TriplePoint Venture Growth BDC Corp. Announces First Quarter 2025 Financial Results

About this update from Triplepoint Venture Growth Bdc Corp.

Net Increase in Net Assets Resulting from Operations of $0.32 per Share for the First Quarter Declares Second Quarter 2025 Distribution of $0.30 per Share MENLO PARK, Calif., May 07, 2025 --( BUSINESS WIRE )--TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) (the "Company," "TPVG," "we," "us," or "our"), a leading financing provider to venture growth stage companies backed by a select group of venture capital firms in technology and other high growth industries, today announced its financial results for the first quarter ended March 31, 2025 and the declaration by its Board of Directors of its second quarter 2025 distribution of $0.30 per share. First Quarter 2025 Highlights "We continue to capitalize on attractive lending opportunities with high-quality venture growth stage companies, as we stay on our course of portfolio scale and sector rotation," said Jim Labe, chairman and chief executive officer of TPVG. "We are seeing strong demand from companies in the sectors that we are focused on, such as AI and enterprise software, and are pleased that signed term sheet sheets at TPC and closed debt commitments at TPVG remain at multi-year highs." "We continue to position TPVG to take advantage of our strong liquidity and financial flexibility to grow the portfolio in a selective and disciplined manner that is mindful of the market environment," said Sajal Srivastava, president and chief investment officer of the Company. "We are also pleased to continue to see strong demand for debt financing from venture growth stage companies as demonstrated by our fundings to date in Q2." PORTFOLIO AND INVESTMENT ACTIVITY During the three months ended March 31, 2025, the Company entered into $76.5 million of new debt commitments with five portfolio companies, funded debt investments totaling $27.7 million to five portfolio companies and acquired warrants in seven portfolio companies with a cost basis of $0.8 million. Debt investments funded during the quarter carried a weighted average annualized portfolio yield of 13.3% at origination. During the quarter, the Company received $17.0 million of principal prepayments, $0.8 million of early repayments and $9.9 million of scheduled principal amortization. The weighted average annualized portfolio yield on debt investments for the first quarter was 14.4%. The Company calculates weighted average portfolio yield as the annualized rate of the interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The return on average equity for the first quarter was 12.5% based on net investment income. The Company calculates return on average equity as the annualized rate of net investment income recognized during the period divided by the Company’s average net asset value during the period. As of March 31, 2025, the Company held debt investments in 44 portfolio companies, warrants in 102 portfolio companies and equity investments in 48 portfolio companies. The total cost and fair value of these investments were $719.8 million and $682.0 million, respectively. The following table shows the total portfolio investment activity for the three months ended March 31, 2025 and 2024: SIGNED TERM SHEETS During the three months ended March 31, 2025, TPC entered into $315.4 million of non-binding term sheets to venture growth stage companies. These opportunities are subject to underwriting conditions including, but not limited to, the completion of due diligence, negotiation of definitive documentation and investment committee approval, as well as compliance with the allocation policy. Accordingly, there is no assurance that any or all of these transactions will be completed or assigned to the Company. UNFUNDED COMMITMENTS As of March 31, 2025, the Company’s unfunded commitments totaled $116.8 million, of which $19.1 million was dependent upon portfolio companies reaching certain milestones. Of the $116.8 million of unfunded commitments, $43.3 million will expire during 2025, $51.1 million will expire during 2026, and $22.5 million will expire during 2027, if not drawn prior to expiration. Since these commitments may expire without being drawn, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. RESULTS OF OPERATIONS Total investment and other income was $22.5 million for the first quarter of 2025, representing a weighted average annualized portfolio yield of 14.4% on debt investments, as compared to $29.3 million and 15.4% for the first quarter of 2024. The decrease in total investment and other income was primarily due to a lower weighted average principal amount outstanding on our income-bearing debt investment portfolio and lower investment yields due in part to decreases in the Prime rate. Operating expenses for the first quarter of 2025 were $11.7 million as compared to $13.8 million for the first quarter of 2024. Operating expenses for the first quarter of 2025 consisted of $6.4 million of interest expense and amortization of fees, $3.3 million of base management fees, $0.6 million of Administration Agreement expenses and $1.4 million of general and administrative expenses, which includes a $0.4 million accrual for excise taxes. Operating expenses for the first quarter of 2024 consisted of $7.0 million of interest expense and amortization of fees, $4.3 million of base management fees, $0.6 million of Administration Agreement expenses and $1.8 million of general and administrative expenses, which includes a $0.4 million accrual for excise taxes. Due to the total return requirement under the income component of our incentive fee structure, there were no income incentive fees during the first quarter of 2025 and 2024. For the first quarter of 2025, the Company recorded net investment income of $10.7 million, or $0.27 per share, as compared to $15.5 million, or $0.41 per share, for the first quarter of 2024. The decrease in net investment income between periods was driven primarily by lower total investment and other income. During the first quarter of 2025, the Company recognized net realized gains on investments of $2.3 million, resulting primarily from the partial sale of equity in one portfolio company. During the first quarter of 2024, the Company recognized net realized losses on investments of $8.8 million. Net change in unrealized losses on investments for the first quarter of 2025 was $0.3 million, consisting of $2.5 million of net unrealized losses from the reversal of previously recorded unrealized gains on investments realized during the period and $1.6 million on the debt investment portfolio resulting from fair value adjustments, offset by $2.6 million of net unrealized gains from foreign currency adjustments and $1.2 million of net unrealized gains on the existing warrant and equity portfolio resulting from fair value adjustments. Net change in unrealized gains on investments for the first quarter of 2024 was $1.3 million. The Company’s net increase in net assets resulting from operations for the first quarter of 2025 was $12.7 million, or $0.32 per share, as compared to a net increase in net assets resulting from operations of $8.0 million, or $0.21 per share, for the first quarter of 2024. 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 March 31, 2025, the weighted average investment ranking of the Company’s debt investment portfolio was 2.12, as compared to 2.17 at the end of the prior quarter. During the quarter ended March 31, 2025, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfolio company with a principal balance of $34.8 million was upgraded from Yellow (3) to White (2). The following table shows the credit categories for the Company’s debt investments at fair value as of March 31, 2025 and December 31, 2024: NET ASSET VALUE As of March 31, 2025, the Company’s net assets were $347.0 million, or $8.62 per share, as compared to $345.7 million, or $8.61 per share, as of December 31, 2024. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 2025, the Company had total liquidity of $336.7 million, consisting of cash, cash equivalents and restricted cash of $41.7 million and available capacity under its Revolving Credit Facility of $295.0 million. On February 12, 2025, the Company completed a private offering of $50.0 million in aggregate principal amount of the 2028 Notes. As of March 31, 2025, the Company held $0.5 million of stock and warrant positions in publicly traded companies. The Company ended the quarter with a 1.10x gross leverage ratio and a 1940 Act asset coverage ratio of 191%. DISTRIBUTION On April 30, 2025, the Company’s board of directors declared a regular quarterly distribution of $0.30 per share for the second quarter, payable on June 30, 2025 to stockholders of record as of June 16, 2025. As of March 31, 2025, the Company had estimated spillover income of $42.5 million, or $1.06 per share. RECENT DEVELOPMENTS Since March 31, 2025 and through May 6, 2025: CONFERENCE CALL The Company will host a conference call at 5:00 p.m. Eastern Time, today, May 7, 2025, to discuss its financial results for the quarter ended March 31, 2025. 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 June 7, 2025, by dialing (877) 344-7529 (domestic) or +1 (412) 317-0088 (international) and entering conference ID 5263958. 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.   View source version on businesswire.com: https://www.businesswire.com/news/home/20250507225389/en/ Contacts INVESTOR RELATIONS AND MEDIA CONTACT The IGB Group Leon Berman 212-477-8438 [email protected]

View stock analysis, news, and events for Triplepoint Venture Growth Bdc Corp.