TriplePoint Venture Growth(US:TPVG)2025-11-05 21:28Investment Portfolio - As of September 30, 2025, the aggregate cost and fair value of investments were $828.7 million and $798.5 million, respectively[203]. - The portfolio consisted of 310 investments in 126 companies, including 113 debt investments, 126 warrant investments, and 71 direct equity investments[203]. - The fair value of debt investments as of September 30, 2025, was $664.9 million, with unrealized losses of $72.1 million[205]. - Total portfolio company investments reached $676.2 million as of December 31, 2024, with consumer products and services representing 16.1% of the total[210]. - As of September 30, 2025, growth capital loans accounted for 92.3% of total debt investments, amounting to $613.6 million[211]. - The ending portfolio at fair value increased to $798.5 million as of September 30, 2025, compared to $720.9 million as of September 30, 2024[218]. - The company had investments in four portfolio companies on non-accrual status, with a fair value of $24.6 million as of September 30, 2025[228]. - Debt investments funded during the nine months ended September 30, 2025, totaled $194.4 million, with a weighted average annualized portfolio yield of 12.1%[214]. - The company made direct equity investments of $1.6 million during the nine months ended September 30, 2025[214]. Financial Performance - For the three months ended September 30, 2025, the net increase in net assets resulting from operations was $15.2 million, down from $22.6 million in the same period of 2024, representing a decrease of 32.6%[230]. - For the nine months ended September 30, 2025, the net increase in net assets resulting from operations was $41.1 million, compared to $39.2 million for the same period in 2024, an increase of 4.8%[231]. - Total investment and other income for the three months ended September 30, 2025, was $22.7 million, a decrease of 14.3% from $26.5 million in the same period of 2024[232]. - Total operating expenses for the three months ended September 30, 2025, were $12.3 million, a slight decrease from $12.7 million in the same period of 2024[236]. - The weighted average portfolio yield on debt investments for the three months ended September 30, 2025, was 13.2%, down from 15.7% in the same period of 2024[250]. - Net realized losses on investments for the three months ended September 30, 2025, were $704,000, compared to net realized losses of $5.0 million in the same period of 2024[243]. - Net change in unrealized gains on investments during the three months ended September 30, 2025, was $5.6 million, compared to $13.9 million in the same period of 2024[246]. - Net investment income for the three months ended September 30, 2025, was $10.3 million, down from $13.8 million in 2024[253]. - For the three months ended September 30, 2025, total return based on NAV was 5.9%, compared to 7.6% for the same period in 2024[252]. - For the nine months ended September 30, 2025, total return based on NAV was 16.1%, compared to 13.5% for the same period in 2024[252]. Debt and Financing - As of September 30, 2025, total commitments available under the Credit Facility were $300.0 million, with $205.0 million remaining capacity[266][267]. - The total contractual obligations for debt repayment as of September 30, 2025, amounted to $470 million, with $200 million due within the next year[280]. - Unfunded commitments increased significantly from $104.5 million as of December 31, 2024, to $263.7 million as of September 30, 2025[281]. - The company has $59.8 million in unfunded commitments dependent on portfolio companies reaching certain milestones as of September 30, 2025[283]. - Floating rate borrowings totaled $95.0 million, representing 20.2% of outstanding debt as of September 30, 2025[302]. - The 2028 Notes, issued in February 2025, have an annual interest rate of 8.11%, which has been increased to 9.11%[273]. Risk Factors - The company faces risks including interest rate volatility, credit availability, and potential economic downturns that could impact its operations and financial condition[201]. - As of September 30, 2025, the credit category distribution of debt investments showed 71.0% rated as White (2) and 8.8% rated as Clear (1)[226]. - The company has no interest rate hedging transactions in place as of September 30, 2025, but may seek to enter into such transactions in the future[303]. - Changes in interest rates and foreign currency exchange rates drive the company's performance more directly than inflation[306]. - There is no assurance that hedging strategies will be available for certain foreign investments[305]. - The company faces risks associated with hedging transactions[305]. Distributions and Tax Treatment - To maintain RIC tax treatment, the company must distribute at least 90% of its net ordinary income and net realized short-term capital gains[288]. - The company has authorized cash distributions per share since its IPO, with historical distributions potentially being less in the future[290]. - The Board declared a $0.23 per share regular quarterly distribution and a $0.02 per share supplemental distribution, payable on December 30, 2025[294]. - Approximately $0.24 per share of the distributions during the year ended December 31, 2016, represented a return of capital[290]. - As of September 30, 2025, estimated undistributed taxable earnings from net investment income were $43.4 million, or $1.07 per share[293]. Currency and Hedging - As of September 30, 2025, the company had $81.2 million of investments at fair value denominated in foreign currencies[304]. - The company may utilize instruments such as forward contracts to hedge against fluctuations in currency exchange rates[305]. - Hedging activities may mitigate exposure to adverse fluctuations in interest rates or foreign currency exchange rates[305]. - Certain hedging transactions may limit the company's ability to benefit from higher interest rates or favorable movements in foreign currency exchange rates[305]. - Changes in interest rates and foreign currency exchange rates do not necessarily correlate with changes in inflation rates[306].