TriplePoint Venture Growth BDC Corp. Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Achieved Net Investment Income of
Declares First Quarter 2025 Distribution of
Fourth Quarter 2024 Highlights
-
Signed
$323.4 million $72.0 million -
Funded
$49.9 million 51% increase from the prior quarter, to three portfolio companies with a13.5% weighted average annualized yield at origination; -
Achieved a
15.8% weighted average annualized portfolio yield on debt investments for the quarter1; -
Earned net investment income of
$12.6 million $0.32 -
Realized a
13.7% return on average equity, based on net investment income during the quarter; -
Six debt portfolio companies raised an aggregate
$95.5 million - Held debt investments in 44 portfolio companies, warrants in 98 portfolio companies and equity investments in 47 portfolio companies as of December 31, 2024;
- Debt investment portfolio weighted average investment ranking of 2.17 as of quarter’s end;
-
Net asset value of
$345.7 million $8.61 -
Total liquidity of
$373.7 million $104.5 million - Ended the quarter with a 1.16x gross leverage ratio;
-
Declared a first quarter distribution of
$0.30 $16.35 - Appointed Mike L. Wilhelms to serve as Chief Financial Officer of the Company effective as of January 6, 2025; and
-
Subsequent to quarter-end, the Company raised
$50 million
Fiscal Year 2024 Highlights
-
Earned net investment income of
$54.5 million $1.40 -
Generated total investment income of
$108.6 million -
Paid distributions of
$1.40 -
Signed
$735.6 million $175.0 million -
Funded
$135.1 million 14.1% weighted average annualized portfolio yield at origination and funded$0.7 million -
26 debt portfolio companies raised an aggregate
$1.8 billion -
Achieved a
15.7% weighted average annualized portfolio yield on debt investments1; -
In April 2024, DBRS, Inc. issued TPVG’s investment grade rating, with a BBB (low) Long-Term Issuer rating, with a stable trend
outlook; -
Renewed the Revolving Credit Facility to, among other things, extend the revolving period to November 30, 2025 and the scheduled maturity date to May 30, 2027, as well as set total commitments to
$300 million -
Raised
$19.4 million -
Estimated undistributed taxable earnings from net investment income (or “spillover income”) of
$43.4 million $1.08
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.
“We are seeing improving market conditions in the venture capital and venture lending markets,” said Jim Labe, chairman and chief executive officer of TPVG. “We are pleased that fourth quarter signed term sheets for venture growth stage companies at TPC and closed debt commitments at TPVG reached levels representing multiple year highs and that our pipeline continues to grow.”
“Our priority in 2025 is to take advantage of the strengthening demand for debt financing from well-positioned venture growth stage companies,” said Sajal Srivastava, president and chief investment officer of the Company. “We remain focused on executing on our plan for positioning TPVG for 2025 and beyond by increasing its scale, durability, portfolio diversification and income generating assets over time.”
PORTFOLIO AND INVESTMENT ACTIVITY
During the three months ended December 31, 2024, the Company entered into
As of December 31, 2024, the Company held debt investments in 44 portfolio companies, warrants in 98 portfolio companies and equity investments in 47 portfolio companies. The total cost and fair value of these investments were
The following table shows the total portfolio investment activity for the three months and years ended December 31, 2024 and 2023:
|
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Beginning portfolio at fair value |
|
$ |
720,974 |
|
|
$ |
870,178 |
|
|
$ |
802,145 |
|
|
$ |
949,276 |
|
New debt investments, net(a) |
|
|
49,331 |
|
|
|
23,687 |
|
|
|
132,886 |
|
|
|
122,654 |
|
Scheduled principal amortization |
|
|
(15,687 |
) |
|
|
(9,173 |
) |
|
|
(55,001 |
) |
|
|
(47,461 |
) |
Principal prepayments and early repayments |
|
|
(61,289 |
) |
|
|
(42,238 |
) |
|
|
(179,109 |
) |
|
|
(131,638 |
) |
Net amortization and accretion of premiums and discounts and end-of-term payments |
|
|
(1,307 |
) |
|
|
2,245 |
|
|
|
2,038 |
|
|
|
11,773 |
|
Payment-in-kind coupon |
|
|
3,230 |
|
|
|
3,702 |
|
|
|
15,062 |
|
|
|
11,648 |
|
New warrant investments |
|
|
282 |
|
|
|
1,120 |
|
|
|
842 |
|
|
|
2,622 |
|
New equity investments |
|
|
575 |
|
|
|
392 |
|
|
|
2,291 |
|
|
|
1,712 |
|
Proceeds from dispositions of investments |
|
|
(57 |
) |
|
|
(1,634 |
) |
|
|
(22,200 |
) |
|
|
(4,807 |
) |
Net realized gains (losses) on investments |
|
|
(306 |
) |
|
|
(52,086 |
) |
|
|
(33,219 |
) |
|
|
(75,769 |
) |
Net change in unrealized gains (losses) on investments |
|
|
(19,497 |
) |
|
|
5,952 |
|
|
|
10,514 |
|
|
|
(37,865 |
) |
Ending portfolio at fair value |
|
$ |
676,249 |
|
|
$ |
802,145 |
|
|
$ |
676,249 |
|
|
$ |
802,145 |
|
_____________ |
||||||||||||||||
| (a) Debt balance is net of fees and discounts applied to the loan at origination. | ||||||||||||||||
SIGNED TERM SHEETS
During the three months ended December 31, 2024, TPC entered into
UNFUNDED COMMITMENTS
As of December 31, 2024, the Company’s unfunded commitments totaled
RESULTS OF OPERATIONS
Total investment and other income was
Operating expenses for the fourth quarter of 2024 were
For the fourth quarter of 2024, the Company recorded net investment income of
During the fourth quarter of 2024, the Company recognized net realized losses on investments of
Net change in unrealized losses on investments for the fourth quarter of 2024 was
The Company’s net decrease in net assets resulting from operations for the fourth quarter of 2024 was
CREDIT QUALITY
The Adviser maintains a credit watch list with portfolio companies placed into one of five credit risk categories, with Clear, or 1, being the best 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 December 31, 2024, the weighted average investment ranking of the Company’s debt investment portfolio was 2.17, consistent with the end of the prior quarter. During the quarter ended December 31, 2024, 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 December 31, 2024 and 2023:
|
|
December 31, 2024 |
|
December 31, 2023 |
||||||||||||
Credit Category
|
|
Fair Value |
|
Percentage of
|
|
Number of
|
|
Fair Value |
|
Percentage of
|
|
Number of
|
||||
Clear (1) |
|
$ |
51,986 |
|
9.3 |
% |
|
3 |
|
$ |
100,309 |
|
13.8 |
% |
|
7 |
White (2) |
|
|
392,237 |
|
70.0 |
|
|
31 |
|
|
471,195 |
|
64.5 |
|
|
28 |
Yellow (3) |
|
|
84,847 |
|
15.1 |
|
|
4 |
|
|
117,792 |
|
16.1 |
|
|
8 |
Orange (4) |
|
|
30,979 |
|
5.5 |
|
|
5 |
|
|
40,091 |
|
5.5 |
|
|
5 |
Red (5) |
|
|
56 |
|
0.1 |
|
|
1 |
|
|
908 |
|
0.1 |
|
|
1 |
|
|
$ |
560,105 |
|
100.0 |
% |
|
44 |
|
$ |
730,295 |
|
100.0 |
% |
|
49 |
NET ASSET VALUE
As of December 31, 2024, the Company’s net assets were
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2024, the Company had total liquidity of
DISTRIBUTION
On February 25, 2025, the Company’s board of directors declared a regular quarterly distribution of
RECENT DEVELOPMENTS
Since December 31, 2024 and through March 4, 2025:
-
TPC’s direct originations platform entered into
$214.5 million -
The Company closed
$53.0 million -
The Company funded
$23.5 million
CONFERENCE CALL
The Company will host a conference call at 5:00 p.m. Eastern Time, today, March 5, 2025, to discuss its financial results for the quarter and fiscal year ended December 31, 2024. 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 April 5, 2025, by dialing (877) 344-7529 (domestic) or +1 (412) 317-0088 (international) and entering conference ID 9371606. 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 primarily 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.
|
|||||||
|
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Investments at fair value (amortized cost of |
$ |
676,249 |
|
|
$ |
802,145 |
|
Cash and cash equivalents |
|
45,899 |
|
|
|
153,328 |
|
Restricted cash |
|
32,828 |
|
|
|
18,254 |
|
Deferred credit facility costs |
|
3,904 |
|
|
|
2,714 |
|
Prepaid expenses and other assets |
|
4,160 |
|
|
|
2,384 |
|
Total assets |
$ |
763,040 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Revolving Credit Facility |
$ |
5,000 |
|
|
$ |
215,000 |
|
2025 Notes, net |
|
69,948 |
|
|
|
69,738 |
|
2026 Notes, net |
|
199,483 |
|
|
|
199,041 |
|
2027 Notes, net |
|
124,396 |
|
|
|
124,117 |
|
Base management fee payable |
|
3,408 |
|
|
|
4,490 |
|
Other accrued expenses and liabilities |
|
15,118 |
|
|
|
20,133 |
|
Total liabilities |
$ |
417,353 |
|
|
$ |
632,519 |
|
|
|
|
|
||||
Net assets |
|
|
|
||||
Preferred stock, par value |
$ |
— |
|
|
$ |
— |
|
Common stock, par value |
|
401 |
|
|
|
376 |
|
Paid-in capital in excess of par value |
|
513,719 |
|
|
|
492,934 |
|
Total distributable earnings (loss) |
|
(168,433 |
) |
|
|
(147,004 |
) |
Total net assets |
$ |
345,687 |
|
|
$ |
346,306 |
|
Total liabilities and net assets |
$ |
763,040 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Shares of common stock outstanding (par value |
|
40,137 |
|
|
|
37,620 |
|
Net asset value per share |
$ |
8.61 |
|
|
$ |
9.21 |
|
TriplePoint Venture Growth BDC Corp. Consolidated Statements of Operations (in thousands, except per share data) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
||||||||
Investment income |
|
|
|
|
|
|
|
||||||||
Interest income from investments |
$ |
25,314 |
|
|
$ |
32,424 |
|
|
$ |
106,383 |
|
|
$ |
133,249 |
|
Other income |
|
440 |
|
|
|
548 |
|
|
|
2,266 |
|
|
|
4,241 |
|
Total investment and other income |
$ |
25,754 |
|
|
$ |
32,972 |
|
|
$ |
108,649 |
|
|
$ |
137,490 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Base management fee |
$ |
3,408 |
|
|
$ |
4,490 |
|
|
|
14,960 |
|
|
$ |
17,893 |
|
Income incentive fee |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense and amortization of fees |
|
7,587 |
|
|
|
8,309 |
|
|
|
30,448 |
|
|
|
36,795 |
|
Administration agreement expenses |
|
538 |
|
|
|
574 |
|
|
|
2,376 |
|
|
|
2,293 |
|
General and administrative expenses |
|
1,585 |
|
|
|
2,313 |
|
|
|
6,317 |
|
|
|
6,703 |
|
Total operating expenses |
$ |
13,118 |
|
|
$ |
15,686 |
|
|
$ |
54,101 |
|
|
$ |
63,684 |
|
|
|
|
|
|
|
|
|
||||||||
Net investment income |
$ |
12,636 |
|
|
$ |
17,286 |
|
|
$ |
54,548 |
|
|
$ |
73,806 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains/(losses) |
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on investments |
$ |
(323 |
) |
|
$ |
(52,032 |
) |
|
$ |
(33,016 |
) |
|
$ |
(75,762 |
) |
Net change in unrealized gains (losses) on investments |
|
(19,497 |
) |
|
|
5,953 |
|
|
|
10,514 |
|
|
|
(37,865 |
) |
Net realized and unrealized gains/(losses) |
$ |
(19,820 |
) |
|
$ |
(46,079 |
) |
|
$ |
(22,502 |
) |
|
$ |
(113,627 |
) |
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations |
$ |
(7,184 |
) |
|
$ |
(28,793 |
) |
|
$ |
32,046 |
|
|
$ |
(39,821 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share information (basic and diluted) |
|
|
|
|
|
|
|
||||||||
Net investment income per share |
$ |
0.32 |
|
|
$ |
0.47 |
|
|
$ |
1.40 |
|
|
$ |
2.07 |
|
Net increase (decrease) in net assets per share |
$ |
(0.18 |
) |
|
$ |
(0.79 |
) |
|
$ |
0.82 |
|
|
$ |
(1.12 |
) |
Weighted average shares of common stock outstanding |
|
40,054 |
|
|
|
36,457 |
|
|
|
39,101 |
|
|
|
35,706 |
|
|
|
|
|
|
|
|
|
||||||||
Total distributions declared per share |
$ |
0.30 |
|
|
$ |
0.40 |
|
|
$ |
1.40 |
|
|
$ |
1.60 |
|
Weighted Average Portfolio Yield
|
||||||||||||
Ratios
|
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Weighted average portfolio yield on debt investments(2) |
|
15.8 |
% |
|
15.6 |
% |
|
15.7 |
% |
|
15.4 |
% |
Coupon income |
|
12.0 |
% |
|
12.0 |
% |
|
12.1 |
% |
|
12.1 |
% |
Accretion of discount |
|
0.9 |
% |
|
0.8 |
% |
|
0.9 |
% |
|
0.9 |
% |
Accretion of end-of-term payments |
|
1.3 |
% |
|
1.6 |
% |
|
1.5 |
% |
|
1.7 |
% |
Impact of prepayments during the period |
|
1.6 |
% |
|
1.2 |
% |
|
1.2 |
% |
|
0.7 |
% |
_____________ |
||
(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/20250305146738/en/
INVESTOR RELATIONS AND MEDIA
The IGB Group
Leon Berman
212-477-8438
lberman@igbir.com
Source: TriplePoint Venture Growth BDC Corp.
