Financial Data and Key Metrics Changes - The company generated net investment income (NII) of 0.27pershareinQ42024,downfrom0.32 per share in Q3 2024 and 0.45pershareinQ42023[40]−Forthefullyear2024,NIIwas1.32 per share, covering regular monthly distributions of the same amount [10][40] - The net asset value (NAV) decreased to 8.43pershareatyear−end2024,comparedto9.06 per share at the end of Q3 2024 and 9.71pershareattheendofQ42023[44]BusinessLineDataandKeyMetricsChanges−Theportfoliogrewto698 million in Q4 2024, up 2% from 684millionattheendofQ32024[33]−Thedebtportfolioyieldwas14.961 million in Q4 2024, partially offset by 12millioninscheduledprincipalpaymentsand13 million in prepayments [42] Market Data and Key Metrics Changes - Approximately 75billionwasinvestedinVC−backedcompaniesinQ42024,leadingtoatotalinvestmentof209 billion for the year, which is an increase from 2023 but still below the highs of 2021 and 2022 [25] - The exit value for VC-backed companies in 2024 was 37billion,indicatingarecoverybutstillbelowlevelsfrom2019to2021[27]CompanyStrategyandDevelopmentDirection−ThecompanyaimstocontinuegrowingitsportfolioandgeneratingNIIthatcoversdistributions,withastrongpipelineofinvestmentopportunitiesexceeding1 billion [28][30] - The focus remains on high-quality venture debt investments, particularly in technology and life sciences sectors [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the venture ecosystem recovering, supported by a strong pipeline and active markets for venture debt capital [14][30] - The macro environment is gradually improving, which is expected to enhance the fundraising capabilities of VC-backed companies [30][41] Other Important Information - The company closed a new 100millionseniorsecuredcreditfacilityandraised20 million through convertible debt offerings, strengthening its balance sheet [12][33] - The advisor agreed to waive a portion of its quarterly income incentive fees if NII falls below declared distributions [12] Q&A Session Summary Question: Key drivers to return to 0.33dividendrate−Managementindicatedthatprepaymentsandportfoliogrowthwillbekeydriverstoreturntocoveringthedistribution[48][50]Question:Portfoliomarksthisquarter−Markswereprimarilydrivenbychallengesinfundraisingandexitmarketsforsomecompanies,leadingtomarkdownsmainlyondebtinvestments[56][58]Question:Specificcreditsandtheirstatus−EveloBioscienceshasbeenmovedtoarecoveryassetcategory,withfuturerecoverydependentoncontractualtransactions[60]−SwiftHealthSystemsisstillinanextendedfundraisingprocessandhasnotyetresolveditssituation[64]Question:Impactoffederalgovernmentspendingcuts−Thelifesciencessectorfacesuncertaintyduetopotentialspendingcuts,buttherearealsopositivesignssuchaslowerdrugdevelopmentcostsandincreasedIPOactivity[68][89]Question:EffectofFedeasingsonyields−Fedeasingshadanimpact,withthethirdquarterratecuthavingalargereffectthanthefourthquarter[80][82]Question:SharerepurchasesimpactonNAV−Sharerepurchasesaddedapproximately0.02 to NAV per share [90]
