Earnings call transcript Q2 2023

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Operator

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

Second Quarter 2023 Earnings Conference Call. [Operator Instructions] This conference is being recorded and a replay of the call will be available and the audio webcast on the TriplePoint Venture Growth website. Company management is pleased to share with you that the company's results for the second quarter of 2023. Financial is Board; Chief Chief Sajal and Mathieu, company Chairman Officer Investment the Chris the of Srivastava, Chief representing Jim Executive Labe, and Officer; Today, Officer. President and

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

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

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

Jim Labe

second Good TPVG's everyone afternoon, and welcome quarter call. earnings to

by I'll the speaks venture talking about for start market. The itself. data

all adapt first has in in to it's past the of venture data landscape is XXXX to exit ecosystem. states XX% the seen impacted down the year. X half XX%. first further this struggled the market and over high we of last compared PitchBook years. capital stages watermark in all Capital They're in the shows the value, all the that the well That's all down values, half Association fundraising ecosystem XX%, Deal Venture sectors the below the set in PitchBook As National of XXXX, dynamics has years. venture shift haven't to that

funds venture be to really into private companies the volatile. activity Investment by continues

pulled and During and multiples lack very later there difficult the economy about we've of exits by and continued they're combined the these resets have and valuations, it of capital We many and been with companies growth made on between capital. back market the broader this investors private growth of in driven markets. calls, out financial public evaluation amount the investors talking market believe the in uncertainty to raise M&A valuations withdrawal stage primarily disconnects the nontraditional IPO period, that has for the in days these deploying,

focus year-to-date years, enable and navigate us in past time. market through as during further, of power equity reduced and past discussing our As this been gained to TPVG improve well, get we the X platform most to as our that priorities by in Capital level XX TriplePoint continues to quarters we've second position through several we'll has notably benefit and current into investing. Leveraging impacted conditions of the and quarter experience these these be over the been venture by lending conditions believe will the the

through patience these backdrop. many to of timely appear capital and it's believe market demonstrating been market lending Having of venture we this with advantage opportunities taking cycles,

portfolio on managing are TPVG our liquidity, maintaining earnings and power future. strong our focused the Specifically, priorities and the for our positioning

income, weighted achieved regular portfolio $X.XX XX.X%. share. of our over-earned $XXX a we once per million or TPVG almost generated our as NII, portfolio quarter million, dividend earnings of share a we or for of the average second with also yield power, investment $X.XX of Regarding $XX.X quarterly net per again

XXXX. we exceeding on existing have from to TPVG's cash we into diversified unfunded portfolio, a flows stable foundation. maintaining our also current liquidity on focused well and capital We're strong our believe adding Based and commitments ample liquidity liquidity structure,

to priority portfolio and on with companies active to the their and frequent with basis. having Another investors manage our an It monitor contact portfolio. continues we're starts be

out are portfolio structure an needs and proactive financial always teams monitoring and days active market. and review our financing today's there's matters addition, We're their of there. and company We're They're In very condition plans capital volatile regularly business assessing capital given progress. strategies. these

basis As and XX of includes of our conditions. of we're positive as year-to-date. companies Sajal and also them almost according and we credit X is discuss, market believe are at to the best on exciting and of credit some venture financial plans credit to our portfolio was adapting quarter, executing portfolio going a they're these XX raised by me, to ahead way XX% well our $XXX raised current million capital operating expanding quarter fair than their plan excuse growing, Last achieving companies issues these as working last existing EBITDA. This more a through -- that individual market created Several alone. changes. scores are well value performing macroeconomic fewer they're

on ratings of loan the dates. the credit cash upgraded as had sale the of upgraded in and beyond had companies We Club We Pill loan with strong conjunction its portfolio which company. extending our assumed performance projected they maturity X runways was

quarter, had This we have companies, and quarter. credit challenges due in ongoing their primarily they to the for developments which few been identified, talking those lowered previously about some portfolio a we ratings and

through in challenging this rest market as today's to well been in and we the on current as company We've digesting will technology of to public of times, in believe the specifically of issues multiple companies dependent and is environment. the an we adapting technology the broader these engaged arise past and continue the Given environment work with new through many upturn proactively and and portfolio. stability return market the can market which cycles remain the in the we

metrics, confidence many and conserve -- extend operating remain companies expectations will remain future we investors private for valuations and valuation cash on burn current runways. companies valuations. believe their the bringing to interim, In to based exceed of venture As their values obtain will year down it enable and gain to in on revenues their path

As plans all calls, of of business all venture has many cash in at changed, costs, the these plans from mentioned we've transitioning environment conserved into growth at costs. growth before companies for stage

of third changes our capitalize leadership long-term since improve lending environment. continuing market the we the market to The taking Silicon on the I We're have market. lending earlier opportunities in and seeing on and focus for We're the positioning the in looking groundwork TPVG's those we're in competitive venture priority mentioned Valley is as current in this year. venture set when landscape Bank crisis market occurred to advantage conditions are the that well

we're software, example, segments, travel cybersecurity, sectors. among looking utilizing health tech are fintech, to their all to and enterprise, today on opportunistic and this type acquisitions. cases, some near our These use for debt or reflects We continue to we'll help the finance see resilience, plans These the strategy. and in accelerate of our other pipeline in are cases term in focus companies helping sectors on the capitalize

market, very being investment valuation-sensitive activity. growth. now focused operating funded to topline and on about it's in signs for and of volatility the TPVG, of horizon pockets path This pipeline it's While recalibrated are period with today's investments through profitability meet growing technology of and and that increased progress to witness for the our sharply as challenging the this a environment. glimmers future. building to working see we includes The continue entrepreneurs of opposed pretty and I in

while into capitalists and Many have at for spoken XXXX. activity of optimistic increased tell a with it's investment the early, continue venture expect that investment outlook next see in in we improvement funds us their they they an have to pickup about shared to activity have They year. growing still

We 'XX is more billion according to a VCA. and powder 'XX funds which is than yet believe be reasonable of given invested in assessment dry this PitchBook the estimated out raised capital venture to that and $XXX there

and While success term. experienced based in long to upon the capital our TriplePoint and our on track venture our results we Capital billion across effectively $XX credit, tested team, to over investing will on of believe opportunities continue and our position record capitalize multi-cycle ability deploy than a the to more depend platform loans our we're manage

venture XXX investing at long warrant which We investments obtaining portfolio in for the term lending is companies and equity which TPVG. across span believe about the includes now

the draw capitalize on to through focus here we've continue expect outlined well over to on priorities to to remainder opportunities upon year, the TriplePoint as Capital's term. progress long continue we order As we market differentiated as the of the in strategy

With Sajal. that, let to me turn the call over you,

Sajal Srivastava

good and afternoon, Jim you, Thank everyone.

and term sheets the During originations sheets our adviser our which of growth in current Capital, TPVG, platform stage to $XXX $XXX light with second conditions. global of quarter, of million to million across venture to approach in companies investment our signed compared term reflects TriplePoint market platform QX the

of Silver million including and which machine portfolio with Ex company and using sets new focus allocated position, Machina, from continued during companies and learning. leverage our we Tempus on Lake to Given X quarter, analytics $XX the by events overall provides data backed AI X sporting TPVG's new Andreessen Horowitz, company, a others TPVG commitments

$XX.X portfolio $XX.X million the range the investments the was the average funded at the These guided unfunded from $XX.X to during weighted XX.X% for during to remaining commitments origination. quarter, and which During million annualized X of debt quarter. companies TPVG in end investments second our is quarter, carried lower $XX.X the a new the yield quarter. at portfolio was funded commitments million related made of Of million existing

projecting in utilization to the prior pandemic, today, unfunded we range our expiration with at Similar the $XXX per continue and million cover quarter. our set this are million will and to both during for to $XX to experience as in QX see Chris existing commitments commitments and to to quarter $XX million As QX another unfunded million million be of $XX of detail, expire are lower-than-expected by year-end. their $XX more fundings

and similar prepay QX. potentially or the our We also in exceed expect to portfolio activity to match fundings QX, loan amortization from experience contractual existing in

XX.X% our the portfolio helped of our total QX, investments increase quarter. average weighted million on debt prepayments to yield loan During for $XX annualized

income, prepayment-related yield XX.X%. core portfolio Excluding was

in of increase week prime expect benefit and to XXXX half QX second the rate during the well. We as again yield in last

additional companies to subsectors year-to-date. QX, investment end second raised XX our represent $XXX quarter, raised portfolio XX million XX% of portfolio $XX million of closed QX capital capital at $XXX the companies raising during of our and company count portfolio companies rounds the our X million QX, companies Our top portfolio which an debt XX portfolio XX, X of bringing in total total investments. represented debt was different In and

QX QX. We Our portfolio their credit have for the well only outlook. but portfolio raised in increase companies an amounts bodes this for these not operating runway saw future over companies also aggregate believe in will

on since challenging investments gain realized TPVG's the to $XX a IPO gross had story venture never commitment of realized sold our equity they investments IPO realized environment, XXXX. during cumulative the gains from Despite And we its loan $X of million, XXXx in of we warrant quarter, $X and Toast made fair million. interesting completed on drew our recorded and The which received. in on warrant is Toast multiple in represents our value million warrants original the we gains our XXXX equity them that bringing the we to

We future We believe Upgrade, Revolut, in $XX continue upside warrant and total could higher-profile XXX value that over Passport of some cost to million as and companies as a and time potentially million, WorldRemit, investments $XX conditions portfolio Monzo, drive with Cohesity XXX QX. companies hold respectively, Signify, improve. of Labs equity value are the fair market of

existing watch QX, a credit the thereafter and that further or credit companies with score Although the average shortly weighted from fair ongoing improvement we either slight in stress our on we value situations our warranted reduction. developed downgrades credit during quarter list, did see saw

during is names are basis names a X current to well X also We quarter. X downgraded on scores fair performing the upgraded of market best we new believe portfolio credit conditions. value our at XX% and our adapting and

second in total due Category the and strong from FlashParking upgraded principal balance, Bank, X Monzo cash million Category with we a including X During performance X runway. to to quarter, and $XX Mockingbird obligors expectations of above

a structure loan our removed assumed new balance our under and Thirty portfolio challenging with company, managing outcome are loans to credit was million quarter, Madison. of This in income in testament The Category Pill a Thirty and a conjunction the rated Madison. a acquisition X full with situation. Category principal skills current, secured balance by These team's X. accruing principal in by was outstanding $XX its positive we from during addition, Club In

of added with In developments of process. $X X we Mystery Category and company Renovation Category Tackle in $XX X, to company its financing Box X million principal X Made balance QX, in a to the the strategic principal with balance due million

improved see product second 'XX Category we continue the capitalized other asset our sales has to X new performed regards plan should ROLI, QX XXXX, be half performance. with to The targeted initiatives operating that in in to increased With growth. for rated company for and

$X fair June disposal to announced be of by insurance the Group, Admiral as to to agreement acquired Category as represents Category to for to a downgraded Underground expectations assets. Admiral bankruptcy X an mark recovery principal remaining U.K.-based filing as and sell X revised of and million regards of value X its extended million May of its Category was expected a With for its QX other on a certain with intent from in well with to due units in its process a recovery balance assets, sale result to Enterprises our balance downgraded $XX.X principal conjunction to X. parties. The was business company Luko, the our value assets with from expectations

a during the The is execution Category and QX our downgraded quarter to engaged mark actively fair company balance and the an extended Health value expectations other team challenges IQ and million $XX.X X due our restructuring with with the recovery to stakeholders. revised with for and strategic of process for second ongoing principal was company's efforts. represents

capital of VanMoof regarded balance This the the partners. had quarter. Category an capital as million was of of was of launching market. this declared as M&A principal downgraded to raised a to and end of in surprising disappointing Despite meaningful of the Netherlands. equity as second unsuccessful $XXX and X company the was and of outcome attract million bankrupt company quarter particularly was unable leaders the a the result with widely a additional e-bikes a e-bike a XX-year-old or one was $XX.X historical revenues VanMoof the new that company the line was process, strategic second during year, over to Subsequent

to actively are our early We working process and maximize in the recovery.

IQ NAV situations. credit resolved developments Although through others over be approximately such expect manage recovery and X representing quarter next for of these teams of with this XX% these as these NAV impacted the while our and to we situations VanMoof time Luko VanMoof, some have Health months, the as reduction, to the X Underground

having assets and that Jim transactions capital-backed market is As to equity the and believe discussed, conditions companies. we capital capital in their for improve, Venture conditions will M&A raising success stressed by had have related are capital raising increase both fundraising experience such time to difficult in in market directly venture challenges environment market the until the and the market current in public private continue past a in challenging companies the unless conditions improve. delay where efforts they

will equity multiples We dry significant improve sentiment the see once investors that believe begin have market market stabilize, outlook the recover. under overall deploy and and they we to powder public management, start to

and and this number currently proactive through we and challenging we environment. continue we While we to diligent in still recoveries, QX of the rounds are remain market as see are increasing manage pleased companies an progress portfolio on our making is raise to

per that reflected part the in venture cycles TriplePoint capital effectively Although for challenging of our are the long-term we before through we in performance which managed and Capital a we've platform cycle investing, annum is at believe TPVG's annum. basis at basis cumulative ago, per commitments TPVG. remained cumulative loss inception XX points or fundings XX our points rate under of XX or X% Since of X% and net years has

of past I have years but XX XX Jim also underwriting years only platform the adjust since credit since we started decision-making been that utilize our quantitative been regularly qualitative to Our Capital rigorous conditions based market assessment and refined and TriplePoint have and a capital-backed and years dynamics. and over the analysis we IPO processes high-growth venture We not the and the and review TPVG's on companies approach XX fundamental working together. both

credit dynamics Considering current decisions metrics, and we're new conditions, market to and market underwriting realities. reflect applying our the standards credit

tend historical to occurred. are common part as losses credit outcomes losses, themes having Although situations lending the to for they the venture reexamine expected our we as an model, be opposed that unique of

successfully cash they of financing for at the all expected a we not they occurred business unable and raise in or balances, out While believe of were foreseeable or assets underwriting. follow-on which sale do our of or ran fundamentally the unique of loan time to complete round excess either reasons were of

losses is an venture drive element gains, help that model in NAV credit potential meaningful impact of offset mind investments. time. kicker in have over Keep important investments lending warrants the the the valve and the grow of to equity direct realized form of equity and the These

gross one in demonstrates of exit Since realized what TPVG's $XX have. which successful gross the gains in million million generated can $XX name IPO, of one with realized we generating particular, gains potential have

mentioned the companies potential quarters as and XXX equity in earlier, at and for warrant end believe we As success investments currently the future. hold and have many XXX

we In TPVG, frequent the contact our on the are for and companies, summary, and of maintaining focused as focused future. with stabilizing said, on seasoned are Jim are financial strength credit our preparing remaining portfolio portfolio select in

Given scale continue to expect positioning to when portfolio investment company conditions deliver benefit the yield, our further and market improve. while existing strong to we income strong

With that, the I'll to turn now Chris. over call

Chris Mathieu

and you, Thank everyone. Sajal hello,

interest hold we while power the continued TPVG portfolio strong During substantial quarter, from and income the core portfolio the a loan second to our portfolio. as diversified yields, earnings of portfolio stable remained generated

and year, into are with well we As we unfunded believe XXXX. diversified our matched positions portfolio well entered the from and second cash flows half seasoned liquidity combined our and position contractual us of the current commitments existing,

and leverage on we in our opportunities new on long-term overall liquidity, expect XXXX. investment Given outlook to capitalize reduce ratios

the XX% of was Total of $XX.X million and yields. higher due This as the to for to was size portfolio million $XX.X compared investment in growth increase average investment 'XX. income quarter second

XX.X% for 'XX. total was this to on yield of as second quarter XX.X% quarter the investments debt compared portfolio Our

XX.X% yield income, was down continue be from in unfunded which expired with to QX, strong QX which to was Onboarding compared QX. portfolio XX.X% fees due to primarily commitments yields lower deferred Excluding stable. prepayment-related associated during and

fee of as the million return less income. incentive of Loan and total X% million terms We by million total or X principal of million prepayments expenses. million investment months were income the Due million $XX.X for of $X.XX $X.X the $XX.X the fees to million interest quarter was of million prepayments million per G&A portfolio per ended June million quarter of the accelerated second net during consisted period structure, compared for $X.X the of a contributed or yield Operating $X.X management of and quarter than expense, $X.X compared $XX.X XX. expenses total with $X.X in this under and to expenses to $X.X XXXX. $XX.X of share million 'XX. These of second the earned the reduced shareholder-friendly expense fee share our of incentive requirement same in $X.XX $XX.X

of on this portfolio losses we quarter realized sale second $X.X $XX.X the reversal primarily million Inc. in of debt during the gains realized the on million. unrealized in listed gains net from This from losses quarter of were net period. change unrealized second investments and $XX.X million the million losses warrant unrealized million of investments consisting equity and recorded on million, net investments Toast realized investment Net publicly gains realized was $X.X of $X.X from for stock previously of for portfolio, the included a on The common $X.X

million were $XX.XX the or $XX.XX share end, As March company's or XX. million per $XXX.X of of compared as to assets quarter share net $XXX per

to per Our September XX September be ordinary regular income dividend on of is of from to XX. board paid record of $X.XX The quarterly a of declared dividend as directors stockholders share.

of to dividends was at regular In continue strong or NII supplemental to undistributed income second The XXX% dividend end for the addition retain the per additional and period to million totaled the dividend, the we future. the in support which quarter. over-earning $X.XX second share to at $XX.X quarter coverage

company leverage. from $XXX quarter the $XXX update ended reaching balance and million and an with $XX milestones. on portfolio investment certain Now the second million We commitments, dependent and of status down overall quarter of just commitments, liquidity upon million sources unfunded sheet unfunded last investment

floating the quarter. balances of due expirations are that these new and primarily rates. interest fundings closed of during any unfunded in these we decline have second All The investment contractual in excess new commitments to commitment commitments

$XX million Of the $XX XXXX. amount, in in million in million $XX QX, to QX and are total set expire

QX In have were fact, commitments expired of unfunded date. to $XX already million in or terminated

Given these are unfunded today. expiries, as $XXX million our approximately of recent commitments

against as total Given commitments are make this activity, to in believe current matched and we our which we well liquidity look TPVG new portfolio. commitments puts delever position unfunded the position favorable a

that current will expect without of expire XX% commitments We unfunded to the XX% funding.

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

portfolio In well addition for the this current which liquidity. cash liquidity, existing to provides flows contractual sustained bodes

will of natural in a prepayments to project our each occur to in to to quarter-to-quarter, over are to with expected Loan venture that companies X prepayments million time. lending X part $XX loan $XX vary million and are model. believe loan prepayments while difficult be prepayments quarter we QX. We are And expect currently there from portfolio

to a capital continue structure. maintain We diversified

As to of was in commitment of on of aggregate available a investment-grade fixed our has $XXX XX, revolving outstanding million. floating million TPVG $XXX facility total outstanding an term which was credit rate million rate $XXX and notes June

in an company rating issuer and issued investment-grade of the has credit investment-grade on rating reaffirmed April of DBRS the BBB. 'XX,

debt XX% benefited over borrowings investments debt leverage outstanding 'XX latest rate time. debt account have of for and in at XXXX, of the interest our floating and the our With maturities our rates quarter from while XXXX, fixed steps completed are of 'XX. with in end, to increasing to maturities QX fixed X rate offering at we XX% ladder occur have Our of rates

a ratio gross net hand. ratio on with which a cash of is quarter X.XXx X.XXx leverage of leverage and We net ended the

end deploying the requests maintain through investments cash funding from leverage our while to into of year unfunded new gross commitments. expect existing existing We of sourced from this the level our

in periodic the the in contractual portfolio half XXXX the as the and deleverage we portfolio. prepayments to expect amortization receive first We of

Last expect principal proceeds we flows of from payments million and During any issue contractual prepayments to that in may receive over we of shares coming private launch but securities as the issued been we of or $XXX year, have look we over excluding the portfolio ATM No year. the program. the the next from issuance sale today an announced equity in may portfolio, from shares public time. quarters, cash the X

So this completes our take prepared happy We'd remarks. be to your questions.

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

Operator

[Operator Crispin Instructions] first with Piper from Our question come will Love Sandler.

Crispin Love

say fourth expect you Did that there, new was the debt fundings to quarter to you was quarter? the million quarter be million $XX previous $XXX third to and if $XX that per in quarter. the And of range per guide case, million $XXX million

Sajal Srivastava

guidance Crispin, million million. was previous to we $XX gave guidance the The it's $XX That's quarter. last Sajal.

so given environment, the million and million. that on we're commitments market we're existing $XX the the to $XX given just focused utilizing taking to And unfunded target

Crispin Love

the And equity the on end an Okay, leverage reasons the bringing leverage, where of through just are than through much run that's rather right it maintaining helpful. then at it's for typically you at. than raise year now, curious X.XXx that as down higher what I'm

that of X.XXx typically think X.Xx I or less I said the run, think past would less. in it you've or or was kind

So, there. reasoning curious the about

Chris Mathieu

Chris. is This Yes.

an So option. certainly, raising is equity

ATM the a the We currently. smaller can have option. have use much program We program, we that obviously. It's do

is deployment capital something equity listed. of portfolio. offering, overnight we're is certainly, focused managing to is the right and now, overnight which shelf active that is if offering what open what But to sense. on made an our an we can that do companies are that have But control We

Operator

Next come question Vilas with from will Abraham UBS.

Vilas Abraham

you revolver? NAV how in against should decline the pushing covenant With the jump about Or in just we up leverage, with think any and the that? are issues

Chris Mathieu

that just term at comfortable or quarter and This we're on basis, not on we but question. covenants, existing it's look good regular is on on a debt Chris. where quarter whether the at That's end we're the We revolvers, the throughout a with are fine.

Vilas Abraham

in talked are Is XX the still? you down prepared capital fair And those around comments, all largely to companies assume about it year-to-date. raising portfolio Okay.

Sajal Srivastava

Vilas, this Sajal. is

investors flat investors. majority down, say the were are external to were say are would up. few from I be although tend with, a there I So new that the by that to again, existing some led majority would

Vilas Abraham

Okay. And maybe last one.

after you in you you You taking the certain personnel collapse. count touched SCB of Can to positioned areas? a advantage feel need advantage do or about from the there? And frame what take to like that means, add on do opportunities you're time well perspective, what's head talk

Jim Labe

question, a It's great Vilas.

time mentioned as there's as we a opportunities overnight the little So SCB term. of are some very the situations. development but bit light good in over these well, last They're not long

little of what more So than ever banks separated the from from where doesn't and can lending in since exchange, opportunities. become SCB. credit bank for the lending the things and that mean term, do last bit important the market this now bank, a talked are between is means a that's is days commercial it these they more and absolutely time well, mean a nonbank about cards, I separation foreign as short -- are banks this bank, services,

year also or opportunities. day development. up what see like growing also the So instances we absolutely staff are we're ones continue we ones will in next where SCB play SCB year level it's not out but But actively the have currently this, rest overnight. in platform the talking for and loans, in to to be overall replaced this And where and these that evaluating pipeline yes, of a and have markets we and wake continue the companies improvement we've the at address replaced we of as been to these SCB

Operator

Compass Alexander Casey come will The Point. next from question with

Casey Alexander

to reason leverage technical and million down I'm credit if little a $XX of it mean facility X.XX, and you you some within report that, cash you're lower portion still to a to less would me carry not down leverage seems Is but curious that? not the million why use in revolving of pay eye-popping. that I ratio. took there that your it range why ratio bring doing a maybe not the $XX would cash

Chris Mathieu

This Casey, thanks. Yes Chris. is

That's or quarter readiness we're transactions. yes, the have oftentimes, end, higher to sure in you'll from month we'll to make And transactions. liquidity for fund make cash is. ready more about kind cash that balances down to window. a have we transactions for see So notice we X-day were to that than sure fund within Rather new of managing wanted funding we month to paying occur all optics,

Casey Alexander

Okay.

funding think companies that million. and late-stage last more -- going of to XX companies I so these companies, lot what deals down need sort because I you can $XXX-some than X years? of average million it growth don't raised a or is be would seeing the mentioned. X Secondly, kick is stopgap road that what equity mentioned the that's had type sound the of $XX you're you to mean, like the Growth-stage

Sajal Srivastava

take Casey. is This I'll that, Sajal.

I So what's XX so right, months companies of I'd years the keep would rounds -- equity months. as to every you the versus or X X in a ago, to right, mind X year raise say, would say more XX right, ago -- said, changed, average

would bringing so down. And been their I burn thing the have key is companies say other rates

better I runway conditions of they getting So getting either better. would to a market anticipation sufficient have need times say or raising between it's hybrid in what

it's on the to For to a number get path of others, profitability.

tranches future that agreed to unlock For capital. of milestones to some that have others, investors then it's

equity But So also one raise of I'd scenarios. debt say environment the multiples over necessarily is dilution all are, no are valuations combination this impact. given to it's motivated where a those where in given

Casey Alexander

in category, What wrong? can't like Luko. saying Lastly, the it mentioned you was of that were that one find the that schedule sounded the doing am you in companies of I I [indiscernible] investments.

Sajal Srivastava

Yes.

called Luko it's Demain. their... is Demain, D-E-M-A-I-N, Sorry,

Casey Alexander

D-E-M-A-I-N.

domain? like Sounds

Sajal Srivastava

correct. Demain,

Operator

will Lynch with question from Ryan KBW. come Next

Ryan Lynch

the quarter I balance Casey's questions the million. of not fundings expect I mentioned Just following I'm is high. you $XX balance. mean up you in of I regarding guess still the to think understanding $XX on million third why cash cash one that

You offset to some probably also prepayments expect that. receive to

what's $XX I if to need the understand So expecting to of million the quarter you're $XX plus... want $XX just cash to in have to only million million fund

Sajal Srivastava

Ryan, to Chris what just on maybe to Yes, add said.

is liquidity. part of anticipation So of again, it in

of I month. collect the is other point the the cash think at we end

company So cash that's also portfolio coming from in payments.

cash now we it's pay month end And little the fundings, -- you've of correct ready up. our obviously, after collect for again, you payments end of from from customers. cash so got a the quarter down post, post of -- lines, or then frees you And monthly have cash bit

it's the a as more And anything thing timing reason. so than again, fund primary

Chris Mathieu

just example pay we good line million. recently, down is $XX A the did Yes.

can we we revolver keep the It's that time. and So don't pay a where outstanding back. draw all

Ryan Lynch

other the make just on then kind here. I one, And I the was of to sure wanted understanding understood. Yes, dynamics going

guess, same any in capital to So XXXX or I think that. sort existing like throughout and decline roll in to stays remain those not then and the XXXX know the and decreases unfunded XXXX, and to level is you sort expectations borrowers from that's expect start off? deleverage to kind your commitments interplay you just of we between that XXXX into the going decreases said extent throughout of XXXX. But interplay the expect that you some right then of raise function of funding that's that to there? of deleverage leverage the sort assuming I drive then roll Is flat leverage as the I anything like -- of of

Chris Mathieu

right. exactly That's

So which million at what And layering unfunded of unknown million at commitments. and factor. going is the prepayment doing fundings unfunded then the the to down level we're the $XXX basically in $XXX also commitment expected is some looking the of looking from those levels

we of do don't on QX that prepayments we sight for have QX. have line but just So some information

prepay expect tell. now, would towards that help deleveraging. just it's do But level of some we which right to early too So

Operator

Next Ladenburg question will Thalmann. from with come Christopher Nolan

Christopher Nolan

who -- Given slowdown you do the these market, of expect take in status debt you maturing the the on to investments? or venture the out

Sajal Srivastava

our on amortizing. again, Chris, number are that investments a of

So structure see generally -- there equity where a we it's other capital. on not transactions bullet-type

then continue evaluate when robust And lenders to venture opportunities. back, in nonbank to lending comes the we'd equity. equity So look

sorry, say Refis And business. all amortization percentage been generally normal function have of of then equity prepays a X, raises, -- it's so I'd it's small is refi. from a smaller amount a our amortization, and always

Christopher Nolan

a but general were then mean, really the funds just market, thrown guess hobbled I wrench question, has I that mean, major of and slowdown works? the the as by in seizure went away a And more obviously, SCB venture I SCB sort into debt

Jim Labe

say not Yes. things the all capital banking level. from and fund any been fund at own there's issues with their change. their would recovered SCB from own venture I perspective, They've a really

is to out They're banks. companies, aren't newer banking definitely underlying the there's other venture to fact their go companies. cases they're fine to SCB necessarily lend of terms again, that market in lenders But been banks the from many the transition In these in these from, benefiting the -- what days fine are -- and very providing services. preventing

the the and side. of requirements, new recognize opportunities has them to been on lending and importance value lending to the this For nonbanks turn

pause you will, if are opportunities room There's both there's for things But are for that banks. some these time. little taking a when and change both. So you

want continue one definitely, in opportunities here environment. and to selective of this cautious future nonbank. for to the of also We be many But parts that's

Operator

session. any This there question-and-answer Jim I are the turn Mr. like concludes for our conference over closing to to would back Appears further questions. Labe no remarks.

Jim Labe

operator. you, Thank

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

Operator

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

You disconnect. may now

TriplePoint Venture Growth BDC (TPVG) 2 Aug 232023 Q2 Earnings call transcript