TriplePoint Venture Growth(US:TPVG)2024-08-07 20:41Investment Portfolio - As of June 30, 2024, the aggregate cost and fair value of investments were $745.6 million and $713.8 million, respectively[125]. - The portfolio consisted of 305 investments in 105 companies, including 136 debt investments with a fair value of $615.7 million and a weighted average loan to enterprise value ratio of 7.8%[125]. - As of December 31, 2023, the aggregate cost and fair value of investments were $850.1 million and $802.1 million, respectively[127]. - The portfolio included 321 investments in 109 companies, with 151 debt investments having a fair value of $730.3 million and a weighted average loan to enterprise value ratio of 7.9%[127]. - Total portfolio company investments at fair value amounted to $802,145,000, representing 100% of total investments[133]. - E-Commerce - Clothing and Accessories accounted for $126,350,000, or 15.8% of total investments[133]. - Growth capital loans comprised $599,944,000, or 97.5% of total debt investments as of June 30, 2024[134]. Company Strategy and Focus - The Company aims to maximize total return primarily through current income and, to a lesser extent, capital appreciation by lending to venture growth stage companies[124]. - The Company has a focus on technology and high growth industries, leveraging relationships with leading venture capital investors[124]. - The Company is regulated as a Business Development Company (BDC) and intends to qualify as a Regulated Investment Company (RIC) for U.S. federal income tax purposes[124]. Financial Performance - For the three months ended June 30, 2024, the net increase in net assets resulting from operations was $8.6 million, compared to a net decrease of $20.9 million for the same period in 2023[143]. - Total investment and other income for the three months ended June 30, 2024, was $27.1 million, down from $35.2 million in the same period of 2023, primarily due to a lower weighted average principal amount outstanding[144]. - Total operating expenses for the three months ended June 30, 2024, were $14.5 million, a decrease from $16.3 million for the same period in 2023[145]. - Net realized losses on investments for the three months ended June 30, 2024, were $18.8 million, compared to net realized gains of $1.9 million for the same period in 2023[146]. - The net change in unrealized gains for the three months ended June 30, 2024, was $14.9 million, contrasting with a net change in unrealized losses of $41.6 million for the same period in 2023[147]. - For the six months ended June 30, 2024, total investment and other income was $56.4 million, down from $68.8 million for the same period in 2023[144]. - Net investment income for the three months ended June 30, 2024, was $12.6 million, down from $18.8 million in 2023[150]. - The net increase in net assets for the six months ended June 30, 2024, was $16.6 million, compared to a decrease of $13.2 million in 2023[150]. - Total return based on NAV for the three months ended June 30, 2024, was 3.1%, while it was (5.2)% in 2023[148]. Debt and Financing - The company entered into debt commitments totaling $52,000,000 during the three months ended June 30, 2024, a significant increase from $18,006,000 in the same period of 2023[137]. - The company funded debt investments totaling $38,674,000 during the three months ended June 30, 2024, compared to $30,595,000 in the same period of 2023[137]. - Non-binding term sheets increased to $188,357,000 for the three months ended June 30, 2024, compared to $113,959,000 in the same period of 2023[137]. - The company completed a private offering of $200.0 million in aggregate principal amount of the 2026 Notes, with a net proceeds of $197.9 million after fees and costs, maturing on March 1, 2026[158]. - The company issued $125.0 million in aggregate principal amount of the 2027 Notes, receiving net proceeds of $123.7 million, with a maturity date of February 28, 2027[159]. - The company recorded outstanding borrowings under the Credit Facility of $10.0 million as of June 30, 2024, down from $215.0 million at the end of 2023[156]. - The Credit Facility had total commitments of $350 million as of June 30, 2024, with a remaining capacity of $340 million[156]. - Total contractual obligations for debt repayment as of June 30, 2024, amount to $405.0 million, with $70.0 million due in less than one year[162]. Cash and Distributions - As of June 30, 2024, cash and cash equivalents, including restricted cash, totaled $50.7 million, down from $89.4 million in 2023[154]. - Cash distributions per share have been authorized since the initial public offering, with some distributions representing a return of capital in previous years[166]. - For the three months ended June 30, 2024, distributions paid were comprised of interest-sourced distributions equal to 72.2% of total distributions paid[171]. - As of June 30, 2024, estimated undistributed taxable earnings from net investment income amounted to $39.3 million, or $0.98 per share[171]. - On July 31, 2024, the Board declared a $0.30 per share regular quarterly distribution payable on September 30, 2024[170]. Risk Factors - The Company faces risks including changes in laws, economic conditions, and potential disruptions in operations due to various factors[123]. - The company is subject to financial market risks, including changes in interest rates, which could materially affect its results of operations and financial condition[173]. - Interest rate sensitivity may impact the company's net investment income due to the difference between the rates at which it invests and borrows[174]. - The company is exposed to foreign currency exchange rate risk, with no hedging transactions in place as of June 30, 2024[179]. - Changes in interest rates and foreign currency exchange rates drive performance more directly than inflation[179]. Interest Rate Sensitivity - Approximately 63.5%, or $394.9 million in principal balance, of the debt investments in the portfolio bore interest at floating rates as of June 30, 2024[175]. - The Prime Rate as of June 30, 2024, was 8.50%, which is above the interest-rate floors applicable to floating rate debt investments[177]. - The SOFR interest-rate floor under the Credit Facility is set at 0.50% as of June 30, 2024[177]. - A decrease of 300 basis points in interest rates would lead to a net decrease of $8,655,000 in net investment income[178]. - Interest income will increase by $10,510,000 with a 300 basis points rise in interest rates, while interest expense will decrease by $300,000, resulting in a net increase of $10,210,000 in net investment income[178]. - The company intends to hold loans to maturity, which may impact unrealized gains and losses due to interest rate fluctuations[178]. - As of June 30, 2024, floating rate borrowings totaled $10.0 million, representing 2.5% of outstanding debt[177]. - The company has been subject to a 4% U.S. federal excise tax for the tax years ended December 31, 2023, and 2022, due to not meeting distribution requirements[166].