TPVG - Earnings call transcript Q3 2019 | TriplePoint Venture Growth BDC Corp.

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Operator

Good afternoon ladies and gentlemen, and welcome to the TriplePoint Venture Growth’s Third Quarter 2019 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. After the speakers’ remarks, there will be an opportunity to ask questions and instructions will follow at that time. This conference call is being recorded and a replay of the call will be available as an audio webcast on the TriplePoint Venture Growth website. Company management is pleased to share with you the results of the company for the third quarter 2019.

Financial is Board; Chief Chief Sajal and Mathieu, company Chairman Officer Investment the Chris the of Srivastava, Chief representing Jim Executive Labe, and Officer; Today, Officer. President and

over remind Before I to your you release in to attention regarding Mr. disclosure I customary Harbor company’s would direct Safe to the the turn like Labe, forward-looking call the press statements and condition, management to future this call, law. will may financial future performance or during statements securities relate make forward-looking that that considered company’s events the or federal statements which be certain under

by not refer company’s differ any reliance undue and to company’s that any latest call, as update You’re www.tpvg.com. to asked or unless of obligation obtain the important cause to with are during on website could reflect copies recent any materially Investors of Securities from management’s required not to the to visit Commission factors statements the opinions filings, undertake only please for made To which statements the does forward-looking cautioned most these results place filings at projections statements. law. today. actual Exchange SEC company forward-looking The our

call Mr. over turn Labe. will I Now, the to

Jim Labe

quarter. only We everybody. some operator good phenomenal and it Thanks afternoon amount. one customer was mixed We results prepayment, had small this experienced very

saw companies. We also list in decrease a value and our had portfolio with holdings watch a reduction of stock in in our stock public some the prices

is originations us really to But fundings continued had events also didn’t up in positive we in a $X.XX had result, a dividend benefits and NAV. be strong and at our TPVG growth developments, and as here. the we which the and what scaling a So, shaping with NII reduction in cover we many

to those successes, the Before I let results. address mixed me get

been important had very As of business. prepayments a part the you know, many of

last one large every of it fact, control quarter, excess if which quarter prepayment for quarter, can’t to led quarter past have had current of third almost the in achieving into and in for or we’re them. days the years, would magnitude size us it now. least right here experienced at dividend the for quarter the fourth In the the but did happen We’ve we’ve example, quarter only one XX three we the in already NII

to basis. We’ve always performance said a our judge on full-year

So, on is a basis, year-to-date our dividend covered.

on and continue we can more may fourth the income fact, where we quarter mentioned, prepayment, growth believe in the just covered dividend I’m given pleased to any look dividend. and strong at up. lever approaching be I more generating portfolio, than the investment prepayments is our more recent in with not a the should which order important, get there I In as scale, we core that cover well. dependent be I of But to these our investment as

With public quarter, again, are the generate not call closing public in $XX than But warrant lending on the we This of to returns. it’s of kickers higher us business allows reduction even Even at million venture It investments. debt regards our that secret pleased the that gains after sauce. and to the volatility in what sitting more stock past of this this the still we’re part QX total quarter; had prices, prices. is I once our has stock our equity I’m holdings control. last very our

loans. upside these attractive high-yielding see of top we So, on originating

way. along secret allows is offset The venture sauce we may that the us of have bumps lending the in benefit credit this that to any other it

of companies. there we no comfort isolated these underlying the So, added to the were and names take were credit new circumstances absolutely that issues unique individual

quarters when are we prepayment we it that be started so appears the just that where year and the I to $X.XX higher may fourth below, look or NAV, I as potentially So, basically factor mentioned. we in

I progress level us great a this benefit to strong. we that in scale that outlook continues for future, last made front the growth in path believe exceptionally our full-year, and will to the diversification on record portfolio on again, the and are quarter. be we continued We grew

strategy, an Our fundamental drive as to companies we and venture for capital reputation, the going fuel what head by capital venture think portfolio select relationships, growth of and discipline, backed to growing be leading the venture year finish strong the into accelerated lending that’s our start us I investment investment it’s our XXXX. continues group to investors,

that, of a of summary with the from is here So highlights quarter. some the other

directly from capital to volume continues from the leads Our investors. these venture grow of pipeline

the now it’s billion a $X record fact, TriplePoint more In at than platform. in size

signed our the second new in was $XXX a stage its portfolio growth investment million This through of highest sheets worth term highest funding during quarter. venture level, companies. record million to $XXX investments We new The million grew $XX debt ever. at

During was public Medallia the impacted equity of portfolio IPO unrealized our positions currently its some price. volatility resulting gains. stocks CrowdStrike Farfetch above quarter, we and tech also public. we go This had it’s our a were and that recent of the of in reversal in another companies; in hold one trading our by But where partial

the We in largest also additional increased quarter warehouse the and lending to and this adds facility fund for the a growth industry. capacity facility us venture million $XXX during to it’s

plus firm. Chris the DBRS, was acknowledging to as rating to CFO, from our quarter welcome Mathieu, our XXs company is an started industry. track and new were receiving pleased platform lending the we considerable venture finally, prior during bringing XX-year BDC grade experience And now record the development credit who TriplePoint Another what investment in had

recent Confirmed is for this with excited are not as investment translating brisk the and head being venture venture We capital of we’re unabated in in our they this about markets the by particularly I select investments, remain activity rapidly volatility these pace XXXX, demand Despite in XXXX. in the of these venture through mentioned, told that originations we growing sectors. public very they this see lending, investors, rounds the the growing outlook but venture by off continuation which some in of technology lines the capital of front increased for very strong into investors. only pipeline the in meetings into my predicting some

building grabbers public two or Our investors capital not technology on of leading years by or the the last from raised scratch. are with the are investors stock by or a in These venture in past than and in investing capital. business in decades. fundamentals there over biggest sentiments media, focus certain group investors billion venture four they’re have the some the fact are particular and of headline in that proven associated more $XX but The me select the here successful successes several companies will tell of long-term

venture Given this lending. and robust the demand continuing in market, we for are participating

on high further thunder, to or expect validated track We the the this would what a expense finish be by for Chris’s strong year. At is are level we stealing Sajal of the of new details current experienced XX development, in customer current fundings get this and days into we’re in into we’ve and Sajal quarter the only more this alone. again, quarter. already Chris will

we to in records ahead believe excess build confident and continued XXXX. and To pipeline are are about business of achievements will translate year of growth the our capitalize earnings growth another some again, upon venture which We our lending in we for up, wrap plan once dividend. of into the the and of achieving on of opportunities record excited XXXX,

over now I’ll the Sajal. turn call to

Sajal Srivastava

afternoon and Jim everyone. you, good Thank

debt third of sheets $XXX closed Capital debt and quarter, On million During we $XXX companies. commitments TriplePoint sheets a at million enclosed term the signed of million $XXX basis, XX we of of signed commitments. $XX year-to-date term million with

is which more Apax, Moda consumers The from of than Moda first $XXX raised e-commerce fashion directly from commitment for and that close the world. and new million in company’s Operandi, capital discovery quarter established emerging an designers the other platform with investors. has NEA, LVMH was connects around

health. a platform and company company was The Norex, Y raised investors. covering of more capital other Ventures, Combinator, is million Kleiner $XX services telehealth has of which Square second new adult aspects added Perkins, than healthcare commitment Union from Norex and

investment we of with debt on weighted-average As a $XX to for level XX% investments Jim result achieved a funding million new a this quarter companies. mentioned, record of as nine our fundings portfolio yield

equity We two $X also of investments million in funded companies.

increase to over XXXX. compared first an of companies to the of to $XXX million funded investments XX XX% Year-to-date, companies, debt we months $XXX as nine have million XX of

we weighted-average quarterly $X overall our had million yield. portfolio only which contributed QX, in XX% portfolio prepayments, During to portfolio yield our company Without prepayments, XX.X%. was

normal. million a of quarter. and was During and short-term On the $XX we $XXX amortization $X commitments, higher received principle have we on is which a Scheduled repayments of quarter, generally portfolio scheduled year-to-day also million prepays. than revolving basis, million $X company amortization million and loan loans between

during of some the reduction primary options without loan short-term utilization and/or yield quarter. U.S. portfolio by under our as was prepayments Core as in the portfolio slightly revolving commitments by maturity well the companies impacted

X.X% since post-QX As U.S. from a December the at X.XX%. to reminder, reduced XXXX, X% been rate and is prime now has

As of our rate funded of XX% were fixed debt were QX, of debt loans funded XX% and rate investments floating loans. our investments

prime to XX% Of had rate rate loans, set than less floating floors those no X.XX%.

rate prime in excess of had XX% floors fact, In X%.

based. are warehouse decreasing So, in environment, a well-positioned is our variable facility we credit rate rate given especially

when As lag draws. time a obligor commitment make you between when is we an there a know, and

higher. rate our of X% $XXX and million floors X.XX% of prime than prime in had set fact had XX% less to So, no floors rate commitments, or to unfunded XX% set

thresholds. originate focused we we As loans, on total debt return new

target based on that increasing set our it rate rate a floor, and up. goes environment current spreads and decreasing so adjust then we as prime in protected So, prime a when

credit to debt the the at ranking compared Moving quality, $X.XX, end prior to $X.XX portfolio the our of investment was quarter. on as weighted-average investment of

to white As the new to. loans clear our one loans a and are added initially to being new system, credit quarter. to were strong companies due our Two rated to list are one under performance. generally from the with rating reminder, portfolio were watch from upgraded no during companies strongest rated rating five

to during a had a portfolio company, we million incurred were realized was Technologies, the category equipment during quarter our the from we where read mark loss. and and repaid enterprises removed outstanding the sold press, financings only $X.X in QX as quarter MapR reported with in HP line MapR

a experienced delays Roli, to is million orange in value of rated in $X our due reduction its below loans music activities in value fair We well currently plan. as UK-based performance fundraising company, general technology the as which a

its get path a investors company working actively profitability. to the and the are to on company We with

One to during company downgraded QX value fair process. company’s the took portfolio telecommunications M&A our in we the for continued zero to term down a due in our based to UK, mark and from was delays company, Cambridge Broadband, red orange loan

are We its exploring the on investors working and alternatives. with company

the organic a reduction company took beginning approximately to and quarter process alternatives. on to of $X explore we harvest the the loan as During orange our waste to quarter, accelerated fair power downgraded management in of an and loan a from value strategic late yellow million company result our

the We expect in situation to here resolved QX. be

or a net a our represented basis net $X.XX credit basis, value. unrealized per on X.X% asset QX’s of On marks share

to expected taking as longer investors as been for as and last we capital Harvest not underperformance by would the common Cambridge soft as landings. last As raising these well collaborating telecom our strategic factor their or we’ve and result, and a and expected processes related investment. companies represents is look developments, credit our companies only clean say with we tech investment a represents energy and the broadband result, these going than or

our the associated during warrant basis, earlier on which was companies: CrowdStrike by portfolio equity with investments $X.X result, our warrant gains Medallia value. and were IPO and a its were had As million a Medallia X.X% up asset since. by is in prior public as public mentioned and portfolio equity our of reduced offset $X.XX traded per with in gains successful the the or Farfetch. net volatility share QX’s and quarter,

even a we were volatility, said these and unrealized from low gains of on have over bases and begin these net with Having $XX with that, our warrants equity million as in cost three companies. the reminder, to the investments

with offset any equity of from On to of $XX a and warrant portfolio year-to-date uniqueness basis, our kickers million equity losses. net our and lending credit preserve to so, the model venture even gains demonstrate unrealized related the unrealized net impacts stage million and and ability impairments. again, our have NAV we’ve NAV credit of growth had $XX

equity over continue the the with see quarter. total, activity raising fundraising robust during in million seven companies, We private to in of in rounds portfolio $XXX portfolio

have also companies public despite exploring portfolio number exit We including the IPOs options a markets. of

in utilization top five our XXXX. on value XX.X% diversifying total As of the progress end, investment XX.X% scale and proprietary TPVG portfolio, quarter’s our with last of business. growth continue down gives represented to TPC’s portfolio basis fair XX.X% we XX a vehicles our quarter as we our overall make part positions made this financial from from debt and to and in thanks QX order, flexibility receiving of exemptive co-investment portfolio us meaningful capabilities. co-investments Since the has

a started the And excess NAV only as our Jim where we of mentioned our dividend NII year-to-date and is in than on is $X.XX year. our basis, less

We a generated incurred $XX here strong than have had QX in as we’ve the closed in strong additional significant are signed one enabled we’ve if but income top term new it us commitments the position that, $XX has QX, particular, $XX to just Jim debt to more especially QX, clearly of of on track close in mentioned, for year. sheets, in QX. an million prepays, $XX interest puts which out In month dividend investments. into it for million cover of debt QX, On over and funded us million million of which would

put QX QX the on to as hand of received prepays and excess end all work. of have back here the cash the We in

any we prepays, borrowing ratio So, expect increase more as approached we to quarter-end. leverage our

reminder, our leverage target As ratio. dividend the portfolio end the at our higher without covers of prepayments a

XXXX. as growing finish strong focused to down a a the and So, for a strong – portfolio where heads and on result, start

now Chris I’ll turn financial the metrics key during to call some highlight the quarter. the over achieved to of

Chris Mathieu

interest a me quarter. take third few Total of XX% for provide million the let Sajal. some $XX.X for of income the or in primarily was you, financial quarter thank minutes to investment a was Great, due investment to average compared to larger in resulting by partially income, a highlights decrease XXXX, debt of income decrease QX offset lower increase prepayment XXXX. from The portfolio. income million investment a an $X

of prepayments of recorded generating we generating QX prepayments $X fee loan XXXX, just in million of fee of we of million recorded when to million. $XX QX $X.X year income During last $XXX,XXX, income loan compared

administrative the fees larger a was increase quarter expenses Total interest the approximately which fee, average over The from income operating incentive Total to when operating $XXX,XXX expenses. the was and during growth, in base related million management increase increased consisting quarter $X.X primarily of expenses fee, generated or and $X.X of total debt were interest expense, operating general higher and third an million. XXXX expense expenses in asset management XX% balance.

quarter compared the was in share $X.X $XX Net million as investment million or $X.X from of portfolio compared primarily due income or lower $X.XX equity of of quarter third losses to in $X.XX the recorded on the on XXXX. totaling NII during adjustments adjustments realized including mark-to-market company. change NII prepayment of quarter, per to share, or debt for was $XX.X $X.X the per to of XXXX. in in million the net quarter our third we million. third income We recorded the portfolio and appreciation net unrealized recorded third mark-to-market disposition million the $X.X primarily portfolio quarter and warrant million one

fair investments the XX, prior and XX up and $XXX with value, held portfolio our quarter September in $XXX investments XX% the million breaks XXXX. million. portfolio XX% basis we from year year-end This fair up portfolio. at at and and our XXX warrant companies of ended million We total million down total in a to cost value of equity in $XX $XXX debt from with

our $XX of Total of cash We of to credit a customary ended restrictions. revolving consisted availability base strong of other $XXX undrawn liquidity liquidity subject million restricted million quarter cash million $XXX position. borrowing and with and the facility, and under

Hitachi increasing NBH credit $XXX by we million from our Capital new During adding lenders, Bank. to of million two revolving accordion and the size the took feature facility by advantage its quarter, of $XXX

to variable by advantage we facility rate pleased growth take portfolio movements our fed. fund of and As use to this the are earlier, mentioned

As our of order ratio DBRS cost bring we target the to utilization our in cost well our side from lower of and look to advantage options explore XXXX, take our maintain and plan debt recent the of on end securitizations in leverage of leverage investment potential game private as is rating higher down. to public as to grade

$XXX $X.XX of net per recorded from NII million decline of $XX.XX leverage is quarter $XX.X as $XXX $XX.X to of target realized credit million share. of share unrealized bonds or loss our or revolving $X.XX fixed was in Total facility. XX, XXXX under XXXX. the the assets maturing in down operations our with $XXX rate NAV effect million after share million as in approximately is within of which ratio and X.XX to This the net net of net million per we quarter, of outstanding consisting We results a drawn December a giving long-term and NAV times, compared debt range. and ended of per end This baby the depreciation;

per quarter, consisting third distributed of dividend. the we During our quarterly share $X.XX regular

share of directors payable November Our the or quarter; marks XX. per $X.XX third of board we record quarterly distribution the XX declared our of maintained December distribution. on of have quarter increased consecutive a XXrd stockholders for to this declaration as

distributions, we per spillover After million continued totaled giving our $X.X these year-end effect approximately spillover or consistent declared which share. to estimate with of income XXXX, $X.XXX at

At we’d line happy please participants? point, the take Operator, you for this open be can to questions. the your

Operator

Point. from [Operator go Please ahead. Instructions] with Casey question Our Alexander comes first Compass

Casey Alexander

Hi, question, quarter. business from sound might week, was is investment of comparable about Nortel had from equity. large an fair equity the and during largest debt received Wafra investment, downward. XX% in side value the work next Then like the – we loaded and good it investment the And on have a pass-through in the adjustment the but its question Nortel, Having that – an a sort I got – a this we was this of from it afternoon. a investors.

the largest the in in comparable that the change. magnitude of the which group, curious, How that investment was I’m contour light how in contour change Nortel you was that? you the mark the received on do do received So, order of

Sajal Srivastava

Yes.

first I’ll revenue how different different multiple kinds good or money valuation, sounds and is at companies will amounts in with the business Casey, across a But So exception that’s to On of of a quite my an a drawing huge anyone then that, just raising conclusion. reads. these from different. the it take completely businesses IPO here what’s but for accompany suppose I a mind Nortel hand, financing, I is outside, think we and completely take overblown different Nortel, recently and stab really antics but an one completely are of failed all model XXXX got business amount investors model, time excesses, of kind beginners, crossing

So, Nortel contracts. rental. working into not into different startups. They’re is They’re customers, not more long-term into co-working, these contracts. or far They’re with month-to-month in a completely fortune long-term large freelancers model. into that not It’s XXX they’re multiyear

Jim Labe

Yes. associated rework specifically multiples out point to public valuation that were firm investors for used domain. of the think round And multiples Nortel with near financing more obviously, also I that in registration that out then was And work. we statement nowhere the that Casey, for the the

world and did rework. the know were profile their can we to was versus much a more the financial there and Nortel valuation they disciplined out valuation about So, compared where had where confirm that

Casey Alexander

and se, you do know some next conversations exit may Thank you do have the Great. space. you’re I that impact the for the in, what a have but think investor, the in because a technology call kind the your unicorn mean, have co-invest with changed that a your know how you that because lent a that I was reset equity of market, one. guys the equity you. with? it outlook I we components, had broader think VCs real also My companies that answering question, that I appreciate I – the you and is of do per sort have of just How question you debt to doesn’t difficult

Jim Labe

always mean very been has a I has would for been I I say company being always that bar high. the Yes. publicly-traded the historically think perception that

now a it’s that that companies or it. And considering requirements percentage that of small are argue meet we the so would even

that terms bar in IPO traded the outlook or it the companies high. isn’t a with And many been regards major how say the companies surprise have would been I some so as to or of has IPO know making there’s of attractive – the hasn’t less public more it attractive pretty

terms seen may think timing of I further created in of events it’s we’ve what is happen. exit when volatility

planning debt, capital. to And to equity earlier those IPO for so M&A occur, that – take candidly for or for which potentially exit an we’ve and seen be them events or companies more creates were planning happen which longer maybe to demand

So, the But for it market VC focusing so they’re also our speak. to longer us. say, ball, investors, overall helps I the on opportunity would

stock they’re exit York existing to I necessarily NASDAQ timing, trading. the does it impact And opportunities. not their is on lending as the investing and today timing on so they new exchange New less based do think investments new how and but or companies look

Casey Alexander

that, And in last say Okay. million $XX just that’s that you you did helpful. – debt QX? just to this of was sure already funded make investments had

Jim Labe

Correct.

Casey Alexander

of get Okay, the great. way I’ll out now.

Let other some some questions. ask folks

Jim Labe

Thank you, Casey.

Operator

Fargo. Please from next Our question with O’Shea Wells ahead. Finn go comes

Finn O’Shea

Hi, afternoon thanks and mr. on welcome everyone. for and aboard, Mathieu. me having Good

Chris Mathieu

you. Thank

Finn O’Shea

touch progression want we touch how I on were. everything’s private sort where and names to to but a to that the I of understanding of got this confidential, of want just marks quarter, the sort the – on problem

time not to is So, me didn’t – in evaluation your most power, stand for quite the a It out portfolio that stands harvest was long one perspective. that’s out that last on because been quarter. and XX

perspective. mean it something just, really was the heard I is that I how Or guess I the basically, M&A, don’t else on mean, would does question, be I know word it idiosyncratic? mean, because it when a decline this or performance turbocharged that quickly so would milestone So, I

Jim Labe

idiosyncratic harvest, believe you our say It’s $XX was balance may and original to $XX I’d million. Finn. I recall, down million. loan exactly Yes, as amortized

in idiosyncratic payer a been exploration and causing current and mark. accelerated this strategic it’s resulting and exactly, development so So, our

Finn O’Shea

know rate, I last got don’t it did I change And in guess quarter that cash you went to if it’s because XX%. the rate the like start interest interest up recently, looks just maybe, to

and it kind you’ve covenant hit – did got some it of maybe, earlier in the did amendments some year? So,

Jim Labe

had Yes. which here I in company, the of quarter and the generally, strategic QX. part during company a good its there the or happened relatively servicing at modifications in all the of all company of year, developments late mean stuff kind debt the some and developments been in again, we’re

Finn O’Shea

Thank just you. story, Roli, similar And because get end. two, sounds then or rounding pretty together. a focused the story other where guess of pretty the Okay. I lumped marked through on kind at level. the fell at I exit theme, It next Cambridge was already distressed

one of us, we of that a if part maybe, but – won’t how its stick again, both do well, I non-accrual. as surprise at, to these were Roli, So non-accruals you look guess

waterfall a is now So, we with on meeting and back a in there’s paying this part going you something big assume going next waterfall plan. round behind assessment –

fall really there? question here? guess minute again, thread sounding very was really it needle it apart the sounds I like something is So, last Did on like, having your to the view valuation

Jim Labe

companies I’d occur, usually when back Yes. Again, developments things so they say with – it’s venture quickly. relatively happen

it’s we take we rates. delays points you’ve quickly. all enterprise comp value, see that to and senior strategic data loan think the we’re either processes all discount from data into or because multiples. a public we our And when and when a is value, delays the we companies with so of capital there’s or most or apply see value been when in We those there’s of even manager effect points generally meaningful or got raisings, reduction processes, a though the development been part And happens these fairly

apply to probability various got outcomes. You’ve of

going have have take you in time And in and so can money you’re to all get to back, take you you to think also value. value fair your but

generally expect to of may those you account say lower have you that all discounts than would you I so fair show take company a even value or And for back because value, to fair into that get purposes. bait your speaking, a

Finn O’Shea

you line in And one three, ask line, And more, then saw origination of some or forth? companies as – front worked if so further revolver does guess was high these and all that just form is front at there come level of Sure, generally, on the you? bank so on of amendments on on I’ll debt did in you structured down I thank you.

Jim Labe

would speaking the two I and then not type financing. other of companies any generally ABL Yes. say the does have debt of companies one have

Finn O’Shea

question. That’s Thanks my for all Okay. me. for taking

Operator

The ahead. Please next Christopher Nolan Ladenburg go with comes question from Thalmann.

Christopher Nolan

guys. Hey,

lower rates, is for mean interesting given if slowed forward? so, and how interest it? expenses the is really at that is down TriplePoint that you’re and does opportunity scale this for And market IPO Given looking capital to up, what going an that

Jim Labe

strategy. as let Things but perspective, impacts, environment, has financing their the are think additional out. interest an rate to originations in that like ideal investment is stretched Chris an done great you but of answer IPO from IPO from getting also about opportunity to an perspective to be I’ll intelligently, supplemental it’s this, current the but terms absolutely I to so alluded an and is

Chris Mathieu

Yes.

seeing and to it’s of specifically, across public I development. Chris, demand But all markets. are we our related say more private the both stages our public capital increased entities wouldn’t think across I necessarily

a that fact of investment intensive function the activity for that’s debt. The VC VC further it’s strong Jim to exit it’s journey is a earlier, causing demand creates think a what’s capital – and raising demand debt. the and fund as said our longer I time a journey for

is Obviously, the we’re TPVG managed. seeing across yes, board, it. externally So

more growth we So, look as it’s fixed to for TPVG, impact then. of

strategies look across of demand fundamentally, our it. take all are And of so the we’ll see of scale, and seeing but to we advantage and growth absolutely benefits

Christopher Nolan

does gone quarter? has mean up for ratios? we But seeing ratio mean to operating should that What this capital Can that expenses does be be start that your to revenues? increase relative leverage

Chris Mathieu

Yes.

leveraged So, area. company. little gross I of Management with G&A so based kind think assets, a growth the the generally moves fees speaking bit operating the that expenses are are of on in

mentioned, have DBRS. grade Sajal the as with we rating think I investment

we can think our overtime. drive I interest expense So, down

scale as get less and So, hope higher leverage we to debt. what will expensive with will a be we level be that

time. to that real think the I be will ROE contributor over So,

Christopher Nolan

taking Great, my okay. Thanks questions. for

Operator

Please KBW. go ahead. The next Lynch question comes from with Ryan

Ryan Lynch

Hey, good afternoon.

fee First – large question, quarter. in the prepayment prepayment you mentioned a fourth and strong a coming

third come And I if $X.XX said cover the to fee enough large fee in like quarter. the in would quantify would have the dividend. least coming prepayment You fourth that’s quarter, implying that would the then to per a that believe at that Is you been amount? have correct? debt share

Jim Labe

Yes.

I speaking; in think right ballpark. the broadly you’re

and not be I think exact letting talking about the dollar the… amounts we’re in those

Chris Mathieu

we was the think over million actually, it $X we said I was gain. said

Jim Labe

Yes.

count $X covered million of $X.XX But would kind So, yes, QX. at shortfall penny it have and million. point, north of not kind $X the a over of ballpark in to this but fully

Ryan Lynch

Okay. at which Can the And XX.X%, core guys the quarter. points then you decreased in were down in what quarter? the about and yields prime your came why I you slide, the basis meaningfully other speak of – puts takes obviously down just was to from when shows yields, yields XX.X% about core pretty XX look

Jim Labe

a question, Yes, Ryan. great

less prime, actually the less north and of our that of two of are So, and in X%. are because have percentage floaters, then as X.XX% rate our are a from fixed we at floaters remarks, prepared – loans thirds a I mentioned, my third rate, higher high

We plus structures. either we happened. quarters, obligors of So, their $XX the loan of or most impacted through of a our had the had that as loans million some numb what with some actually us revolving short-term repayments

And so associated companies, those yielding. given profile with the lower lower risk

yield during risk associated that’s so and so them. with pay saw lower and quarter, transactions, the And draw off we lower them

quarter, an came new funded QX funded the than assets And profile of in during loans core even the funded and yield in that’s XX% the yield we here million new have that $XXX but higher QX. so the why what down

Operator

Jim back question-and-answer conference any over to session. like for to concludes Labe closing the remarks. This turn would our I

Jim Labe

We’d continuing support. in quarterly today, with everyone and call you. thank look our your seeing to you like for talking for to or soon. Thank participating We forward you

Operator

That concludes today’s call.

may now You disconnect.

TriplePoint Venture Growth BDC (TPVG) 6 Nov 192019 Q3 Earnings call transcript