Slide 1: Third Quarter 2022 Investor Presentation
Third Quarter 2022 Investor Presentation Exhibit 99.2
Slide 2: Forward Looking Statements | Disclaimer
FORWARD LOOKING STATEMENTS | DISCLAIMER Trinity Capital Inc. (the “Company”) cautions that this presentation may contain forward-looking statements that are based on current expectations and assumptions about future events, and which are not based in historical fact. The forward-looking statements i
Slide 3: Investor Presentation Contents
Company Overview Financial Highlights Portfolio Highlights Venture Capital and Lending Market 4 11 20 26 30 Supplemental Information 32 Analyst Coverage INVESTOR PRESENTATION | CONTENTS
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Trinity Capital Overview
Market Capitalization 14 Year Track Record(4) Annualized Dividend Yield Portfolio(2) $246.6 Million Available Liquidity(5) Liquidity(2) 77 Companies Warrant Positions 25 Companies Equity Positions $38.2 Billion Opportunities $2.2 Billion Fundings 275 Investments 153 Exits 85 Companies Debt Positions
Slide 6: Why Is Trinity Different
We understand the growth stage world and provide more than money to our portfolio company partners Deep Operating Experience Highly experienced executive team with startup experience Decades of in-depth high-tech experience Numerous U.S. and International patents issued One Stop – Loans & Equipment
Slide 7: Term Loans: Select Examples
Term Loans Axiom Space is developing the world’s first commercial space station. Investor Syndicate C5 Capital, TQS Advisors, Declaration Partners Use of Loan General corporate purposes Petal aims to bring financial innovation and opportunity to everyone, using modern technology to help people build
Slide 8: Equipment Financing: Select Examples
Equipment Financing Select Examples EQUIPMENT FINANCING 01 COMPANIES WITH CAPEX REQUIREMENTS Manufacturing Equipment and Hard Assets 02 HARDWARE AS A SERVICE Equipment at Customer Location 03 INDUSTRY AGNOSTIC Nature’s Fynd is a food company creating versatile alternative proteins to nouris
Slide 9: Partnerships With Top VCs and Technology Banks
Multiple shared portfolio companies with top Venture Capital Firms We have established inter-creditor agreements with the banks Combining with bank debt results in a lower blended cost to our customers We provide equipment financing and incremental debt capital Relationships with top market share ba
Slide 10: Underwriting Approach and Risk Mitigation
Investor Syndicate Revenue & Gross Margins Business Model Includes historical information of Trinity Capital's predecessor funds, the first of which was launched in 2008, through September 30, 2022. Past performance is not indicative of future results. Investment results may vary significantly over
Slide 11: Financial Highlights
LLL JPL], FINANCIAL HIGHLIGHT
Slide 12: Q3 2022 Highlights
Total Investment Income of $38.7M Net Investment Income (“NII”) of $18.6M Net Interest Margin (“NIM”) of 11.5% NII per share of $0.56 provides 124.4% of regular distribution coverage Increased the third quarter regular dividend distribution to $0.45 per share, a 7.1% increase over the regular divide
Slide 13: Statements of Operations Summary
For the three months ended For the three months ended Nine Months Ended September 30 (In 000’s, except per share amounts) 09/30/2022 06/30/2022 03/31/2022 12/31/2021 09/30/2021 Total Investment Income $38,689 $33,458 $31,845 $23,607 $21,790 Interest expense and other debt financing costs 9,306 7,761
Slide 14: Income Source & Portfolio Yield Trends
INCOME SOURCE & PORTFOLIO YIELD TRENDS Strong Yields Produce Solid Investment Income
Slide 15: Net Investment Income (NII) Per Share Bridge
NET INVESTMENT INCOME (NII) PER SHARE BRIDGE
Slide 16: Balance Sheet Summary
For the three months ended Nine Months Ended September 30 (In 000’s, except per share amounts) 09/30/2022 06/30/2022 03/31/2022 12/31/2021 09/30/2021 Assets Total investments at fair value $ 1,042,175 $ 1,051,074 $919,348 $873,470 $677,246 Cash and cash equivalents 34,141 13,226 28,684 31,685 25,313
Slide 17: Net Asset Value (NAV) Per Share Bridge
NET ASSET VALUE (NAV) PER SHARE BRIDGE
Slide 18: Debt Capital Structure
Diversified Borrowings ($ in million) at 9/30/2022 Funding Source Debt Commitment Outstanding Principal Undrawn Commitment Stated Maturity Interest Rate Notes: 2025 Unsecured Notes (1) $182.5 $182.5 - January 16, 2025 (2) 7.0% Convertible Notes $50 $50 - December 11, 2025 6.0% August 2026 Unsecured
Slide 19: Solid Shareholder Returns
Distributable Net Income covered regular dividends by 124.4% in 3Q22 Supplemental Dividend of $0.15 from 2021 spillover income Strong Earnings and Dividend Growth SOLID SHAREHOLDER RETURNS
Slide 20: Portfolio Highlights
LLL JPL], PORTFOLIO HIGHLIGHTS
Slide 21: Portfolio Diversification
Geography Diversification(1) 43.8% 10.5% 4.8% 8.7% 0.8% 23.0% International 8.4% PORTFOLIO DIVERSIFICATION At September 30, 2022 (1) Based on Fair Market Value
Slide 22: Portfolio Trends
Based on outstanding principal Based on Fair Market Value Well positioned for rising interest rates Strong Asset Diversification PORTFOLIO TRENDS
Slide 23: Hypothetical Warrant Upside
HYPOTHETICAL WARRANT UPSIDE Proceeds of $53.0 million (2X) Potential gain of $16.2 million or $0.46 per share Proceeds of $79.5 million (3X) Potential gain of $42.7 million or $1.22 per share Proceeds of $106.0 million (4X) Potential gain of $69.2 million or $1.97 per share Recent and Pending Portfo
Slide 24: Disciplined Credit Rating
3Q22 2Q22 1Q22 4Q21 3Q21 Very Strong Performance (4.0 – 5.0) $92,008 9.2% $62,719 6.3% $80,592 9.4% $84,785 11.5% $62,872 10.9% Strong Performance (3.0 – 3.9) $320,087 32.1% $382,593 38.5% $332,019 38.9% $236,466 32.1% $224,287 38.8% Performing (2.0 – 2.9) $537,260 53.9% $529,285 53.2% $429,044 50.3
Slide 25: Diversified Portfolio
Select List of Current & Historical Investments DIVERSIFIED PORTFOLIO
Slide 26: Venture Capital and Lending Market
VENTURE CAPITAL AND LENDING MARKET
Slide 27: Venture Capital Market
US VC Deal Activity VENTURE CAPITAL MARKET * As of September 30, 2022 Source: Pitchbook NVCA Venture Monitor Q3 2022
Slide 28: Venture Capital Fundraising
US VC Fundraising Activity VENTURE CAPITAL FUNDRAISING * As of September 30, 2022 Source: Pitchbook NVCA Venture Monitor Q3 2022
Slide 29: Venture Debt Market
VENTURE DEBT MARKET US Venture Debt Deal Activity * As of September 30, 2022 Source: Pitchbook NVCA Venture Monitor Q3 2022
Slide 30: Analyst Coverage
Lf fo | ANALYST COVERA
Slide 31: Extensive Industry Analyst Coverage
Followed by seven firms EXTENSIVE INDUSTRY ANALYST COVERAGE Ryan Lynch (initiated coverage 2/23/21) Finian O’Shea (initiated coverage 2/23/21) Vilas Abraham (initiated coverage 2/23/21) Bryce Rowe (initiated coverage 9/16/22) Casey Alexander (initiated coverage 2/23/21) Christopher Nolan (initiated
Slide 32: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 33: Regulation & Structure
BUSINESS DEVELOPMENT COMPANY (BDC) REGULATED INVESTMENT COMPANY (RIC) Trinity Capital Inc. is an Internally Managed BDC under the 1940 Act and has elected to be treated as a RIC for Federal Income Tax Purposes beginning with its Taxable Year ending December 31, 2020 Regulated by the SEC under the In
Slide 34: Thank You
We look forward to our growing partnership. THANK YOU