TriplePoint Venture Growth(US:TPVG)2024-11-06 21:26Investment Portfolio - As of September 30, 2024, the aggregate cost and fair value of investments were $739.0 million and $721.0 million, respectively[133]. - The portfolio consisted of 309 investments in 107 companies, including 137 debt investments with a fair value of $604.7 million and a weighted average loan to enterprise value ratio of 7.6%[133]. - As of December 31, 2023, the aggregate cost and fair value of investments were $850.1 million and $802.1 million, respectively[134]. - 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%[134]. - The largest industry sectors by fair value as of September 30, 2024, included Consumer Products and Services at $123.5 million (17.1%) and E-Commerce - Clothing and Accessories at $113.2 million (15.7%)[138]. - Total portfolio company investments at fair value as of December 31, 2023, amounted to $802,145,000, representing 100% of total investments[140]. - Growth capital loans constituted 95.0% of total debt investments at fair value as of September 30, 2024, valued at $574,663,000[141]. - The ending portfolio at fair value as of September 30, 2024, was $720,974,000, down from $870,178,000 in 2023[143]. - Total debt investments as of December 31, 2023, were $730,295,000, with growth capital loans making up 98.5% of this total[141]. - The company had investments in three portfolio companies on non-accrual status as of September 30, 2024, with an aggregate fair value of $17.9 million[148]. Financial Performance - For the three months ended September 30, 2024, the net increase in net assets resulting from operations was $22.6 million, compared to $2.1 million for the same period in 2023[149]. - The net investment income for the three months ended September 30, 2024, was $13.8 million, down from $19.1 million in the same period of 2023[149]. - Total operating expenses for the three months ended September 30, 2024, were $12.7 million, a decrease from $16.6 million for the same period in 2023[152]. - The company recognized net realized losses on investments of $5.0 million for the three months ended September 30, 2024, compared to $25.6 million for the same period in 2023[153]. - The net change in unrealized gains for the three months ended September 30, 2024, was $13.9 million, compared to $8.6 million for the same period in 2023[153]. - Total investment and other income for the three months ended September 30, 2024, was $26.5 million, down from $35.7 million in the same period of 2023[150]. - Base management fees for the three months ended September 30, 2024, were $3.4 million, down from $4.6 million for the same period in 2023[152]. - Average net asset value for the three months ended September 30, 2024, was $355.9 million, down from $379.1 million in 2023[158]. - Total return based on NAV for the three months ended September 30, 2024, was 7.6%, compared to 0.7% in 2023[157]. Cash and Debt Management - As of September 30, 2024, cash and cash equivalents were $48.6 million, down from $122.5 million in 2023[162][163]. - The company had $300.0 million in total commitments available under the Credit Facility as of September 30, 2024[165]. - Outstanding borrowings under the Credit Facility were $10.0 million as of September 30, 2024, down from $215.0 million at the end of 2023[165]. - The company recorded a net cash provided by operating activities of $106.3 million for the nine months ended September 30, 2024[162]. - The net cash used in financing activities during the same period was $229.3 million, primarily due to net repayments under the Credit Facility[162]. - Total payment obligations for debt repayment as of September 30, 2024 amounted to $405.0 million, with $70.0 million due in less than one year[171]. - Unfunded commitments totaled $74.0 million as of September 30, 2024, down from $118.1 million as of December 31, 2023[173]. - The fair value of unfunded commitments was $0.7 million as of September 30, 2024, compared to $1.6 million as of December 31, 2023[176]. Regulatory and Compliance - The company is externally managed and has elected to be regulated as a Business Development Company (BDC) under the 1940 Act[132]. - The company must distribute at least 90% of its net ordinary income to maintain RIC tax treatment, with potential distributions being subject to a 4% U.S. federal excise tax if requirements are not met[177]. - Cash distributions per share have been authorized since the initial public offering, with historical distributions potentially being less frequent or lower in amount in the future[177]. - For the three months ended September 30, 2024, distributions paid were comprised of interest-sourced distributions equal to 70.5% of total distributions paid[179]. - As of September 30, 2024, estimated undistributed taxable earnings from net investment income amounted to $41.5 million, or $1.03 per share[179]. - The Board declared a $0.30 per share regular quarterly distribution payable on December 27, 2024[183]. Risk Factors - The company faces risks including changes in laws and regulations, economic downturns, and interest rate volatility that could impact its financial condition and results of operations[131]. - Interest rate sensitivity may affect the company's earnings and portfolio values due to changes in interest rates[186]. - The company is subject to financial market risks, including changes in interest rates and capital market volatility, which could adversely affect its results of operations[185]. - A prolonged reduction in interest rates could decrease gross investment income and net investment income if not offset by increases in the spread over the Prime Rate[186]. - The company has established risk management systems to identify and analyze risks related to interest rates and funding costs[186]. - A hypothetical increase of 300 basis points in interest rates could lead to an increase in interest income of $10,649 thousand, while a decrease of 300 basis points could result in a decrease of $7,796 thousand[189]. - The company had no hedging transactions in place for interest rate risk or foreign currency exchange rate risk as of September 30, 2024, deeming the risk acceptable[190]. Legal Matters - A securities class action complaint was filed against the company, but the court granted a motion to dismiss on August 7, 2024, with final judgment entered on September 19, 2024[194]. - A derivative complaint against certain officers and directors was dismissed without prejudice on September 17, 2024[195].