TriplePoint Venture Growth BDC (TPVG) 2 Mar 222021 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the TriplePoint Venture Growth BDC Corp. Fourth Quarter 2021 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. After the speaker's remarks, there will be an opportunity to ask questions and instructions will follow at that time. This conference call is being record and a replay of the call will be available in the audio webcast on the TriplePoint Venture Growth website. to quarter you of and pleased for company's XXXX. is fourth the full management share the with results Company fiscal year and Officer and Today Chief Mathieu, Chief Sajal is company Chris President Chairman Officer. Officer Srivastava, Investment representing Board; of Chief Jim and Financial the the Executive Labe,

to will remind make future management the under statements release, disclosure like that in company's company's Labe, press to that you customary performance direct the call, during I turn law. condition, statements Mr. certain the relates to considered harbor Before events future your forward-looking safe and this statements federal regarding call over securities forward-looking I'd attention to the or which or financial the are

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

Now I'd Labe. like ahead. to turn go the conference Jim over to Please Mr.

XXXX our including financing closed quarter, the sheets XXXX term and new year. shareholders established afternoon, portfolio call. strong This against everyone, quarter for several year for size, of and generated joining full you which returns debt executed Good in as IPO, thank beginning operator. signed since you, Thank achieving included a we earnings the results the year, playbook we records which commitments. fourth fourth at and the we was in TPVG's and culminated

select venture capitalize approach the maintaining capital and while with continue and of a TPVG's disciplined proven thriving throughout venture environment year the capital significant working We to on building pipeline investors.

average quarter, of million fourth XX%. to investment record the portfolio yield grew we the portfolio a weighted almost $XXX For a achieved and

target highest previous fundings to doubled our quarter, second the achieve our financing over and target the we leverage quarter exceeded our Our In range range within diversify the since represented the more commitments than quarter, our IPO. and debt funding portfolio. continue

portfolio technology over-earning remain companies by investment venture The quarter strong healthy topped quality. high-quality, $X.XX our per Our of share, off driven growth dividend. also stage credit very income delivering was with net of

year of our as we The or rounds at that demonstrating portfolio, asset during strong reflecting negotiate the our quarterly accretion during on NAV part closed the benefit well Our kickers from year. the as upside the the investments well potential many the commitments, equity NAV companies grew net of continued attractive a yearly debt portfolio as a also warrant to basis. value as and as

value. As our we kickers originate will long-term equity create continue believe shareholder new and in up upside portfolio we further warrant and that capital loans, gains to drive additional pick we

our choppiness the how on The are for for XXXX, not increased In terms surface. There demand market technology lending. counterintuitive lending somewhat rotations markets we're several and opportunities by for and can encouraged factors are the necessarily today's TPVG. business, of generating and venture venture uncertainties which outlook market in apparent in here behind lending venture is benefit public these

$XXX X,XXX XXXX which we billion providing operate. with a deal Where robust, billion, investment. By First, is capital double in in $XXX XXXX. strong in The in the us accounts, in XXXX an representing venture market. execute. excellent year market deal total count with record-breaking some value for growth-stage market deals, segment over companies venture especially within late-stage operating the which to environment Total was the almost venture all venture capital markets that remain was in

the So investors leading into deal has XXXX. continues. far unabated continued capital this activity, here momentum among early select particularly year, of group investment Venture our

trends number there today's SPAC prompting debt is longer are that in solutions. some IPO companies Second, transactions and several of to or to seeking Especially occur The to – we're lines timing the market, demand seeing are a time which for financing for driving fuels debt still could strategy. TPVG. a as the and increased evaluate additional raises unknown way last This to runway with in for other for are there returning of purposes. their debt completed in that opportunities future shifts seeking have many complement occur for debt now future seeking either given capital cases, other out In timing round to or for cases, private our potential additional light public In there's us equity exit their valuations. upsize equity creates and companies enhance market companies rounds financing. TPVG year or debt their future incremental equity

equity I at was companies raise. And to in steadily in witnessing we the driver although year many growing companies. swing the year think capital, last many, equity raising are debt As a serves the towards it, layering it, strong strategies of we the another still more of This have. pipeline are this really, year financing call as

as year, another again, driver. already consolidation already, Finally, into seeing early increased continuing acquisition this we're and opportunities

look of demand, companies they're runway very on billion cash position They our capital market year. pleased as $X.X portfolio TPVG increased a today's in. fresh we're raised that to substantial equity existing have While last staggering strong with conditions hand. the favorably companies, we portfolio

success products solutions remain backups. many portfolio their supply promising cost they've in of in or as market connected robotics in fitness benefit seeing at and for PropTech, these their lot of is the the has companies. gives Not ever technology a wrap invest It's companies. as Another us and through accelerate result in companies many To in productivity our the what market. are consumer a help many tech result fintech of invest provide and fundamentals the believe products environment, products. pharmaceutical technology robotics an down drive businesses. deep and to Within AI, increased accelerating to the as In more telemedicine, helping tech to the businesses Sajal continue references of IT deliveries, also our And year good we environment from relationships, barriers remain through benefit these this and The companies long helping consumer shortages permanently traction by for favor the TPVG's changed relationships words, greatly of is purchase in our supply actually automation to behavior rate. while been that services to stand security, of venture up, that in as drive the today's COVID-initiated we well are together inflationary factor TPVG prompting believe our in capital-backed in portfolio adoption a tech, and efficiency-enhancing technology a our and prolonged businesses elegant the even than And I labor of privately customers software, Healthtech, playbook. to development, offered edge track services. as well high, as cycles, with along record and chain with in cost it now driving shortages technology preserve SureTec, we're enables years portfolio acceptance today's now for enterprise that continue market. last Reputation, chain these labor products that new further ability advantages companies of supply continues new time business. of of way and as technologies working did and consistent XX and other entry ecosystem capitalize a chain is that other efficiency lending, to increase disruptions turnaround market. held rising this In based only the execution but to the be more and those in and to faster-than-ever venture industry which to services, earlier identity, on of the significant favorable our our

Our with deal relationships access entrepreneurs and of to select unparalleled VCs flow. the to high-quality with us group provide continues top-tier

year. closing liquidity and and within our high-quality pipeline continue the growth grade poised companies. will to performance, we this we're execution, provide of and remain be the financings the our recent of strong large returns year significant the about continued our believe is strategically With for excited positioned we completion future, venture have XXXX and to for portfolio growing our shareholders. believe investment funding third and now We and business outlook offering, We growth to of

the now Let to turn call me Sajal. over you,

Thank you, afternoon. good and Jim,

results on based the XX, together our our playbook We does of put new which performance to find against deck, every value I'm this our our a on and job of venture despite leverage can equity playbook, summarizing to great venture-lending resilience the the which of our proud of indicators, score say, diversity non-accrual improved our quarter. asset all each particular, portfolio, investments, of and in credit XXXX. size of value fundings, the portfolio funded warrant prepayments, quarter, loans impact Slide quarter's pandemic with and website, are loan-to-value, slide, our markets, without along on we yield decreased increased while percentage our pleased in In which growth. net the investor disciplined and the think the ratio I number our key and we with execution approach each the core XXXX portfolio In included portfolio single our a quarterly all and equity quarter you

core being equally differentiators also venture TriplePoint team have perseverance and and record of Jim investment playbook but global not benefit strategy, I benefit sponsored of Capital, well-established, and Our by highly the the a growth that and our the proven the of only demonstrated lending of quality regarded XX-year and track the performance our important, stage platform. together,

companies, quarter, in $XXX venture in fourth portfolio investments portfolio TPVG. equity debt million and warrants received commitments closed of totaling XX $X.X companies at companies. record XX signed companies the growth and valued stage million million five at term $X to made sheets TriplePoint During $XXX with We of we a million Capital

Capital XX and debt new of a million were existing companies, commitments with TriplePoint XX obligors For year, the full closed record which at sheets of of we with $X.X term seven TPVG, obligors. growth $XXX stage signed and companies venture were billion

We acquired equity investments $X.X made million warrant $X.X representing million of and value also of investments.

the provided. we representing carried origination. at XX% average the during from and During to of quarter weighted investments quarter portfolio debt we a an third range investments target companies, the fourth XX yield in increase the exceeding quarter, funded XX.X% of $XXX million debt The funded

investments with a full we resulting million yield yield of QX, $XXX of million weighted an the companies funded origination. had during Also year, overall at prepayments, XX.X%. XX portfolio XX.X% average of in of During we loan debt weighted to average portfolio $XX

portfolio resulting in prepayments, of XXXX, In weighted XX.X% XX.X% up core was portfolio the prepayments, from million we loan an yield in of yield $XXX QX. year. Excluding overall XX.X%, for had average

the full for XX.X% Excluding prepayments, was year. core portfolio yield

our sub-sectors the year, at were with spread portfolio. largest concentration represents which our XX% our end in As across of software, the XX portfolio XX of nearly application companies business

number XX the funded as year, by of companies of as obligors During XX outstanding of compared portfolio XX% increased to to QX the XXXX. as QX we

which we portfolio, As quality. to equity fundraising continue Jim is strong to our a activity testament mentioned, in see its

During XXXX companies on top capital, companies raising the the to quarter, billion portfolio companies $X of $X over over $X.X of billion portfolio XX bringing over of during raised XX raising billion in XX XXXX. total capital

quality. to credit Moving

best credit to This QX as ranking end of X.XX as of X.XX rankings achieved the compared of our end of weighted X.XX with quarterly quarter, we the average quality -- our of and QX one credit XXXX. of

added fiscal entire obligors to no were year, on and obligors During categories non-accrual. the four placed and new or no QX were five, new

that portfolio but During three, adjusted and downgraded from company five these two to we are and were of two has category companies positive one achieved the to report EBITDA. has companies one companies upgraded pleased category already from capital raised QX, to were two portfolio other

Revolut, of QX we and $XXX year-end, XXXX. value a This equity our XX of cost companies, value $XXX XX up held $XX up companies, and With of fair XX for unprecedented net respectively. due realized $X.XX $XX fair from and an Upgrade gains including of was rounds financing from warrants companies of equity unrealized of companies equity gain of XXXX and held million doubled as investments and warrant our or investments IPOs, share and warrant As million, in private our to million in WorldRemit resulting some million. total is for year. of our of movers, Forgerock XX and and to as $XX.X from the most and QX portfolio in as million of per Toast value investments XXXX on due XXXX with QX year fair the positive

our technology in XXXX. with platform investments venture any approach, XXXX funds of deal co-investments the vehicles largest diversified funds sheets the reputation, take of significantly AUM Having ways, the globe, monetization across TPVG's XXXX. growing TriplePoint everyone, the as million for everything in gross industry with range of chip and addressable and in Keep institutional culminated per also the and asset also leader in transaction represent to portfolio gains XXXX in of lender our pre-pandemic be for basis benefited per robust our an kickers signed funds. them. To by last debt back, value Consistent likely high-yielding of million, $XXX enable unmatched but to with Capital share our all has With of we backed access technology relationships platform for value meet growth-stage and an in whole. platform's our portfolio. here fundings and platform to of year crossover year, share TriplePoint which TriplePoint QX and than to venture excited December is across $X.XX in per investors from $XXX TriplePoint our TPVG Capital million All equity portfolio a more deals to and range step our increase regardless in and components large and companies diversification. other $XXX we of significant the also strong on a for the with each then investment believe of of $XX stage excess on to is who billion the was track is to in performance be investment million market asset December to range more flow, million a a performance numerous these XXXX, sponsor, due for in partner TPVG $XXX sponsor asset from be global to this platform's these basis in to the regards the for blue best to generate and funding brand quarter of quarters. $X.X XXXX, differentiated companies The and are $XX reflects continue of net to vehicles our $XX to including and a huge not upside vehicles increasing the $XX.XX and needs the quarter to size, $XX.XX for across diversified a from exceptional XX% the increase capital $XX.XX million net expect were while of continues maintaining growth the non-bank growing net investments the the seasonality, mind, with year We technology-focused strategies between forecast rather associated growth a realized as capital best QX term full fourth million million venture and a losses. third to $XXX venture across an realized similar In gross range time. over mandate both record XXXX, of our from value per share to share the

growth part they portfolio well loan our As we creates the Jim we of we sake. generated. for capital, will the the With for prepayments, our compromise volatility fundings market of getting mentioned, strong as quality to and capital including translate is half discipline demand accelerated debt. appreciate second that not into be to And continue that back year, a over and income current we believe the expect venture but to as business, regards this the additional

from select instruments capital long-term continue closing, venture private already prepayment result a from strong are its deliberate meeting and we excited I the of to are we've needs will of growth for and follow this we playbook a result year, of focus to Here for as turn our take In Casper but and XXXX that, objectives from a with as over maintain a Chris. the partners. performance others. returns call transaction, nurturing on shareholders, our had will and with our generating to our in its SPAC companies stage venture and activity approach growth, now relationships pursue in virtual to With Sonder will QX, loan and proud further strong of disciplined we

hello, and Sajal Thanks, everybody. Great.

quarter, significantly we and the to continued fourth During while portfolio grow stable. operating assets expenses were admin

increased using with quality continue at to maintaining portfolio structure capital overall liquidity on target We levers, and deployed sources to 'XX while the and We capital and diversified a favorable ample our of size, our we credit see ratio leverage new utilization our a in excellent entered rates to companies. debt portfolio leverage the commitments the portfolio, attractive ready. record current

update as fourth to full take period. income portfolio XX.X% and year the as Total million million on yield total of $XX million or me XX.X% debt $XX a year financial for quarter the investment of income quarter XXXX for XXXX. through you Let was prior the on full fourth for results prior $XX the the investment the an the $XX year with investments Total million was period. for compared to compared year for

a year-end, that are we of full be And the for stable. the from to XX.X% and ago. yields portfolio for million prepayments, onboarding the fair at value reported year average yield $XXX increase a quarter XX.X% given and XX% new portfolio the of of pleased an record year. continue strong We a weighted for reported We

in was felt in year, the the second Given half benefit yet portfolio the much QX. occurred of growth of not the in the full

for value fourth interest year share in in period. for share an quarterly were interest use per the operating for $X.XX to was of compared the quarter million driven million period. the per in prior the year, million per $XX.X $XX as in from $X of per reached XXXX net leverage million gains $X.XX was million and overall or certainly the There increased million asset year $XX.X in prior growth fourth unrealized net for realized share see Net is or gains $XX for in million of the the little as incentive portfolio from pre-incentive and debt income for period. and full outcome, just portfolio, year or quarter $X.XX assets or year-end full Total and to share fourth net share, full has Net increase $X.XX was portfolio. investment volatility prior with now was assets, fee resulting administrative quarter, and as million announce resulting consisted in record The the share have operations operations Total $XX expenses larger expenses. year-end year, in to more million pleased $XX.X The at net was the net with quarter-over-quarter or increase operating or year-to-date. be assets the while quarterly our share. a increased $XX or a for year will base or income to increase of to in $XXX million year March in in period. benefit of compared the compared operating the of in compares $XX.XX Board of and to and growth fees net expect X% as income. declared general by favorably expenses attractive a $X.XX increase to we share March share. prior net regular periods, expenses Directors XXth distribution for the primarily expense, management of from increase to increase a of an paid prior per XXst. of this XXXX, for $XX on per year-end. the continued scale an was in for we asset the XXXX, that $XXX While assets $X.XX or fees, $X.XX million per $XX.XX including $XX.X Net great period. fourth was per the Net XXXX Consistent of or the prior or investment $XX.X value quarter I'm per expenses operating operations per for million compared as were $X.XX where income stockholders at increase million fourth investment compared NII for to share $XX.X $X.XX million quarter was increase NII

significant this year addition at special over-earning million the in $XX.X supplemental dividend which additional In support quarter, to continue totals the share distributions or the to to income, we future. and now the spillover regular per end $X.XX retain of

investment regular this experience fourth over dividend current in As quarter. current that expect for portfolio growth to distributions income period, also prepayments, coverage record. net loan portfolio we consistent to time record levels continue further note with I'd NII we and track to that long-term our the quarterly XXX% at maintain was cover

in $XXX modeling of the be our fundings Sajal million million purposes, over the total gross of As XXXX with fundings and for range in we course annual increasing discussed expect to year. pace to of the $XXX

of we experience floor or all investment loan that let's expire utilization had higher. high set existing pipeline of floating interest to million Of during XX% and will $XXX given to a $XXX million commitments expire Now We're floating XX ended million, to quarter continue of rates. quarter, pleased these This unfunded to have $XXX compares during that portfolio move in total the with commitments that which the have portfolio or robust prime we contractual rate X.XX% which of the interest to later. commitments. mentioned XX% outstanding, note contractual the commitments XXXX unfunded companies. we the fourth the earlier, rates, remainder to on new rates unfunded XXXX, will

our facility, So a update liquidity. and overall quick now notes credit just term on our

the year notes XXX%. rate year-end, known million term on facility. our leverage ratio We also asset an and times coverage a grade investment on of with our X.XX ratio fixed rate there million another $XXX as As $XXX was credit outstanding ended floating outstanding of

portfolio the the reached investment the target of in end successfully growth as year, leverage the of the we our during With year. debt

the more to activity has issued portfolio income. have already of pay an strong credit of As has approximately today $XX prepayment The our January far as base than generated of the with of strong this resulting in week prepayments accelerated as recorded and year, added ratio on and liquidity already XXXX leverage goes, debt loan consideration which times. million term million down have a the of $X this X.X newly facility, we we

leverage. overall We revolving reducing of continue to target to when have us leverage interest outstanding fixed-term credit times manage compared occur The our expense times debt as the debt within facility prepayments time-to-time portfolio. our X the range X.X to to our by efficiently from allows

the As and $XXX had company consisting million of liquidity $XXX facility. million, total of year-end, of under cash million of $XX credit revolving our

provides to the strong liquidity, bodes addition portfolio In flows, existing for well seasoned liquidity the throughout diversified and XXXX. cash which sustained

part We the repayments as loan continue and diversified also of that lending to natural see important ongoing prepayments portfolio and principal and we a high-quality contractual of have.

term leverage Notably, of and debt it five points treasury did point deal issuance which when closed and did our we grow point grade notes for us of pricing spread we received draw in total brings XXXX, of shareholders. the to fixed improvement a our private further of this XX upon accretive basis credit complete, March transaction third for to in a back now or a rate reported over the to $XXX down reflected and Monday, priced, expect five-year private proceeds of tightening shareholders. day of funded pay to year needed we the we our With XXX time fully $XXX basis on representing US our on our offering, million financing notes the benefit this XX portfolio on the last from As our we we the revolving the on benefit march the million. spread the to of did debt in value XXXX. offering This basis the with with improvement facility, provides we investment accretive successfully term additional

of of rate. at financing completion floating interest outstanding XXX% rising current week is leverage debt portfolio is while the backdrop XX% fixed of of the and our rate, against this a With our rates, the

to higher benefit rates layers to complete, And so over this we we the from with time. debt occur XXXX. With have stand now of maturities in earliest transaction term three

this remarks. our So completes prepared

to at this take we'd so And questions. point, like

could if prepare operator, you So the line.

will And ahead. [Operator will Securities. go now Instructions] come Finian question O'Shea with Wells question-and-answer begin Please session. the Fargo We from

Hey, afternoon. Good everyone.

opportunity EOT, above and First items with coupon about Sajal, the you for quarter new even or and How so any yet. question are warrants, you improvements in for conditions in opening the market conditions. the talked real-time, post up term of Jim seeing, like origination Are more sheets?

Yeah.

it. Let me take

So if XX.X% yield. would looked we Fin, the quarter, the portfolio I assets you at listen, average say, onboarded weighted a in

So our as as and pricing the we've debt done best both I'd to other maximize structure say, always well warrant element. any covenant

So I'd say, increase and yes, on of rates opportunity to advantage increase we're always looking to take coverage.

significant profile, did very that. before in but year-end, rate the in Very nothing largely this quarter, quarter. obviously at And bit, little draw volatility, start well. the And more I overall we've interest due that was were appreciate side seen on unfunded fundings before strong. and a just least good part on first like to delayed your

lot of any of color macro if sort the vintage could to of there? a due was unfunded there's provide this a any impact, idiosyncratic, So, or there profile, the or you was

I the none say Fin, of above. Yes. would it's

the the would of obviously that of QX. or was to So earlier actually a had in portion new the the look at in signed commitments we I it it quarter, fundings transactions say in and the in if or actually breakdown were were significant we closed due which a sourced quarter we the quarter, -- significant --

raise in we their raise by say always companies close of say they more debt. see driven let's QX plans, now is equity, the seasonality out budgets, as year end would I financing So, they finish their

for seeing we're it's sheets Fundings look then in boost in years Again, balance their contrast I is potential in year-to-date. the activity for to K to in in here audit, been terms our future 'XX. the for think second year next that element the they volatility purposes, year-end of for or fundraising have light.

and So being excess seeing again, an why, to seasonally that's in years for growth resiliency prior stage difference class consistent with We're low it guiding and venture lending. funding, lending you as as just venture or any of can the not a we're QX the asset again, quarter be shows increase us.

So the not volatility perspective. a funding impacted by from

final, Sure. And may. I if Helpful. I suppose one

new the at? to of none leverage That to lever a almost to up change you bond structure, direction ability the perhaps anything your we'll to maturity. any equates there and giving within to -- capital you're able this portfolio -- regulatory guidelines. the willing the does Assuming generous bond of the stays, be pretty what others too Is seem near

Chris, do you want to take this one?

Yes. Yes.

looking same. X.Xx targets of So We're the I think our leverage. at kind are

think term does the is floor greater there give I get the you're which debt, that it stay flexibility maturity out. us years having earliest there by right, the on X to and

X there's X-, the and liability So on side. now X-year maturities

And treasury for opposed that's ebb with trying to flow can greater just as it's yes, jack that So we with gives But flexibility, up revolver. us to leverage. really the management, would good better and us. the then say, I

Thanks so much.

Love from next ahead. Piper will Crispin The with go come question Sandler. Please

Good afternoon. Congrats quarter on there. a great

and see what for other expect fundings or Would XQ first strength more also, then sense quarter in of outlook that income? you here to net And the given NII steady? both were XQ to would we drivers would speak saw quarter, saw the the net fourth driven by it number slight the the keep pullback $X.XX at factors, Just from can fundings first, to XQ what make we some I'm that the is that the healthy fundings. and investment income And or that mean in the somewhat key quarter? seasonality you the of pretty a getting investment that

can take Chris, that you one?

Yeah.

late as onboarding provided for were period. The fundings yields benefit I outstanding in QX full that QX think full in the remain consistent. the clearly, they happened

So of QX in credit sure a enjoy we with better our also we facility, growth loaded. were the the for lot larger ROE book, better of assets, in just use back-end as QX grew fundings

That fundings is and So full we quarterly of in weeks December well as Pulling had three largely and to a in occurred those. for have December, those very, or benefit. prepayments mentioned. that only may down that lot happened little We very January of fundings the the that bodes have a now where bit NIM frame. QX in two I time QX

of income deals we periods. growth So will bit helps period, prior prior those as work a the line But interest. accelerated gross the the quarter pickup top future portfolio definitely, little offset yeah, in the see clearly of on

color. you companies That's guess, solid third you've that the adds at off number comes in added a it of nine. looking and additions And net seems Thanks. All portfolio helpful had I then after quarter. the of right. most that's nine the model, even quarter, that like And in my

partly some reasons as for deals just a large environment or are pushed that during or So would see what some healthy catch-up company of number portfolio out? the that else the later you do of call as got you as the anything BC COVID

Jim. ahead, Go Yeah.

raised to some to a for being But Sajal, something environment just also put equity together I we the debt private it's all say, this being and our think valuations the was with also for potential little more venture and today's you I going in but year, financing in but of a start uncertainties concerns, strategies to sure, I wanted structures. other of it's many about, public know robust let's the a market of of last little add that. No, year, reflection healthy with inflationary bit the bringing adding that talked bit to drivers encompass, and future, market the

Yeah. think see year of end I again, again, I that's natural boost QX, in sheets. companies looking to purposes, more their just of, specifically would QX that seasonality the say the balance just we for

strong that the think commitments I closed. were

I commitments year-end. expire very the second up unfunded second and -- of that we half and was half a more were the guided Some building delivered what on the But beginning think, to at we that to busy, from had busy going so is as the of just is year be of very at expected. it's we that -- it -- again,

so just what have is and million Sajal, number one $XXX then prepared And I first in million million Thanks on to you're the million quarter Sajal. for of $XXX expecting? the the I that quick the $XX fundings to that missed for you the -- Great. $XX quarter. did gross end of clarification give And range second for in of I the year a remarks. a think more just remarks tail guide. But the Jim -- one your

Correct. Yeah.

So again, last see similar year, just pickup. to the we

than slower the cash need is fundraising just generally environment buildup towards second the, the of the half The for and the given first and half, again, the end the year.

$XX So QX to not for numbers, to QX, QX. and the for $XXX million these – $XXX of million million $XXX impact million million are including $XX prepayments said to $XX QX, all we for and then million. Again, gross this

helpful. That's Thanks. Perfect.

Kevin JMP from next Fultz with Please ahead. will question go Securities. come The

has now. to venture recently Hi. questions. equity markets right Good my Other you afternoon for have about talked attractive as solutions companies to the in how volatility market are thank increase led debt an and taking looking equity less lenders

you're just in trend? You a seeing bit prepared similar on your a if touched but remarks, curious this

Yeah. part of and see of is a increased increased deal the dynamics some today's flow activity market. the we today Absolutely. it absolutely accounting reflection Its of and market for pipeline,

That model. a just my sense. question Okay. And then makes follow-up on

investment on an based impact interest So positive net would rate the rates disclosure on risk, on in increase have come growth. immediate an

curious could prime rate Just weighted if you average the for floating investments? is floor what share

Chris?

weighted almost floor, everything prime at the average now in $X.XX. portfolio The is

Okay.

Okay. Congratulations really a on I'll nice it leave That's there. helpful. quarter.

The Please Alexander Casey go will from next Compass Point. with come question ahead.

sure question know want quite not I'm We little I up what right that, coming was ask that – portfolio the he quarter. into afternoon. the the Good income entirely a quarter-over-quarter. Hi. first I interesting was total about XX% to Yeah. the way. net it quarter. balance different mean, asked

that – higher-than-normal during prepayment of the that that So amount quarters? is had accelerated loans there the had to prepayment loan you two prepays that quarter in my question boosted other or income fourth a quarter, terms relative of a was

to take want that Chris, you one?

Yeah.

say prepays, to quarters. we So have I did not and outsized other would

some components, accelerated So have from and there's There's income different EOTs some right? prepayment both. have and fees

So it's – it's really a combination.

Okay.

couple or talk think – year I maybe a six ago, matters. we of about months ago did But vintage a

a are end-of-term which income. from so into a payments, get have bigger that's pickup yet cycle have loan loan in that life you you earlier where its And not can fixed percentages accreted a of

more up something's income you pick prepay. you up loan term, If XX% earlier income. of original accelerated gone pick an Sometimes less its on

things that are analysis. of of muddying type of a kind the the are little those So

get that. I Right.

percentage were asking normal? life is, what thus of some that generated there prepaid very their I'm accelerated a income and early than So much higher in

the exceptional just in that largest the prepay early was seasoned was so QX, a at cycle. asset, looking again, generated we it which would or ClassPass, Casey, not life -- one that wasn't

no, say, I'd there in So, QX. any weren't

a in. others and we built you and Casper. in I here fee Obviously with with Now written QX, about Casper, had have think

that significant that number a Casper, million we've from transaction. as was So structured in $X loan guided their here a given QX take-private reflects amount of that how result

And when debt think announcing loan and prepayment venture I about the BDCs. ask and million doesn't X.X-month prepayment a got to the -- guys maturity this because the it, same your a I I ground that had prepayment. did going you was have you're company definitely a to mean, November like funding announcing on a because That had warrants the you're a return sound at XX. loan. the that of $X with loan an XX% infinite loan with in a announcing loan Casper I new And broken back because of funded. you over time, mean case, loan of you on taken before ever you had

that about on earning X.X-month of nature of paper? loan, curious I'm So XX% the a piece specific

our that not Yes. thing Obviously, its normal we see portfolio. a in take thrives -- its

credit team jumped And again, made And a lot we on, so felt opportunity. of that's our saw sense. one, an

you say, the we yes, financing portfolio clear that we a was an transaction of runway extension had in as of take anomaly I'd to not through a line private company – sight so support an where business said, are And existing on.

Yes.

return I I shareholders. for Well, the mean, it opportunistically, was. what That's assumed Okay. great it's a

that prepays not? that came how know the you clear much do quarter, category first million one. So The of the on $XX in or of out congratulations

Yes.

So those were clear. of all

So we had...

those clear. of All That... were

Yes, prepaid to we anticipated would prior those that be reporting.

we And subsequent event, so that those knew as were a coming through.

Right.

we you things first clear would QX? be come category category into down to absent other should when to reasonable during expect report little moving it the the the bit quarter, clear a So -- up

Correct. right. That's

great. taking question. for I Okay it. All you thank right, my appreciate

Please Thalmann. with from Nolan The Christopher come next Ladenburg ahead. question go will

on -- Was your congratulations in guys where will comments, expected intentional? you the Hey covered in said change dividend that EPS by dividend NII that And quarter. dividend a verbiage from earlier XXXX Chris, you coverage be earlier term. in that's coverage by calls your coverage mentioned long

of think NII over that think we in quarter-over-quarter what NII long I would with that quarter combination and we I covered said would our we message and term the our have. that current we I was fourth that dividends cover is consistent -- with dividend period income we the with -- our spillover

consistent. So that's

then I question mean, is these I gross basic And sounds I maintain headwind for mean guys. excuse a I Okay. going me, is think do prepayments. guess the this you leverage it forward, you levels? mean, And you can like everything first your prepays $XX in $XX quarter $XX million fundings? given decline quarter-over-quarter, in in quarter and overall actually balance million guidance to you to say that going is million first investment the the of

Chris, Yeah, Sajal. this is

we're Listen, credit think by Let quality. a take I fundamentally driven cut. me

is funding then and activity pleased strength going quarter with. thing, or despite good period I during we, the with just So from strong of in a prepayment prepayment growth expecting of perspective, believe be having a a venture again, volatility a a one a we're and think this to say, the on we from I our And would the the world, volatility of lighter and the everything stage of strategy funding companies again, quality is demonstration work that. lending

revolver. again, term and look to of the why, would with I that's And balance and I think leverage, debt it's up business. we part cap the the our So say, down structure

cap from is when late I our we think So and when raising ability being ramp-ups structure our soon also quick benefit and not they're the prepays and disciplined they're build then approach. then too we thoughtful or have to how and too

Sajal. Thanks Great.

The Please go next ahead. Ryan question will with Lynch KBW. come from

and taking afternoon, thanks questions. good my Hey, for

is as a would and one of discussed earnings first operating as far had QX. follow-up What kind you interest The income in question.

where prepayment of Can level fourth So us that was you provide you $X income comparison prepayment income level that in you disclosed Can million, quarter, give had just total what the just some thus have of in was? so guys set perspective? guys you far we the some of QX.

Yeah.

So million QX, the in $X.X the accelerated income in was repayment aggregate. in range

bargain far? QX to in that's guys thus compared million And you Okay. the had $X

Yeah. That's Right. Apples-to-apples. right.

the couple then other I And have. Perfect. of questions

BDC what And and should other fluctuate of ballpark commitment platform? going to look million than it your way way just there like flowing quarter. in with is see guys broader understand, again originations expect again, I sort like capital $XXX a it capital commitments And platform, of I how leverage quarter-to-quarter something of across the Director at at we BDC that's much and depend on the you those when But how expect I What levels your commitment across expect? the The I to from But a a the see your would number just But BDC? available would any probably there should did what availability. one I standpoint liquidity their for on much PPC have those allocated on me $XXX goes know on to things. is be TPVG? quarter-to-date; I of was first million

answer. me let Ryan, Yeah.

impact say, of and think growth the hold the speaking, it's focuses should what in and a and sizes it's venture state does which diversification. on, is participate TPVG is all in growth again, portfolio because stage strategy, venture I'd generally the I transactions, the those TPVG So

to depending was million it's we on it. would if – get that how million, obviously, hold So think that's is, I million it have lumpy its the on -- and But don't $XXX let's $XX again, and $XXX $XXX don't would up and transaction. TPVG right, I insight size million say,

that fact see be least be the in we TPVG more million – the range, that of to normal scenario would if get to million. would its to scenario And bigger these hold only size big and would you a up would where they're lumpy million that of $XX deals, extent virtue $XXX $XX then deals, were amount these it the percentage are the but that that the see so would by in

XX% that under but be TPVG you of commitments, would would like in want answer I pool you or say the general, this, and mean, I was, you TPVG don't would getting to say fine, XX% that? know diversified – majority, but over get

say, to they again, our vehicles, hard of co-invest growth-stage It's together. all

doesn't They the together. get other. one go priority over So

So things transaction a – function portfolio, as size, on again, hold size, exposure, said, like it's you industry allocation based, that. it's

backlog hard think, quantify kind again, that from year, year already transactions, that So now into individual And business or without million to last the but new last we've another – didn't great doesn’t close the what that's news yet is close $XXX I closing include got underlying looking year. origination. months year the at two of – that of didn’t this

did then last got Yeah. just take? change number had your X.X to recently? to then your target? is And you I a one I did say target one, different correct? leverage Because guys you. leverage times that that is one, to X That's that I times debt And equity. guess,

want Chris, take you one? do to that

spoken Yeah, it's went to profile of and X.X to would expect that X.X consistently to within it into the that prepayments X.X, come time time from been if occurring times. we we given we've consistently the our X down portfolio back times to leverage,

now. a that's So consistent while been quite for

me. I Thank and this for you. time appreciate the nice afternoon all That's Okay. quarter.

session. our Jim concludes go over question-and-answer like This to I any back Please conference Mr. closing ahead. to would remarks. Labe turn for the

Thank you, operator.

forward you next look to well. again. like the I'd news in care. always, also with quarter again as As And call. Take to for thank good with some Thanks participating everyone we'd talking

concluded. Thank for now presentation. has attending you conference today’s The

may You disconnect. now