 million -
Achieved a
14.8% weighted average annualized portfolio yield on total debt investments; - In April 2023, DBRS, Inc. reaffirmed TPVG’s investment grade rating, BBB Long-Term Issuer rating, with a negative trend outlook; and
-
Estimated undistributed taxable earnings from net investment income (or “spillover income”) of
, or$37.3 million per share, as of September 30, 2023.$1.03
1
|
This yield excludes the impact of |
“We continue to navigate the challenging venture capital markets,” said Jim Labe, chairman and chief executive officer of TPVG. “Our focus remains on managing the portfolio, maintaining our earnings power, and generating NII that exceeds our distribution.”
“During the third quarter, we strengthened our liquidity position and continued to enhance our investment capacity,” said Sajal Srivastava, president and chief investment officer of the Company. “We expect to increase our investment activity as market conditions improve.”
PORTFOLIO AND INVESTMENT ACTIVITY
During the three months ended September 30, 2023, the Company entered into
As of September 30, 2023, the Company held debt investments in 54 portfolio companies, warrants in 106 portfolio companies and equity investments in 48 portfolio companies. The total cost and fair value of these investments were
Total portfolio investment activity for the three and nine months ended September 30, 2023 and 2022 was as follows:
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Beginning portfolio at fair value |
|
$ |
941,955 |
|
|
$ |
876,718 |
|
|
$ |
949,276 |
|
|
$ |
865,340 |
|
New debt investments, net(a) |
|
|
12,428 |
|
|
|
99,208 |
|
|
|
98,967 |
|
|
|
315,058 |
|
Scheduled principal amortization |
|
|
(20,031 |
) |
|
|
(3,282 |
) |
|
|
(38,288 |
) |
|
|
(19,446 |
) |
Principal prepayments and early repayments |
|
|
(52,250 |
) |
|
|
(723 |
) |
|
|
(89,400 |
) |
|
|
(171,295 |
) |
Net amortization and accretion of premiums and discounts and end-of-term payments |
|
|
38 |
|
|
|
4,873 |
|
|
|
9,528 |
|
|
|
10,414 |
|
Payment-in-kind coupon |
|
|
3,265 |
|
|
|
1,659 |
|
|
|
7,946 |
|
|
|
4,593 |
|
New warrant investments |
|
|
1,334 |
|
|
|
1,873 |
|
|
|
1,502 |
|
|
|
4,833 |
|
New equity investments |
|
|
384 |
|
|
|
2,951 |
|
|
|
1,320 |
|
|
|
6,747 |
|
Proceeds from dispositions of investments |
|
|
— |
|
|
|
(4,616 |
) |
|
|
(3,173 |
) |
|
|
(4,862 |
) |
Net realized gains (losses) on investments |
|
|
(25,545 |
) |
|
|
(12,990 |
) |
|
|
(23,682 |
) |
|
|
(14,653 |
) |
Net change in unrealized gains (losses) on investments |
|
|
8,600 |
|
|
|
(3,241 |
) |
|
|
(43,818 |
) |
|
|
(34,299 |
) |
Ending portfolio at fair value |
|
$ |
870,178 |
|
|
$ |
962,430 |
|
|
$ |
870,178 |
|
|
$ |
962,430 |
|
___________________ (a) Debt balance is net of fees and discounts applied to the loan at origination. |
SIGNED TERM SHEETS
During the three months ended September 30, 2023, TPC entered into
UNFUNDED COMMITMENTS
As of September 30, 2023, the Company’s unfunded commitments totaled
RESULTS OF OPERATIONS
Total investment and other income was
Operating expenses for the third quarter of 2023 were
For the third quarter of 2023, the Company recorded net investment income of
During the third quarter of 2023, the Company recognized net realized losses on investments of
Net change in unrealized gains on investments for the third quarter of 2023 was
The Company’s net increase in net assets resulting from operations for the third quarter of 2023 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 September 30, 2023, the weighted average investment ranking of the Company’s debt investment portfolio was 2.10, as compared to 2.07 at the end of the prior quarter. During the quarter ended September 30, 2023, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfolio company with a principal balance of
The following table shows the credit categories for the Company’s debt investments at fair value as of September 30, 2023 and December 31, 2022:
|
|
September 30, 2023 |
|
December 31, 2022 |
||||||||||||
Credit Category
|
|
Fair Value |
|
Percentage of
|
|
Number of
|
|
Fair Value |
|
Percentage of
|
|
Number of
|
||||
Clear (1) |
|
$ |
91,262 |
|
11.7 |
% |
|
6 |
|
$ |
55,921 |
|
6.6 |
% |
|
3 |
White (2) |
|
|
584,279 |
|
74.6 |
|
|
35 |
|
|
699,008 |
|
81.9 |
|
|
48 |
Yellow (3) |
|
|
68,669 |
|
8.8 |
|
|
6 |
|
|
88,912 |
|
10.4 |
|
|
5 |
Orange (4) |
|
|
17,446 |
|
2.2 |
|
|
3 |
|
|
9,110 |
|
1.1 |
|
|
1 |
Red (5) |
|
|
21,197 |
|
2.7 |
|
|
4 |
|
|
— |
|
— |
|
|
— |
|
|
$ |
782,853 |
|
100.0 |
% |
|
54 |
|
$ |
852,951 |
|
100.0 |
% |
|
57 |
NET ASSET VALUE
As of September 30, 2023, the Company’s net assets were
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2023, the Company had total liquidity of
The Company maintains an ATM Program with UBS Securities LLC, providing for the issuance from time to time of up to an aggregate of
DISTRIBUTION
On October 26, 2023, the Company’s board of directors declared a regular quarterly distribution of
RECENT DEVELOPMENTS
Since September 30, 2023 and through October 31, 2023:
-
TPC’s direct originations platform entered into
of additional non-binding signed term sheets with venture growth stage companies;$17.5 million -
The Company closed
of additional debt commitments; and$3.0 million -
The Company funded
in new investments.$10.0 million
CONFERENCE CALL
The Company will host a conference call at 5:00 p.m. Eastern Time, today, November 1, 2023, to discuss its financial results for the quarter ended September 30, 2023. To listen to the call, investors and analysts should dial (844) 826-3038 (domestic) or +1 (412) 317-5184 (international) and ask to join the TriplePoint Venture Growth BDC Corp. call. Please dial in at least five minutes before the scheduled start time. A replay of the call will be available through December 1, 2023, by dialing (877) 344-7529 (domestic) or +1 (412) 317-0088 (international) and entering conference ID 1131961. The conference call also will be available via a live audio webcast in the investor relations section of the Company’s website, https://www.tpvg.com. An online archive of the webcast will be available on the Company’s website for one year after the call.
ABOUT TRIPLEPOINT VENTURE GROWTH BDC CORP.
TriplePoint Venture Growth BDC Corp. is an externally-managed business development company focused on providing customized debt financing with warrants and direct equity investments to venture growth stage companies in technology and other high growth industries backed by a select group of venture capital firms. The Company’s sponsor, TriplePoint Capital, is a Sand Hill Road-based global investment platform which provides customized debt financing, leasing, direct equity investments and other complementary solutions to venture capital-backed companies in technology and other high growth industries at every stage of their development with unparalleled levels of creativity, flexibility and service. For more information about TriplePoint Venture Growth BDC Corp., visit https://www.tpvg.com. For more information about TriplePoint Capital, visit https://www.triplepointcapital.com.
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 Securities and Exchange Commission. More information on these risks and other potential factors that could affect actual events and the Company’s performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is or will be included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
TriplePoint Venture Growth BDC Corp. |
|||||||
Consolidated Statements of Assets and Liabilities |
|||||||
(in thousands, except per share data) |
|||||||
|
September 30, 2023 |
|
December 31, 2022 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Investments at fair value (amortized cost of |
$ |
870,178 |
|
|
$ |
949,276 |
|
Cash and cash equivalents |
|
105,003 |
|
|
|
51,489 |
|
Restricted cash |
|
17,461 |
|
|
|
7,771 |
|
Deferred credit facility costs |
|
3,068 |
|
|
|
4,128 |
|
Prepaid expenses and other assets |
|
2,770 |
|
|
|
1,869 |
|
Total assets |
$ |
998,480 |
|
|
$ |
1,014,533 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Revolving Credit Facility |
$ |
210,000 |
|
|
$ |
175,000 |
|
2025 Notes, net |
|
69,685 |
|
|
|
69,543 |
|
2026 Notes, net |
|
198,930 |
|
|
|
198,598 |
|
2027 Notes, net |
|
124,048 |
|
|
|
123,839 |
|
Other accrued expenses and liabilities |
|
21,717 |
|
|
|
27,613 |
|
Total liabilities |
$ |
624,380 |
|
|
$ |
594,593 |
|
|
|
|
|
||||
Net assets |
|
|
|
||||
Preferred stock, par value |
$ |
— |
|
|
$ |
— |
|
Common stock, par value |
|
361 |
|
|
|
353 |
|
Paid-in capital in excess of par value |
|
478,445 |
|
|
|
470,572 |
|
Total distributable earnings (loss) |
|
(104,706 |
) |
|
|
(50,985 |
) |
Total net assets |
$ |
374,100 |
|
|
$ |
419,940 |
|
Total liabilities and net assets |
$ |
998,480 |
|
|
$ |
1,014,533 |
|
|
|
|
|
||||
Shares of common stock outstanding (par value |
|
36,086 |
|
|
|
35,348 |
|
Net asset value per share |
$ |
10.37 |
|
|
$ |
11.88 |
|
TriplePoint Venture Growth BDC Corp. |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
||||||||
Investment income |
|
|
|
|
|
|
|
||||||||
Interest income from investments |
$ |
34,070 |
|
|
$ |
29,214 |
|
|
$ |
100,825 |
|
|
$ |
82,142 |
|
Other income |
|
1,668 |
|
|
|
484 |
|
|
|
3,693 |
|
|
|
2,333 |
|
Total investment and other income |
$ |
35,738 |
|
|
$ |
29,698 |
|
|
$ |
104,518 |
|
|
$ |
84,475 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Base management fee |
$ |
4,596 |
|
|
$ |
3,932 |
|
|
$ |
13,403 |
|
|
$ |
11,550 |
|
Income incentive fee |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
6,651 |
|
Interest expense and amortization of fees |
|
9,297 |
|
|
|
7,153 |
|
|
|
28,486 |
|
|
|
18,378 |
|
Administration agreement expenses |
|
579 |
|
|
|
593 |
|
|
|
1,720 |
|
|
|
1,673 |
|
General and administrative expenses |
|
2,162 |
|
|
|
1,059 |
|
|
|
4,389 |
|
|
|
3,162 |
|
Total operating expenses |
$ |
16,634 |
|
|
$ |
12,838 |
|
|
$ |
47,998 |
|
|
$ |
41,414 |
|
|
|
|
|
|
|
|
|
||||||||
Net investment income |
$ |
19,104 |
|
|
$ |
16,860 |
|
|
$ |
56,520 |
|
|
$ |
43,061 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains/(losses) |
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on investments |
$ |
(25,556 |
) |
|
$ |
(13,187 |
) |
|
$ |
(23,730 |
) |
|
$ |
(17,038 |
) |
Net change in unrealized gains (losses) on investments |
|
8,600 |
|
|
|
(3,241 |
) |
|
|
(43,818 |
) |
|
|
(34,299 |
) |
Net realized and unrealized gains/(losses) |
$ |
(16,956 |
) |
|
$ |
(16,428 |
) |
|
$ |
(67,548 |
) |
|
$ |
(51,337 |
) |
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations |
$ |
2,148 |
|
|
$ |
432 |
|
|
$ |
(11,028 |
) |
|
$ |
(8,276 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share information (basic and diluted) |
|
|
|
|
|
|
|
||||||||
Net investment income per share |
$ |
0.54 |
|
|
$ |
0.51 |
|
|
$ |
1.59 |
|
|
$ |
1.35 |
|
Net increase (decrease) in net assets per share |
$ |
0.06 |
|
|
$ |
0.01 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.26 |
) |
Weighted average shares of common stock outstanding |
|
35,609 |
|
|
|
33,373 |
|
|
|
35,453 |
|
|
|
31,816 |
|
Total distributions declared per share |
$ |
0.40 |
|
|
$ |
0.36 |
|
|
$ |
1.20 |
|
|
$ |
1.08 |
|
|
||||||||||||
Weighted Average Portfolio Yield |
||||||||||||
on Total Debt Investments |
||||||||||||
Ratios
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||
Weighted average portfolio yield on total debt investments(2) |
|
15.1 |
% |
|
13.8 |
% |
|
14.8 |
% |
|
14.5 |
% |
Coupon income |
|
11.6 |
% |
|
11.3 |
% |
|
11.7 |
% |
|
10.6 |
% |
Accretion of discount |
|
0.9 |
% |
|
0.8 |
% |
|
0.9 |
% |
|
0.8 |
% |
Accretion of end-of-term payments |
|
1.6 |
% |
|
1.7 |
% |
|
1.7 |
% |
|
1.7 |
% |
Impact of prepayments during the period |
|
1.0 |
% |
|
— |
% |
|
0.5 |
% |
|
1.4 |
% |
_____________
(1) | Weighted average portfolio yields on total 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. |
|
(2) | The weighted average portfolio yields on total 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/20231101444723/en/
INVESTOR RELATIONS AND MEDIA
The IGB Group
Leon Berman
212-477-8438
lberman@igbir.com
Source: TriplePoint Venture Growth BDC Corp.
FAQ
What is the net investment income per share for Q3 2023?
What is the distribution per share for Q4 2023?
How much were the signed term sheets in Q3 2023?
How much new debt commitments were closed in Q3 2023?
How much debt investments were funded in Q3 2023?
How much loan principal prepayments were received in Q3 2023?