Investor Presentation F i s c a l Ye a r E n d e d D e c e m b e r 3 1 , 202 4 M a r c h 5 , 2 025 w w w. t p v g . c o m Forward Looking Statements Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our ...

Group 1 - The article highlights the importance of creating a portfolio that generates income without the need for selling assets, emphasizing a stress-free approach to retirement investing [1][2] - It promotes a model portfolio that targets a yield of 9-10%, suggesting that dividends can significantly enhance investment returns [2] - The company offers a month-long paid trial for $49, with an additional 5% discount, to attract potential investors to their income-generating strategies [2]

Core Insights - Business Development Companies (BDCs) are highlighted as a preferred investment avenue for generating high income, although not all BDCs perform equally well in a high interest rate environment [1]. Group 1: Investment Strategy - The article emphasizes a hybrid investment strategy that combines classic dividend growth stocks with BDCs, Real Estate Investment Trusts (REITs), and Closed-End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]. Group 2: Market Context - The current economic climate of elevated interest rates has underscored the variability in performance among different BDCs, indicating that careful selection is crucial for investors [1].

Group 1 - TriplePoint Venture Growth (NYSE: TPVG) reported weaker-than-expected earnings for its fourth fiscal quarter on March 5, 2025 due to continual investment problems [1] - The BDC saw a sequential increase in its non-accrual percentage, indicating ongoing challenges in its investment portfolio [1] - The company continued to report losses related to its investments, highlighting potential issues in its operational performance [1]

Group 1 - The analyst has maintained a bearish outlook on TriplePoint Venture Growth (NYSE: TPVG) since May 2024, resulting in a share price decline of approximately 20% [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [2] - He has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - Berzins has also worked on developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Financial Data and Key Metrics Changes - For Q4 2024, total investment income was $26 million with a portfolio yield of 15.8%, compared to $33 million and a yield of 15.6% in the prior year period [42] - Net investment income for Q4 2024 totaled $12.6 million or $0.32 per share, down from $17.3 million or $0.47 per share in the prior year [44] - For the full year 2024, total investment income was $109 million with a portfolio yield of 15.7%, compared to $137 million and a yield of 15.4% in the prior year [43] Business Line Data and Key Metrics Changes - New debt commitments to venture growth stage companies in Q4 reached $72 million, a 75% increase from $41 million in Q3 [10][26] - The number of signed term sheets with venture growth stage companies increased 246% to $323 million in Q4, compared to $93 million in Q3 [9][25] - Funded investments in Q4 amounted to $50 million, up 50% from $33 million in Q3 [28] Market Data and Key Metrics Changes - The venture capital investment market saw deal value increase to $209 billion across more than 15,000 deals last quarter, surpassing pre-pandemic and 2023 levels [17] - 26 of TPVG's active debt portfolio companies raised $1.8 billion in 2024, an increase of almost 200% over 2023 [13][31] - The demand for venture lending significantly strengthened in Q4, driven by improved market conditions [19] Company Strategy and Development Direction - The company is focused on portfolio diversification and investment sector rotation, particularly in high-potential sectors like AI, health tech, and aerospace [20][22] - TPVG aims to capitalize on an improving venture capital market while maintaining strong liquidity [8][23] - The strategy includes increasing the pace of new commitments and new investment fundings while maintaining a strong yield profile [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the credit outlook for 2025, citing stable performance from portfolio companies [56] - The company anticipates higher fundings in 2024 and lower prepayments, which should positively impact dividend coverage [65] - There is a belief that improving market conditions will lead to increased portfolio growth and leverage in 2025 [82][100] Other Important Information - The company ended 2024 with a net asset value of $345.7 million or $8.61 per share [47] - TPVG has $105 million of floating rate unfunded investment commitments, representing an 11% decline from the previous year [49] - The company has liquidity of $374 million, consisting of $79 million in cash and $295 million available under the revolving credit facility [50] Q&A Session Summary Question: What are the views on credit into 2025? - Management is pleased with the improvement in the watch list and expects a stable or improving credit outlook as long as market conditions remain stable [54][56] Question: What are the key drivers for elevated prepayments? - Prepayment activity is partly due to intentional sector rotation, particularly from e-commerce and consumer-related companies [58][60] Question: Is the company comfortable with the $0.30 quarterly dividend? - Management is realistic about dividend coverage and will adjust based on portfolio growth and prepayment activity [63][65] Question: How should the overall yield of the portfolio be viewed as assets turn over? - The company expects to maintain its yield profile despite recent base rate changes, with benefits from prepayments helping to boost overall portfolio yield [66][68] Question: Will leverage increase through 2025? - Management expects leverage to climb back up with portfolio growth, driven by improving market conditions and demand from high-quality companies [82][100] Question: How does the company view AI investments? - AI is becoming prevalent in investments, but management cautions against hype and focuses on durable niches with proprietary datasets [86][88]

Core Viewpoint - TriplePoint Venture Growth (TPVG) reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.33 per share, and down from $0.47 per share a year ago, indicating a -3.03% earnings surprise [1] Financial Performance - The company posted revenues of $25.75 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.51%, but down from $32.97 million year-over-year [2] - Over the last four quarters, TPVG has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - TPVG shares have increased approximately 7.5% since the beginning of the year, contrasting with the S&P 500's decline of -1.8% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $24.72 million, and for the current fiscal year, it is $1.28 on revenues of $98.63 million [7] - The estimate revisions trend for TPVG is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which TPVG belongs, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Condition and Risks - The company may face limitations in operational discretion due to provisions in current and future debt obligations, which could adversely affect financial condition and cash flows [180]. - Adverse developments in credit markets could impair the company's ability to secure future borrowing facilities, impacting growth financing and refinancing options [181]. - The company must maintain at least 70% of total assets in qualifying assets to retain its status as a Business Development Company (BDC), with potential violations leading to forced asset disposals [182]. - Loss of BDC status would subject the company to more regulatory restrictions, significantly decreasing operational flexibility and potentially affecting financial results [183]. - The investment portfolio is recorded at fair value, with most investments classified as Level 3, leading to uncertainty in net asset value due to reliance on management judgment [184]. - The company is obligated to maintain effective internal controls over financial reporting, with potential failures leading to loss of investor confidence and adverse regulatory consequences [185]. - Cybersecurity threats pose significant risks to the company's operations, with potential impacts on financial condition and data integrity [192]. - The company may face substantial financial penalties for breaches of data security and privacy laws, which could result in significant losses and reputational damage [195]. - The financial condition could be negatively affected if principal investments cannot be recovered due to negative pledges or lack of security interests [235]. - Collateral securing loans may decrease in value, impacting the ability to cover losses [236]. - Other creditors may have claims that take priority over the company's senior liens, affecting recovery of investments [237]. - A significant portion of assets securing investments may be in intellectual property, which could lose value if rights are challenged [238]. - The lack of liquidity in investments may hinder the ability to meet investment objectives [244]. - The company may experience unrealized losses on its investment portfolio, which could indicate future realized losses and reduce funds available for distribution [249]. - The company may incur contingent liabilities related to the disposition of its investments, particularly in loans [259]. - The company may not realize gains from equity-related investments, which could decline in value or become illiquid [260]. - The company may not make follow-on investments in portfolio companies, which could impair the value of its portfolio [266]. - The company's common stock may trade below its net asset value per share, limiting its ability to raise additional equity capital [268]. - A downgrade in credit ratings could significantly impact the liquidity and market value of the company's securities [281]. - Concerns over the U.S. debt ceiling and budget deficit have led to credit rating downgrades, potentially increasing interest rates and borrowing costs, which could adversely affect the company's financial performance [282]. - Economic instability in the Eurozone and other regions may pose risks to the company's business, with potential impacts from global macroeconomic events and consumer confidence [283]. - Market conditions may hinder the company's ability to refinance existing debt, which could limit its capacity to make new commitments or fund existing ones [285]. - Supply chain disruptions and inflation could negatively impact the productivity and margin performance of the company's portfolio companies, affecting overall financial results [288]. - Economic slowdowns or recessions may lead to financial losses in the portfolio and a decrease in revenues, net income, and assets [301]. - Inflation has adversely affected the business and financial condition of portfolio companies, increasing costs of labor, energy, and raw materials [304]. - Uncertainty regarding U.S. federal initiatives could negatively impact the business and financial condition of the company [302]. - Changes to U.S. trade policies and tariffs may have a material adverse effect on global economic conditions and the stability of financial markets [303]. - The company is subject to financial market risks, including changes in interest rates and foreign currency exchange rates, which could impact performance [434]. Investment Strategy and Portfolio Risks - The company’s investment strategy includes secured loans and equity investments in venture capital-backed companies, which may lead to conflicts of interest with affiliates [206]. - The advisory fee structure may create incentives for the adviser that are not fully aligned with the interests of the company's stockholders, potentially leading to riskier investments [210]. - The incentive fee arrangement may encourage the adviser to pursue speculative investments, increasing the likelihood of default and higher investment losses [211]. - The company has a concentration of investments in technology and high growth industries, which exposes it to significant risks and potential losses [217]. - The investment strategy focuses on venture capital-backed companies, which are subject to volatility and may require additional capital [224]. - The company does not have fixed guidelines for diversification, leading to potential significant losses if a single investment fails [221]. - The valuation of certain investments is determined by the Board, which may create conflicts of interest due to the involvement of the Adviser's senior investment team [213]. - The company may face challenges in obtaining timely regulatory approvals for its portfolio companies, impacting their operations and financial performance [219]. - The Investment Advisory Agreement was not negotiated at arm's length, potentially resulting in less favorable terms for the company [215]. - The company's portfolio companies may incur debt that ranks equally with or senior to its investments, which could affect recovery in case of insolvency [255]. - The company invests in OID instruments, including PIK loans, which carry risks such as potential borrower defaults and unreliable valuations [253]. - Prepayments of loans could materially impact the company's results of operations and its ability to make stockholder distributions, potentially leading to a decline in share price [254]. - The ability to protect intellectual property rights is crucial for portfolio companies, as failure to do so could harm investment value [233]. - Relationships with portfolio companies may expose the company to confidential information, necessitating non-disclosure agreements [234]. - The company may experience fluctuations in quarterly operating results due to various factors, including competition, economic conditions, and the timing of investment returns [297]. - Future pandemics could adversely impact the venture capital fundraising environment, affecting the ability of portfolio companies to secure additional financing [287]. - The company generally does not hold controlling equity interests in its portfolio companies, limiting its ability to influence management decisions that could affect investment value [251]. - As of December 31, 2024, the company's unfunded commitments totaled $104.5 million to 14 portfolio companies [229]. - As of December 31, 2024, approximately 62.8%, or $368.0 million, of the debt investments in the portfolio bore interest at floating rates, with interest rate floors of 3.25% or higher [438]. - Floating rate borrowings totaled $5.0 million, representing 1.3% of outstanding debt, with all floating rate debt investments subject to interest-rate floors set at 3.25% or higher [439]. - As of December 31, 2024, there were $70.2 million of investments at fair value denominated in foreign currencies, with no foreign currency hedging transactions in place [442]. - Changes in interest rates could materially affect net investment income, with potential increases in interest income if rates exceed applicable interest-rate floors [439]. Market and Economic Conditions - The company faces risks associated with the rapid evolution of artificial intelligence (AI) and machine learning technologies, which could disrupt markets and increase competition [196]. - The company and its portfolio investments may be exposed to AI-related risks from third-party service providers, potentially leading to unpredictable impacts on business operations [197]. - AI technology relies heavily on large data sets, and inaccuracies in data could materially degrade the effectiveness of AI applications, adversely affecting the company's investments [199]. - Cash balances held by the company and its adviser may exceed federally insured limits, exposing them to risks from adverse developments in the financial services industry [202]. - Access to funding sources could be significantly impaired by liquidity constraints or failures in the financial services industry, affecting the company's operations [203]. - Investor concerns regarding the financial systems could lead to less favorable financing terms, making it more difficult for the company to acquire financing [204]. - The ongoing war between Russia and Ukraine and other geopolitical conflicts could lead to increased market volatility and adversely affect the company's operations and financial condition [284]. - Volatility in capital markets may affect the valuations of the company's investments, making it difficult to sell investments for liquidity if required [296]. - Securities litigation or shareholder activism could negatively impact the company's operations and stock price [274]. - Sales of substantial amounts of common stock could adversely affect the market price of the company's shares [275]. - The market price of the company's common stock may fluctuate significantly due to various factors, including market conditions and operational performance [273]. - Stockholders opting out of the dividend reinvestment plan may experience dilution in their ownership percentage over time [269]. - Cash distributions to stockholders may be reinvested in additional shares, potentially leading to tax liabilities exceeding cash received [271]. - The company may seek to utilize hedging instruments to mitigate exposure to fluctuations in interest rates and foreign currency exchange rates in the future [443]. - Regulatory changes following the 2024 U.S. election may increase competition and affect the company's financial market operations [284].

Financial Performance - Achieved net investment income of $54.5 million, or $1.40 per share for fiscal year 2024, compared to $73.8 million, or $2.07 per share for fiscal year 2023[13] - Total investment and other income for fiscal year 2024 was $108.6 million, down from $137.5 million in fiscal year 2023[11] - The Company recorded a net decrease in net assets resulting from operations of $7.2 million, or $0.18 per share for the fourth quarter of 2024[16] - The Company reported a net investment income of $12.6 million for the three months ended December 31, 2024, down from $17.3 million in the same period of 2023[32] Investment Activities - Signed $735.6 million of term sheets with venture growth stage companies and closed $175.0 million of new debt commitments during fiscal year 2024[5] - Funded $135.1 million in debt investments to 13 portfolio companies with a 14.1% weighted average annualized portfolio yield at origination for fiscal year 2024[5] - The Company closed $53.0 million of additional debt commitments and funded $23.5 million in new investments since December 31, 2024[24] Portfolio Performance - Achieved a 15.7% weighted average annualized portfolio yield on debt investments for fiscal year 2024, compared to 15.4% for fiscal year 2023[11] - The weighted average portfolio yield on debt investments was 15.8% for the three months ended December 31, 2024, compared to 15.6% for the same period in 2023[34] - The weighted average investment ranking of the Company's debt investment portfolio was 2.17 as of December 31, 2024, consistent with the prior quarter[19] Asset and Liability Overview - The Company held debt investments in 44 portfolio companies, with a total cost of $713.7 million and a fair value of $676.2 million as of December 31, 2024[8] - The net asset value was $345.7 million, or $8.61 per share, as of December 31, 2024[5] - As of December 31, 2024, the Company's net assets were $345.7 million, or $8.61 per share, compared to $346.3 million, or $9.21 per share, as of December 31, 2023[21] - Total assets decreased to $763.0 million as of December 31, 2024, from $978.8 million as of December 31, 2023[30] - The total liabilities decreased to $417.4 million as of December 31, 2024, from $632.5 million as of December 31, 2023[30] Liquidity and Distributions - The Company had total liquidity of $373.7 million, consisting of cash and cash equivalents of $78.7 million and available capacity under its Revolving Credit Facility of $295.0 million as of December 31, 2024[22] - Declared a first quarter 2025 distribution of $0.30 per share, bringing total declared distributions to $16.35 per share since the Company's IPO[5] - The Company declared a regular quarterly distribution of $0.30 per share for the first quarter, with estimated spillover income of $43.4 million, or $1.08 per share, as of December 31, 2024[23] Leverage Ratios - The Company ended the quarter with a gross leverage ratio of 1.16x and an asset coverage ratio of 186% as of December 31, 2024[22]

Group 1 - The core viewpoint is that TriplePoint Venture Growth (NYSE: TPVG) has been consistently viewed negatively, with recommendations to avoid investment in this Business Development Company (BDC) since February 2024 [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on shaping financial strategies for top-tier corporates and executing large-scale financings [2] - He has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - Berzins has also worked on developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [2]