TriplePoint Venture Growth(US:TPVG)2025-08-06 20:32PART I. FINANCIAL INFORMATION Unaudited consolidated financial statements detail asset and net asset growth, cash flows, and investment schedules, reflecting strategic debt management and investment gains Item 1. Financial Statements (unaudited) Unaudited consolidated financial statements, including balance sheet, income statement, and cash flows, detail key financial metrics, asset growth, and investment income changes Consolidated Statements of Assets and Liabilities | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :--------------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Investments at fair value | $717,885 | $676,249 | +$41,636 | | Cash and cash equivalents | $62,391 | $45,899 | +$16,492 | | Restricted cash | $147 | $32,828 | -$32,681 | | Total assets | $788,250 | $763,040 | +$25,210 | | Revolving Credit Facility | $50,000 | $5,000 | +$45,000 | | 2025 Notes, net | — | $69,948 | -$69,948 | | 2028 Notes, net | $49,362 | — | +$49,362 | | Total liabilities | $439,573 | $417,353 | +$22,220 | | Total net assets | $348,677 | $345,687 | +$2,990 | | Net asset value per share | $8.65 | $8.61 | +$0.04 | Consolidated Statements of Operations | Metric | For the Three Months Ended June 30, 2025 (in thousands) | For the Three Months Ended June 30, 2024 (in thousands) | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | :---------------------------------------------------- | :---------------------------------------------------- | | Total investment and other income | $23,276 | $27,107 | $45,730 | $56,381 | | Total operating expenses (net of waiver) | $12,001 | $14,503 | $23,717 | $28,254 | | Net investment income | $11,275 | $12,604 | $22,013 | $28,127 | | Net realized and unrealized gains/(losses)| $1,899 | $(3,987) | $3,850 | $(11,531) | | Net increase (decrease) in net assets | $13,174 | $8,617 | $25,863 | $16,596 | | Net investment income per share | $0.28 | $0.33 | $0.55 | $0.74 | | Net increase (decrease) in net assets per share | $0.33 | $0.22 | $0.64 | $0.43 | | Regular distributions declared per share | $0.30 | $0.40 | $0.60 | $0.80 | Consolidated Statements of Changes in Net Assets | Metric | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | | Balance as of December 31 | $345,687 | $346,306 | | Net increase in net assets from operations | $25,863 | $16,596 | | Distributions from distributable earnings | $(24,112) | $(31,037) | | Balance as of June 30 | $348,677 | $352,977 | Consolidated Statements of Cash Flows | Metric | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | | Net cash (used in) provided by operating activities | $(17,578) | $94,576 | | Net cash provided by (used in) financing activities | $1,389 | $(215,483) | | Net change in cash, cash equivalents and restricted cash | $(16,189) | $(120,907) | | Cash, cash equivalents and restricted cash at end of period | $62,538 | $50,675 | Consolidated Schedules of Investments | Investment Type | Fair Value (June 30, 2025, in thousands) | Fair Value (December 31, 2024, in thousands) | | :---------------- | :--------------------------------------- | :------------------------------------------- | | Debt Investments | $590,565 | $560,105 | | Warrant Investments | $43,924 | $39,963 | | Equity Investments | $83,396 | $76,181 | | Total Investments | $717,885 | $676,249 | - As of June 30, 2025, the company had 297 investments across 119 companies, with six portfolio companies being publicly traded. Non-accrual investments totaled $20.6 million at fair value4571 | Industry (June 30, 2025) | Fair Value (in thousands) | Percentage of Total Investments | | :------------------------- | :------------------------ | :------------------------------ | | E-Commerce - Clothing and Accessories | $109,712 | 15.3% | | Financial Institution and Services | $105,557 | 14.7% | | Consumer Products and Services | $89,663 | 12.5% | | Healthcare Technology Systems | $65,341 | 9.1% | Notes to Consolidated Financial Statements Note 1. Organization - TriplePoint Venture Growth BDC Corp. is an externally-managed, closed-end investment company regulated as a Business Development Company (BDC) and intends to qualify annually as a Regulated Investment Company (RIC). Its investment objective is to maximize total return through current income and capital appreciation by lending, typically with warrants, to venture growth stage companies in technology and high-growth industries7879 Note 2. Significant Accounting Policies - The financial statements are prepared in conformity with GAAP for interim financial information and include the consolidated accounts of the Company and its wholly-owned subsidiaries, TPVG Variable Funding Company LLC and TPVG Investment LLC8182 Note 3. Related Party Agreements and Transactions - The Company pays its Adviser a base management fee of 1.75% of average adjusted gross assets and an incentive fee with net investment income and net capital gains components. For the three and six months ended June 30, 2025, the Adviser waived the full $1.3 million income incentive fee88899194 | Fee Type | For the Three Months Ended June 30, 2025 (in thousands) | For the Three Months Ended June 30, 2024 (in thousands) | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :----------------------- | :------------------------------------------------------ | :------------------------------------------------------ | :---------------------------------------------------- | :---------------------------------------------------- | | Base management fee | $3,268 | $3,832 | $6,593 | $8,134 | | Income incentive fee | $1,259 | — | $1,259 | — | | Income incentive fee waiver | $(1,259) | — | $(1,259) | — | | Capital gains incentive fee | — | — | — | — | Note 4. Investments - The Company measures the fair value of its investments in accordance with ASC Topic 820, primarily using Level 3 significant unobservable inputs for investments without readily available market quotations. The valuation process involves the Adviser, its VMA group, independent third-party valuation firms, and the Board99101107108 | Investment Type | Fair Value (June 30, 2025, in thousands) | Fair Value (December 31, 2024, in thousands) | | :---------------- | :--------------------------------------- | :------------------------------------------- | | Debt investments | $590,565 | $560,105 | | Warrant investments | $43,924 | $39,963 | | Equity investments | $82,832 | $75,565 | | Total Level 3 Investments | $717,321 | $675,633 | | Metric | For the Six Months Ended June 30, 2025 (in thousands) | | :--------------------------------------- | :---------------------------------------------------- | | Net realized gains (losses) on investments | $2,222 | | Net change in unrealized gains (losses) on investments | $1,628 | Note 5. Credit Risk - Debt investments are exposed to business, financial market, or legal uncertainties, with repayment often dependent on additional funding, future sale, or IPO of portfolio companies. Default on obligations, insufficient collateral, or high collection costs could negatively impact investment value132133 Note 6. Borrowings | Liability | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------ | :----------------------------- | :------------------------------- | | Revolving Credit Facility | $50,000 | $5,000 | | 2025 Notes, net | — | $69,948 | | 2026 Notes, net | $199,701 | $199,483 | | 2027 Notes, net | $124,531 | $124,396 | | 2028 Notes, net | $49,362 | — | | Total liabilities | $439,573 | $417,353 | - The Company repaid the $70.0 million 2025 Notes in March 2025 and issued $50.0 million in 8.11% unsecured 2028 Notes due February 12, 2028. The Revolving Credit Facility was amended to extend its maturity to May 30, 2027, and total commitments were reduced to $300 million from $350 million137143152 | Metric | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | | Total interest expense and amortization of fees | $13,103 | $15,713 | Note 7. Commitments and Contingencies | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------ | :----------------------------- | :------------------------------- | | Unfunded commitments | $184,671 | $104,540 | | Dependent on milestones | $27,300 | $9,100 | | Fair Value of Unfunded Commitment Liability | $1,808 | $920 | - Unfunded commitments increased significantly, with a portion dependent on portfolio companies reaching specific milestones. The fair value of the unfunded commitment liability also increased, reflecting the value of these future funding commitments159162 Note 8. Financial Highlights | Metric | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net asset value at end of period | $8.65 | $8.83 | | Net investment income per share | $0.55 | $0.74 | | Net increase in net assets per share | $0.64 | $0.43 | | Total return based on net asset value | 9.7% | 5.6% | | Total return based on stock price | 3.8% | (18.7)% | | Weighted average portfolio yield on debt investments | 14.5% | 15.6% | Note 9. Net Increase (Decrease) in Net Assets per Share | Metric | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net investment income per share | $0.55 | $0.74 | | Net increase (decrease) in net assets per share | $0.64 | $0.43 | | Weighted average shares outstanding | 40,186 | 38,189 | Note 10. Equity - As of June 30, 2025, the Company had 40,323,741 shares of common stock outstanding. No shares were sold under the 2024 Sales Agreement during the six months ended June 30, 2025, but $56.5 million in shares remained available for sale under the program180183 | Issuance Type | For the Six Months Ended June 30, 2025 (in thousands) | For the Year Ended December 31, 2024 (in thousands) | | :---------------------------- | :---------------------------------------------------- | :-------------------------------------------------- | | Total shares issued | 186 | 2,517 | | Total gross proceeds raised | $1,238 | $22,766 | Note 11. Distributions - The Company declared $0.30 per share in regular quarterly distributions for both Q1 and Q2 2025, a decrease from $0.40 per share in the prior year. Total cash distributions since inception amount to $16.65 per share. As of June 30, 2025, estimated undistributed taxable earnings from net investment income were $42.0 million, or $1.04 per share189190 | Period Ended | Per Share Amount | | :---------------- | :--------------- | | March 31, 2025 | $0.30 | | June 30, 2025 | $0.30 | | March 31, 2024 | $0.40 | | June 30, 2024 | $0.40 | Note 12. Operating Segments - The Company operates as a single operating segment, with its Chief Executive Officer and Chief Financial Officer acting as the Chief Operating Decision Maker (CODM). The CODM assesses performance and allocates resources based on the single investment objective of maximizing total return to stockholders primarily through current income from secured loans and secondarily through capital gains from equity kickers191 Note 13. Subsequent Events - Subsequent to June 30, 2025, the Board declared a $0.23 per share regular quarterly distribution payable on September 30, 2025. The Company closed $114.0 million in additional debt commitments and funded $20.5 million in new investments. TriplePoint Capital LLC announced a discretionary share purchase program of up to $14 million of the Company's common stock, and the Adviser amended its income incentive fee waiver to waive the fee in full for the remainder of fiscal year 2025193194195196 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, investment strategy, portfolio composition, asset quality, operating results, liquidity, and capital resources, emphasizing venture growth and market impacts Overview - TriplePoint Venture Growth BDC Corp. is an externally managed BDC and RIC, listed on the NYSE (TPVG). Its investment objective is to maximize total return through current income and capital appreciation by lending to venture growth stage companies in technology and high-growth industries, backed by leading venture capital investors201202203 Portfolio Composition, Investment Activity and Asset Quality - As of June 30, 2025, the Company held 297 investments in 119 companies, comprising 107 debt, 120 warrant, and 70 direct equity investments. The aggregate fair value of these investments was $717.9 million. The portfolio is concentrated in E-Commerce - Clothing and Accessories (15.3%), Financial Institution and Services (14.7%), and Consumer Products and Services (12.5%)206208211 | Metric | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | | Total Debt Commitments | $236,643 | $62,000 | | Funded Debt Investments | $106,185 | $52,174 | | Equity Investments | $1,097 | — | | Non-Binding Term Sheets | $556,895 | $318,819 | - The weighted average investment ranking for the debt portfolio remained stable at 2.17 as of June 30, 2025. Four portfolio companies were on non-accrual status, with an aggregate fair value of $20.6 million228229 Results of Operations - Net increase in net assets from operations for the six months ended June 30, 2025, was $25.9 million, an increase from $16.6 million in the prior year, primarily due to a positive shift in net realized and unrealized gains232 | Metric | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | | Total investment and other income | $45,730 | $56,381 | | Total operating expenses (net of waiver) | $23,717 | $28,254 | | Net realized gains (losses) on investments | $2,222 | $(27,653) | | Net change in unrealized gains (losses) on investments | $1,628 | $16,122 | - The weighted average annualized portfolio yield on debt investments decreased to 14.5% for the six months ended June 30, 2025, from 15.6% in the prior year, mainly due to lower Prime rate and less prepayment income. Total return based on NAV increased to 9.7% from 5.6% year-over-year173234253 Critical Accounting Policies - The most critical accounting policy is the valuation of the investment portfolio, which involves significant management judgment due to the use of unobservable inputs (Level 3) for privately held investments. The Board, with assistance from the Adviser and independent valuation agents, determines fair value quarterly257258259 Liquidity and Capital Resources - The Company's liquidity is supported by cash, available borrowing capacity under its Credit Facility, and anticipated cash flows from operations. Net cash used in operating activities was $17.6 million for the six months ended June 30, 2025, a significant change from $94.6 million provided in the prior year262264265 | Debt Type | Total Commitment (in thousands) | Balance Outstanding (in thousands) | Unused Commitment (in thousands) | | :------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Revolving Credit Facility | $300,000 | $50,000 | $250,000 | | 2026 Notes | $200,000 | $200,000 | — | | 2027 Notes | $125,000 | $125,000 | — | | 2028 Notes | $50,000 | $50,000 | — | | Total | $675,000 | $425,000 | $250,000 | - The Company's asset coverage for borrowed amounts was 182% as of June 30, 2025, exceeding the minimum 150% requirement under the 1940 Act. Unfunded commitments totaled $184.7 million, with $27.3 million dependent on milestones279281283 Distributions - To maintain RIC tax treatment, the Company must distribute at least 90% of its net ordinary income and net realized short-term capital gains. The Company was subject to a 4% U.S. federal excise tax for 2024 and 2023. Distributions for Q1 and Q2 2025 were $0.30 per share, down from $0.40 in the prior year289291292 Recent Developments - The Board declared a $0.23 per share quarterly distribution payable September 30, 2025. The Company closed $114.0 million in additional debt commitments and funded $20.5 million in new investments from July 1 to August 5, 2025. TriplePoint Capital LLC announced a $14 million discretionary share purchase program, and the Adviser waived its income incentive fee for the remainder of fiscal year 2025295296297298 Item 3. Quantitative and Qualitative Disclosures About Market Risk This section details the Company's exposure to financial market risks, including interest rate and foreign currency exchange rate risks, and their impact on net investment income and portfolio values - The Company is exposed to interest rate risk, affecting both funding costs and investment income. Approximately 62.3% ($388.3 million principal balance) of debt investments bear floating rates with interest rate floors of 3.25% or higher. Floating rate borrowings totaled $50.0 million, representing 11.8% of outstanding debt300301303304 | Change in Interest Rates | Net increase (decrease) in net investment income (in thousands) | | :----------------------- | :------------------------------------------------------------ | | Up 300 basis points | $9,128 | | Up 200 basis points | $5,896 | | Up 100 basis points | $2,664 | | Up 50 basis points | $1,201 | | Down 50 basis points | $(903) | | Down 100 basis points | $(1,560) | | Down 200 basis points | $(1,817) | | Down 300 basis points | $(1,703) | - As of June 30, 2025, the Company had $62.9 million of investments denominated in foreign currencies, exposing it to foreign currency exchange rate risk. No hedging transactions were in place for interest rates or foreign currency, but the Company may consider them in the future305306307 Item 4. Controls and Procedures This section confirms the effectiveness of disclosure controls and procedures, reporting no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the quarter309310 PART II. OTHER INFORMATION This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, exhibits, and signatures Item 1. Legal Proceedings The Company is not currently involved in any material pending legal proceedings beyond routine litigation incidental to its business operations - Neither the Company, its Adviser, nor its subsidiaries are currently subject to any material pending legal proceedings, other than ordinary routine litigation incidental to their businesses312 Item 1A. Risk Factors No material changes occurred to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes during the three months ended June 30, 2025, to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024314 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales or repurchases of equity securities occurred during the quarter, with issuances noted under the dividend reinvestment plan - The Company did not sell any equity securities that were not registered under the Securities Act, nor did it repurchase any shares during the quarter ended June 30, 2025. Under its dividend reinvestment plan, 90,912 shares of common stock were issued, totaling $0.6 million in cash315316 Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the reporting period - None317 Item 4. Mine Safety Disclosures Mine safety disclosures are not applicable to the Company - Not applicable318 Item 5. Other Information This section provides updates on custody arrangements, income incentive fee waiver, trading plans, and a detailed breakdown of fees and expenses - The Company entered into new custody agreements with Computershare Trust Company, N.A. for document, securities, and cash custody services, effective August 5, 2025. The Adviser amended its income incentive fee waiver to waive the fee in full for the remainder of fiscal year 2025319320322 | Annual Expenses (as a percentage of net assets) | | :---------------------------------------------- | | Base management fee | 3.81% | | Incentive fee | 2.55% | | Interest payments on borrowed funds | 7.58% | | Other expenses | 2.32% | | Total annual expenses | 16.26% | | Period | NAV per Share | High Closing Sales Price | Low Closing Sales Price | Declared Distributions | | :----- | :------------ | :----------------------- | :---------------------- | :--------------------- | | Q2 2025 | $8.65 | $7.37 | $5.76 | $0.30 | | Q1 2025 | $8.62 | $8.14 | $6.98 | $0.30 | | Q4 2024 | $8.61 | $8.39 | $6.50 | $0.30 | | Q3 2024 | $9.10 | $8.99 | $6.86 | $0.30 | Item 6. Exhibits This section lists all exhibits filed, including custody agreements, certifications, and the amended income incentive fee waiver letter - Key exhibits include the Custody Agreement and Custodial Agreement with Computershare Trust Company, N.A., certifications from the CEO and CFO, and the Amended Income Incentive Fee Waiver Letter339 Signatures This section contains the duly authorized signatures of the Chief Executive Officer and Chief Financial Officer, confirming report submission - The report is signed by James P. Labe, Chief Executive Officer and Chairman of the Board of Directors, and Mike L. Wilhelms, Chief Financial Officer, on August 6, 2025343