TPVG - Earnings call transcript Q1 2020 | TriplePoint Venture Growth BDC Corp.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the TriplePoint Venture Growth BDC First Quarter 2020 Earnings Conference Call. [Operator Instructions]. This conference call is being recorded, and a replay of the call will be available as an audio webcast on the TriplePoint Venture Growth BDC website.

Company management is pleased to share with you the company's results for the first quarter 2020. Today, representing the company is Jim Labe, Chief Executive Officer and Chairman of the Board; Sajal Srivastava, President and Chief Investment Officer; and Chris Mathieu, Chief Financial Officer.

over it turn I to Mr. Before federal this would customary which considered safe I regarding relates statements, that to under like statements of forward-looking make company's performance to the to forward-looking or during you remind company's attention future your and management harbor that are law. securities release will certain direct press Labe, call, the disclosure future events the in condition, financial statements

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

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

James Labe

Thank our and during families everyone. of healthy On you, that are stay continue shareholders and to this their hope we pandemic. and way good TPVG, afternoon, that behalf

companies make of I during the at TPVG this health call, pandemic. As is to clear portfolio our global hope protecting supporting and of today's on first our priority our employees

and with grateful venture the venture partners, never companies the our and portfolio are The As a community ecosystem strength of times. capital global challenging within these evident also the collaboration during of firm, these all resilience venture we and closely entrepreneurs work the times, community. more is during we and to the for support continue within investors venture the our

lending our TPVG, is team, none. category, which most greatest in is of experience management strength the the our experienced the asset and team bar venture quality At

we business economic period operating have lending venture cycles we We a it. difficult have we XX on the factors years. environment segment mean woods, And into In many this the market of executing through than is the lending this environment, venture been brings on lending the that although in been over us venture have decades and of of the from of mitigating broader less sector. could the the have and and And very BDC a experience get the BDC are and last our some some playbook affect far out focus in those shortly. I'll segments current of

the execution of Our of and playbook. in value consistent our demonstrate expertise QX this results

to quarter, at a the we grew During the portfolio record million fair $XXX value.

We stable continued deliver to yields. portfolio

debt NII strength and not year. also generated in resulting of equity dividend, We last only but also quarter, very the markets of in covering raising then excess both proactive our for liquidity in dividend, some. capital the We the in remainder were capital, this

BDC. measure, unsecured and as added announced conservative an in place a with keeping practices best-in-class have show from that today a we in of and we our belief adviser, merely revolving in true As support facility as our put an

issues mentioned market. our the of that the earlier of some challenges, those lending avoid venture are of BDC other broader and I differentiated segments facing can segment which some

arise all we have directly, party our don't the with that originate we business First, multiple so complications syndications lenders. in

by capital venture Second, backed funds. our all are companies portfolio

or funds relationships. had These other a people equity durable such this long-standing, funds powder, not through so-called more this to so TPVG, every PE as further venture out corporate in to with narrowly as capital Our stress hedge capital At funds, XX refer companies. select investors whom companies subset their by we are sources are purpose, as sources. or funds, as these -- venture capital companies periods new we primarily we've expect they there. funds, for months dry reserved venture generally as profitable capital-backed funded have capital say. of equity are their believe invest our that very We during XX through And venture limited capital define to venture

is venture by billion have funds raised of Our here believe several more funds our last capital lending number raised provides many a partner outperformed that select companies, this of only These companies since select was with layer of the funds TriplePoint of the bear all capital portfolio of $XX have of months also markets, closed year new additional other during not XXXX. during $XX approach venture an funds, We why bull multibillion-dollar the alone. XXXX periods, our their than funds. reasons versus strength. in but venture and XXXX. historically the to to A in one and those backed loan first capital them market billion of chooses

provide pandemic and details Chris overview into will on the like the of COVID more impact. Sajal its I'd and a brief to portfolio, but jump

others of includes frequent continue active to the existing portfolio with as the monitor main thank adviser portfolio. the and and across we conversations This venture investors our capital providing operate stay Coast and and and well. and as First, ecosystem. CFOs safety, our our on we CEOs continue our employees priority, company in After we our our remains top continuity East to offices, portfolio and and West venture remotely backup

COVID implemented plans. conservative post-COVID all strategies, have including companies developing very portfolio Our

term our size, reviewed also pipeline commitment appropriate and, adjusted have and needed, recalibrated outstanding and pricing for term We sheets where utilization. sheets, signed

be our of meet will think it, expectations. funded and our to I is only that companies precious As capital

opportunities for very challenging We've also high-quality all this thing, learned having in one arise future business. that experience, may the times,

make fund continue in as investments to venture companies. as select existing fund well investors new companies, Our capital

XXXX further for were our of By the originations, example, written in wake venture TriplePoint great Some recession. TriplePoint deploying select at growing the solidify strategically with and partnership transactions Capital, our funds. will

of a the of deploying their our period capital means deepening portfolio and to capital this approach our critical precious entry. playbook best Our on during venture focusing relationships with barriers companies is

benefit source as times more robust which financing well. economic trusted during us the are We during will times, challenging

TPVG new we're and While be and selective to investment also we going the third most on materially for expect economic recovery as up period, turn to here see increase and we during highly focus those relationships commitments, and during opportunistic the opportunities we debt pandemic. the to quarters our originations compelling opportunities best second and expect this with COVID from

working I'd with capital pleased woods of growing we're environment. the our debt equity period, the next will achievements the during covering last wrap like opening both than not We're the current of the the challenging more to While by remarks. playbook our any and for of quarter up and quarter with closing through dividend my at raises quarter, impact This economic and least X, a we be very out is stretch. or portfolio

portfolio Rs, its of never and firm, to stability the right as the our important: manage the references. this our for period now, liquidity have manage as have team been well foundation and We Right our X our through reputation relationships, maintain to more shareholders.

I turn wish all over of the look this to you to session. continued we'll I good now forward Sajal. Q&A And health.

Sajal Srivastava

you, Jim. Thank

considerable of in pandemic, As result a and of the operating COVID volatility we a uncertainty. are period

last. don't circumstances, TPVG these As know will conditions these long through how we we navigate

can our guidance So what performance our we for for playbook. on on what our the review share to X expect. thought I the outlook as reasonably short-term X know our some today will we business quarters next for and to provide is QX, I based And

with with term million TriplePoint we During and million the commitments of stage companies first $XX.X quarter, growth of signed at companies sheets closed Capital TPVG. at $XXX.X venture debt X

and our firms, group continue we Jim mentioned, robust communication of see venture frequent capital debt with As our select in demand for adviser is to financing.

is best our most active near-term While in investment existing for debt compelling and on the highly to our and priority our on opportunities. expect selective TPVG focusing TPVG portfolio, opportunistic, relationships commitments, we the at but new be

materially We see the more expect recovery COVID crisis. economic as to from increase originations we

of IPO Our investment highest XX.X% XX investments since funding a our level as portfolio quarter $XX.X average of with its weighted to this debt companies. result million reached yield a

in $X.X companies We valued also and $X.X invested companies in million. equity of warrants XX received at million X

companies, QX million of of our many this in investment investment venture down We from TriplePoint the platform $XX.X investors and partner. portfolio operating million their as they capital the trust and dependable fundings million a consistent $XXX $XX confidence demonstrates cash at Our and well the of our QX runway our strong, in position as debt have level debt existing financing muted and this was fundings of quarter of think in as fundings significantly XXXX. fundings and

million we As we million see to the quarter. expect year, per fundings look range the the to in $XX to rest $XX of

line quarter, this new I investments, debt far funded just in with the million in we So $XX.X discussed. approximately range have

was average on stable QX, a portfolio the had quarterly which XX.X% U.S. debt yield Core had the portfolio investments. rate. yield a weighted portfolio reduction in $X prepayments, continued During prime million company negligible in to despite impact we overall

rate of XX% Of those fixed funded floor our rate set investments were loans As higher. prime rate debt and floating or were loans. QX, a loans, have X.XX% of XX% to floating XX%

$XX in QX, $X.X had interest far we've million of of generated income. million prepayments, So accelerated which

the to prepayments companies of quarters, X look mild X the look cash next to to hand. to be expect As we of we on level balances keep as higher

million $X.X of and amortization principal we QX, During repayments. scheduled received

portfolio serves yielding, that payments million as of amortizing principal QX, the scheduled is deploy TPVG which nature substantial the our generate high $XX debt from companies amortization. cash This short-term of contractual to course intend through pay and a the over source of and reminder, flows QX strategically a scheduled million reinforces monthly portfolio we from for investment us As loans $XXX of to gross our and selectively liquidity and of year. our represents

continued to is portfolio, in quarter. fundraising raising $X.X of equity $X.X XX portfolio capital private raising over We rounds QX of rounds in equity are This see X financing activity the the over billion equity during of companies pleased billion private XXXX. companies to addition in the during in with

and investment growth also Casper had companies portfolio raised company, During complete believe developments credit one we strategy. We these the the demonstrate $XXX resiliency venture which of portfolio quarter, IPO, in million. its stage attractiveness, our quality Sleep,

in portfolio X equity companies rounds raise as So QX, had far we've well.

of gives of if further for Their expenses cash adds investors portfolio. existing majority of also storm the not the have and that and the growth typically I potentially cases, would cash them in but like provides that, needed. portfolio our highlight over. round venture and that, our storm, time the to companies supportive only extended reduce venture down weather in capital resiliency future after sooner, the their of reserved stability time runway our to the generally operating to ability have is or investment, to hatches them recover stage On companies additional runway to top many COVID large capital the batten to balances extend

as QX compared credit credit portfolio investment X.XX quarter. end quality was weighted to prior quality. at on X the rating at are end new are typically The the average to investment the our X Moving being from X, debt and Under our loans system, X.X to of strongest X. of rated loans initially of rated the with ranking

from to and no category Two X During also were upgraded obligors new the to to were companies placed to X X. quarter, from the on were X. And category category added X during nonaccrual category upgraded downgraded No X companies category were were category category companies obligors X, X. from quarter. X X or

were to credit execution impacted regards raises or the speaking, from recent COVID challenges. by downgraded X that capital or quarter, to either downgrades generally had X, this X during With the had quarter companies delayed

this them close rounds later financing and to to the we expect company's be upgraded Assuming execute plan, year. the

I to this of would overview provide like high-level to next quarter. valuation approach our a

venture stage middle growth is market lending from different very traditional our business mentioned, Jim As lending.

markets There our no loans them. of hold and for directly market control we and secondary Our syndication or loans. is XXX% originated, are

This returns loans, new set prime when on we environment our we the originate debt in decreasing increases the floor. thresholds, goes up. based as the generally then prime our on return it rate rate a we As spreads rate and and generally current focus returns total establish our and protects

that, adjustments of to made which risk and While and for we real COVID, been world. industries market of also higher lending. rates in more On such the companies market level estate COVID subsectors, haven't adjustments drastically by and quarter, we this approached made reflect changed, in volatility negatively evaluation as consumer, impacted as have we certain top travel,

certain for the expectations adjusted also we our uncertain conditions. Finally, recovery companies, economic given

per of are $X.XX $X.XX against value loss to book, hand in have we our operating took names unrealized in that reductions related X. obligors mark except excess million cash was a rated share book unrealized loan X of our the $XX.X million resulting list or result, who net credit book, list, an on X generally who asset runway maturity every date, loss $X.X the watch with million As $XX.X our in and per those rated profitable or or share on $XX.X on X.X% million our value. loan of loan in and through loan related Of or on watch was companies X to on fair a

equity had gains quarter, on unrealized hold public which portfolio, unrealized we worn million on to warrants warrant and over of This of new to our the unrealized Medallia, we have first equity $XXX,XXX generated rounds. unrealized again, $XXX,XXX since gains mark-to-market them. primarily by portfolio of and losses This related the $XXX,XXX was gain our of was During receive and CrowdStrike and $XX.X unrealized offset equity comprised and we of private with $XXX,XXX impacts equity gains associated companies, of of net investments. attributed

our debt last XX, from top value down XXXX. from a quarter on March QX portfolio fair represented positions the X XX.X% XX.X% and investment of XX.X% total of basis, in As

in the co-investment has proprietary thanks made part We continue our scale Since to order, co-investments receiving of of in Capital's exemptive capabilities. while utilization to TriplePoint our XX make prepays progress building and our vehicles. diversifying with portfolio TPVG, TPVG growth, portfolio, overall

TPVG larger with ability for strategic real Capital managed as the a is co-invest TriplePoint platform The an BDC. to externally advantage

talk our believe uniqueness global the we best-in-class our validate managers, While many actions investment of platform. about being

value, and the formal we equity offering months net we the waiting so one capital rating, case additional guidance a of Beyond with TPVG and investment diversifying investment-grade we consistent the to consistent were receiving up offering leverage X-year co-investing, We gave of until our with goals our raised use in debt lowering X.X%, level. our levered our a supported last later, was middle sources, the the at BDCs consistent million we were the in of notes quarter. equity $XX to running Then privately credit institutional of at at few raise premium which asset after did to of we a grade raise of storm, first proceeds. COVID funding and was stated public and our just cost more

to And a the with we its our where shareholders our $X.XX generated structure of during our and back NII an announced shares above despite impact the feature QX, $XXX portfolio we commitment the these but uncertain to in of cash a alignment again million success mistake. this that, of result our provided sorry, to times. $XX accordion fee million fee platform's adviser of the with quarter, demonstrates $XXX and on the earlier no losses already support. our of of have scheduled of from which top unrealized year, in million equity on our distribution TriplePoint million liquidity best-in-class and its benefits $XXX and we that look companies is portfolio strong Also our today, million the of $XXX demonstrated incentive new IPO, of unsecured facility we raised Make of up through the and has this substantial -- dilution issuing capital our the capital flows backstop our show additional cap quarter. credit as the us feel Capital revolver last year-end, from TPVG for We

investment, to attractive in to is to But In provide and originate portfolio on manner their only strength manage substantial us them and our to protect to we stakeholders, with in accretive also debt portfolio disciplined will an continue high-quality a firm that as yield investment. all at our investment our our highly times but their not a and cautious we to be liquidity support puts be companies opportunities. to closing, of position very our clear,

Jim XX of are COVID been of and through through this and years together, your cycles stewards I of our being our up to working the multiple and challenge pandemic. have navigating during firm capital

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

Christopher Mathieu

Thank you, everyone. and Sajal, hello,

the least, interesting an strong to period, on finished first quarter quarter the note. was the say While a TPVG

take on through update quarter. first an the for Let you results me the

the million Total higher yield million investments income was investment investment quarter the quarter balance XXXX. total debt The quarter in for XXXX annualized quarter. total on was and The by increase in weighted average a compared first average of of was $XX.X for income other as for $XX.X XX.X% driven of first to portfolio first the portfolio the XXXX.

Total the consisted of operating first XXXX. expenses expense, of quarter were expenses interest operating of compared first for $X.X million million million $X.X $X.X the to for for first total the XXXX, of as $X.X The generated expenses million which management of quarter higher a base in in interest million of average quarter. in portfolio from increase fees increase balance primarily growth, the G&A. management higher asset was fees The expense operating an and to related total and quarter $X.X

NII, the share million income, Net losses investment were as first XXXX. as per for or changes, or $X.XX or on discussed $X.XX the for first resulting related $XX.X as per Net of previously of mark-to-market $XX by was quarter million per compared from XXXX to adjustments, call $X.XX investments the $X.X unrealized primarily quarter in share Sajal. all share, this on credit-related million well first or quarter

$XXX or The million the assets million to quarter in $X.X with we quarter net or for XXXX. per We by million. the assets operations $XX.X at operations decrease compared was in ended to $XX.X net of were that XXXX. $XXX of sheet in offering assets resulting At end, the of investments ended to million months or on a share XX, due January, net XX. $X.XX common balance The $XX.XX first and $X.XX of X net in in net operations quarter million net is fair March decrease stock $XXX.X completed assets value NAV from share the NAV, aggregate share. offset increase for million, or net per total share, value, at including in $XX.XX per cash increase per December total Compared from a the asset million quarter from of $XXX or

disclosed, net as shares, proceeds to deploy then the quarter. were previously successfully an resulted proceeds As offering The the we revolving initially was million. of proceeds X.XX net pay and began in completed those common million which used our credit underwritten facility, offering stock of to down $XX during

during million million will to We Of prior unfunded million million, $XXX which commitments, expiration. drawn XXXX or totaling if and subject prior XXXX, $XXX $XX -- not if reported the milestones. not million expire $XX to during of of unfunded to commitments $XXX were will expire XX%

In commitments to X.XX% addition, prime all rate higher. of our a floor unfunded set have or

As company of and and the million, existing liquidity credit available subject consisting facility capacity covenants. had total March $XXX.X cash revolving advance of terms under of $XX.X XX, million, its of $XX of million rates, to

can the under up million facility our In by expand an credit to feature. $XXX under addition, we the existing credit current revolving accordion facility's additional commitments

in as sale. traded addition, March of held publicly the available million In $XX.X company stock XX, for

March, at semiannually in In March in notes year, half of of fixed represent investment-grade XXXX. institutional notes notes completed amount rate company's the by are a the rating X.X% the second DBRS per $XX interest XXXX of The XXXX. offering aggregate payable of company offering private million after matures in and These first unsecured and of credit a bear principal notes. receiving its

XXX%. facility. asset consisting XXXX; of I also $XXX level With as a the $XXX mature in ratio end fixed-rate referenced; an our or borrowings, retail this borrowings we million baby the bonds million just of million, outstanding XXXX listed notes of ratio outstanding X.XXx NYSE, outstanding credit of which coverage Total under leverage of and on leverage reported $XX of was quarter

NII portfolio the by a thanks XX% our quarter another of raise to $X.XX during Despite return in the excess managed, of by requirement of we January, Sajal platform. best-in-class Yet our an of to mentioned. in distribution common high-yield able were declared share, a total the having and increased externally that per equity example already outstanding benefit generate stock as the result

payable declared part per stockholders that for of Board to Directors distribution a our regular quarterly on announce share quarter has ordinary of we per share of XX. income from as first of the June $X.XX of XX XXXX, am to of the distribution. During quarter, I as $X.XX distributed second record June pleased our

our our we and we other as XXth profile -- at As distribution Board strategy for evaluated, distribution debt things, consecutive share. of our and our maintained concluded for looked This XXXX, quarterly look we to the our $X.XX investments, our the leverage expected increased fundings profile among have per or quarter yield marks the and management hold at distribution.

while ordinary that for support the the XXXX we $X.X million from We continue to with future. distributions income distribution are pleased to of to additional we approximately our have quarter income, note spillover also in covered

many We we appreciate the dealing and you that time today, this that with, week the must this time everyone questions. call. appreciate happy hurdles all of took us would scheduling your on take join At the be to acknowledge and to be your time,

operator, so And the at line open please time? you can this

Operator

Instructions]. [Operator

from from comes question Finian Wells first The Fargo. O'Shea

Finian O'Shea

this I this First, existing flow, the a for know want some of I deal few I matured of to the one ask quarter question companies. nearer-term, nature before Grove, but on are your end. to saw commitments the is that that Roli, think OneSource, new your quarter a normal

liquidity of will us on can you means issuers. So some for you the nature a what those do and shorter-term of loan the give that color

Sajal Srivastava

and start, I'll jump you can in. maybe then Jim, Sure.

know, our as it Finian, you or customers of have as debt So commitment structured our to them -- commitment, are lines credit. our so when comes unfunded to

then their match they we use of And dates and multiple typically X have proceeds draw to schedules to XX fund so give for generally strategic And from amortization months lines us. on the them purpose. to maturity the

on our excess to capital just on So have they're balance capital their just not sheet. drawing

during quarter or funding add. those generally, prior commit choose a given they fundings so commitments or being asset-based don't options that will longer-term on Jim, which utilized. facilities marketing the know it's extension, be may more on I that quarter, it's if company-specific uses the say I quarters unfunded and tend to And related, shorter-term to plus have And would to more in the new extent they use -- customers any extent options, you the structures options. options the we they have from we'll to runway expense may inventory shorter-term choose

James Labe

add really than and prior of their I Yes, -- work to to we companies needs we duration, others to are to provide financing term, shorter-term that strive much are so can't financing to at with are not -- TPVG. the the talk And advantages of very and optimize of one are liberty to privately strategies. but our companies working about some of flexibility these some other financings companies, meet longer and short-term with these beneficial held the

Finian O'Shea

just level Very or numbers, guess, preserve are follow-on, revenue a challenged and level. but covenants are probably Do any well. to And set your profitability I or side, of portfolio higher milestones understanding or lending X lot -- is profitability your cash? a higher-portfolio anything on typically back to your revenue with companies metric that does might but or impact on overall, able parameters But liquidity So lag, parameters? okay. the cut that

Sajal Srivastava

cut, jump please, -- take you I'll don't have then and Jim, first the if in. mind, Yes.

point I that like Fin, maybe a you pieces. parse think So to important hit I'd on very through

not, place. So have protections first on or the I thing we milestone all various is unfunded commitments, our in of think

these where like generally the in generally So to But that performance, to in we Jim, not the general important adverse we maybe we unlike, us, may no document that. something there in protection I We the bank that and to years; say. requirement Obviously, high great of of But the start-up that some addition going the relationships I what to way, other it's materially regardless the been plan bar also there entrepreneurs, form you're Jim fact ensure think when has companies, is that legal XX-plus there it's have material or me, performing world; talk, revolvers, a call -- a hand, very inversely, years. is companies occurred. for have phone, say, on other maybe I'd their VCs. up with pick are is change XX-plus

No company plan. meets ever

that higher as definitely back, plan. valuations performance have reality that variability think tolerance or are also you there I so companies generally there lenders, a is take And valuations some, although financial as also are of for beat set or future-round because, -- know, said meet commitments, revenue venture I milestone-based lot question, and companies in validating the operating we are a company, to But execution expectations. the But a to access milestone debt future or company for your is typically, more revenue that, to the some raise, either unfunded the to answer those to set specifically, for having performance capital. future have with milestone strategic more there capital

of where those our we basis. reputation look so And on the we're Jim as to -- we we're important. are very mentioned and loans, to very protections generally legal when But also our and intended underwrite again, appropriate looking again, for nonmilestone also milestones. the remedies what use proceeds in But -- we have the his script, relationships are

looking that's kindly on you an company to draw have when very capital. underperforming think and we so significantly And

James Labe

A contact it's of overall, of the unexpected. we we put time deal based milestones don't plan, companies. on have I and don't are plan, not close behind coffin, ahead I time than all, teams, actually these other much when some change, stay But plan we them rarely of good -- Sajal with the add nicely. companies the put more together, the have very which are the that think also the these presented. of -- Yes, origination to first nail of of covered the that plan. in number the hit I things too the on investors at And the on we is Sajal

know we their milestones and where they the just versus so aren't are original revenue. multiple ones. And plan Oftentimes, is there

of and some we It's And there's metrics. not again, performance It's equity whole cash round, fluid It's and a just of flow. some in revenues. resiliency, with work it's these line So companies. terms There's bunch number. closed. top it's

Operator

Casey Your Compass from Point. comes next question with Alexander

Casey Alexander

XXXX, when discount, in company the Why significant One shares program share active now? a have had question your a no trading share fairly at XXXX, is program. I back there were repurchase repurchase is

Sajal Srivastava

And take but I counterparty middle in. just liquidity would I COVID jump in we're for And the although new now, position investment lenders Casey, Jim other crisis. about opportunities, and think and Chris, things. that's of not concern important, risk, of also strength, necessarily question. please think, again, a Listen, right is this I'll say the I

And so knowing we capital about time, have buyback about we But our program. with to little at have a Board given to a a pattern I the with been the of underway expect world appropriate being And communicate and them. our in our ability bit the aligned the is conversation raise have restricted shareholders.

we're I logical had to, and the we've thing have world season And that think so to after it's what conversation. up to our the on results next

Casey Alexander

repurchase XX% a at million to stock CrowdStrike that share you that shares. to that that to repurchase potential the in X.X And for I'm counting value the by use equity go program. and million still surprised liquidity, that closing be at dividends discount, that of use shares, could for you price, a have equivalent get see $XXX the in share And frankly, Well, that you of quarter at investments $XX use you in or to program. could frankly, with and give if equivalent could today's would that to CrowdStrike. the own the position you the using end The would vein, that's then repurchase

the platform. own precious to -- CrowdStrike don't curious I process receive is line period a you from the where at is thought to parent a continuing need of what So capital I'm in and

Sajal Srivastava

on are orderly what our trading position Yes. can't No after occurred. I CrowdStrike, strategies our lockup has but we're our to is again, liquidate -- doubt disclose

think the liquidating would of QX, through couple no should position liquidity and and be team, viability and -- all I you of levers we I the see us one in was So in surprised the -- worried the CrowdStrike platform, Listen, our over quarters. playbook. I the the say, next were the about portfolio, were think most of probably we important things thing ensuring the the crisis the going to

the at analytically, here heart other were a highest and so playbook, the logical we and Casey. buyback, our QX, all of that tasks. with are it top the of expect are are about QX's right, And in those conversations crisis. absolutely and through things was priority other not then priority COVID, And I'd that QX our a in And to managing those say have given very the in in not we QX, was very you execution was Board the But it, thoughtful.

Casey Alexander

that Okay. beginning of quarter I much guys a give end it's Can the activity closed how versus you Did close? of your transitioned lot of us the origination end of early sort And the at we've the of closed the the as temper the end stuff the usually, quarter? at When these how did Did moved in you model quiet quarter? software down quarter. that quarter? the the mean the a of -- at second has into of the of activity quarter? things these

Sajal Srivastava

in. please happy and Jim, then jump to start Yes, I'm first,

I of the call think during the QX had we quarter. our benefit we earnings So Casey, -- had

then, of could during in were see release, again, months X a So you had that first that -- QX... very actually we busy

Casey Alexander

will if to billion reported years when like ago. me forgive You have you X feels QX

Sajal Srivastava

QX we -- investment. which the had of $XX time the of call, closed million, as so had -- QX X, million was we call, March funded which of $XX and albeit So

here surprise, us Area again, week March. mean COVID So hit right? in and U.S. really -- the I really the in of Bay it's third particularly and second, no

weeks X March. to we X didn't see really, until So of

robust. And market is of, we're crisis our stability then and happened, so And February, COVID clearly, the very this when the calmness raises, off, we debt January raise. -- capital The we're just and particularly of again. started strong, proud on again, in something obviously, institutional

from And funding. new really the hit. here $XX first if $XX end So the of you million crisis QX, funded new of And we're then look to investments. at of than month of in less $XX we million crisis million quarter, before then

large very comment activity. very we the stable. and the made It resiliency to equity liquidity position, the stability cash about and, the goes portfolio the more calm, our investment importantly, So of companies

his originations again, and... we jump as so please pipeline managing pipeline. you mentioned Jim, I And if in, Jim manage the little comment, the a Jim, to know talk bit how and don't during about just want

James Labe

Yes.

So which about cash companies don't their is surprise here the through, I period to know through and is been of over this And many needs. plans demand our we've rodeos very revise and in now, to very, how strong us, venture think try think uncertainty lending. no time as

to is time understand and want So the a want conservative. strong. accordingly. is deals But the We learned want We and cash is to where to the pipeline we've be this structure what demand we needs thoughtful. the be

are term so existing last these understanding opportunities, our some portfolio capital careful, there among I on companies, somewhere working the equity their are I helping capital look world that the schedule is think signed we COVID there X, I venture So billion out there any are strong, there's companies these strategy. X of is raising these And select through plans went investors. money, our $X.X drawdown our of months out but also good, mentioned, with due just think some to investment diligence but we particular and impact much new portfolio, and TPVG we with deals be in the want companies in the sheets, the did financing venture demand there. companies in revised don't hard with a

Casey Alexander

Okay.

are compared last loans company many how on Lastly, nonaccrual to quarter?

Sajal Srivastava

do one? that want take to Chris, you

Christopher Mathieu

Yes. it's number. the Yes. same Casey,

mentioned, As nonaccrual. loans Sajal no on there's new

four last same obligors, there's So quarter's, as same names.

Operator

next question Securities. York comes Your from JMP Chris from

Christopher York

Cash median to want PitchBook supported the basis. portfolio today a bit XX company I about for for companies that capital and little talk venture runway clearly is at the cash months. VC-backed especially is king about So investing.

the provide your I'm us on data runway for So today. you if curious could cash any portfolio

James Labe

to that. Feel free add, tackle can I Sajal. Yes,

and all them. working little few are So plans work And quite our all They venture we're these and and haven't managing issues. -- some dramatic And Chris, capital from frankly, that company they COVID. of with conservatively, every has so impact had portfolio with, some revised cash a funds lockstep change. a them they're better -- with kind not were we And any tailwinds. headwind very their of companies

close week. there's into company closed and then some close. them moving last just a runway, number at. One around So question, are rounds. more get because closed have in by in private while, these terms We a of things are we your talked them Again, of to cash they are are in and targets billion rounds about cash about look companies, to these coming and the $X.X right

than a some portfolio runway. segmented changing of months story cash the of more companies of portfolio lower rate in the the what it short, than we're some haven't good again, TPVG rates, terms half have in operating pretty XX about are but speak of make really long we feeling much more from into cash. as because, burn burn So We they were

Christopher York

quickly, that rates that are situations provided can common was XX% second And XX And -- helpful. on of understand first repeat of I the LTV Very Or capital raised I comments portfolio in your secondly, quarter. companies actually you have very over that? Certainly for the where Great. an helpful. you just then Sajal, quarter just but appreciate extended burn did changing raised and that injection in is of the months portfolio your then, you there round then so me? improve? that, you below missed any fund the those

Sajal Srivastava

question, Great Chris.

those $X.X and in say portfolio pre-COVID, had pre-COVID. statistic X that repeat were all companies companies raised valuations over we billion those were yes, majority terms capital. I So those would the or QX, of to the of

flat imagine, up can So worst. up to all -- were valuations are as you the at they

performance those in round strong despite QX, the have the even of valuations. X and COVID, impact have been speaking, generally rounds within all announced So that up companies at

million Cohesity -- by a a company devaluation SoftBank, valuation, which billion than one was prior led higher double $XXX this round is valuation, comment, portfolio equity I and announced of round last now $X.X round was In at their fact, can round their SoftBank. a

accretion. still doing things. Jim and we and on down we're new expect and flat seeing impact So see -- some to being it's flat. being we're it's talked seeing to, but it's And the new And valuations again, early, great the impact as companies and some on strong valuation activity, are great a up balance,

Christopher York

next Very helpful, lead question. up to Sajal, my

You SoftBank. anticipate very fundraise, there. portfolio willingness any topic support thought Obviously, But Cohesity's to of the do SoftBank, talked with on a little any bit their company companies? there positive your about of issues portfolio your you for

Sajal Srivastava

-- on comment investor. can isolate one I Listen, Yes.

We almost mutual a had, portfolio say, SoftBank. with I have historically want to dozen companies

debt by outstanding bad. one company only is. it with SoftBank. It's has statistic, TPVG that is I backed that's is just portfolio good think what or it know don't I if the

listen, And supporting think the see to in continue them so, active market, portfolio companies. we I

statistic or at raise Cohesity's to great think than for ability I rounds a of valuations SoftBank-backed higher statistic great a companies SoftBank. portfolio

been they've negative nothing say portfolio And we they have us so say and to would get only and I So good I think bad a rap. them. our about companies, to

Christopher York

of touched subject on a but you at to good did Very my leftover. my have -- part point. lockup Were Casey CrowdStrike, I XX-month question IPO? on a

Sajal Srivastava

No. not. No, were Standard we months. X

Christopher York

Okay.

is So so today be your sold could -- it position today?

Sajal Srivastava

Correct.

Christopher York

of me can question, Okay. in. maybe you level. And be for then Chris a to Jim the to Chris, comments last dividend your was or Board certainly seem the Sajal, or deliberation there at about maintenance jump the like

have degree second at in this portfolio your rate providing dividend earnings rate of -- beyond the at do So confidence quarter? what run run the you

Christopher Mathieu

Yes.

has the do. always Board and the that think I discussion, prudent to it's a thing

each kind at a natural were that level. are talking sharing about those for distribution that and just So we that of elaborating conversations quarter I think we're

be to always think that we given are we the just I say leverage with that portfolio. we the where and thought comfortable the we it robust of portfolio, happens, that the additional fair have with the discussion earnings are would power

a it behind was about, sharing curtain bit nothing really we else. So the talked just little what

Operator

question Ladenburg Your from from comes next Nolan Christopher Thalmann.

Christopher Nolan

are you your investments? when How debt often rate the you discount evaluating value

Sajal Srivastava

Chris, want to do you that? take

Christopher Mathieu

valuation so our Yes, it's Sure. part of process quarterly for our close.

fair at that the with do we So process. in value least connection quarterly

Christopher Nolan

a for for the the portfolio? portion portfolio of just that or entire Is

Christopher Mathieu

XXX%, yes. Yes.

assess that market -- come do adjustment dynamics. we market a the the as or under the a the that that we overperforming for XXX% in firms efforts the a portfolio should And well So credit Board's work where of the way we we and across migration, valuation we of they, rate portfolio, there if external discount rate evaluation or internally. discount is be process migration compare any adjustment? impact an credit entire implicit whether it's support that efforts have at process. with too, up there's an have our quarter the an rate, this And as fair adjustment, transaction, look And value to rates X and every then

Christopher Nolan

is guess Are this And that seeing I power new XX.XX% on versus That's I market? investments, pricing quarter. actually XX.X% the in average you helpful. Sajal, for last weighted then yields Great. yield noticed stronger guys

Sajal Srivastava

good question. a Chris,

remember, the do and start, you X I Jim the we I'll current rate say think would deals. -- elements. new deals is please, Let talk me have about Jim, then talk and more let deals. for in. of new should commitments. new I'll jump I One unfunded

they're deal. so time at at prime floors locked that the And the we the prime the do in. set We

deals. terms it, So backlog and in I commitments and rates those prior have, from the given unfunded from prior we call set the quarter, any

book insulation, unfunded have to So floating high set -- The X.XX% are X.XX% that's the have higher, but of equally right? floors loans XX% of -- -- our variable floors prime our commitments loans higher. funded our a percentage and our also rate of at prime

of current prior about the that have and of commitments lock the that those. closed talk from Jim, rate benefit we effect you rate market I'd So on to that floors deals want say do in, prime lag unfunded higher dynamics?

James Labe

add. just I'd guess I Yes.

of I highest uncertainty, it there's we're foremost, very financing period, higher during transactions out period debt. there. trusted comes this very we're, this these and for emphasizing and -- strong And when are looking new carefully again, so because partners first companies of And demand, guess, through quality going So to that. of

And partners trusted a are the reference times. opportunity, And are relationships. as the for opportunistic, and uncertainties these got but up appropriate and say, at don't times, on so and an there. I we has for companies being again and want looking structures reputation, capitalize of pricing been we're there to risk tighten mindful say, just And these let's lot that these to and

opportunities, are So yes. there

Sajal Srivastava

Chris, add, push only would not to goal I lower risk. is -- it's our up, here just And rates

sure we more, charge investments. downstream, If And so on went our we could Jim we're I'm methodology that's underwriting focusing, not expertise. as but or said, higher-quality

Christopher Nolan

given question, new general fundings have have that liquidity and prepays or keep your try million, vicinity fair to date your relatively final to concerns, $XX been it you're going fundings million. to $XX same been amounts, prepayments to And Great. Is the so? given say that the your in

Sajal Srivastava

can't We control prepays.

and the raising activities, portfolio equity be prepays or whatever IPO, be. obviously, a strategic So may companies of are function M&A their that it

we our we're companies I and great focused beneficial them. really companies. our want just strategically when our to so think, capital good And really And on credits use for from perspective, good it's

their it, it So something would intentionally cost balance we're should not to that when it's our for I companies associated controlling most sheets cheap say that or they strategic, on understanding the something use It's it's put not guiding. and want for not with We capital have rainy a that it's use. days. strategic

Operator

comes Bank. The Bahamondes Deutsche from next from George question

George Bahamondes

you have reached if the give a what sense Just can wondering COVID-XX? of loan or out percentage us borrowers of of since portfolio onset about modifications the

Sajal Srivastava

want to do take Jim, that? you

James Labe

Yes.

it's large knowledge, companies Chris a or problem of is it, at reason very now few. The we or Sajal know my platform. say very a companies. TPVG and to And TriplePoint few I'm portfolio it's been it's right not major but would might issue cost very a raising. portfolio actually I have or hesitating far material only So between

Sajal Srivastava

watch companies portfolio how certain think on liquidity credit and on they list with extent. should, And were goes would cash. no use a the portfolio it modifications so again, to positions happened I strong I But debt the non-lower-rated our and to think guess, that to thoughtfulness new watch manage and I they happened of just during would regards add, the quarter that you modifications companies, only credit George, list.

George Bahamondes

income. Can remarks, just That's guys that I that. you missed helpful. spillover during around a Sure. number? repeat there And was your comment prepared

Christopher Mathieu

spillover's $X.X the Yes, million.

George Bahamondes

million? $X.X

Christopher Mathieu

spillover Yes. the statements bit for distribution a That on since we And Correct. an make XXXX. That's to from added, annual covered we but right. little as basis. QX, was balance the there's

Operator

Matthew from next The from Howlett is question Nomura.

Matthew Howlett

just capital the a is leverage Xx, over at management the before cash balance, terms The me tell what got? front in million. terms First, ratio running expect high cash? started. maybe what $XX excellent little you guess leverage cash, this on What you down job in end XQ me always line the of net wanted. putting at is unsecured to you're tell and terms on the you can all What over on of you of a in I question the cap drawing little of can that the the in with cadence

Sajal Srivastava

then, in. I'll Maybe please start, obviously, two last some were Chris, the periods. of crazy Listen, And particularly very Yes. March Matt. and weeks jump chaotic

for as us, of liquidity And much position we strength. a hand felt so on having was reasonable

is some tend you ended in and to know, we there's strong be fundings Matt, a Xx. at the then on, which lower. pointed just spillover net our all to the given the -- going right and so But ratio that leverage we end in As as ratio position ended gross week, things if strong first our of out, quarter, was factors wanted the you the market leverage obviously, and be liquidity quarter, as up,

we on we think stability and to more maintain translated facilities, to seeing, hand calmness see credit I as our hand expect -- net lower cash we fund investments. in our which leverage new and cash will on be -- is use just we're cash the less and the our and were debt market, pay position as or again, then, excess position down

higher world less ratio we benefit Chris, our there between variability. that the portfolio the a goals running had the we we leverage it wanted, to just And we at our of leverage, hit wanted and was just raise, lumpiness target you operate stabilize have again, QX so And with -- higher without rate, then equity leverage to want in add? some our I higher think at was came seeing smooth pre-COVID that capital that and a out we do given again, of in of equity to a and raises. the one so

Christopher Mathieu

question Yes, kind we'd debt, at we to net direct if X.Xx I lever. on to response it add that on cash that more of basis, leverage, a on our a applied took like would be just your and

spoke end. the So more we at liquidity kind focus on of that about, the low we range but into the end of went for as quarter

Matthew Howlett

of LIBOR for on the again, remind And me terms Right. in is facility -- there floor bank that? that's credit then a

Christopher Mathieu

none. No. There's

Matthew Howlett

going can that come presume down, -- So to that's we that?

Christopher Mathieu

generally little makes That will but It bit, market. right. a bounce yes. the around sense, down That's with

Matthew Howlett

Got it.

Okay. -- that. And then got

that that What more playbook. would be Is of that of social to bit little sort more If think terms? of you Okay. are in play gets just there Then I half case? year the we the pent-up a the that Will ask a me that in a of Could excited? that ask sort companies? sort said. of you maybe the Is again, me could venture new me, opportunities lot relative sort of mean, it bit And environment like you again sort how 'XX, seeing through been of then think 'XX, just cycles, market defaults the remind growth sort again, you I recession well on sort you space. out, Remind I of broader distancing get if have does remind held deals? back little middle if demand? a could of I of be it where you on front. on up recessionary Better guys

Sajal Srivastava

I'll start, Jim, please jump Well, then Yes. maybe and in.

to conditions relatively hard insulated Matt, the a from and VC from in in now. in lives, being impacted. aspect from the unprecedented COVID impact the is from market whole. pandemic generally it's crisis perspective, it's much, scenario of we're as work, as were may ecosystem economy to right? is being I'd every the and companies liquidity the say us terms our touching that less think the benefit So as didn't I sound, a venture I say were able financial or our 'XX mean financial our of now really the the sell crisis would revenue, what as a -- it the to 'XX, product of compare odd to start-up in able the world impact I world

time and best the our because rest across of with VC of and used fund, by balance our have 'XX on barriers as sheet our dependable means partners, the platform financial crisis, that focused maybe highest credit in you portfolio Jim entrenched, the an our the partnership we that our with period a we solidifying I guess sponsors, as relationships deepening partner. time best of 'XX, we also to relationships relationships entry -- during performance, venture I our transactions said, returning structured you're So multiple and our right? company When assured reliable, mean, -- VC that some helps period

particularly 'XX, right everything returns also particularly unprecedented just equity So in this I say generally is I'd environment we're performed our on think kickers credit well impacted. in COVID now, were 'XX, strong. where

it's so tell. to too And soon

We Obviously, QX weeks of be only We're lenders, impact. paranoid the don't time. at to so confident. be COVID we had -- two overly should want real always all

and definitely are is couple or and I to -- about get the as out portfolio. talk seeing And -- excitement top our point, and next over So We're origination to say our Jim here if woods. the on on want staying we for excitement. far want But your we're Jim, quarters. said this pockets demand, of of you don't of end from outlook pent-up -- defensive we and paranoid some well, as areas to for some you to other of the

James Labe

Yes.

and have definitely of some an more some being there's massive adjustment the times. rounds made out among the having with So there again, amounts the funds hopefully, of at grown capital of And not are venture venture opportunities some these challenging in select of underway. our of historically duplicative, better of capitalists the but venture expense fresh

more the of the the So returns VC opportunities, and after the can TriplePoint want have the, some the out been have highest future, opportunities some to been pick us for others don't I'd just some to times, call some say but post-XXXX. starting industries, of on sectors work playbook, investments but afternoon I easy awful and the Those and see could there's all of I XXXX, in the the the the lot or rattle an it's we the But large of an exciting again, all era. them. some new there's things to there's Facebook future here. did a the investments in post-XXXX, of spend of we I lot very -- best the in don't have names, historically things guess, And post-COVID ashes, We're environment it, on and ones And in, technologies better to or of office in that for of back developing in terms go the already challenging I created. some of of VCs, companies world company of want out environment. new but in

are and So strong -- the demand. there again,

Operator

next comes Your question from Lynch KBW. Ryan from

Ryan Lynch

I commitments. unfunded the to of some liquidity and back wanted discussion on regarding touch

if that? the commitments near commitments they from month I how your thoughts your milestone you March fund in so, next to million, term, that in would if liquidity came of your are you to get the unfunded are and borrowers related, to had all as So XX that your you if not $XXX wanted you if all borrow or that capital of when unfunded guys' to on compare current that million, that's look about I nonmilestone-related, at wanted of $XXX your

Sajal Srivastava

Ryan, backstop question, segue a that's, know, Great and don't our exact, I so facility. to

that's add, just let too, if Why well, I going also that's do -- scenario, not in $XX of is of we come So prepay me as And to of have X and adviser. so in. plus on X logic plus funding the and well accordion, process We obviously collections, or and the that's But why the the we place. positioned right then a there. it. that's we We to got backstop million million portfolio the that see month. the -- beginning scenario million have $XXX don't we than facility, the backstop why have that that that $XXX to the have And expect wouldn't May right? we're all cover in million a came we obviously did hand facility explain of happening. CrowdStrike we facility, April from playbook in, think if requests another I'll by So plus collections, see amortization, the million the $XX put cash having thought the to warehouse more in $XX

would the backstop. positioned I well say, without So

billion us companies point companies, gives I $X.X even I in buffer. call, deeper X my think is more more other in I just that QX; backstop The raising $X.X XX But the statistic portfolio the during mentioned believe, billion QX. raising

at the look about Cohesity, pick you If -- example. ago. for I'll on our Cohesity million commitments announced equity $XXX raise unfunded X weeks

a could large sitting equity rates round the $XX have love that to that commitment. us. list Capsule million lenders We few to is million wish would have at million from company to announced $XXX I this double-digit earlier companies lend on Very through would. Cohesity commitment a We unfunded that of We has $XX for unfunded million commitment on on cash. they to interest the year go unfunded that list. Cohesity. $XX draw an opportunity another

so, And the guess, as don't we're that's and parse a flows, companies good the because the the adviser. best-in-class, cash of we unfunded, we significant why from the the accordion think that we because through But we're balance that's the those or is bad our I that fine have it's proactive, curve, have and why the ahead prepays, scenario. of backstop liquidity, we're

James Labe

the the that think months. Okay. it's a And remainder the total just million cash talked of But as rest prepared for you year the million, X the well. the flows, you remarks, the of mentioned $XXX about year of of -- Sajal, I $XXX in

Sajal Srivastava

then today, months' saying from and collections $XX are worth against million where Yes. cash of the as No, that I'm received already two we've just of $XXX prepay we million.

Ryan Lynch

Yes.

Okay. That makes sense.

The this bigger million a looking big from other spreads, your book that your which changes was cetera, I of your which which million when $XX unrealized question valuation, was make when I investments end the given et the they had the look equity in loss quarter. than your had et across sense $XX.X like last $XX guys actually quarter, But board pretty a unrealized would COVID-related the wider quarter, look your pandemic uptick and the equity unrealized $XX.X a quarter, cetera. you last at look investments, in million at about million portfolio I gain at gain at when was this I a had, gross XX-Q, debt

like looked wrote your book in you equity actually guys it total. So up

wondering, I'm the first as as, is in equity today? pandemic decline possible how environment current that we're just well the obviously, quarter in given broad-based in So indices the

Sajal Srivastava

want Yes. to Maybe I'll if you start Chris, jump and then, in.

up obviously, two to meaningful $XXX,XXX had warrants, to the mentioned represents I converted about think trading of with CrowdStrike Ryan, prepared prepared was during traded remarks, -- that Chris, are me. in my companies amount, XX.X%. the that's we you companies as in cumulative remarks, converted the our to publicly two those just and gains a as mentioned and gain, equity of quarter. equity, meaningful amount I unrealized so our So -- kickers portfolio I then can it Medallia the And that related so were correct

It's companies, those from those just companies. two two

some the despite So portfolio. really we've the the the warrant in undervalued come of again, the opportunity where fact unrealized the is have warrant promising gains those of companies private two to names as portfolio, the that you rest real because I this warrant great from look guess, have and book we and equity majority winners

And For around in $X And the you'll $X the at in accretion closed a at example, only billion value warrants of Revolut in a of kickers. see down quarter. billion fact, one Revolut for equity went closed valuation. value slight Toast the around valuation.

would I say half. the so first that -- So again, addresses

second is point valuation valuations, looking our And we recent time, to of generally of willing have those period a top look And market quarters. happened If the the then a is, rates those. those paid that. then within if ramps those after policy again, to rates on then most we look buyer and

more and older as those set warrant no those book, to book we'll and the on to rely see companies get financing, on then new rounds, we those those And unless in look raise last rounds our rates market valuations to of versus rounds evaluations. rest impact you in subsequent of would the so quarters, it's seeing more equity and impact surprise the less potentially QX,

Ryan Lynch

how did sense your borrowers can loans And they Understood. Protection give any you you did? And received Okay. then this about did, if approximately quarter? Paycheck a talk of many -- just could of Program us

Sajal Srivastava

Jim, that? do to handle want you

James Labe

these considering others be of I would them and passed that. some have returned are to for the things are the not a and Yes, funds. in few actually a companies, actually appropriate share. applied have think I'd can these on I it on number have that held PPP But some say program Because are jump privately it, have been approved,

there's there. I'm applied -- in but those number a share I percentages, will of stages it don't have them various to the are So of number think sorry, a And them specific mixture PPP be with a appropriate numbers, program.

Sajal Srivastava

Jim, a good point, companies qualify. think I that is our

and Jim the points So have have We've that I data as I a definitely seen independently they taken companies particularly qualify, want company companies of accept decision not a PE-backed in but think TPVG is think or or qualified. do have its shown venture-backed return, concern whether there pursue we have it. said, some And making portfolio or Board companies. to do for that was each

Operator

a You Compass follow-up Alexander question Point. now from from have Casey

Casey Alexander

that up relation other CrowdStrike's million got, to you another the note And I question $X Yes. would in this quarter. in

not hoping marks? what break much used So losses, you down break down down marks the the benchmark the credit-related between can -- spread-related was million it break the sell the the tomorrow you was first marks? how you out spread-related it unrealized $XX of Can what And and create of percentage versus was -- quarter. you -- to day of that

Sajal Srivastava

and me not, available. follow the categories, Chris, can Let Casey, could we we through it start then, parse you the with with if up you. if various If approach, have

volatility. remarks, said and my our adjustment aspect, looked the as I we an at at approach in So least or making market prepared risk -- for was the

to better that not adjustment of negatively to -- generally I all we travel, sector performing investments extent an those the related got portfolio specific received with that. all to primarily than sectors those e-commerce, adjustment additional mentioned, and planned the that consumer, or companies to businesses the get estate, COVID, because industry -- were had extent those impacted outperforming received then the the that real adjustment So that. lending, companies they those did the debt COVID, an associated And companies by

on higher And to speak, on they rate these companies list, sector so were assets, market then applied higher for that And may discounts there regards list, those top that it get were adjustment, of recovery-based you a of on that industry those lower, companies this the may to be should reflect any the an we so things quality recoveries we were with valuation. of environment, into the nature. fact then have to credit. assumptions watch where and credit additional that, adjustment watch In to or revisited have account take companies for discounts lower and the longer, take the

to million, represented the least at X say higher-quality represented two sector, assumptions. assets the -- million what So $XX.X I companies my the What and to the did due was was about $XX.X then million. didn't break market, all discount those down top the of between what an shared I total X, remarks X, recovery-based we was had then it bottom of adjustments categories additional rated was to that $X.X buckets those buckets, in $XX.X what I buckets. other million X applied and

Casey Alexander

Yes.

Okay. right. All

Christopher Mathieu

on allocation about with we little to XX%. of discount rate, to there's where debt the are range in about of And the unobservable inputs, to average a weighted the the kind table all show the of kind rates provide XX-Q up of talking which investment footnote, Casey, guidance the lead you And X.X%, discount way XX%, depending investment just the a over we to of inputs. of

So circumstances it's and depending a mixed on market describing, sector industry bag of and what is facts overall really we're the rate.

Casey Alexander

Great.

gate event Secondly, to on they if also just but damaged, adverse clause back not to and business take somebody commitments. one to an that this, the through that is the their can't I of you substantially commitments, to there and run come unfunded unfunded has down is go hate

Sajal Srivastava

I month. believe absolutely, that And absolutely. yes, Yes, during Yes, mentioned Agreed. Yes. I Casey.

Operator

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

James Labe

their operated to remotely And TPVG, the as conference behalf shareholders, of for their our a we we phone to all on time I again, Thank all soon. very for you the call analysts much today. stay Goodbye. on everyone And you, thank here. Thank be that you and your operator, and you do healthy. I'm all. sure others talking want patience we'll and families thank hope

Operator

today's concludes call. That

You may now disconnect.

TriplePoint Venture Growth BDC (TPVG) 7 May 202020 Q1 Earnings call transcript