TPVG - Earnings call transcript Q1 2022 | TriplePoint Venture Growth BDC Corp.

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Operator

Good afternoon, ladies and gentlemen. Welcome to the TriplePoint Venture Growth, BDC Corp., First Quarter 2022 Earnings Conference Call. At this time all lines have been placed in a listen-only mode. After the speaker's remarks, there will be an opportunity to ask questions and instructions will follow at that time. This conference is being record and a replay of the call will be available in an audio webcast on the TriplePoint Venture Growth website. to quarter you XXXX. pleased for company's is first 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;

your make the remind Before direct Law. will company's which call statements regarding statements call under and Press statements that to events like the customary during the management Federal the turn considered are future or to Mr. Release to I I'd that relate the Safe-Harbor Securities you forward-looking this condition, Labe, performance certain over to attention disclosure in future financial or forward-looking company's

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

like Now, the Labe. conference to ahead. turn Please I'd over to go Mr.

Jim Labe

and everyone TPVG's joining for Good first earnings you operator. thank call. XXXX you, afternoon, Thank quarter

our We quality. quarter strong portfolio our results. We dividend, maintained first with increased our funding credit are our hit pleased over-earned yield and our target,

Capital our million investment has recently and capabilities remained environment strength. platform, demand the recent during out and sponsor TPVG’s and market private of the our very signed the TPVG generation previous stage as throughout highest capital billion the our by The more debt IPO, globally the largest our venture earnings million, of only grade DBRS This term at resulted In than on the choppiness quarters at TriplePoint XXXX $XXX growth carry our has offering for at pipeline lending here has includes venture than plans topped our differentiated We in sheet end. since $X.XX our are our more quarter. sheets strong. remained This our active quarter balance reaffirming $XXX rating. on second first was track companies strong to quarter venture drawing

the sheets in in fact each the signed In than our rate running been a level This in the that average commitments signed quarters. our triple bodes of increased term quarters term sheets debt well XXXX. two previous last at of quarterly of of for level has more fundings all and future

we exciting opportunities we shifts of been what well the XXXX with remained strategy eight ago. than beyond. lending, cycles. returns work as We ahead approach hasn't tested us During changed experience time numerous time with more strong, a in in deliver venture It disciplined proven positions to capital be believe difference. we believe and growth leading capitalize Regardless shareholders strong proven has venture our deals. highest the continue since investors to when a quality venture and approach. select maintain our IPO demand of group stage We to to makes macroeconomic years throughout a further our on and This

what our of generated portfolio weighted dividend. and XX.X%. of average NII period, per XX venture $X.XX it's than lending during a $XX business Sajal highlights, industry. exceeded learned cycle there transactions over regular Diving cycles. and But is senior lending more now years and Our of working experience in alone covering in venture have through the that our one billion team the first quarter venture most markets into We of yield share $X.XX lending I is the more that is together, tested than some point achieved we

First continue on to laid year based expect throughout our quarter into pipeline in fundings the current funding of right we and we previous middle increasing out. ranges range the target line our saw with the

already quarter's fact, $XX end. in million more today funded to subsequent we've than of As

As we the the our ability both portfolio public funding during had first additional prepayments and to Inspirato rounds achieve of reported, listings loan quarter, we previously the and exits. several attractive complete companies quality reflecting completed high during Sonder quarter.

strength testimonials ongoing future this received and ongoing in our prospects portfolio companies. of our prepayment Instruments predictable environment. we that while always of they our remain that speaks growing, timing our from environment are is to exits. Virtual portfolio completing believe of strength activity their quality capital raising level contributors We are to of income current companies companies. this to number credit terms mentioned. high success in This Casper. our experiencing Prepayments, of a They and not further of the the this In our yields tailwinds and includes and I in actually Underpinning prepayment and successful also stability

offerings. many offer. inflationary availability, increased products services delivery shifts driving return is pandemic more online, current providing times next the that and products. Service are to portfolio portfolio invest under era and factor consumers stand there activities in-person that generation is efficiency with procurement. and connect the for are online out from the the demand Other companies companies enhancing and the of convenient, continue portfolio consumption to an range both of which and proposition. to strong labor vital delivery stay. to directly stronger expanding their companies reopening even low brands value the companies our rapid benefit from and to environment becoming differentiation for of and businesses engage ours at behavioral There to e-commerce economy of wellness way, continue to here an the are prove consumer benefit Health While and patterns companies related office into Many the

even At quarters still averages levels amid above the I this active Last investment to highly both the billion non-traditional $XX venture reached mentioned, count also dollar deals and as basis. last public a lending high. funds environment VC the continued days investors in venture pre-COVID on equity any have back raised a of capital hit and markets well activity volatility. of venture were quarter, deal these record volume, for remained measured pace fundraising Turning new private venture uninterrupted. VC as The a well quarter, VC fundraising

more With the This the now the any potential future. of provide fund a This new raising, estimated looking amount billion impacts than Monitor. for powder ample this activity dry the of to should there's $X addition in all investment to support by deployed market. of the and near be in PitchBook-NVCA is be corrections record

couldn't notably capital access. Having pool of leveling at off stronger in doubt can't least later shifts to market this, and at these ignore the IPOs we non-existent. quarter were companies, impact been valuations no recent almost capital there's companies, the be venture quality growth there stage valuations most private and a markets, venture have in stated For the where

drivers result we lending increased to we year. timelines forward out as remainder for debt evaluating listings. all for As and of solutions these this see of financing these of venture trends increasingly that longer the look behind however, Companies positive continuing the factors as demand a are and serve play public during

additional for last or other looking at that companies existing venture go part time plans. has debt. in year in in in raised We activity, plans environment. are now future are and all valuations year commencing under capitalization months a year drawdowns with the believe their trends our necessarily they no attractive raising table runway are this and plan equity cases, future all capital effect six financing yields. equity And and out part add layering business as every the rounds. Following their their Other and a are equity as last many debt towards many us longer forward Companies with of quickly lines strategy great little of there's moderation. a form of as turning are positive augmenting still death as their rounds as to seeking for for record to it of more as this companies XX companies are These

debt, year. taking recap pleased the demand of this, are increase performance. we attention rates through to the this strong To expect we're advantage opportunistically very and Given and with our yields increase quarter to first the increased towards our all increased

As fundings quarter. busy will and year anticipate a be continued We execution, last a of be our on performance. growth XXXX real said will earnings call, the we second quarter

We liquidity. build our throughout of on balance expect to and momentum the that the year backlog our given

team our With Given ahead. a turn underwriting against and pipeline, disciplined, deliver strong call standards returns that, the and remain to Sajal. and deals best And the shareholders. our me select opportunities you, will these strong and we over tried we're executing continue our the apply opportunities, tested to to cycle true to let excited have about

Sajal Srivastava

afternoon. good and Jim you, Thank

yielding was call, the our returns for quarter our to during driving capital sustain execute anticipation playbook to credit year, and our portfolio prepare articulated on we the As for the to and and maintaining the a investments, last while intended originating for type generating earnings the of and the strong over course and of of return quality growth, business in position to of just quarter quarter capacity, both shareholders. capital, and high high core year, power not demonstrating for earnings Key the diversifying potential of objectives and entire for funding business. increasing included our the but cost our while approach for year, busy efficiency quality our team course first disciplined

each of these objectives. accomplish We are to pleased

Regarding up to million and $XXX million XXXX investor $XX and activity, closed term million QX, of portfolio of venture were sheets sheets we and from term of quarter XXXX growth debt first million XX both companies $XXX of levels signed stage Capital – Signed TPVG. TriplePoint respectively. levels commitments companies $XXX closed with commitments

investments valued of XX in companies. and warrants at in direct equity companies made $X.X received also portfolio million four $XXX,XXX We

quarter in during seven million is guidance was in million origination, QX, up debt XXXX. debt mid-point for $XX portfolio The in funded average, first in companies $XX debt at which investments QX, XX.X% of the QX, investments our the $XX the from investments annualized increase we carried from million quarter to During a yield XX.X% which XX weighted also companies, and XXXX. portfolio funded range to an million to we of $XX

Our XX.X% the core QX, XXXX in portfolio from since increased XX.X%, then. during up was has quarter every quarter and

portfolio on XX.X%. prepayment average our return the us on at and yield and dividend our weighted as first portfolio of a total continued and to the addition, our quarter, increasing growth during enabled ROE our in of of both activity generate scale. annualized portfolio potential NII demonstrate was excess business, result In an of debt investments The earnings again yield basis

fund Jim quality. As activity which continue the whole, to capital industry is in see and to portfolio as within in we its a particular, raising our equity testament mentioned, venture a

in capital of raised compared portfolio in eight $XXX of companies quarter as $XXX QX, XX over XXXX. the portfolio over During raising to million total equity companies million capital

to continue from up to million. obligors diversifying to value XX% our At as progress of We as of QX, funded TPVG XXXX, QX were end fair basis make portfolio, $XXX XX% had XX the scaling. funded we $XXX while the up on a goal compared strong on investments million debt of our and obligors XX

represent investments, as to Our top our XX obligors one ago. approximately of as of compared debt XX% year XX% total

investments to basis, represents XX% QX, fair as warrant almost equity $XXX Our million portfolio XXXX. well, from year value up ago, of equity from as grow XXXX, a $XX of as warrants on investments XXX and and one with equity continue and XX warrants double QX, million in

I a team from result quarter as to prepayment highlight on Category the in for Instruments full, back in like quality, the list later rated which credit company would known moved and and our Virtual quite impressive companies years five the also were on four as watch off our during Category Moving pays. well. December and X six the was pre X job paid to has Virtana, by XXXX us now

We to one to $X.X In our other from principal with the the on next obligors quarters. expect and one downgraded both to of Category X X. balance see two be continued Category upgraded addition, X was two progress of company million Category over

Seaboard generation positively second Roli, Luminary been loan and received. only Category on their one company, innovative keyboard is quarter non-accrual which has RISE the they launched X during of portfolio the Our our

quarter previously was completed their its take-private SPAC SPAC transaction; portfolio progress on During Petcare. and by Growth two Sonder. the NomNomNow companies mergers, Mars to Inspirato Both make Fuze well. their completed Transfix was and acquired announced mergers as acquired Casper X×X continue and by

the quarter. to QX earnings release, million million of to of just $XX today's funded in $XXX range We month for line noted almost sight loans a for the As million second and new one beat range guided quarter. have we to for previously into the funding $XX

the in on quarter For $XXX QX to expect gross QX basis. fundings each continue of range we million $XXX and million to a

year industry's be a over of and in manner, NII now of in platform, and best manner heads stage show profile, for of credit focused we periods our our very during volatility We some with venture growth disciplined in capital where growing market the on and funds. maintaining approach to and call leadership to exciting the portfolio are It our over venture of growing down most Chris. with by that, the in our consistency, disciplined the the and transparency is team muscles flexed With continue and what's position their investment strong to some thoughtful innovation, I'll a companies, the course the scale. excited turn NAV our working backed store

Chris Mathieu

our we loan generate from high continue Great! everybody! core Thanks income Sajal and quality quarter the first interest to portfolio. substantial hello During

rates We of attractive take as leverage, commitments sources XXXX. XXXX. investment favorable credit the continue to utilization compared new for the capital diversity. excellent companies. to on income first million using see while the our update of an quality $XX.X our I'll million quarter Total quarter financial $XX of you debt deployed through on for was first to results and maintaining We

Our XX.X% to continue was stable. compared XX.X% portfolio investments, strong to yields be total on and debt The period. the year prior yield as onboarding for

share is expenses million portfolio in driven increase prepayments current operating the of $X.X first and income. the reported loan overall the growth million were Operating $X.XX million attractive aggregate quarter G&A investment we the and quarter. of assets, $X.X per yield expense, net prior Given compared totaled in to $X.XX or leverage as million of an quarter year, $X the portfolio increase compared of in primarily expenses fees weighted of per $XXX.X for average the expenses an $X.XX Operating an share, in income quarter fee $XX.X million, last $XX.X share to and earned the expenses. elevated for in of increase period. We use by $X.X per period pre-incentive The $XX.X in the the million interest million million in just same of of consisted fees, management the incentive XXXX. of for

of $X.X investments losses its valuation from reversal While events net from investments, million as of and associated $X.X $X.X and recognition quarter, take-private net fair we unrealized with and Casper Sleep unrealized experienced unrealized limited gains million realized primarily first adjustments mark-to-market in of on net during value transaction, realize we losses period. of from on realized the $X.X resulting foreign recorded adjustments, investments million record the resulting and and the million unrealized well did on previously and losses as completing of currency prepayments, realized

XX, portfolio $XXX.X of a NAV $XX.XX was XXXX. primarily quarter by of compared further were or million $XX.XXX XX. March impacted total as equity to Directors on basis. was announce Board and NAV a a income stockholders year-over-year from paid per on XX and share record distribution of be that I'm foreign currency of June exposures, to $X.XX warrant or the and of share per in million quarter ago $XXX to As end, pleased assets company's our of share $XXX.X $XX or up net declared but as per ordinary XX year April volatility million XX, per public share XXXX, to December on June this of as our

we supplemental the additional over at increased were which end spillover in the In again again regular or per significant – and totaled the the addition million to and $X.XX $XX.X quarter, distributions future. remains this income again earning supporting dividend approximately of special quarter, we share

expect distributions long experience record coverage loan over to track further NII that strong note levels quarter. net that first also at I’d to time, maintain the our regular and income with for dividend continue portfolio we current cover we consistent investment quarterly XXX% was activity prepayments, As record. to term

gross $XXX and million we QX. to Sajal to for $XXX come for discussed million As expect purposes, of around modeling in now fundings

for gross expect in fundings $XXX be year each gross the full in to of range the of a on in basis. $XXX quarter, to to overall and results QX and $XXX forecast to the continue QX $XXX We million million an million that for range million

move Now to commitments. let's our unfunded investment

commitments high new utilization experience the on first to continue quarter. during We

which Given loan the $XXX outstanding had floating quarter the commitments all investment the robust pipeline expire Of during which unfunded floor prime these compares investment ended rates, of interest $XX XX% earlier, million XX rate of $XXX quarter and XXXX the to floating a we interest set million, higher. commitments contractual this with end mentioned and portfolio of unfunded beyond. during we X.XX% that companies. of contractual million to ‘XX to XX% or will at have rates. This $XXX expire will total have million

a a notes facility our Now completed and reaffirmed In transaction connection DBRS notes fixed bear liquidity. grade X% quick of our investment $XXX in we are million with overall investment rating mature interest BBB. February and year and private issued credit notes, credit just recently update of rate grade institutional our an on at rating term These issuer offering. and in unsecured this per XXXX.

sheet. We further this, interest to and diversification are this the portfolio growing our of our The we from investors. offering notes continued from balance and support appreciate us of well support flexibility position to-date, pleased offering have our the to strong investment growth third our group proceeds and grade enhancing completed

to offering our with grow shareholders. benefit the down upon further which With facility, we fully portfolio again will expect our to of revolving needed draw credit this paid proceeds the we when which leverage accretive

outstanding our quarter debt the a environment, offering rates. while as against rate financing we our stand our have leverage increasing maturities, of fixed backdrop XXXX. benefit term of of rate from XX% to rising interest account XX% With of of debt completion end, with for the now the debt three our the borrowings and in latest are complete, investments layers occurring earliest and With floating at rates of

floating there as an March facility leverage quarter was the $XX and outstanding, after leverage mid million with ended represented to year-end. $XX credit As the aggregate rate quarter the million debt million we on of of these ratio with grade an a X.XXx of ended outstanding which ratio notes the paying $XXX X.XXx XX compared down We balance fixed rate additional of of quarter. investment

leverage X.Xx X.Xx continue We leverage have target range an overall term to long to ratio. of

had the $XXX of As of credit and under subject company rates, million, quarter end cash terms million available existing covenants. our million liquidity facilities consisting in and $XXX $XX total of to advance

to addition In this sustained portfolio cash stable flows, liquidity, liquidity throughout for well strong and diversified existing XXXX. season the the which provides bodes

prepared completes take be this questions remarks, our to and this So happy you at we'd from time.

please line at questions would operator, the for So you time. open this

Operator

[Operator will O’Shea our Securities. Fargo Instructions] go first of from come question And Finian ahead. Please Wells

Finian O’Shea

raise Hi what everyone! the like? you beginning rates. I Thanks. core comments your to newer the Good afternoon! pipeline developing and is your in yields on lending little being issue to could color there on Jim, the able Can add a as look for, appreciate how

Jim Labe

continue the pipeline the at such at reward when to continuing move increase, this to opportunistic the the an yields as on increases opportunities our platform more and year. little and basis is to here, is rate up want more work there's right level a with it’s is may during only interest demand of moving levels So as yield. at today, record going the it's mentioned, independent because increase This now opportunities, we – to risk and is of we anything to strong course on that be to bit

Finian O’Shea

can And very helpful. TriplePoint It's what past. capitalized, a we've something the high describe in stage late the you company. I'm not seen opportunistic growth, know realms, like you sure in clean, looks recently that's Sure, usually

company look you Talk] Just you know like have curious or perhaps what sideways able struggling and where been might [Cross to…

Chris Mathieu

no, let no, jump Yeah, in. me

or across hike think to with did our not the – I not rate speak to strategy transactions. regards so mean meant an board opportunistic with a our regards to It's from perspective. opportunistic

traditional, investments. as look opportunistically other or Jim's of return the saying the sizes we think the characteristics or usual to venture the of stage deal same, growth transactions I risk

just know environment. given believe volatility fundamentally because actually demand, we much we more there's You be charging so in the the should

do we based level say that. again amounts the strong I'd strategy lending of equity an suggesting anything So venture TriplePoint companies that that. demand, backed premium and the like we're we’re old we’ve It's not believe at or opportunistic there's growth companies, venture high charge quality, capital, that to – capital a significant same able we raise to start but continued

Jim Labe

Yeah, in would companies reputation, based it industry area just reference the a command continue and to these have never that the certain situations. separate reinforce to It's in are sector relationships a able we for premium we touch. not I would on reserved or

Finian O’Shea

pretty on by asset you know keep stepping thanks. just and a is one your more keeps but risk IPO to getting where raised is But level. And the under for well slows, capital companies side class. you dip and Okay, be well you so you sounds know venture performing good, supposed a It this environment. environment portfolio market high demand, is capital high the very like another back, do on this more this

think level do to of or we're So of capital? see whether still interest innings venture they recession you you here of the come a headwind early from that the capitalization, there's level would rates do or really take it a think or in of just long you what momentum growth? of certain could Do think we thwart over headwinds, run

Chris Mathieu

of say sponsors again, again, again, say disingenuous be dry it would nothing the and cause start techie that We're mean and the investment jump VC we're continue early capital I powder talking like the at factors remember funds believe would and we're ecosystem with in. or look they quick in, a and They playing they on that portfolio exit, long portfolio for periods companies for right. amounts to not expect we companies, glad holding technology are But or so exit the in again. think of they working and are Jim their significant the appreciate we we equity our it, I significant there's VC’s of then you thoughtful and venture the amount are and headwinds innings in more these powder, we're we using about both ecosystem with that their dry debt that companies. to in have that regards of that way. a so themselves our could and that dry they are to we're venture powder companies layering tech then have on I the specifically portfolio I’ll our a deploying activity, to know and have top –

continue not for You are triple volatility, not such a for because shows to raise financing, bridge focus equity outperform so our both cream right, most we are volatile had times during the in and companies you that lion’s quality accelerate unable strategy into the companies and are the that the attract, know know investment that apart. M&A, we're attractive, good capital fall we're or here those will on again that's help let in here than equity point follow-on companies We're raise and to growth, think more not we of times for the rise high companies. that they'll data flows the are transactions share to the to that Those those class. portfolio and why get top asset companies

further, it's our higher rates fund that. their then same the again, you from performance well that think well, data right, growth and we’re private and a to – know metric, perspective. comp and quite argue But are we're should durable that overall hard and despite of clobbered multiple or know just know you performing even higher so showing I mindful important that's companies and multiples what valuation, financial an company is is And so raising reality the you if get of a will public get cognizant again

Finian O’Shea

Got so it! Thanks much.

Operator

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

Christopher Nolan

start Hey did it missed mention out to with, guys! prepayments to-date? I Jim you there. Just

Jim Labe

think don't we… I

Chris Mathieu

sorry. – second the Here,

Jim Labe

fundings I $XX talked quarter. of since to-date It's as about today. been million the

Chris Mathieu

so QX. earnings mentioned million we’ve pre-payment of And we had in today's that in $XX far release

Christopher Nolan

the how your what geographically, sort much has and changed your operating strong Given of does Given that portfolio growth changed? that, portfolio like going Great! so towards geographic investment in a expenses speak and your Florida there’s has mix forth and of forward? Texas

Jim Labe

From and of is well a small really on actually been geographic York perhaps the hasn't where New but out increase York our beds in standpoint U.S. quarter-to-quarter, some the in as Silicon business has Valley a the We majority SoCal, as of second been overall shifts don't the as have we're overwhelming there of dispersions hot New capital. York, geographic continue kinds of in venture but business, for targeted Valley, and market going Silicon to like areas. that, any think cities to approach Boston now our New be terms is or I amount those of headquartered,

Christopher Nolan

the are just finally, and then improvements a in strengthening terms any question, your And conditions follow-up on seeing Fin's you or for loan investments?

Jim Labe

Sajal Yes, its here.

You know I’d say the consistent. good news is be we've tried to

current we're you of support, we’re know validate so of their would terms the of validate portfolio kind value. capital choose and enterprise how structured. equity thoughtful say more rounds companies that in good to financing is bases news companies we're one our and the on to of us that's focusing think investor why larger the have I reasons definitely I recent

say times. of us terms credit how on structuring operate I for we the than side it's So would side more on in during the volatile

Christopher Nolan

Great! you. Thank it That’s for me.

Operator

The Securities. next comes question JMP Kevin from ahead. Please go of Fultz

Kevin Fultz

my and Hi! afternoon, thanks questions. Good for taking

totaled investment prepared is for are to quarter. fundings You of million $XXX million, the which know $XX expected you quarter-to-date your the as prior in discussed remarks, exceed you million and forecast above $X,XXX as mentioned tracking

the the broadly more talk investment you could how about you has and improved if curious environment investment since last landscape Just updated March? in

Jim Labe

is you the momentum over quarter, we again is we of of up element year. – I I us said is consistent QX know and last it of quarter with Kevin busy for a Yeah, mean lighter what and how a say the always then given would generally kind that pipeline certain build QX course

that So little increasing would and that there’s have could we've the that funding say from utilization I or QX, from I here investments funded practices. bit portfolio just a as bit timing is and of of say consistent a closer think the pipeline in companies little growth increase given spillover or I to bucket know It's is targets expiration from commitments then the quarter-over-quarter our of would closed come past QX. you third the funding been existing to own their in overall expiration. with by

would because well out bank, and are don't all saw I in volatility liquidity their that a XXXX on see we're right, know companies, draw resiliency, run you we capitalized maintaining of like just to – and point excess cash given during stability on this just see with. portfolio QX the to periods our to they You begin liquidity you that right, don't have like

saw we quality, which a so. in is right, activity again significant the QX, what fact amount again to is of In prepayment testament

a So demand kind discipline it's past the how and of seeing anything we're volatility, in market for story market been doing quarters tougher our given this not know, being we've telling a you portfolio from we’re I’d we're underwriting. We're we're quality. again demand several what anything, growth, consistent with again in market, that little the different. overall of terms pleased just If of say just the the but

Kevin Fultz

current prepayments, what curious the a including helpful. little just your expectations just visibility more really the Okay, quarter? cadence into And digging in prepayments, are of for that's

Jim Labe

to you Chris, take that want one?

Chris Mathieu

can speak to information. the I Well, quarter-to-date

already little prepay a one we additional $X of accelerated have obligor So generating quarter this million. income over

kind different those prepayments lending or will the million, know million another likely It it's mature principle tough far have part of before $XX.X I which this to $XX we've But happen. year had this to model, a natural and have Sajal quarter, is the have vintages. with think as communicated, estimate the portfolio venture in we anticipate quantum of of that occur; so hard it's that others given of quarter So a of end prepay it prepayments really so the prepayments. size prepayment. will We

Kevin Fultz

Okay, that and it makes a nice there. sense, Congratulations quarter! leave I'll on

Jim Labe

Thank you.

Chris Mathieu

Thanks.

Operator

comes Love The Please Sandler. question from Crispin of next ahead. Piper go

Crispin Love

just about you've broader talking the afternoon! Good a on little the environment Thanks. and belated So been volatility that bit. one

want and to over been raise past debt volatility – you've think seen would a last. do a where have so, this So could be or valuations, said, down market private the the again equity public in the we've And you that and you the and from tailwind don't tailwind in near round you that year think you for long through you. companies do add you how and benefiting raised term that

Sajal Srivastava

can me jump start in then and let please. Jim Yeah,

seeing definitely some So benefits.

know you this his mentioned think I prepared remarks. in Jim

robust significantly know premiums in particular follow-on because later of growth companies the rewarding raising investors significant You more and were private during periods, to kind rounds valuing those and stage willing to pay every market, we months, six saw XX sooner. equity

every months from XX round model raise equity know You aggressive times, during so let’s to XX raising more equity say times, and an normal the more the robust is to markets frequently.

companies of what so portfolio an again the the and seeing approach are round equity is months, every now going more thoughtful So raising back to to we're in. XX layering XX

are companies or in these capital. So that that debt raised raising complement have or layering either to venture

let’s Now it's don't definitely to around. I avoid down think say, a

past, in again, QX raised know so the it's you and I not at the so valuations Let's equity think the been We and they that multiple. and are up say again than more here max companies peak rounds data the on than were raise that primarily out points in we they they I used rather think they have didn't may the ‘Great! Hey! within multiples the to, – have

too when current looking we really more about and with it complement amount really appropriate instead than we’ll demand the for. I we’re or exciting, healthy, particularly so then thing we we an of the that the quality raise pleased much see Let's that's the are venture normal, and think of from debt’ raising companies the

I running to where are would I software in too we're last very the getting – versus they debt in sheets, sectors say into seeing right investors. again also equity you term debt particular, for just the it's we’re you the thing know is year, looking and were equity second markets again reasons. so attractive for the great markets and companies coming that to companies seeing ten think know

Jim Labe

You know add I really much. can't

and are a done opportunities out we've round and this They there’s all in know a augmenting the down of you Sajal decades are and that. uncertainties well replace their scenario our putting scenarios enhancing we which for here and but nicely, continued there debt, for valuations valuation down because softening capitalized. it out like or are some where covers by are at round that going but a of to are on think I place companies company. strategies mentioned layering debt, around anything financing are the know least and replacement, you as These corner, in for not not

Crispin Love

income. Okay, consecutive you then very strong great, net up thank two you. there. That's And quarters helpful color investment put for

might forward. distribution curious a how regular about to you or special the the level thinking be potential if board speak I'm distribution for could So going just

Just any be great. would color there

Jim Labe

playbook leverage the we've say getting a size the talking getting see got scale, strategy. and the to portfolio consistent we can we're certain you'll I’d we've got at quarters certain see level, so leverage – several and for a ROE’s a a We've then maintain us level generate. to been it's Yeah, NII target getting for and again to listen, stay at the consistently and and

listen, a on on very we're the so even again, quarter. know much performance. I it's more and you would our in conversation would quarter-to-quarter to business if this say this continue NII full to basis know we're board not is you say hard have to focused a that such going I'd not doing what we So to – return doing, after demonstrate let particular fiscal with couple continue keep deliver us argue and strong demonstrate year, and again, But

Crispin Love

questions. my for taking you Thank Great!

Operator

from Compass comes next ahead. go of Please question The Casey Point. Alexander

Casey Alexander

acquired that asked, earlier and that. of lot Yeah the presentation in portfolio rattled catch A of hi! already have but Good been my a have I didn't quite questions afternoon. you companies been bunch off

through were could that and what acquired? you run again period they in If

Jim Labe

Sure Casey.

in QX Inspirato so portfolio Fuze Sonder. which but yet, companies SPAC SPAC continue again, previously last the QX take-private to companies we they its closed and in that had have well, mergers, transaction; Mars two And not finally Transfix did mergers then two as completed Growth the was They and Petcare. acquisition Casper their closed we so QX announced year. their So and had other acquired by NomNomNow, mentioned, closed in make progress. its

Casey Alexander

the alright question Thank you. I Okay, have. that's only

Operator

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

Ryan Lynch

question, housekeeping fourth down know you I know XXXX. One quarter QX in at. in that afternoon! can had QX reported. of just prepayment provide to already you where when in know total you recorded said settled million the of had the $X you raised you you level $X.X wanted know Good I income Hey! million I QX.

Jim Labe

Go ahead Chris.

Chris Mathieu

Yeah the $X.X over aggregate prepayment EOT a little whatnot so, is and kind a million. of $X.X in combination million, accelerated fees aggregate prepayment that's income, and of

Ryan Lynch

some expand Okay, longer some growth for happens growth other correction, sort the that’s mentioned the valuations And question performing the that that they What of then your state as non-profitable had maybe helpful. creating, some IPO’s the in kind or mean quarters of venture portfolio and opportunity valuation XX% not months. still some know of are I’m that, companies, still does wondering that on high correction growth, extremely profitable changed lenders what to Has seen side are the are through we just cash far equity complement the in [inaudible] from into of venture negative markets, or I today. if last timeline as potential you only and or how XX% events was, reset volatility you in runway. are in credit that fundamentals down for business standpoint, a high presenting for an public six high plus means well sort as flow you That businesses flip your market. quality? have the a that flow of liquidity are in though, just happens credit that some I broadly these as

Jim Labe

thoughtful quarter Ryan. very a Yeah, there

for first you private between so per never, it’s premiums companies rates. say. public never a and growing some always companies versus gotten know the at Generally discrepancy is, it's higher – as again have say private know element the I’d the the same we because companies of been you to growth So look to there’s public multiples companies paid they've

the your or the of I key but right. or exit environment in growth so thing where an right, be may at portfolio are challenging, think sense. public uncontrolled to And important, companies, growth the about comps unprofitable right, clobbered playbook our look getting don't is make is It’s environment growth know you

slower everyday of protect no another look go give are of is scenarios you the the potential, preserve that’s know the then to for our Will weather companies from investments; inherent to these investments, makes still full new that's reason private come mindful storm. attractive at deploying growth that the attractive. public And again multiples environment, let's right, know cash environment think the investors element follow-on I in them where extend know or whole, markets, runway, in an debt what are – think I But not and They are know these why often volatility. also you using they the having and attractive for the and raise means growing, there's again the environment importance rate back of your their time an element is third in you know next know we a And can so lender their you of technology M&A lives from fundamental can again means so and burn being existing time exists, looking the to round again they are within some makes being the is companies to and we of where pursue they of pleased to and be and companies and their capital reason different, a your they quite economy there for potentially it them terms that investors, They wise our think gain. because place our are not as form all full, – penalties, get growing value new and back weather of we prepayment runway we all doing. the you raising multiples debt. capital create and have because investors. I It back right, and in to makes companies as the not value may have capital existing our to paid you find some where get it may to at a but you say are – and

It's – more that’s sectors down up and not it's to certain into it. right I'd certain why I volatile. So say maybe why again down left. not It's sectors outperform, the volatile and out up of be volatile word it's may the listen, use certain that's the and to and continue

Ryan Lynch

about profitable further was I Again, think reset had to the happened. talking are markets, portfolio venture not I to just to the – time in happen has in valuations because venture markets. public state, sort only which that hasn't fully space, reset just a mean valuations matter because specifically, but before its in you and down trickle strong companies extent very mean you in that a on your of complete would and this same need They it if like important. still public of the can in it private I happen not feels anchors needs private maybe future? Europe, just the maybe market, have because think is you Do is [ph], has market, broader happening it’s of a that the happened to that it's eventually their happens in now going comp. or in feed to reset

Jim Labe

start know, think is I free a strong Sajal, I'll heard haven't and feel that add to I venture very here. the but word. reset You in ecosystem

bit Again, public think more. likely two trends with there just It’s capitalists. little long talking going to The we're they private are be, good is generational technology. there’s and because well. a some going here little dealing I just gets the focused future as companies, just quarter good comes said continuing down when a things completely in whole in just a it's have, but there’s for reasonable markets, bit some are market we're or But to it to changing moves on technology, extreme. valuations, think I to venture growth, as changes

There’s quarter, again continue more companies, Series in I early stage going in early strong A, were a particularly to the work. just in So rests and I stage growth that's the valuations here, seed. venture not increases think Last platform in think there stage. been the is actually

are over softening spend to doubling it's mentioned, markets. later things I resetting we public stage the growth a dropping There do of was to last In at previous private growth is with, As least valuations, stage, at months. need a huge the of ones. a the market softening things little venture but there and that, evaluations. stage XX% running some folks spike or was like those the venture companies later bit, XX year moderate Yes, it

the are but future what's market from is now benefiting it, for We venture I in think stock don't valuation. of quarter the a last predictor happening private the market

Sajal Srivastava

keep lender, I only are mean mean also let's we the context, that’s I'd add, right. so why I

for good So news from important, metric are but critical sheet. portfolio our side the not it's is companies us perspective valuation our we is and underwriting nice where the the and are balance of debt is in we the

right. company valuation, that we So make valuation to indifferent Ryan I your when in and/or sure can raise this our perspective, that want point incremental we’re comes when capital sure to an just a it about from downside somewhat exit that there's event is, scenario. think make potential We to care

not I'm protect here here say justify would valuations. I'm to I So, to valuations, listen, not

equity not Because return from raise lender, core to side most here, us matters from what continue we're making equation kicker. or are our on is generated debt and somewhat that capital. if because a undervalued, that's think more as we of I to companies focused sure so it's indifferent, overvalued the the the

Ryan Lynch

guys. context. That's I afternoon. helpful this of the valuable Thanks time appreciate

Jim Labe

Thank you.

Operator

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

Jim Labe

call, results with thank participating as everyone bye! to We're and forward we like Hope you everyone share to next very you again. to for our talking quarter. to happy again quarter in the all always, first Thanks operator. look our you, and Thank excitement. Good share

Operator

disconnect. and conference presentation The for now attending Thank now today's concluded. is you you may

TriplePoint Venture Growth BDC (TPVG) 5 May 222022 Q1 Earnings call transcript