TriplePoint Venture Growth BDC (TPVG) 6 May 212021 Q1 Earnings call transcript

Good afternoon ladies and gentlemen and welcome to the TriplePoint Venture Growth BDC First Quarter 2021 Earnings Conference Call. [Operator Instructions]. This conference call is being recorded and a replay of the call will be available and an audio webcast on the TriplePoint Venture Growth BDC website. Company management is pleased to share with you the company’s results for the fourth quarter and full fiscal year 2020. Today, representing the company is Jim Labe, Chief Executive Officer and Chairman of the Board; Sajal Srivastava, President and Chief Investment Officer; and Chris Mathieu, Chief Financial Officer.

call Mr. the turn I over to Before this Labe, the which considered the customary like relate securities to to that company’s statements federal or forward-looking make attention performance to direct your or during you statements Safe remind company’s regarding future statements under I management that are forward-looking may certain would release and call, the Harbor future events disclosure law. in condition, financial

Securities forward-looking most asked to Commission and update statements refer during projections statements. which or the the law. only not filing of You’re company’s to could management’s differ filings, call, results by as any made forward-looking opinions are does www.tpvg.com. reflect the undertake visit these Exchange company’s required SEC To website our important to latest actual recent that to Investors at from factors of any The for company statements any obtain place please obligation copies today. not the unless on with to cause cautioned materially undue reliance

I the to Labe. call like turn Now, Mr. over to would

enhances lending. its XXXX. topics to we're of record The pendulum and later, the today. the ecosystem activity year growth a pandemic, Good and demonstrated operator. to swing. changes drives swung its on companies, and the resilience It other this our our here more portfolio financings the The the strong start Call. now record period early quality a joining off for our a little existing investment environment us capital way the The been more than the companies. goals. demand are you, levels strength Quarter of achieve the survival XXXX new venture enabling pendulum exit activity record Thank in all robust credit and Earnings In has thanks First us focus It's into in demand also capital venture portfolio year than we of months prospects a debt overriding strong venture afternoon and investment XXXX. liken a during now focus was pandemic, from And the of for valuations for has for to during on

our on Over playbook of and on venture continuing now to our very year, half doing growing the focus of translate in work the we're this the given remains to course our year, busy execute investment the will second pick-up fundraising venture pipeline. and a

recovery. adapting through of remain we post the we COVID the and to remainder year, the will response in disciplined As to progress balanced

by high our We focus in select our will continue companies leading growth venture exclusive investor. backed group capital of

substantial with Given standing and take from better have our positioned We we during our relationships outsized a the pipeline. to first of demand capital ourselves continue. companies. formula in venture lined strong driving for you on what we are riding stage to experience today's we the in venture position as combine and and for wave. strong been need growth seeing That's never When TPG quarter, franchise, the advantage the it market has flip capitalize of to field think up the liquidity

this a And to more year. expect our over pipeline increased to We XXX% by first quarter year and be signed term XXXX than we sheets continue continues throughout the billion.

facilities second our liquidity, first our And We ample quarter and enhanced which completing credit also investment through we offering grade very notes attractive accelerate upsizing poise our the expect to throughout XXXX. terms. funding further drawn under our in

lending. the venture we're are investment ecosystem of here than the survival year strong pendulum companies. drives more little to for today. exit increased a than the swung levels During pandemic, the demand existing enabling and credit from strong off topics a has venture the the we and The robust the during in financings The quarter, for on portfolio activity a prospects goals. capital capital It's And In XXXX. environment early quality pendulum of all been a a liken our focus growth new XXXX. focus the valuations has of our in and activity period enhances to achieve overriding the other we and The demand year way changes on the during into demonstrated pandemic, record also now also months was start this investment of companies, more record to us venture debt later, its It record its now portfolio resilience strength swing.

focus doing now our investment second the on growing venture a the given year, translate very to execute our to Over year, half playbook venture course the and the in of our will pipeline. and remains on fundraising this continuing we're of pick-up work busy

progress to to adapting through post year, we the of and remainder response As the remain recovery. will disciplined balanced the we in COVID

of leading select We in investor. by capital backed will exclusive companies continue our venture group high focus our growth

our companies. as the it up field positioned today's Given need flip capital been during strong take TPG advantage in strong with to you the has on substantial driving demand have riding franchise, the seeing position from standing and for of relationships pipeline. better are a our That's stage outsized think the When and growth first and capitalize we experience never venture to combine we continue. what market of wave. for ourselves in venture quarter, lined liquidity formula the we We to

continue year increased throughout XXX% We signed than first billion. sheets our the to term and to pipeline quarter by XXXX more year. we And continues be over this expect a

second very credit poise liquidity, also quarter throughout funding our completing attractive grade notes We in offering through further our first the ample investment facilities expect our upsizing under drawn to and our we which enhanced accelerate terms. And XXXX.

growing and EPS the quality, During was has GS have the which TPV strong credit resulted strengthening which in significant quarter, made our tenths NAV, Also we increased driven by progress XX to very in outlook. we our credit

our the and to net income that expect generate excess NII the throughout our in remain quarter, accelerate the we our based the for income to our healthy make on spillover during distribution expectation continue up distribution earned to or fundings a of longterm. under position in we We strong over it While prepayment, investment year. will year

As the over we in our have over and We've paid made fact, last since we last just including always IPO, earned years three four distribution. have that also cumulatively, our we distributions, one week. special

public capital from during listed, other Additionally, and benefit for contracts will hymns that including companies XX trend their publicly our backed we income portfolio exit events first of the and is venture the quarter companies, view, acceleration and others a process two quarter, which active in completed discussions. during number a currently there's additional are of companies portfolio via very their spec of going spec first that the TPG in mergers the

us environment, capital Companies operates putting behind A which pleased billion the we to strong remain deals of portfolio them the in to remain are Our XX quarter. Excel in and late adapted very positioning market. the have themselves conditions deployed post they the This in for XXXX the and emerging first COVID market almost how and TPV world is record across favorable was XXXX G targets. segment for stage venture new

to pipeline dialogue and consistent remain venture with investment More objectives. with investors capital regular select in maintain quality help our active high importantly, our we

our near our flow dropped or term venture per to playbook. capital deal stopped not have partner We interactions chase

time as interactions is Now to just be proactive our in with the them.

understand and alongside the companies. us venture gain ready of As the pandemic, existing portfolio their dynamics, peak and this stage new to them year of market helps during growth we insight, your were a match activity support remain ago

the quarter As are The fundamentals these second demand opportunities robust start. is bullish there. develop is G's on and to summarize strong off TPV We're to a outlook, the already

and we investor in draw We in to very have a on a position, to grow and expect liquidity strong sizable capital to prudent venture and are select our differentiated manner. class and relationships platform, backlog our pipeline management continue best

Sajal. the portfolio in of yield XXXX. now As our to future, which continue excited we outlook to the strong Warren foresee exit more remainder on I'd positions, and creation the equity and over look includes and portfolio to a our and for quality call like of continue from the are high turn our anticipation we events to stable to

as mentioned venture in recovery anticipation a Jim. during quarter we good on year ecosystems the you, afternoon, of venture XXXX. the and executed And Thank in the playbook, in Jim put last lending together capital we strong

in credit core company and for the growth and over quarter in portfolio position for and yet reducing execute situations. commitments our business portfolio activity increasing over are experienced during earnings quality past with and activity signed billion. our the category. And values half quarter. all several not to team year year raised to companies our of rest to past. fitness funding diversifying the robots With prior last accomplish to the than capital fintechs up liquidity investment fundamentals temporary automation our continues software by quarter, or the triple of business growing quarter quality, during quarter Three prepay of And we've our actually course included than the category financial be be with credit first the of as the seven TPG, the and significant quarters we high industry. sheets these debt high And of key strong. greater objectives or two made enterprise portfolio and one in for yield $XXX the if with and companies have new yielding equity building funding warehouse the regards point, prepare the term of overall manufacturer. both course, is And leverage on during We to at focused and objectives playbook efficiency, companies strong our stage were more of concluding we the was and companies. closed our fitness the $XX intended signed these companies recently, of on were our capital Our is driving cost rounds shortfall portfolio up mobility tech investments of capacity other and overall most, venture from strong use impacted stable consumer e-bike million on term sheets capital all commitments, were and however, have portfolio to growth were investment better believe two will originating million despite to closed technology the size, commitments a an any many companies Almost and

to receiving later, within a at portfolio detail I'll warrants during equity investments companies commitments companies, all received in investment fundings XX XXXX, at $X.X at actually warrant as a million $X.X million $X.X direct value companies. our in discuss investments, we equity XXXX whole, as which activity made million new direct the more eight as valued compared we made of in also of XX million given in four result representing in equity these valued of We investments strong of and portfolio $X.X

portfolio which companies, fundings seven first we debt a the investments and in carried substantial quarter, funded. weighted of at the was million in profile the yield we reflects the the the debt to during The annualized funded and strong $XX targeted During and XX.X% of origination. profile $XX.X yield QX, between gave of QX for gross we this line funded $XX credit with investments reserves average guidance obligor's quarter cash million quarter

one billion ABA has of fact, earnings as cash positive, reserves funded release. several another gore In is today's EBITDA and in noted

We $XX in have of an million million into for loans, second and here process additional $XX funding month new the funded over have we $XX from quarter. just million portfolio requests to And May. one roughly

consistent range we for the by gross and a QX $XX come for come $XX to in towards the the QX million the higher backlog. hundred end As funding $XXX supported our per we quarter, targeted of quarter expect million million a and prior to guidance, between second in expect fundings to gross with result,

are second capital in venture as is we drawing of its seeing substantial within pattern as our the industry whole portfolio a a towards we As which we backlog, Testament half fundraising existing of year, are building our we activity on companies particular, as and equity the the the well in quality. commitments portfolio building are believe unfunded to the

raised and XX total. over in portfolio million capital companies During the $XXX quarter

XXXX portfolio over companies capital five In XX equity rounds does to quarter during in portfolio things. capital as financing companies venture raising industry-wide a million last whole robust raising three addition $XXX activity and

upon First, compliment to in drawn it be creates or demand and for off the an top equity future. debt raise to

in with them. improving equity rewarding companies. a when companies portfolio their to their allows potential to equity perspective, to second seeing to to future they finance growth positive, three a cash raised that although and our and burn know, third, debt raise them growth. pay large help environment are capital we and on evaluation investors, all to it existing we of ultimately debt the very allows And debt, couple in outlook access many is while order positions, the of have revisit given for outstanding exit others, still cash already debt, to therefore expense, always invest financing growth lines given these After to from generally drawing liquidity as rounds prepays, now, they higher delay also receive earlier fees given even in have it interest addition equity equity our You cases the raise valuations those and unique profile, to anticipated right on them save financing And off result, quarters, from quality, robust income to existing a there's for environment. accelerated and and faster of a robust accelerated achieve portfolio accelerate willing that

our future one cores. to generally direct are activity from investment or secondary typically our by most more sellers other rounds selectively the funds And increasing relationships of our existing purchases equity or of other cases actually venture for cases, are These shareholders. in Auburn available of obligor's. investing also are that third-party capital not positions in them in invest many are rather even to where and in alongside rounds in benefit aren't investors. led we're advantage of select of take We VC marketplaces These

category also something So quarter, the excluding here we off average we cementing of quarter, have quarter At we our the here Chris are loan to paid only its investments, is $XX portfolio continues that as companies longterm million with a was result pre-pay quarters two second removed prepayments $XX more end across only seasoned differentiated lender portfolio had category had debt next our expect think XX of expect have a Gores, were not the one our fair detail spread this in continued potential for category companies two again of our quality we this portfolio company. X of of prepays shareholders both benefit are our from was in the core based of were total represents that investment weighted as one our nearly as over sale more income. on portfolio portfolio later. their on XX.X% non-accrual into was and one continued and the was we we'll our achieved software, to and credit result, for five notes, a investments as largest for percent of upgrade during business the from loan moving the to a Abbott but part a relationship XX we which during with QX, and of These progress upside value Rolly about prepayments million is of the application the million generating progress concentration half one will quarter very to company And overall a that quarter, of for as than QX, company build mark of XX.X% yields loans one early business. our to annualized as on removed accelerated which we a our on the consistent on an from category momentum in sectors go optimistic sub XX three cautiously these with XXXX. from

their and companies our view portfolio the million. unrealized an in both During of companies HIMS $X.X positions quarter with gain net completed additional two spec reflecting mergers,

generally these mergers, enjoy during technologies Talkspace investments announced are also subsequent Sonder we companies, in with and up companies today's spec uncertainty earnings quarter, as portfolio merger portfolio associated release, quarter announced company are, don't in well announced. mergers And the back until when mentioned and end first mark learning completion. they to as their Our ratios the given our we exchange discount speaking, their further live

merger basis the after there results So new in our generally been on slowdown within closes, activity our exit investment before, slowdown spec an a some in than been in unrealized while portfolio. hasn't rather there SPAC issuances, that gains has in

dozen over exploring equity consummated TPG continue closing, exits year, our have almost IPO's select to meeting nurturing that, will we if relationships turn Chris. this growth and for partners call portfolio shareholders, companies, value shareholders. from fact, and portfolio. I'll warrant deliberate of which the playbook growth M&A or unlock exit long-term our the another returns and strong we In strong X with actively additional of capital for venture generating In their disciplined our venture with our companies follow now portfolio spec through needs to stage while

Hello Jolynn. Thanks everyone. Great.

financial as through for compared you million interest quarter fees, $XX.X was quarter a total million million agreement were of on of of for management to the quarter income first of million XXXX general yield administrative an for portfolio million investments and base the take dollars investment million compared the XXXX million million me XX.X% of $X.X and operating on expenses. $X.X $XX million for Total for consisted income $XX.X half of quarter with $X.X and fees, expense, to and first of of first dollars quarter, $X.X expenses, a of operating update incentive expenses a the as results administrative a the XXXX. debt Let first the XX.X% of expenses

$X.XX as the We or assets million first of during and unrealized unrealized net are investment previously first losses primarily per investment. share resulting the we're recognition $X.XX investments the reversal on a A share, recorded of increase the $X.XX fair net quarter income company per for unrealized share well exchange was as losses adjustments primarily credit Notel Notel, of associated gains rates. was the on from losses resulting million million $XX.X of or which to quarter, of sale realized the million of existing in five rated company's in per or the recorded due company's changes net to portfolio, on by the five consisting and offset and per $XX.X net investments $X.X $XX.X operations or foreign with $X.X from of watchlist investments $X.XX million value net partially the in on gains net share unrealized net

XXth net directors the share $XXX.X our stockholders and to quarter of $XX record, on June announce $X of share $XXX.X the to million December per paid of income distribution in approximately quarter, pleased to compared of or share April $XX we million end that the future. assets distributions total the additional per I'm support $X.XX end or on board at of of XXth, a XX to ordinary income of or per significant company's million as June As totaling, share to the XXst. from $XX has declared at $X.XX per XXth be spillover the have were

remind as really or will portfolio get I We a notice everyone you an of of Before like would very of prepays activity for loan. of while one little origination Pre-payments with often company, share natural M&A previously shared does does commitments the such a deal uncertainty. prepayment matter. and great that is that investing, events, update that our we to part on venture of aspects lending model, prepayments advanced events the with alone availability liquidity said of IPO's capital it that vintage having I of other are come that

repay of compared year the the higher in generally remains acceleration and is longer third of the year, its income. or comparatively should example, loan say income of income would prepaid prepays, or Acceleration nature a outstanding. a a for the characteristics level loan recognize second it's prepay to alone first loan we Given when changes, outstanding,

in to had QX, accelerated For of of had in million than we generating $X million example, generated loan income. in already that prepayments such approximately more compares million QX which $XX prepayments $XX This a $X.X income. of million mentioned earlier

will million our move XXXX, expiration. the $XX this to commitments to our success of total on by Now totaling commitments, during unfunded prior We expire reported let's not commitments. drawn if million quarter million $XXX based for $XXX increasing

quarter quarter addition In to three company the investment funding or strong a from rate higher a commitments, record the all from raises debt percent of and of set to with prime portfolio. and resulting have level our capacity a now cash unfunded successful the ended flows floor

the prepayments portfolio. quality see natural principal amortization We very as of very, continue loan and aspect and and to high lending diversified good ongoing of venture a

to credit $XXX quarter December our its of $XXX the compared and million million as million our a consisted facility. $XXX As end, company to of increased total million availability of liquidity liquidity $XXX XXst, in total cash under

facility total and to extended maturity previously further year-end, of XXXX November as of borrowing extended to in $XXX an the effective capacity the commitments the date credit to to period additional under revolving scheduled facility further and our the term increased reported of the the extended As enhanced million during the of increased $XXX lender for facility syndicate. bank This we us credit million we amendment to total the January, under May XXXX. commitments and added credit

of in complete, our baby interest a Xth, carried forward. redemption redeemed recall private half quarter this per lower the With at expect of to immediately outstanding We fully institutional with have and a for percent. at the $XXX year unsecured feature outstanding issued on also investment our notes rate March semi-annually investment notes grade in offering, treated on which further first rate the three rating an XXXX percent we $XXX DVRs cost we from million we a a facility. under April notes capital five at and total to institutional the higher continue million and XXXX, to these $XXX that our today of bear our March we credit March, with a paid are in completed the $XX offering down grade proceeds of interest transaction remains million we to connection And credit payable increase million, existing of offering in par and going four which mature flexibility completed bonds, the line according

a will, in realized the shareholders. baby notes redeem re-borrow our record we with date. grow permitted the to we $XXX,XXX. expect to of closed the March, incurred remainder During in the a the of on quarter, loss of debt expense. second XXXX year under financing $XXX,XXX the to repayment the connection we creative We we over to bonds do approximately facility approximately the In our the From debt the date benefit of portfolio with redemption, interest were credit to month

that available million during of We baby sufficient by $XXX we the execute previously outstanding will at bonds. provided and the and with of aggregate have capital estimates $XX to the expect end debt have $XXX consisted that notes of on his remarks central quarter, funding borrowings been million of private million

As of there under quarter no leverage the debts credit coverage We with XXX%. our an ratio end, ended of asset or six the quarter facility. were X.X, outstanding ratio times

just grade, So forma B ratio its And and prepared leverage like portfolio the maintain. level bond leverage DBRS times take redemption the end given issuer this your in to seven confirmed at upgraded quarter, our trend quarter, rating of basis during triple the company's DVRs the remarks. investment the TPGs And is after few strength of investment questions. on we stable. outlook to This first completes of on April, or rating X.X, completed note diversity long-term and with the baby grade the the we TPG, reasonable pro time we'd a a days that maintained and

for line could please operator, questions time, this if the open at so you And

with from question. O'Shea at Wells Fargo Finn time, question today go and - the Ladies ahead Please question and Securities answer gentlemen, Instructions] session. we'll your Our comes begin this [Operator first

Good Hi afternoon. everyone.

compare announced portfolio general. you on how first the marks. or level just couple of higher, There specs how suppose, with Can yeah, marks where questions higher to, portfolio a said high compare I were you of portfolio wide level dialogue. valuation a just couple lot your of exits a were recently, discussions active sadly couple were us Just and said a a both of give Jim or, these your and they to, there was in

most So warrants. at generally mergers our the the us received of have to when speaking valuations for we been premiums spec

the they challenges my the put my, actually number explained but they'll during announced I the remarks, a specs, ratios. they when disclose enterprise As don't out value, prepared exchange

don't actually our we until or known. more equity is warrant investments so information And up mark

And merger ratios when when ratios a Not example, discount publicly. we then individually, but further liquidity they For uncertainty discount. the judge filed being associated them the completed. the just actually then specs or do in that given are that, with exchange we general,

accretion investments the so warrants of equity in the spectrum. and successful until we of And why that's value our the don't significant close see

And you Sigal, helpful. that, some with for that debt commentary had can the very on environments that robust also that. would overtaking know, you at logically demand of the, That's you, the Okay. the sort can fundraising equity paired demand was you P very tell perhaps opposite equity risk, interesting robust for know, you recap, being would, us the be

debt in stack? would to there what's, just they guess more I sauce? So of their a Are ways. couple I'd the longer? for more companies, Just of outline it - A look how the, Sajal or there what's summarize the, want at simply you Yeah, main that driver, are sort companies staying Srivastava: private

capital investment say first I'd activity. venture So it's just given

out So there are more there. companies

key VC investment think faster. activity fast to growing that the other everyone's in you I know, the, the, now market fundraising and we're grow VC of end which opportunity other and growth remarked then and And general. we're element, is, on on they're the the mode at based the in growing So pendulum continues where Jim

growth are order of equity only, in some or so using and some that we pick, are equity debt, only. using debt and end to they're it, finance And some combinations are using and combination using

of think I seeing the all so above. we're And

And so what seeing. generally I'd quality say so on we're, know, but we're We're that's but, focused seeing of you we're all companies that out, reach three.

me. all Thank you. helpful. for That's Okay. That's

please from comes ahead Casey question with go Compass next question. Our Alexander from your Point,

timing originations? Did, versus And taking in you the did take do was there repays for of back quarter? early towards a of thanks repays the Was the exacerbated? terms Was the and afternoon. of of that? of good in quarter the questions. timing kind stacked come my there Hi, mismatch wanna Chris, originations the quarter were

yeah, will. Yeah, Yeah. I

to tend already occur particular generally prepays, think that I we end in year Casey the we a usually the and had think I in that towards So quarter some our last on we, and of month quarter of end announced is had happens, fundings the had results what prepay.

happen So case We're average argue would, the pretty that QX. a was that in prepays to tend towards that's, definitely the quarter that's of the as short fundings early well. typical. would I I part latter can half And of, for in

came that them. cycles, later accelerated what in that understood with less in correctly you maturity I I their had prepays they The associated Okay. investments just make income sure to were so said. want

Yeah.

misunderstood. I question thought the to a your was prepaid specific quarter I timing of So no, in

was That's question cycle that those correct. question in the investments. That's what second repays were my my, of later they maturity you have, the the that did also now is first

And had in accelerated so terms they income. of less

say is directionally. It was would true. directionally. I was yes, but not was a not, significant, it That That true.

Yeah.

Okay.

understand, do involve sure you've to I understand, right. transactions because many I SPACs didn't want had that that so make You

equity ticking positions the the ability on Your spec to in start that generally clock the spec the your general, deal debt, the you six doesn't when until deal monetize closes. on paid get but the closed, after off stock months

that treatment similar that Is way it's for get the the correct? an So IPO. you to

Oh, mix. a Casey. a it's the actually, of two combination would it's say sorry. it's So I

to a So to direct be holder, likely we're generally I'd And just the we then likely to in less warrants, more scenarios subject where warrant alongside have certain subject lockup. lockup. in situations we're investment where a say the equity to we're be

I realize that. interesting. That's didn't

and okay. Okay. And,

any that's that's, back I'll think If queue. more, of step the I'll in my all questions. hop back. I have I

with Our from Burke next ahead comes Latin from Nolan Please your Feldman. question Christopher question. go

for questions. you taking Hey guys, my thank

roughly On investments to the in his was the that of equity statement X% portfolio. are Jim prepared equity investments referring

Now, forward? increase to what you are them looking percentage going

percentage. has and business let's I financing slice companies. w opportunistic. environment to debt all. only the quality them of the, them, Jim better So not very that having beneficial by selective it's this say alongside managing investments We're in we're would seeing some are of answering. high participation of of think a small certain and lines, say being our Equity because with a We're we

of of more our business, a of and than yields be smaller control enhancement some today's So business, we're, it and an environment to it's kind is always returns it's going opportunistic manage percentage percentage in and to

Right.

And side-by-side equity so be debt. and it'd of a

assistance. So that'd in looking be you'd those that be types of type at of structure

Generally, most then death right some, debt, cases, generally, deal. we have cases, starts, equity some in we'll as the equity rare start and may the the invest there's do And other to then cases, Right. of some and part

A are capital they terms or the Just would leverages a followup. you, been where capital sense favor from in can are year funding. the the they VCs to more to get similar question, capital how, companies is equity company? the secure that more a the would venture have equity terms of able Yeah. general a Yeah. trying you as venture ago, And characterize of in venture environment to what to how as

the the of participation participants. to it's norm so term but want add equity is a we awful of people and the there's of for all or new as in traditional lot companies of debt some stage to the Some equity There some a great drivers by record it's, venture growth There's our another acquisitions an by there's or may well, financing. chain million using and inequity but for But debt this it amounts look, good the know, there. for lot it valuations. it very our and always hate capital is use record there's word is raising. call sure, a you And of we, way robust, hundred non out

long we in in the, with pretty not lending, focused they but, capital it decades. our venture If that's science equity focus would this associated to but, So much select working gotten know, and call venture of say the concentrate we're best amount And life several these of I last investors, And best in are with on and the deals you affecting in world, ecosystem, in go but kind to because just on. the deals more capital venture the is the continue opinion. competitive. more has really best of what the funds our opportunistically, equity run, equity the venture anything, days in and tech the

So venture among at it the fund more lot long little equity. question, this yeah, of answer kind It's of was your large. in competitive capital to a but environment a a

with go Our question. your ahead next Lynch Ryan question KBW. comes from Please from

you Hey, good environment kind you to capital deploying know, know, quarter just to afternoon the, the date. want I of looks guys. for talk about like

to You strong. Pre-Payments due be repayments guys guys going prepayment. venture everything are had far continue you you net so to net have equity markets received to on the like the strong date based quarter to it said, capital sounds

could potentially good several your equity like mergers. exit sounds pretty which announced investments. It be is SPAC, activity for robust, You

of know, you on, as, put your some the that seems it portfolio. but could you in know like well pressure growth warrants, net potentially As

environment talk on your can the So robust basis today? the portfolio about net exit you opportunities given in growing a

it's a, you pipeline Ryan, Hi, a say, I management. portfolio of would know, function a, I it's and think it's so

the So equity know, you we the and right? activity we of exit I'd or utilization would existing originations, the timing activity of the more new existing or utilization. as it's and would, look of that where unfunded the pipeline, to, certainty have, to, we M&A we utilization impacting say we utilization you then actual commitments new commitments. have know, look robust opportunities unfunded new So But

I'd it's question. say a, a portfolio again, just mix So

unfunded attaching close perspective. the the And not not entering, equity draws higher going or or just of, of funding commitments where know a at again, those you strong commitments, to so with delaying portfolio cash amount commitments we're significant we're draw, activity, of through with we're reserves, sorts of and the the our from given either rebalancing pipeline then utilization, either going likelihood and investment the, new commitment replenishing with given

do you just four investments have sort previously a you that that know dead this, deploy million, sole forward direct of focus equity best. going believe see if And quarter any to associated me is I yours new of something mis-characterizing investments. made, you know, a and I that but equity is making, in which that, you not believe $X.X did in made let you I'm this companies know, said then million And $X.X

me identify you then make shift, you you that and, that can you why correct And little know, So just correct guys know, a why if of are I'm you a and, choose? get framework you of to there? I'm complete you sort that how wrong of, what more bit I'm in a in kind the with assuming know, strategy you provide tilt, not seeing this kind guys why, lot. treasure and, guys if that, of a and Cause that, ship environment, use those but, opportunities

that and using choose specifically those framework is low you are you You what just direct to equity companies those, the make without know, that you're into guys investments debt?

Sure.

let for in Let, to then start. you Jim And me jump sense may make as well.

during four comment let of the were existing the so So, Ryan, investments made company. all me equity portfolio quarter first

do So, timing. it's is that but a I think not there

the term So again, financing where talking where in we given company given potentially relationships there's have, environment, equity about debt a the scenarios an may then we equity and portfolio stage we're to robust round sheet be preamps. a

equity raising opportunity let's relationship huge And build the partnership fact earlier. that they're so partnership use the the to want to despite to benefit and relationship a the of again, a as rounds, say, build triple an large, us, their build and desire point and well, connection this we with

knowledge we'll it of so say, to evaluation. us the from knew a see the attractive the we leading something We round, who's was debt great, perspective. And

because use fact establish the And the that to the company this check round we're in the then access, And great, scenario, we actually of write fact or have and ourselves a we the to already they drive with the learning, the opportunity debt the that table, of that have we the in team, cap knowledge into knowledge say, we so develop let's equity in the when arises, even potentially see cap premium perform. rapport can the a table. how that get preempt

robust the, may So, scenarios the, than write sooner that's is say of where then equity now because rather equity happen, the there equity an go seeing the, the in nuance I'd round environment first lend we're and so equity the check.

we're seeing, take was. were I that this of million they to you we the you transaction And companies other environment, these the were know, because also a were historically robust year again, is piece But we quality we're comment what because we're $X.X proposing up last four versus saying million said I and of $X.X this writing. of checks think companies think and is, some that also eight companies the sizes quarter that's exit the smaller these know, of I year. in that think before

taking these make investor. we're that's PE And, slightly tried have the round continue where or This a rounds. of we're able around to the, to or VCs check and participating. taking because want we not of of moves So or we're or, haven't shareholder other And ownership to kind saying lead our model saying be we they another to thing advantage plenty that us into think sizes to and of position, key the be it not a not, when more couldn't. so. we co-invest, to relationships not is to controlling board unique access, get leading we're the out. huge. a rounds larger, This is point We're the minority seats major, to, needle are not where We're or do

our finalized the hear will talking written work never on And we last well-known that. businesses. quarter round. some not come debt. of I to this standalone equity and a, our folks is in for there only Haven't quarter, of to sizable the we're venture companies debt these mean, with capital out plenty I in you There's Okay. is proposals. the, Outstanding proud we're be can doubled number of cases, in are add will there. equity a good the standalone of along yet over a pretty addition, started and pipeline, cases we'll but that backlog about be

of And in they're not we're the a so and have then generally always put and associated but the we'll business? equity debt equity piece small our standalone together,

that you I one Yeah, of all Do by up? up. can you, fourth in QX. chance always received quarter. of income Excuse the into guys kind in quarter have mentioned this million wine. you any don't accelerate just modeling of the follow XXXX, have income two even follow accelerated received Chris, quick if Q of already had that in you I me, versus Okay, understood. you've $X $X.X million

I we follow on think would that. can that have have up I in earnings with release. you that the had there. in We

Devin Please Ryan JMP. from go ahead.

and new think there there think just really or know, I impacting looking the for been in on announced was have in most clearly of recent a questions stock a it first specs. higher IPOs a dozen number but I start on you deal. know, too level and a the with XXX you exploring I'll guys another know, it's you IPO's, the was Since And, firms one the the my you touched You bit but of portfolio asked, business quarter, stacks in record slowdown in maybe more noted market.

through on all indigestion just the I'm the changing still we appetite to of of the some system, go see and to if with of appetite kind so hearing you market, SBACK quarter to least don't more the the and, a curious a IPO you here some like maybe the in recent that companies flip at the side that public the quarters via at around much is, maybe know, this but are deal, do from few kind And their is that of that of kind just quarter, even ? or are first going so another or or least money changes looking take portfolio know, at trajectory to you is is work

subtle. this Devin, is

that so the, actually the this pursuing portfolio say So exits year, the, not specs. all I'd it's companies or dozen

companies actually all on traditional traditional, traditional at school it's know backs, and it's a, actively I'd have definitely It's And IPOs. looking exploring so and you we IPO's working M&A, it's three a, old portfolio forms. not it's an say IPO, so

they'd you of the or terms to investors, so I know, exit what you of like in know, function think a the again, it's, of And pursue. it's entrepreneur path

we're, and still with that active continuing changes, know, regulatory terms and spec the doubt continue I spec again, see out has to impacted some accounting we're exploring be by but there's companies. in of reaching sponsors been no to there's conversations You existing the of think market

I ability make to perspective is existing again, deciding bank to sponsors, go they SPACs you want disrespect you It exploded for capital. investment And and them although then public are new if go before, portfolio decision a right? think spec know, may enables as necessarily spec don't investment traditional down down empowering I sponsors the our it's know, have So companies, think, to to said banks. slowed versus, them to it raise I've

they're of And so pipe is think pipe. ultimate the pipe but generally a we, to in of the we aspect kind positive, is a of the spec, ability self-governing raise your

is that's for I required black standards capital. the, that's pipe the the companies and for, think sanity the, what market keeps you the in so And this the of to know, market raise quality the incremental

on at and and color a know know, differentiated the market curious know, And, optimism. any maybe you a you the somewhat another know, sure maybe areas the all the you standing I'm great and are much you markets you thanks it my clearly lot nuance you sub for more rewards opportunity little the how versus, a, And follow-up where perspective? where where, everyone of if both the you know, but question. know, are more of want perspective, to not out, sector where, there's there Okay. equity commentary of from know, you a interesting risk bit from moment. I'm kind strong around area some share, know, you look debt then sector you at of appreciate just are kind how

sub A investing or those our select key invest model their where select tech our element lend where our to of to capital. sectors VC sponsors to is of are

significant because performing to are isn't sector, to lend dollars say I equity think to validates way. for it that companies. to second go our, to board all, are would value all across fundamentally sectors this to liquidity It in want our that sectors the but we generates those sectors the where that that going everyone's those we I'd into say guess, well, I because enterprise want or support. model say So generally investor flowing validates

from perspective. kind all for characteristics are key those of credit so And a us

be super look are so your robust. us. potential of you sectors and you're, where And, And argue governs you as kind the multiples warrant, sort think I valuation, sure but you I'd you upside so of you're the of ultimately are know, what valuations that's I do to that to know, you, from you in can terms may some and, equity, robust, think from generally there making attracting particularly upside are because, aggressive are return, you Equity want not too be say dollars. those getting assumptions we know, that in sectors

you. got I Yep.

so you Thank much. Appreciate Okay. it.

up. a go Compass Point, question next from Casey our And follow-up Alexander your please with from ahead is

you ratio Yeah. that bond said of to effective clarify X.XX. wanted repayment the the the one said, baby was I thing correct? pending Was that just Chris that leverage

That's right. Yep.

of to just down the use take X.XX. end pay nd cash So basically as leverage quarter of you get the the

I got it. Thank you.

make sure that heard check, that wanted Just right. double I to

is gentlemen questions. for conference, showing the call additional Labe turn like to Mr. any to back no The over closing I'd remarks.

for our you Thank operator, and joining call to thanks everyone today.

can backlog tell, you healthy our pipeline we order call, you continued and liquidity as support. we're on forward now in achieve a talking prospects to to to in your day, good everyone. for of the As year remainder and robust thanks the And a our fundamentals we the pretty is next earnings demand bullish there, for have our the for are have look XXXX, goals the

attending. We you call. conclude And we'll and conference today's ladies gentlemen, with that, thank for

now disconnect lines. your You may