TPVG - Earnings call transcript Q3 2020 | TriplePoint Venture Growth BDC Corp.

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Operator

Good afternoon, ladies and gentlemen. And welcome to the TriplePoint Venture Growth BDC Third Quarter 2020 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. After the speakers’ prepared 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 and an audio webcast on the TriplePoint Venture Growth BDC website. to quarter you XXXX. pleased for company’s is third the management share the with results Company Srivastava, Investment Today, Chief Financial Chairman Sajal Executive the Officer. Officer and representing company and of is the Mathieu, and Chris Officer; Jim Labe, President Chief Chief Board; I before to me, excuse turn the turn, over call I Mr. will the that to that forward-looking regarding statements statements to remind you like direct the law. or future would release attention I the to statements Safe federal under condition, performance company’s customary this make call, future events or management during securities Labe, forward-looking relate which your Harbor certain disclosure in company’s considered are and financial

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

like would turn I to to over Now, the Mr. Labe. call

Jim Labe

and and staying that everyone. you, shareholders this We healthy afternoon, families good are are Thank and way Operator, hope that their our pandemic. during

this and time. of employees our health protecting together our during priority Our entrepreneurs, the Partners uncertain our supporting Venture with is portfolio companies Capital and

new companies all And outperforming number capital as getting and portfolio raised originations After environment, the conduct and also plans pandemic operate close our XXXX. these adapted business well capital source in here our XX% COVID new investments, are and our success done to pause sectors in geared more are eight that our have deals the adjusted portfolio earlier markets environment. are the and of advisor and COVID We’re as this in plans. in for now transactions. year, are our have in In these than to venture initial months remotely companies the into a continues

pandemic also well growth, signs underway through for this of previous this growth here the But quarter. the and fundings only a five remain the the experiencing our continue positive this continued signed of will with as amount cautious, backdrop, is of the This growth and not term are versus basis doubling to but XXXX. past as business So with sheets activity we times We several quarter reasons. quarter. in fourth trend in a due serve the believe in meaningful customer

technology. focus The first our is on

digital and technology We living more in are from the an investment today is a one we for consequences. of the is uneven the sector parts economy this world one will for trend benefit it. advantage remain to technology Many and and companies is ecosystem this portfolio companies and in the of as capital focused stand venture experiencing of in technology-driven operate our them world in of and area primarily future. invest foreseeable to well-positioned and sectors, in benefit TriplePoint in of different to investments this The environment. provide loans sustainable new take virtual tailwinds of continue as many today, TPVG

in a companies, stage track is be growth exceeding year, be investment investment later growth on fundraising record. stage in typically trend capital last venture the companies pace Another that target we or and our itself loans, XXXX venture a our The least brisk that equal to to continued at at favors was is continues even which capital activity. for in to venture

All XXXX. for is this and the mega in NVCA, XXXX these with into Venture record according into to Capital factors of capital the deal Association it. translate fact, new through count year National right business to opportunities TPVG the for not a venture projected end alone In set increased familiar those

powder venture Our $XX billion relationships XXXX, year-to-date, leading select portfolio new of this all our alone and more this our several growing year investors the closed also plenty select million dollar we than funds, funds have group these of have existing in me, as which provides well had for since and XXXX. of as and investment raised of companies, of raised activity. whom including capital $XX funds that which this was here multi-billion Believe support new longstanding dry to last profitable with

fundraising seeing this out that companies and by trend continued venture is there companies, environment in as a we’re Another exit this well capital-backed with year. benefiting as liquidity the activity that from is everyone technology

also hire and of financing COVID are of pickup to which many growth within own beginning plans, are think companies, a not venture the robust our rate beyond exits. venture to plan the further rounds venture debt, and initial we’re supplementing these of this also companies, part considering the these validating well, as these We’re seeing of providing are these era. growth, financing facts companies burn many environment in activity ecosystem again other shell support strategy equity companies out for further of called actively expectations. I in number and equity their or portfolio broader for for lending and from the companies their of plans, might and Companies well both that them. among for This shell needs are nice includes within the company planning that layoffs today from reductions but emergence as everything Instead their acquisition only shell Increase burn year experiencing dollar which their following acquisitions which there opportunities increasing this today’s as are also uses. multi-billion COVID a additional continues marketing, outperforming of and It’s be lending. runway opportunistic to for includes further and raises, using plans earlier these have to of

their opportunities support to additional obviously for growth. us which of All creates

While we’re our with portfolio’s health the and don’t misunderstand. progress, please pleased

this portfolio Most We for these adapted arise. times may challenges companies potential have of uncertain we any portfolio that our cautious also remain closely are during environment. the to are mindful and But monitoring of COVID impact.

the manage stability. team our and have its to we Fortunately, right portfolio maintain

sum net our term shareholders, quarter no Turning of our past commitments, liquidity downgrades improved size earned our investment solid we to the overall experienced we performance and funding, credit leverage, to we value, to our signed and quarter. debt of also decreased up levels of position, the distribution our we this and the We we over increased grew pipeline. sheets, our asset new

is are call good I’d heading expect for beyond, encouraged the health prospects Sajal. last strong of distribution believe remains and up adds trends XXXX for finances. for on period. the Sajal during capital and and continuing over and to our But liquidity in our the more This a foundation into to all end and all before our that I stress growth year want this We once to investment we by this portfolio going the to signs call what year our detail will of we growing momentum of earnings overturn will our into and and to continued venture And into recovery pipeline turn we again, and Our you Chris wish be now like be our year. this XXXX. is and going And business, strong technology.

Sajal Srivastava

afternoon. and Jim, you, Thank good

demand million the of almost million stage Capital with term financing. During companies, quarter sheets the during TriplePoint quarter, term venture sheets up of signed debt doubled $XX third term signed during quarter and first $XXX sheets million $XX for from the strong signed growth continued second of reflecting the

but During during The deal transaction and five of for the to VCs deal their the leading from not the on has enables us third out second due resulted portfolio grow closed while flow to quarter. investment do many flow debt stage closed size, industry for we select in quarter, also position our venture companies, not the nine size us companies, platforms miss of at commitments the G. the times TPV million hold Capital significant with across vehicles, so $XX $XX debt of TPVG co-invest from TriplePoint TPVG million optimizing platform commitments also only up

During of million funded $XX last we had funded the to quarter. the investments double almost companies, debt $XX five million quarter, we

invested two companies companies six in at in received equity of valued also warrants and $XXX,XXX $XXX,XXX. We

We here in quarter expect range to and see QX fundings return million to the in per $XX to million XXXX. grow $XXX

had portfolio stable yield million XX.X% excluding in During up the QX, resulted the prepayments, overall XX.X% we and and yield $XX quarter, core for of slightly in company a portfolio quarter. which portfolio principal last prepayments, was average from weighted impressive XX.X% an

venture higher Although, prepayment portfolio slower, levels as our a activity believe durability of be companies we reflect we the whole. the to lending market expected and continued

we the principal from of loans, downs on each pay principal also $XX $XXX TPVG a $XX liquidity received of have received of million the over also nature source meaningful during amortizing payments for portfolio commitments the and of of demonstrates Year-to-date, scheduled scheduled and serves amortization our million million which short-term We and revolving companies, and as quarter. our early quarter.

of XX% end were notes. to therefore higher. spreads. originating rate are investments current the XX% loans debt at floors set floors loans, targeted or rate of All have floating have Of X.XX the the set but existing as yields we and have our that As loans XX% new the prime higher of floating rate our same and prime rate have were loans, September, rate fixed those floating

We as a pre continue to activity, make portfolio through progress payments. well through of combination investment our diversifying as new

XX our outstanding in As our portfolio software, companies XX of across spread application with end, business largest XX% sub-sectors, quarters concentration which of represents portfolio. our are

debt XX% represent XX% down investments value debt ago ago five total investments from a basis, of portfolio our well. Our represents a our year top XX% year portfolio, as XX and of top down on XX% our from fair a investment investment

quarter, companies our of over to over capital total months capital. our of four XX since beginning raised more the million year, of runway. portfolio approximately During portfolio billion of portfolio companies XX% This or the $X.X $XXX the of brings XX companies cash have raising

the the debt of rated loans investment initially our being are with rating flat X.X. rating of X Moving strongest system on typically portfolio Under credit quarters to X. weighted to rated new rating loans average X, investment essentially from are was quality our quality, X and with credit prior the

obligors X company non-accrual category downgraded were quarter, were during were No category upgraded the quarter obligations X removed to X. placed was added quarter. one no category were on from X. obligors to or and No companies during X, the the X, new During two and from

credit During credit the category and quarter, remaining no our we from them in on X. from companies leaving situation out X list on list, watch our remove non-accrual category closed the Munchery and

ROLI, rated company. on company technology music one only have We X a watch our list.

during made saw October we as company momentum reviews ROLI to on favorable their for in value increase in we of the quarter initial a which in We the strong the hope culminated the see quarter, result launch keyboard favorable momentum Xst, product position into During translate LUMI and an progress of and the our hope investment. of this company our and trends to see continued -- sales. the demand

to category of their quarter companies activities. next their four looking some as midst complete experienced portfolio quarters. over rated one businesses, four X have We activities but to the activities delays, All on of two due strategic these well and strategic as to are companies the the are financing on or have impact financing COVID in currently

$X.X for are conversations or outlook we CrowdStrike, these our have QX, alone situations We realized these of businesses if change. bringing realized gains of in sold million portion on holdings companies experienced teams million resulting playbook credit holdings. in have for action highly and million that in a additional investors and and their $XX.X gains and realized our their name activities, gains active a in on recorded $X.X to our their the with Our total Medallia also regular of

gains of companies, were loss million of next for over realized the of both These quarter exit offset resulting We XXth, net of September the in gain disposition the unrealized as our unrealized to expect in quarter. shares $X.X remaining to gains by the positions one and Munchery, realized continue hold to million representing from quarters. $X.X two

of investments, the venture is losses consistent losses not gains that of business, losses, also which our creation sponsors beauty net credit excess record. should and generate return of these is potential the exists equity in but which additional to offset with part value due the only time, over track and are While credit lending warrants

since a our the on and we over longer cumulative and fundings. the As and a half $XX.X our million the known which in requires represents for net have our of average of generally commitments of realized of than IPO, loans warrant gains cumulative it past TPVG’s are equity past, years these a six our X% X.X% to basis, credit gains horizon materialize, time cumulative losses term but

far billion, exit by gains. $X.X merger any three and equity in process had $XX Qubole’s up acquisition So for company Hims prior in accelerated resulted including and liquidity in announced million and Nestlé Such back in Idera. acquisition Freshly by we’ve QX, warrant events, in portfolio and income transactions million to $X.X to loan prepayments have

We’re investments and and anticipate excited equity XXX to hold future. XX near the warrants by the fact companies events continue that more in liquidity in we

As our it’s I periods close even during existing always of important highest out, volatility. but significant been managing has portfolio more priority, our

and portfolio investments of uniqueness returns some the within our which performance We’re that, achieved investment pleased the turn on value team. to of and Chris believe of and companies, the quality now our the with of quarter. and developments over during the fronts our call for the the a over potential and metrics reflect the number course, strategy, additional portfolio, key efforts the we of to highlight long-term, I’ll our experience from accretion financial the With durability of

Chris Mathieu

Thank Great. Hello, everyone. and Sajal, you,

of year. driven $XXX quarter. XX% Medallia the for results quarter quarter net final an unrealized gains other lower from the Munchery leverage investment upon XX.X% disposition prepayments. operating certain investment million fees million third million primarily unfunded management million if on previously total and update operations of commitments, $XX.X for in $X of compared in unrealized net despite for a XX.X%, quarter $X.XX the borrowings third or CrowdStrike of are third $X.X expiration. healthy totaling third Net or Total in investment $X.X million the annualized increase the the of you million interest by $X.X The for the very in by of an significant recorded the and losses the of unrealized were of losses of million expire million $X.XX Medallia The portfolio other asset investments third third of and are for The to prior resulting drawn XXXX. not $X.X gains XXXX, increase the will lower of quarter on with $X and associated expenses size the consisted quarter of with as of share. of XXXX. million share expenses of XXXX, for by total $XX.X unrealized from incentive million $XX to of value assets increase share million offset of assets income losses to quarter in and CrowdStrike operating XXXX. by income for efficiencies take from net up during investments for of and compared $XX.X stock driven million of Of we the and reaching million, in and realized per Return of primarily on adjustments of unfunded of as million value expire -- losses compared Let $X.X XX% were a $X.X net XXXX share. XXXX. of of million net on Total million by from on result compared for earned -- commitments third was in debt and reversal The X% associated to third on reported based expense, on of income gains third portfolio $X.X an overall was results per as of investment increase $X.XX portfolio. unrealized Net general for operating from the $X.X average XXXX. prior the investment investment. quarter XXXX. reversal million costs was well income offset of offset million the Total also gains debt as is dependent quarter the and the by expenses totaled Munchery, gross recorded million of gains administrative quarter fees, share $X.X quarter increased increase in was expenses. gains administrative the overall fees the on third Net average through G&A per XXXX, for was weighted $X.X million from to portfolio the and previously sale yield the Net the as resulted million the or from quarter average me in $XXX $X.XX to loan increase million $X.X per or share, equity was net fair increase for the in asset and net recorded for in the $X.X on on rest $XX.X three this operating the quarter realized value $XX.XX realized $XX.XX $XX.X QX total which million, We the XXXX Net $XX or companies million milestones. the per $XX or was per investments will in the company NAV

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

year to origination to our maintain activity as head fund continue strong end. liquidity toward We new we

of Some debt of of in sale months position, first impact our accretive year, our stock loan in principal have the our and believe the year. proactive positive investment loan and prepayments liquidity unsecured amortization is has first this strong million common high strength to We million. on generated $XX $XX continues during generating nine a closing quality which from generating March efforts of come January, grade the this including the portfolio

and five next existing us gives the XXXX. leverage the portfolio. position contractual for well modest which in diversified strong grow The well dependable commitments cash has liquidity over into addition and million, to flows quarters excess sustained bodes of our current capacity existing liquidity, portfolio In of unfunded $XXX seasoned to our liquidity the the our strong funding

XXth, the of credit of our As in under million consisting September of million availability $XXX liquidity facility. $XX $XXX had current revolving total company of and million cash

to existing facility allows rate our flexibility additional outstanding expand interest to credit revolving to to the the occur accordion our million current We an of $XX balances continue prepayments Aggregate commitment balances exchange XXXX, under us million within in rate fixed million, revolving $XXX manage to The $XXX compared of of million. our and in expense have September when mature as outstanding $XX efficiently reduce XX feature which portfolio. $XXX as matures fixed million multiyear were outstanding facility. term debt, listed consisting bonds, XXXX our credit under $XXX of million baby which and debt, private

Given at we’ve reported leverage. times X as aggregate asset end leverage of ratio times September X.XX of XXX% an the ratio leverage XX, of our a target leverage our of coverage of low borrowings or just

We NII have income is after that, impact offering. $X.XX than go of have distributions of of spillover a per share the January On $X.X more new $X.XX share, with public in in of million that to income of and of equity so of and we in quarter generated from issuing $X.XX with XXXX. million distributions our have paid the per shares excess per X.X connection top share

XXXX. -- our per than share of pre-COVID of share December is only $XX.XX share XX, In NAV of $X.XX lower NAV $X.XX addition, per our September XX, as as

XXth. And distributed distribution. XXX% of being leverage just regular share of quarterly we from the quarterly our income have Pleased provided $X.XX distribution, of at investment in shareholders coverage to net quarter, despite income million as to ordinary further, $XX support part future. record range. of fourth the earnings the so, remarks date our This distributions on investment another per to income third prepared this we time, of of target the $X.XX quarter During share Net to the we our additional per approximately the your this announce share November end line as from undistributed Directors lower or spillover please now of distribution you Operator, distribution Board XXXX, payment could up queue shareholders that The our and for for of happy declared be on will October for questions? per a of XXth has completes be questions, December to we’d XXth. and take $X.XX at

Operator

first Fargo. [Operator question Instructions] O'Shea comes Wells Please Finn from go from The ahead.

Finn O'Shea

for and high appreciating Hi, level, everyone. me the leverage afternoon. -- on. profile question, robust having Good Thanks just fund such. I first

indicative company the a to one-off, describe conservative then in we were pattern of bit liquidity, have stock that any more there its desire you and near-term maybe in position generate outlook you any quarter comment this Thank This a Is saw saw selling or sort but we of commitments market. all little the lower some sense quarter? you. to this any for at

Sajal Srivastava

Jim will in. and Hi, Sure. I then jump Chris Finn. here, Sajal and start please

So, occurred amortization. Finn, scheduled as more, principle the of our I’d prepayment quarter companies, say, that a so the portfolio this result was activity the deleveraging and

conscious not large So necessarily to of cash maintain us, ourselves. proactively deleverage or reserves looking

of we’re term of the say, our as the reduced of seeing where about commitment VC is benefit quarter-over-quarter. opposite, is shareholders have But liquidity to the not to relatively that. TPVG I’d prepayment would increased in counter of -- market was lines, been and of sheets save more and warehouse I our strong then really, I -- say a venture companies. consistent able so, that our say, sheets level as expense if thing on interest of growing delever we’re think facilities portfolio we’re notice important it our activities, from function I’d ecosystem. But signed using benefit and think has ecosystem or our increased, credit has lending talked do I down I equity when term our think, we that pay able unfunded the Jim get the rate it’s conditions, have

we’re think in Chris not demand, as and Jim, going well. And QX, we’re into growth so continued XXXX seeing but thought. here I which any positioning only for

Jim Labe

but quarter and caution only now agree and gearing a here. there’s if much as the well versus pattern early up Yeah. applicable. past I commitments and can with And we but cautious word may and only onset the previous the quarters, this been originations as anything have one, Sajal, see. absolutely been a think, increased add COVID not we’re activity positioning for They’re up, I the in growth that, pretty not staffing have up

of. there So aware that a we’re not is pattern at least

Finn O'Shea

Yeah. Yes.

was sheet. in about Thanks. I that’s very the brief course, this talking balance But moment just Of all helpful.

Just a question on GoEuro, another you follow normal co-investment conjunction. is for This small of follow on -- style, or I large on you with sort color… or the think, a your any that added small They round that’s a were you is convert loan, raised invest was on. in that in something that of to in that that jumping or consistent

Jim Labe

Yeah.

Finn O'Shea

for have you And that’s guys. Thank all … there? me. you

Jim Labe

occurred so that by did lending Good raise quarter made of rounds to that traditional of capital in Finn. and not the access the investments Finn, prior only and a in get this were participated the company investors to to can’t you did getting investments able strategy, Yeah. during QX that access round a that in plus equity those get GoEuro that of we’ve pro equity part round. access question, and private getting as benefit kickers, so, saw, given our and our here relationship it’s rata Okay. but to announce -- we the

the of that a relationship that view we access benefit was getting as round. to in invest So lending

Operator

question of ahead. next from Securities. The comes Devin go JMP Please Ryan

Kevin Fultz

Devin. for questions. my on for Thank Fultz Kevin taking Hi. you This is

provide that the So, can have? existing just runway insight portfolio company cash liquidity, portfolio you into a some around question companies

Sajal Srivastava

is Kevin, Jim. -- meet good This to you. sorry,

then Let me jump start please in.

raising during section, a As we’ve my basis seen some fantastic activity on mentioned the year-to-date equity portfolio. so within

the as we’ve was, least raising XX $X.X year-to-date that raised XX companies increase basis of number months of in have over of number then year the and six of the at companies quarter, have always capital billion cash XX% any three our since see, so equity, companies quarters let’s go we portfolio to think is portfolio I portfolio theoretically, had that runway. on. beginning between And given should

Kevin Fultz

any terms new And find seven helpful. diligence in find of in due then perform of Great. to over you’ve there Okay. have new that remote a changes how ways the That’s you a due months or done pandemic, in been performing diligence of past environment? work ways

Sajal Srivastava

Great. you that to one? Jim, want would take

Jim Labe

Yeah. on Sajal provide And just Yeah. question, as as the nice that well. to numbers going meet did you same to was I previous and

of advantageous, changed, if anything, So, more the the end because -- process and at remote. day, a it’s everything little is due diligence the probably the hasn’t

We’re customer able references, affording all those typically of investors, that do contact environment easily things to the current the more we pretty and because opportunities.

of it’s always is of the even high the it’s investment the and been, very, improved So level committee only is details not a same, more which work, very level level.

Kevin Fultz

a you. Thank mentioned Okay. you of the that That’s know since calls, pandemic. on hadn’t then changed previous helpful. onset I lastly, pricing And deal materially

if at curious documentation an seen Just you’ve in improvement over that period all?

Jim Labe

Do you want to grab that, Sajal?

Sajal Srivastava

our the one pretty important pretty thorough of is have we premier docs say, -- lender. consistent, pretty I and aspect the platform is, Sure. Yeah. being elaborate explore a I of benefits consistency -- loan would say venture -- would and I of think

loans portfolio think sponsors seen profile and the and very any I VC or I our that’s structure, would that so of that material consistency. not And say, companies -- -- companies something we our of legal covenant or financial, think change have highly VCs in

So say, changes I’d always the they’ve been over no particular lender and quarters. friendly, past couple balanced, and tight and

Kevin Fultz

strong on for speaking a that’s and guys nice That quarter sense Congrats Okay. as makes me. well. you and it to

Jim Labe

you. Thank

Sajal Srivastava

Thank you.

Operator

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

Christopher Nolan

mentioned the prepayment is the you did, Thalmann. you did you it? Ladenburg or fourth quarter? for If estimate missed guys I Chris, Sajal guys. did Hey, what

Sajal Srivastava

that did have Yeah. we We did million actual estimate. quarter prepayment the we mention of that had already prepayments -- this announce not income. $XX -- about do $X.X million we But we did accelerated of generated

already this with that’s there out the So evening release.

Christopher Nolan

Okay.

right? guidance, no So

Sajal Srivastava

Correct.

Christopher Nolan

Okay.

Turning at couple non-accrual, matured of to renewed? ROLI. ROLI its seem XX/XX. fair or or questions to on Were be number extended maturing those ROLI, credit

Jim Labe

Yes.

quarter. -- and a we’re happened are product of process global that -- based the waiting third them, positive launch during on developments We our in for were working that Chris, of the the we restructuring indebtedness on with outstanding

Christopher Nolan

And I a heard if you. musical correct, ROLI products Got is maker. Sajal, you

Sajal Srivastava

technology Musical synthesizers make keyboards, software They and technology. other Yeah. plus company.

Christopher Nolan

Got you.

me. for you. it That’s Okay. Thank

Operator

KBW. next Ryan The comes question Instructions] [Operator of Lynch ahead. from Please go

Ryan Lynch

my afternoon taking Good thanks and Hey. for questions.

down the question, point, surprised this just higher how at well one, are by, a in a level, still we’re as of -- First have middle embedded in we higher level we’ve and you as downturn, been downturn? overall I but ecosystem you mean, this is are and held going few your up you during mentioned up. since this also the how a this earlier, that strong portfolio really held year venture has pennies now at

Jim Labe

go ask would I oh, ahead. -- Yeah.

start, You Sajal. can

Sajal Srivastava

say, we’re going was two leading -- together again, I of Jim fair in I our seen across and to of shares now year platforms. cycles. We’ve our I Ryan XXnd working are Yeah. think,

so the overly confident about is too think early excited get it’s far from And pandemic over. I or to

We third are wave. second wave,

times, experience in during So companies and portfolio are of more and in the good VCs these track record. during the venture we I the we that was select also stages thesis their investors companies working had selected our to not that outperformed only our challenging but The see at better articulated growth to times. that their pleased thesis think these portfolio funds how VCs in with

that surprised prior the should that but think, surprised again, not experience activity I record. the doubt Netflix during I the to whole. we -- that we’re have can our investment I period the that, we track Facebook as the our YouTube in could and are again, say say, not best mean, we to day that, thesis, equity The and showing the in the and because, was we’re VCs started pleased, asset would performance cycles. a always of see I’d so rate cycles. back back the company of deals And for better sense volatility. I -- periods so best no across see Jim have, and venture There’s class go the

And surprised we’re and take not VC venture of so advantage of to side. on premier less deploy during capital funds see volatility the dislocation, valuations, periods competition to potentially

things add? can also not change we think be able Jim, I world advantage we’re so liquidity sort can keeping take be of just to and out, getting playing substantial to part I also overly -- So opportunity, of to anything of change, to why we’re we’re but think prepared. It’s but want the always that’s its confident.

Jim Labe

we the COVID about this again, which some investments. of the and investments and and companies adjusting growth in Yeah. XX been always cycles of earlier have talked we’ve absolutely, phase. and But we VC plans good And we the It’s is some uptick performance. things want underway, so been area new through -- the with, the during new in not to really and times. many continue it call managing it’s the results because capital hard in which But and and the after to, it’s part and profitability always it’s And at better wrong the our model, worked our if norm use of very And then to this it years, is think periods and capital of stick of heart quality companies you backed you make VCs, which the through venture to before. we these the and funds, alike, venture this whatever bitter some. through to is maybe word through

Ryan Lynch

That’s through your Okay. guys, do formation Do would a it opinion strategies is press out would a been large Hims -- that with you could a just mentioned an a then, guy’s or And think simply VC the or you SPAC increased company taken backed the companies actually wanted the that that? -- it the have of impact just acquisition to companies have just -- hear fourth be IPO that really SPAC. increased you going is there’s formation think the different availability those in commentary. structure no a central meaningful public it’s have SPAC potentially via increase helpful on? know, is a is of quarter to have your that release, of that exit I Obviously, huge structure, bank opportunities? going like exit likely in meaningful wanted whether last I be on to a something merger or already you enough more of another to And an formation that impact the year. going the over to you on of

Sajal Srivastava

a really Ryan. It’s question, Yeah. good

I I’d the and a So say, at think, SPACs. emergence of we’re pleased high welcome level,

think announced or it’s have an up initial have have class, some completed to I we’re an think phrase. or asset companies either very that five merger There platform, our still I better exit these class as TriplePoint within been four I transactions guess, events. or portfolio early

let’s it’s in well, still for hats. I think -- early of terms wear multiple

we’re usually It’s of our get get for and we get us touchdown that our back. lender, I opportunity because fantastic. so the for our as income, debt to It’s our takeout the a capital pleased exit. play think, So events these events we back, loans are we so to an and acceleration it’s

of, a and equity public as events. these kickers, companies they tell. sense to think exit, But for there your a roll XXX new? to think I balanced existing in still so to be great we’ve in form a SPAC you that our some are longer nine a general, or traditional that are months the for ready. of still have months going it’s that, occurring other and stacks gone SPAC typical seen it’s think to forward require yes, days or with have but IPO. I this gone I IPO may liquidity through the to are are would IPO the than comment think valuations are have process then that early too periods I usual an not public that interesting look XX least we definitely the at is companies investors do lockup versus little

think as be fair can’t in I ready. You don’t public do a have order there’s amount tomorrow, that to want decide of to companies SPAC prep to you and go a so work just

your -- public early. it then do so SPAC, versus and go too take question an Do you so deal for cash and then like is, has the it’s or on merger I you own? would all go again, the qualities and you again, think And so still

back VC record need positive see. think the existing of events the for acceleration I growth think, generally some causes kind to more growth think it for I and and for of seeing we’ll to and from exit. theoretically, companies a But accelerate learn to seeing are ready get us data really track the points, our more debt partners I thing, because again,

Ryan Lynch

Thanks.

Jim Labe

with emerged would SAPC only Okay. agree during would Sajal. I here I add, and COVID have

to a kind venture going the or capital I speculative exits see to even it’s on what little be. long-term overall effects is think of the near-term

rounds I think see goes the this again, going is But, major just from but have factor exits it to not speculative. IPOs there to SPACs. be a the and currently the majority of it continue M&A’s, or of ready, and huge exit and a that making significant does future. it’s We’ll continue will seen It’s at now some companies to least IPO as where are event be absolutely. be

Ryan Lynch

guys your appreciate color I Yeah. commentary. and Okay.

You a insight market. that great guys have into

Those So thank questions. all for that. are you my

afternoon. the appreciate So Have a I great time.

Jim Labe

Thanks, Ryan.

Operator

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

Jim Labe

thank Good-bye. you, Thanks to for in TriplePoint quarter. lot. continues like stakeholders We’d And and look listening with friends our to Thank on and everyone we the a talking our forward call. and Operator. healthy remain line our to or next participating everyone all you hope

Operator

concludes That call. today’s

disconnect. now may You

TriplePoint Venture Growth BDC (TPVG) 5 Nov 202020 Q3 Earnings call transcript