Slide 1: Third Quarter 2024 Investor Presentation
Third Quarter 2024 I n v e s t o r P r e s e n t a ti o n
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: Company Overview
COMPANY OVERVIEW
Slide 4: Trinity Capital Overview
TRINITY CAPITAL OVERVIEW Diversif ied f inancial solutio ns to growt h -sta ge com panies | NASDAQ – TRIN, T RI NL, TRINZ, T RI NI 15+ YEAR MARKET CAP / TRACK P O R T F O L I O (4) L I Q U I D I T Y (4) R E C O R D (1) DI V ID END Y I EL D $1,269.7M $3.8B F u nd ing s $817.6M $228.5M Secured Loans M
Slide 5: The Trinity Platform
THE TRINITY PLATFORM Unique internal management structure and capitalization diversification fortifies the TRIN platform and produces enhanced value proposition T R I N I T Y C A P I TA L ( N A S D A Q : T R I N ) Internally Mana ged BDC Te c h L e n d i n g | Eq u i p m e n t Fi n a n c i n g | L i
Slide 6: Diverse Business Verticals
DIVERSE BUSINESS VERTICALS Diversif ied a cross investme nt t ype, transactio n size, indust ry and g eography SPO NSOR FINANCE En te rpr i se va lu e sec ure d te rm lo ans t o pr ivat e eq uity -ba cke d sof t war e LIFE SC IENCES co mpan ie s TEC H LENDIN G Se nior se cured term Senior secured te
Slide 7: Why Is Trinity Different
WHY IS TRINITY DIFFERENT With unique capitalization and diversified businesses, we aim to provide investors with stable and consistent returns by offering access to the private credit market Internally ▪ Aligned interests between employees and shareholders Managed BDC ▪ Management company and a pool
Slide 8: Entrenched Industry Relationships
ENTRENCHED INDUSTRY RELATIONSHIPS First-call relat ionships wit h t op ind ustry-partne rs cu ltivate d over yea rs o f exp erien ce Broad origination pipeline of private equity and venture capital firms, tech banks, former clients, service providers and inbound interest Relationships with top marke
Slide 9: Underwriting Approach and Risk Mitigation
UNDERWRITING APPROACH AND RISK MITIGATION Disciplined investment approach keeps our annualized loss rate at 27 bps, which is more than offset by realized gains on warrant and equity investments (1) CAPITALIZATION FINANCIALS DEBT STRUCTURE Investor Syndicate Revenue & Collateral Gross Margins Cash Li
Slide 10: Tech Lending Term Loans
TECH LENDING Senior secured t erm loans to institu tionally -backe d te chnology compan ies Select Examples Term Loans WHOOP is a leading designer for wearable health and fitness trackers that capture biometric data shown to have the most impact on your health. 01 ▪ Investor Syndicate SECURED LOANS
Slide 11: Equipment Financing
EQUIPMENT FINANCING Fin ancing mission-critical m anufa cturing eq uipment and hard asse ts Select Examples Equipment Financings Rocket Lab delivers reliable launch services, spacecraft components, satellites and other spacecraft to make it faster and easier to access space. ▪ Investor Syndicate 01
Slide 12: Life Sciences Term Loans
LIFE SCIENCES Senior secured t erm loans fo r growth ca pital to co mmercial sta ge lif e science s compa nies Select Examples Shoulder Innovations is a shoulder arthroplasty-focused medical device Term Loans development company that designs and commercializes products that have the potential for im
Slide 13: Warehouse Lending Revolving Credit Line
WAREHOUSE LENDING Asset-base d lend ing t o ban krupt cy-remote SPVs Select Examples Parafin empowers small businesses by Revolving Credit Line providing them customized, embedded financial products through the platforms they already use, such as on-demand marketplaces, point-of-sales solutions, and
Slide 14: Sponsor Finance Term Loans
SPONSOR FINANCE Enterprise value secured t erm loans to private equit y-backe d sof tware compan ies Select Examples Term Loans Impel offers auto dealers, wholesalers, OEMs, and marketplaces the industry’s most advanced AI-powered customer lifecycle management platform. 01 ▪ Investor Syndicate SENIO
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 16: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS ▪ Total Investment Income of $61.8M ▪ Net Investment Income (“NII”) of $29.4M Robust ▪ Net Interest Margin (“NIM”) of 11.9% Earnings ▪ NII per share of $0.54 provides 105.9% of regular distribution coverage ▪ Consistent third quarter regular dividend distribution of $0.51 per shar
Slide 17: Solid Shareholder Returns
SOLID SHAREHOLDER RETURNS DIVIDEND G ROW TH $9.00 $0.55 $0.51 $0.51 $0.51 $8.50 $0.50 $0.49 $0.48 $0.50 $8.00 $0.47 $0.46 $0.70 $0.45 $7.50 $0.70 $0.45 $0.42 $7.00 $0.40 $0.70 $6.50 $0.40 $0.36 $0.70 $6.00 $0.33 $0.70 $0.35 Net Investment Income covered $5.50 $0.65 regular dividend by 105.9% in 3Q24
Slide 18: Quarterly Income Statement
QUARTERLY INCOME STATEMENT For the three months ended (In thousands, except per share amounts) 09/30/2024 06/30/2024 03/31/2024 12/31/2023 09/30/2023 Total Investment Income $ 61,766 $ 54,641 $ 50,453 $ 47,834 $ 46,438 Interest expense and other debt financing costs 16,868 13,885 12,144 10,446 10,78
Slide 19: Income Source & Portfolio Yield Trends
INCOME SOURCE & PORTFOLIO YIELD TRENDS Strong Yields Produce Solid Investment Income SOU R C ES OF I NVESTMEN T IN C OM E POR TFO LI O YIELD S (IN $000 S ) $1,800 16.7% 16.7% 17.0% $60,000 9.7% 16.0% 16.1% $1,600 15.8% 16.0% 10.1% $50,000 4.8% 18.5% 14.7% $1,400 15.5% 15.0% 8.4% 11.2% 17.6% 15.2% 15
Slide 20: NII Returns and Use of Leverage
NII RETURNS AND USE OF LEVERAGE N I I R E T U R N O N AV E R A G E A S S E T S ( R O A A ) (1) & N I I R E T U R N O N AV E R A G E E Q U I T Y ( R O A E ) (2) 20.0% 17.3% 15.8% 16.1% 16.3% 16.2% 15.0% 10.1% 10.7% 10.0% 7.6% 7.5% 7.4% 7.1% 6.9% 5.6% 4.7% 5.0% Delivering strong returns through 0.0% 2
Slide 21: Net Investment Income (NII) per Share Bridge
NET INVESTMENT INCOME (NII) PER SHARE BRIDGE RECO NCI LIATIO N O F Q UARTERLY NII PER SHARE Increase ecrease Total ( ) ( ) ( ) NII hange in hange in hange in Impact of NII per hare Investment Income Interest pense perating penses hare Activity (1) per hare (1) Includes the impact of sh are activity
Slide 22: Quarterly Balance Sheet
QUARTERLY BALANCE SHEET (In thousands, except per share amounts) 09/30/2024 06/30/2024 03/31/2024 12/31/2023 09/30/2023 Assets Total inves tments at f air value $ 1,686,862 $ 1,424,815 $ 1,363,862 $ 1,275,180 $ 1,116,552 Cas h and c ash equivalents 8,535 46,102 11,967 4,761 7,230 Int erest receivabl
Slide 23: Net Asset Value (NAV) per Share Bridge
NET ASSET VALUE (NAV) PER SHARE BRIDGE RECO NCI LIATI ON O F Q UARTERLY NAV PER SHARE Increase ecrease Total ( ) ( ) ( ) Earnings and Investment Portfolio Share Distributions Performance Impact(1) NA Net ividend Net Reali ed Reversal of rior Net nreali ed Net Impact NA Investment istributions ains (
Slide 24: Debt Capital Structure
DEBT CAPITAL STRUCTURE Diversified Borrowings ($ in millions) as of September 30, 2024 Debt Outstanding Undrawn Funding Source Stated Maturity Interest Rate Commitment Principal Commitment Notes: 2025 Unsecured Notes (1) $152.5 $152.5 - January 16, 2025(1) 7.00% Convertible Notes $50.0 $50.0 - Decem
Slide 25: Portfolio Highlights
PORTFOLIO HIGHLIGHTS
Slide 26: Portfolio Diversification
PORTFOLIO DIVERSIFICATION Diversified across investment type, transaction size, industry and geography Investment Type(1) Transaction Size(1)(2) 29.4% 28.5% 6.7% Loans Greater than $30M 75.2% Equipment Financing $15M - $30M 18.1% Equity & Warrants Less than $15M 42.1% Industry Type(1) Geographic All
Slide 27: Portfolio Trends
PORTFOLIO TRENDS FIXED VS FLO ATI NG D EB T IN VESTM EN TS ( 1) TOTAL PO RTFO LIO BY INVESTMENT TYPE ( 2) Floating Fixed Loans Equipment Financing Equity & Warrants $1,750,000 6.7% 26.2% 24.6% 23.4% 31.0% 30.1% $1,500,000 18.1% 6.3% 5.5% $1,250,000 4.2% 20.4% 23.3% IN THOUSANDS 4.7% 26.4% $1,000,000
Slide 28: Disciplined Credit Rating
DISCIPLINED CREDIT RATING Consistent and Disciplined Underwriting Standards 2.8 2.9 3.0 $1,600 2.7 2.7 2.7 2.5 $1,200 2.0 Total Debt Investments (FV, $ in million) (1) $800 $1,562 $1,279 $1,324 Weighted Investment Credit Rating $1,214 $1,056 $400 1.5 $0 1.0 3Q23 4Q23 1Q24 2Q24 3Q24 Credit Risk Ratin
Slide 29: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY ANNUALIZED I NTEREST RATE SENSITIVITY ($ i n th ous an ds , ex ce pt pe r sh are da ta ) $20,000 $0.29 $0.40 76.6% floating rate debt $15,000 $0.30 investment portfolio as $10,000 $0.20 $0.14 $16,807 of September 30, 2024 (1) $5,000 $0.10 $7,918 $- $- $(4,341) $(6,174) $(5,
Slide 30: Hypothetical Warrant Upside
HYPOTHETICAL WARRANT UPSIDE For Illustration Purposes Only 2X MULTIPLE 168 Warrant Positions in 111 Portfolio Companies • Proceeds of $70.4 million (2X) • Potential gain of $14.9 million ▪ GAAP fair value ~ $50.5 million or $0.26 per share ▪ GAAP cost ~ $40.6 million ▪ ~ $70.4 million in nominal exe
Slide 31: Diversified Portfolio
DIVERSIFIED PORTFOLIO Select List of Current & Historical Investments © 2024 Trinity Capital Inc. | 31
Slide 32: Analyst Coverage
ANALYST COVERAGE
Slide 33: Extensive Industry Analyst Coverage
EXTENSIVE INDUSTRY ANALYST COVERAGE Followed by eight firms Pa ul Jo hnson Fi ni an O ’ Shea M i tch el l Pen n D oug la s H art er (initiated coverage 2/23/2021) (initiated coverage 2/23/2021) (initiated coverage 5/3/2021) (initiated coverage 2/23/2021) Br yce Row e Chr is top her Nol an Cas ey Al
Slide 34: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 35: Regulation & Structure
REGULATION & STRUCTURE Trinity Capital Inc. is an Internally Managed BDC regulated 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 BUSINESS DEVELOPMENT COMPANY (BDC) ▪ Regulated by the under the Invest
Slide 36: Thank You
THANK YOU We look forward to our growing partnership. T R I N I T Y C A P. C O M 3 6