TPVG - Earnings call transcript Q2 2022 | TriplePoint Venture Growth BDC Corp.

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Operator

Good afternoon, ladies and gentlemen. Welcome to the TriplePoint Venture Growth BDC Corp.

Second Quarter 2022 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. After the speakers' remarks, there will be an opportunity to ask questions and instructions will follow at that time. record in replay the an Growth being will the TriplePoint is website. available be audio conference and of a call Venture This webcast on for with is the to management quarter share Company Company's XXXX. pleased results the second of you Jim Company President Chairman Officer. Srivastava, Chief Executive Chief Chief Financial Investment Officer; Today of is Officer Board; the representing Labe, the Mathieu, Sajal and and and Chris

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

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

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

James Labe

the against backdrop that quarter to macroeconomic laid continue operator. the earnings you, uncertainty, Thank afternoon, a executing our approach beginning venture at and with welcome in the was we investing strong strong, quality focus disciplined Venture’s everyone, in select and we our venture Good continuing of growth debt plan progress of the leading of the deals. out make our are highest we financing for investors capital working XXXX what believe TriplePoint year. Demand and call. Against to second with our quarter maintained we

the quarter, generating to second portfolio including key our yields. the dividend and achieved we several objectives, growing earning strong portfolio During over levels, record

past few We second $XXX pleased last quarter, second bringing gradually XXXX. our and been our leverage more quarter, have heading range. our funding strong investments and momentum the are During have funding the to goals million of of portfolio quarters, have in target leverage exceeded we here into hit the we half up debt maintained than

stage IPO. Specifically, more we've XXX highest companies TPC, signed sheets million sponsor. is new for our growth at of our since than quarter term This the venture at any

of companies quarter $X entered new venture quarters pipeline $XXX commitments the for growth We to our million at and grown also during debt end. than into additionally, now stage is billion more

portfolio. the to Turning

our per Our of A remains $X.XX aggregate first in companies of earnings half the of strong. the than more $X.XX in We portfolio of share generated third an year. our dividend. exceeded and power billion raised have $X.X quarter NII capital this of

the In own. market, terms its venture of overall it hold continues to capital

remain portfolio XXXX. funds companies deployed to that's be to powder have billion the transactions. have capital across U.S. environment, well according venture Here funds a for their averages the amid more this any venture even have a is levels since capital a equity record last them. Despite than nearly remained billion firms challenging to X,XXX available NVCA now capital this volatility $XXX markets highly venture above Private quarter. stats few fundamentals. year-to-date and the All near-term and powder of quarter market the public capital invested bodes $XX dry venture venture investment and and this active equity raised PitchBook $XXX increased billion, pre-COVID well to for in dry looking

the valuations. we can't private public has impact a created access. in company this Having shifts quality venture and between due this stated the be capital of the pool and For couldn't this, stronger disconnects markets that companies, really all tech to recent to they selloff ignore

market We were capital in have last stage, private are And portfolio market growth through of is stage leveling goal continue almost particularly plateau the or to reset been which they even IPOs companies expect the this late off. non-existent. quarter, we their of to supporting valuations venture growth Investors with profitability, operate. prioritizing as which existing valuations venture companies a them at

to companies still Given all have for growing. choppiness, but year, revised important many their market the plans note, this it's they're

more XX% expectations, companies, somewhere or had which maybe or they yearly ambitious say, maybe revised plans previously example, XXX% let's XX% growth XX%, or growth of For now their like to so, have so.

hand on view debt comes it to of favorable credit goal We sooner. well profitability positive a more as for All of companies investors extended as more burn maintain portfolio a of to cash and portfolio's our have and towards achieving plans when revamped guided trend runways. cash quality. this this and venture their or as moderate rates in cash two resulting Many years repayment,

As go conditions increased of look we serve during the believe and for the Companies debt year. the that positive are for lending part drivers TPVG both layering of behind will as several market forward as opportunities we to continue remainder forward, in turning plans. venture out these of towards and their demand play

in scenarios capitalization rounds second seen and quarter and expect and for each us continuing and our strategy continue these timetable sensitive companies advantages to many recently beyond. now public because their and this we in looking are venture for the Following result deal structures have at capital have of create for and the longer opportunistic out future the with venture financing in Other of debt provides trend runway Companies XXXX and a to trends increasingly of equity demand of We've companies the there seeking debt a for plans. attractive they solutions add record valuation in listings. evaluating debt augment market. valuations a the as equity out are timelines year additional lending sustained their These pricing. are financing raised activity, plan form helped

to brand record are track comes with continue total debt the XXX% ones in Prospective which performs. of partner. more being they're out debt, and our originations deal, platform a underwriting but they are the the proven on lower companies the largest to TriplePoint more or leverage long-term a and be it selective where reflects also When high and solving slightly reputation direct focus financing rate selective is and seeking and also best business. that portfolio pricing, are higher a dependable We today, quality not TriplePoint more partner and for the

our market team say earnings Maintaining cycles, we I knitting. in deal is draw experience cycle markets and especially if discipline and learned a environments, know-how, you poised along the We for market discipline have venture our important. yield of be together years to the venture call, business can the track advantageous of credit with we our effect that the long-term. productive have positive and and TriplePoint’s over Sajal some in almost lending our on mindful the to and opportunities. managing in While record worked times and the lending through continue further for experience position on could operating flow, to believe the best multiple will XX are of tested through on on the seeking company. capitalizing the as market stick the capitalize we've success Based every dynamic to be we strong and on maintain times strict current diverse have most

history. We our TPC's investment that more the invested in in $XX platform is largest venture are lending has benefit TPC's poised to billion also from team now differentiated in than transactions.

is pipeline record at Our we levels servicing are more and geographies.

high serve and second platform able against pleased our a of progress performance portfolio As plan. location. regardless with size we strong our global or executing multiple we our to transaction recap, quality are very vehicles, the To quarter companies, are with

and remain to capitalize excited backlog. best Sajal. some true deliver select and will We to have by the and compelling turn and to we returns this by and pipeline I'll expect credit and continued apply performance. ahead the that, seeking remaining tested we our over deals a of opportunities, shareholders. our and patience, team cycle half and With active be In throughout execution the standard underwriting discipline the our to tried year will strong opportunities disciplined to balance continue stringent, the With quarters given strong second driven the anticipate be

Sajal Srivastava

during execute our against to and Thank We quarter, second and afternoon. to while our volatile continue use Jim, you, disciplined generating increasing diversify remain the XXXX grow leverage. portfolio strong good and plan results markets despite the of

respectively. levels with $XXX and Regarding and to Capital $XXX.X investment from closed portfolio QX $XXX.X of a a growth we at million, second sheets commitments debt venture commitments TriplePoint stage companies $XXX term term record TPVG. Signed million and approximately XXXX of XX record million quarter up companies of million signed sheets were closed activity,

in $X.X direct warrants during the investments new received portfolio and XX in $XXX,XXX four and the made also portfolio capital We were valued portfolio debt four companies. at XX existing companies, companies XX million of quarter, Of companies companies. were we committed equity

XXXX efficiently. drive reserves financings QX, funded of their During QX. to debt fundings in quarter increase in where the closed for origination our The cash companies and during well two off came which an above related efforts guidance QX commitments million $XX and in in extending investments topping the our million million debt from million runway cases, we increase seven equity more activity utilization well debt to thirds into our with companies in QX represented be was to many To clear, funded strong the to new in we companies, our to quarter, XXXX. second new investments portfolio of that XXXX. XX approximately from was range $XXX.X $XXX commitments fundings fundings reflects strong which existing and $XX recent

be our We up the existing commitments utilized. balances activities funded The end strong draw XXXX. we weighted investments companies and expect at XX% of origination, debt the from yield the XX.X% portfolio drawn if unfunded XX% portfolio of the continued a given fundraising our average is of QX of in periods, to carried to which annualized cash existing quarter typically XX.X% during see to at

core of in row the during increases increased the QX XXXX, an investments. in in as new Our prime from spread rate was increase yield quarter a of up XX.X%, portfolio both XX% and a for the quarter and result fifth the base

XX.X%. of as yield In the activity debt overall quarter, investments total result prepayment was during annualized weighted average portfolio our on a addition,

generate of portfolio dividend our an to on and ROE portfolio our demonstrate the our excess yield basis strong return us business, and scale. growing once enabled increasing again, in NII success and we earnings Our of as both potential

in the will and income third of more will to during two last of contribute Chris fundings for materially As weeks QX occurred cover, the approximately QX. the a quarter

additional performance prime on June more for to prime rate will leverage a of run the the our In of to impact our is significantly increase on consistent year full at basis. include objectives the contribute July. rate second along a change in QX, the more major one which during addition, leverage, higher ratio quarter in with doesn't regards With XX, the

We third the dividend in the will impact to and rest have quarter, net our activity. ratio are result course well of investment year, of pleased excess income our of of during expect as leverage in strong in continued we increased provide as the a which from the over the prepay the quarter buffer

to through since QX to have QX, average our basis. year-end a companies portfolio. one of that a quarter the quarterly will scheduled expectations the remain addition continue fundings of prepay a continue capital, For to equity raise to and amortization $XXX our million in on million And $XXX principal we expect on range we the in gross portfolio

As progress on strong diversifying earlier, the TPVG we while portfolio demonstrated scaling. mentioned I

achieving In QX to obligor a XX of funded had compared addition the size XXXX. QX, of at end as record to portfolio XX as we

XX represented one-year In XX% compared top approximately investments of ago. obligors of addition, debt total our as as our XX% to

QX and to Our an value compared warrants continues in investments and represents ago XXXX. basis, XXX of XX% well of investments XXXX as $XXX.X million one-year on with grow equity increase to portfolio XXX QX fair equity a as warrant from

in Investments nine unrealized holdings a and of losses of to the of During $XX companies value the public warrant equity $X.X quarter million lockup. experienced quarter, with three approximately ending subject fair are still the million. our

is XXXX, our as they public recover liquidate Our to course plan all holdings over in of value. the of

million Moving credit In of fact, as quality. another solid. to of are The portfolio remain overall yesterday's close, up our on companies health we

also only the billion to portfolio extend our but not start runway. mentioned, $X.X Jim have of burn raise year, As since the reduced operating companies

ranked XX% means to at scores, best We are pleased are that that is performing report portfolio credit they two our or at of above our which expectations.

two X below from quarter, to Category Category total portfolio to due balance Category expectations. We companies the principal X during X.X due fact, one X, In of improved of to performance. with to company with million performance balance downgraded million was principal Category X upgraded from $XX.X a

In raise on additional companies over have capital. sufficient category regards both year we X.X% the expect and loans our total, basis. quarter capital. total value perform represent quarter companies enable additional expect our to as to third existing demonstrated with they them Category fair companies improve X.X% performance two during additional our during runway, upgrade on We the to portfolio to performance of the of course of And and X basis capital other rest both of significant With cost these a investment three over to the to time. the one raising and/or stable raise a

down represents for portfolio heads company X Category Roli on a raised Roli X% value portfolio investment basis. total product is only of fair additional Our in and new another launch. capital our Luminary planning QX

Pencil also falling formal and to X known minute result the Pixel of Category at selling in Modsy process quarter, as QX. M&A as During downgraded the assets last a its we the apart and here company its

and was alternatives not transaction happen, expected outcome put process. the the it When the evident minimize loss balance as the our of This us. which recovery end circumstances around isolated to million principal was the down sudden QX, was and to that expected would related we we Modsy to the facts and million marked a and amount. behind specific $XX was explored and This event our matter concluded. best its $X.XX Our and loan is of M&A

based Our and portfolio and realized loss net and TPVG’s an fundings Cumulative investments X.X% IPO when our we our has the eight and factoring And on losses stock expect exceptional or since performance offset credit after than Modsy based as to existing gains equity to from net IPO. our X.X% public on we quality our XX more been warrant a credit years translate rate ago, commitments year. accumulative holdings. points loss since sell of basis

Our to volume of be of to the our what investors cash strong as core, our the for course, and to extended given some originations credit credit year good of investors to our thought our of runway, next over not TriplePoint VC worthy credit with I outcomes. the environment. continued focus to fundraising the it growth's and just outlook select continued manage in of with on would of the sake. their elite I describe high-quality our efforts, situations thoughts rest companies, continues be this support helpful the positive share quite and At regards deals the portfolio team would companies we for capital to their positions or continue companies best venture efforts

patient our We have be our grow to been, and as will always we and look portfolio. deploy capital

changed and Our are have not investment in criteria stringent. cases most more

and and runway. equity strong VCs and we from support conviction growth. We meaningful recently cash are and a of leverage, have portfolio select companies to existing for raised have source the financing use expect We capital prudent encourage prospective our

worked it to that consistent I'll leverage, mistake, excited focused in-store In profile, year, make and the NAV XX-year our the volatility growing patient funded, made remainder plan and of I in progress But over turn to some with credit manner, Jim and summary, of exciting against backed with TriplePoint, is call some while growth than capital no companies get discipline market our substantial believe year. what's be XX and companies are over working for have all our a which With venture the together. during volatile times solid the most industry's that the is we've We heads in years of now the Chris. more for game despite to when record maintaining track continue NII best a funds. the we the the best growing portfolio on that, venture some down by continue maintaining of of stage

Christopher Mathieu

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

second attractive of to diversification This the as high-quality credit deployed consisted July, maintaining higher notes, generate yields. for results credit in quality I'll continued second revolving investment to stable while largely you well XX% portfolio the income and increase portfolio portfolio continued was core from of financial average rates was a facility second overall take size and for investment new the which solid rate quarter, growth income utilization of using million of on leverage, to and We quarter XXXX. we through the grade in and strong quarter in as million debt renewed our long-term as fixed $XXX portfolio. million increasing now due million $XX interest the During to the that sources of we capital see the loan XXXX. commitments. $XX substantial compared of $XXX Total our

yield investments portfolio for and as continue X.X% in year. compared prepayments Our a this the second to yield with principal total XX.X% accelerated stable. Loan to quarter quarter strong portfolio of million prepayments million yields last this debt total XX.X% was quarter the of on income. contributed $X.X $XX be and Onboarding to of

While of of increase were $XX.X fee new expenses the as interest Operating fees, expenses the incentive of and million portfolio by in and increase use attractive general in the the management administrative increase covered that prime and or The of XXXX. assets was and $X.X of in $X.XX primarily $X.X compared fixed losses period million of million from $X.XX million public and of portfolio. of the equity and in just million expense, of in Sajal, well rate quarter Pixel bodes $XX.X We included income compared rise QX portfolio, $XX.X million, same in for overall quarter. operating income. by weeks per our to $XX.X Total fees, directly rates related portfolio which the topline totaling $X.X in $X.X million million expenses. million loans consisted beyond. unrealized pre-incentive mark-to-market investment XX% an growth approximately in million as the fluctuations to million last driven of applied earned $X.X investments FX loans $X.X which well funded fluctuations leverage in the rate adjustments the investment in share investments, funding our were million the or was per million year. strong mark-to-market on expenses income to of was of Operating very $X.X from for loan and we growth in in to also the adjustments as for quarter, Pencil successful $XXX $XX.X net quarter share second closing the given of this the the

from record the which on $X.XX $XX.XX With distributions As total end, as share the the of Board totaled the significant per or our as or be June million to paid quarter, and this declared supplemental On company's ordinary the special remains income of approximately $XX.X July XXXX. of earning assets of XX, and September income million at were again $XXX $XXX to per second of share supporting quarter XX, end $XX.XX we XX, September increased quarter, XX. share million of future. net per a over in of the or spillover per to dividend stockholders regular compared $X.XX additional, distribution Directors share

coverage long-term regular to experience I'd expect also for income our was at continue quarterly with the XXX% we second consistent that net dividend that activity, at strong NII track cover record. to current, to strong levels note maintain portfolio As quarter. we distributions investment

move to investment let's unfunded commitments. Now our

the strong commitments utilization during experience our quarter. to stable continue of new We and

in floating unfunded floor rates, XX% XX% we portfolio contractual certain unfunded the million ended commitments an amounts this upon had which all favorably of interest prime to commitments dependent have $XXX the higher. million up end million loan we from robust the is milestones. expire Of at floating of the XXXX, company, earlier, the portfolio pipeline which a these compares reaching rates that This of with total interest $XX Given contractual have outstanding $XXX a investment set X.XX% rate, prior of will these which with rate XX% during quarter. quarter additional quarter or mentioned to

term facility, Now just our on credit quick overall notes, a liquidity. update our and

investments of backdrop and borrowings completion steps three a a end loans completed against grade quarter, fixed three increasing continued debt floating the the rate while of from environment, half rates to to five-year occur our QX, the the our With and XXXX at rate XX% maturities our at stand of have offering of time. separate account maturities for investment of latter our XXXX. years we fixed with two XXXX, the interest rate outstanding With benefit rate debt fixed the and XX% rising over interest leverage and term in rates of the latest debt to are over term in last

portfolio total XX. of grade solutions. $XXX support banking from favorable for a remain investment XX, leverage to July, our in and second our level with ratio We ratio maintain, $XXX revolving all X.XXx The the June at $XXX leverage of outstanding of to credit revolving outstanding, and group and reaffirmed million of our long-term In same of quarter demand notes million. ended May on on syndicate net facility Long-Term date the X.XXx revolving million there April. $XXX quarter, credit scheduled XXXX of our November capitalize investment leverage remains diversity amendment of fixed BBB positioned with gross we our XXXX was and continued outstanding, period hand. in well with Issuer financing on on of the notes DBRS a rating lenders As maturity cash attractive the debt revolving extends our XX outstanding this facility. May facility. grade rate aggregate this continued The from the investment the the amended a strength We we of reasonable and to appreciate at And the an we and of million diversified Earlier grade November partnership. our company's commitment of the the debt the given leading

line to facility, credit grow use the cost With the to portfolio. effective we will attractive the continue

the consisting available $XX end, of of million and million $XXX had credit facility. quarter company million cash liquidity in revolving under current $XXX of our As

sustained to existing which through portfolio diversified provides In bodes well addition current stable the liquidity, for liquidity seasoned and this XXXX. cash flows,

For excluding alone, equity payments public in contractual any prepayments from principal example, and of that from two than more loan also the cash $XX sale securities our occur. next the in expected in during the have we portfolio quarters million flows may portfolio, proceeds

So questions our we'd this to the completes on prepared be remarks, happy take from you and phone.

operator, please lines could you So the time. open this at

Operator

now [Operator Thank the Instructions] first Our question go you. We'll Please question-and-answer Fargo. from comes session. begin ahead. Finian O'Shea Wells from

Finian O'Shea

Hi, everyone. Good afternoon and thanks.

First number key then the fundraising second seeing you your very the terms number venture of sort and overlying And rounds? fairly out new in fundraising half. in borrowers? debt what good, valuation spread the numbers did unpack question fundraising – magnitude $X.X or change concentrated well of think, sounded on see company these this the [your] in and it borrower. reflects portfolio if part, I of sort bit I'm could of first that Was median billion if you a

Sajal Srivastava

cut. the take Hi, Fin. I'll It’s Sajal here. first

So terms just QX, about so not in so million, lion companies pretty pool in raising so two $XXX packing through, the raise it's share. XX companies of or – a one diverse we had

majority terms statistic really the then above So or have data portfolio. great across a point interesting been the spreading the the of is that's the capital the rounds upticks other of at in valuations. I again, in raise of think, And

they're either premium to quality that or able at to the our So of companies that valuations existing again, prior raise I they're and to a round to it's able valuations. testament raise think

Finian O'Shea

then, is extend any goes of thing? that's that? in any And you is that away line sort the helpful. Is from? usually away broad anything are VCs vogue. of Or of when out are VCs That's type cost or a certain business cutting pivot category a this Okay. seeing venture start from know how of I they runway sort there problems drawdown sub-industry do like backing

Sajal Srivastava

as investors crypto a we're say in Yes. the market there attracted toxic not seeing pick portfolio I mean, again, It's and but as kind quite at tech not in. number an I'll capital. is not companies that I of would crypto, – we're this opportunity on we that have are or interesting to sector any an sub-sector specific dynamic. while of looking invest of challenged, as see are crypto a don't

our overall, would the is companies say, that's that burn from sectors or I goal that with our intensive primary to are focus, unnecessarily sectors select or the And are to growth and that rate in high those because financing rates our I So lend would attracting is necessary higher less rates are perspective, group. say capital that burn are those I our but follow-on from theme companies attractive. are than of think

don't specific. I So think its sector

I think it's more of financial discipline specific.

Finian O'Shea

well. Very Thank you. Okay.

Operator

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

Crispin Love

everyone. Thanks, and good afternoon,

the the the forward than third end any color the second we for strong your as still they closer if that $XXX just that but looking to the at second lower gave any think the reaffirm bit gave, that we're better the quarter, quarter, there million to you came $XXX For that the and versus the little get to appreciate of midpoint that you third, in would I great. quarter? in that or pull to fourth the in quarter could at closed was you just expectations Just the second million think your third the there there you given do saw third for new guide quarter activity you end originations be investments, half, would debt a I initial were for second guide be And expect of quarter.

Sajal Srivastava

question, Great Crispin.

quarter say, the I'd third right. seasonal generally So a quarter, is

towards come would consistent vacation Given be that and and consistent although probably expect to backlog, the so and your to then perspective, summer prior with the quarters quarter in schedule, tends with I lower given busier mid-to-high end, that of end perspective. our the think we from QX range, range, the

deals from would and say into motivation a definitely faster. done there QX and pulling sides, QX. was expectation of given get it, the I of QX, on to little and I I there's the we As both obligor think look rates think also lender increases bit to frequency of rate

the relevant, was I in as opportunity think again, it with but floating looking but again, companies to given we were an capital. rate, given close I to lock that think less using – were

was I'd look the activity. So at QX how say, we that

Crispin Love

companies about Great. didn't some might if on liquidity about appreciate that have on detail Jim give but six I little you Thank other a share? you you. hand, something color, on info catch bit was. among just or companies, just portfolio have two hand what can And then think how Sajal. liquidity that really much to I year months – those any have longer, then said metrics the you more cash your a of qualitative years last I any of can

So if be that awesome. you well, as clarify could that'd

James Labe

Yes. days. problem. It's these good a salient ask question one a No to and

think to months So prepared days. two-thirds just it mentioned cash the I these in I is and something last a quarter, are our runway, yes. monitor but a of as had It over in more XX companies of remarks, wise continuing don't practice that we cash terms as very

Crispin Love

I Great. appreciate Thank color. the you.

Operator

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

Kevin Fultz

afternoon, taking and for Good my thank Hi. questions. you

LTV also curious where trends basis? Now just changed deals private significant pullback currently in in I'm new the us and Clearly could that the to valuations. ratios just question a value and a in there portfolio. have on you portfolio you the underwrite around sense if how stands loan has where LTV company remind you have if been

Sajal Srivastava

Sure.

as the of I XX-Q, as LTV LTVs origination QX. believe which portfolio, where we're flat and of target X%, for relatively is between of the X% in time were we to QX, under we XX% at So as

the at material in in fundraising mentioned, companies valuations. and upticks or flat year-to-date no at portfolio as So portfolio LTV the majority our been terms of of have or change of

– year, rest we fundraising of amazing, I listen, in the over expect – and I'd that X% multiples where reality flat couple think as is of the Jim and to up of are the say to say, new but able the to I'd range activity So that of is think I our to again, to quarters. up raising flat continue the portfolio said, to hold next but expect of X% is companies public raise, the be we continue

Kevin Fultz

leave there. it a I'll Congratulations good That's nice it. on Got and quarter. hear to

Operator

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

Casey Alexander

to equity in a – little are afternoon. right in the equity higher We've things slices in. making, more you companies And which the than have the getting few of generate your that a yields a coming the lending that you that Does with pushed leverage your include better been used down maybe equity going years? onboarding are and negotiations markets past up, of you're markets. the volatility that values you're basis suggests in you're seen get bit it that of debt the and good Yes, your expectation lot ROEs on investments we be to now would taking over that maybe vintage would had alongside the

Sajal Srivastava

Absolutely. Yes. question. great Casey,

XXx multiples averages as average to companies right. environment, year say, hey, off we're benchmarked we to the multiples. multiple. would hey, this I our basis absolutely getting VCs current from to They're look exit as the or of from let's entry XXx in exit, the current are we So five year use that point, we're funded as is, expecting our getting for insight hearing as six but The look the

we expecting are say new So valuations and to higher round a on return, set. being class are absolutely, balance valuations this I are would where given generate basis

look coupon we and equity and the the kicker our and deal, the how of balance yield structure from debt As side obviously it's yield we – side side. to the the

mentioned, to to both Jim we're we're get equity looking So but I – like, going subsidize less more push charge reason that's not a up. would as to never one kickers, to say

and So in – dependable definitely companies returns pick are premium what we environment up willing of a a to is on are of equity – but to cap there we're the great could companies be, it be and to these want with total our the partner quality is this total to high and capital a premium and definitely trusted a there you to looking pay debt percentage the yields we're kicker of companies. pushing side ownership seeing both on for

James Labe

as seen opportunistic well, we've what it’s historically that's and times. add only can I And

Casey Alexander

for Thank Okay. you that.

is Secondly, originations just for because offset that? review your sort bad attention guidance a expect can fourth what you quarter quarter, prepayments span, the third you have and of I to guys how

Sajal Srivastava

Yes. Sure, Casey.

of per prior and of QX a for originations bit pulling guidance. to of QX fundings quarter $XXX it little seasonality consistent million got $XXX to a QX given we QX QX, in at gross be So end with Again, end gross to million fundings be the higher QX, of that range the funding to to a $XXX lower sorry, the at range. of – $XXX QX to million from million perspective.

We our questions. that's continue to I expect your to have those one prepay think a were quarter, – and

Casey Alexander

totaling the million? around you of regular second did of also, sort expect half say But $XX amortization in year you do

Sajal Srivastava

portfolio half flows We always more in the jump the have believe amortization of currently the regular isn't million. of year second – $XX Chris but second the excess I the are unique, in correct, cash year not for and half we of –

Casey Alexander

for Great. Thank my you All taking question. right.

it. So I appreciate

Operator

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

Christopher Nolan

Pencil and third given that a quarter loss? guys. is Pixel, your comments, realized Hey

Sajal Srivastava

to want you take do Chris, that?

Christopher Mathieu

to So loss from flip geography. yes, impact just unrealized No our in in QX, but hit so NAV we the fully an realized on QX. it'll loss QX

Christopher Nolan

the given of Got on What thoughts that the to and Are comments decrease you in comments, dividend, leverage? you thoughts of leverage? the also terms take you Do the your you exceed market expect going cautious increase want sort off that? and risk it? are your it. given painted what's the around some And earnings guys to just to

Sajal Srivastava

Yes.

perspective been ratio is down over a jumping the from I think, Chris, our years and we've leverage up perspective.

wanted really that said, we business, yielding activity, leverage and after when you rating investors debt run low just of And rate getting scale kind that and DBRS, take profile we investment advantage we of leverage, the as down. to at the rating grade our our so as drive to, one to prepayment our what's of portfolio then always, fix XX% – ROEs. given cost that's earnings said great a the have at this we demonstrate and dropped higher from a NII But should of said to

higher I demonstrate do to so to amortization, like we'd run and but leverage, to investors, our prepayment hard attempt slightly leverage that, we reality again, run what the ratio. portfolio do it's activity to our is, with to ability generally think, higher at at to but with goal to our a said is And we wanted

Christopher Nolan

because sure I many ahead not growth have sort bank some question if of bank or loans final of lien and And top your companies how financing, which on is first of or… guess secured that's senior Great. capital I'm my loans, is debt your investments banks of

Sajal Srivastava

term We of it that, as qualified revolvers, have QX, disclose and in we where the and QX. or the at as companies same it's which term end as is XX% XX-Q loans loans plus was banks those from approximately our that

Christopher Nolan

Great.

Okay. Thanks guys.

Operator

question Lynch next ahead. The KBW. from is from Please Ryan go

Ryan Lynch

equity Hey, related markdowns of that and total $XX $XX I'm downs million to clarity from little specifically a curious, investments more of credit. the credit What I contributed total write-downs spreads good versus unrealized afternoon. to the trying to or valuation realized that of losses impacted that in you million I'm $XX to the write is [indiscernible] know quarter. any Pencil write-downs and total there on other are just had Pixel. contributed million? the get kind that of nature and roughly

Christopher Mathieu

Yes.

market fixed with I other that we kind of, call hit portfolio one was adjustment. category where there So the loans mentioned we rate what have the it, in a rate we that call I'll

those in those $X.X the about given was for loans about kind for aggregate double prime of unrealized in for during a rate a those, So I'm it increase QX. adjustment QX. the million sorry,

Ryan Lynch

credit… spread anything just was related That versus

Christopher Mathieu

better the kind of credits, they're rather than that or expectation credit issue. were they performing or correct. they're Yes, That's than fact rate white impairment any Yes. fixed is just deals at

Ryan Lynch

I thing to understanding want correct correctly. if other want the I about, to and I'm me I'm wrong. talk I believe – this And make just sure

it the to math timeframe curious I million the that, would look to that it's because I that balance just around a target million you your you number. leverage to of but half the $XXX are of XX% around potentially do be year, that's commitments – have kind target unfunded funding prepayments of in and of sheet on was like amortization said million When $XXX you the then large right at back – was kind million like is you'll looks of You total guys to your well, today, XX% of expect then $X fluctuate. as expect. And drawn. I get additional $XX what some your your those at

on to So Is of when also be you correct? was the timeframe to it expect expect And those then – what fund? the funded. you those kind my number when depends timeframe

Christopher Mathieu

Yes.

kind maturity the give we the to six a first have. that on Generally, I of of we scheduled companies start. drawdown I months the So have various can a the guess for is point availability we XX to do commitment. portfolio them

mentioned the then that million unfunded of rest the by the expire spread $XXX I of year. kind our commitments think would XXXX. end drawn had is I of out ratably And not of over if

do over near-term there draws months but a next would XX heavy the for be be So it's that not that'll expectation that even those draw, as to well. nine

Sajal Srivastava

about commitments then of are on top that, milestone third the of unfunded based. a And

them portfolio So to all not capital have and milestones those that achieve have the in companies of again, to order actually access done that.

Ryan Lynch

Okay. I All right. time afternoon. this the appreciate

Operator

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

James Labe

Great. Thank you.

to to and in again, forward next As always, all listening our We a talking call absolutely today. everyone with like day. participating you Thanks thank nice have and look Goodbye. again, we'd for quarter. here

Operator

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

disconnect. now may You

TriplePoint Venture Growth BDC (TPVG) 4 Aug 222022 Q2 Earnings call transcript