TriplePoint Venture Growth BDC (TPVG) 1 Mar 232022 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen. Welcome to the TriplePoint Venture Growth BDC Corp. Fourth Quarter 2022 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. being available a on in Venture website. is call of the call Growth be will the conference record replay and the TriplePoint This audio webcast

Officer. results to year Sajal fiscal XXXX. Srivastava, the Investment Executive Today, is Chief you Company Officer and company of share Officer; the President Mathieu, Labe, is fourth quarter and pleased the management Chief and Board; company's Jim for representing and the full of Financial with Chris Chief Chairman

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

the Securities cause for recent to company You most forward-looking filings any company's does asked to not results unless actual factors the with these important update projections by materially undertake required differ refer statements. are statements any to from law. The Commission Exchange that to obligation and or could

to website during at cautioned To www.tpvg.com. management's company's place on are statements of reliance our made copies obtain not Investors only as forward-looking please filings, the the visit any reflect which today. call, undue opinions of latest SEC

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

you for thank TPVG's and call. everyone, afternoon, quarter Good joining fourth earnings

and both while the income record to approach market grew given key investment During portfolio our and XXXX, over-earned selective we generated levels, volatility. achieved continuing distribution. NII to our objectives take several record We record

yield, leverage the our portfolio, the core growing diversifying consecutive expanded over past further included now has our maintaining ratio quarters. target which and seven accomplishments Other portfolio

our capital equity leverage year, lines strengthen well to our increased accretive overall the we also sheet. as balance as raised extended and credit During

of strong. per of our Turning investment We distribution. earnings pleased an $X.XX to that and approved exceeded consecutive distribution. in share. quarterly our remains $X.XX has business the in second quarterly of power income represents increase generated the our This Board $X.XX The some Directors per highlights. net We're the announce increase X% to distribution fourth share to quarter

has by quarters. on two distribution spillover sizable Since the in now $XX.XX public time, including ago, distributions a declared over we've exceeded nine income. with XX% declared share years the special cumulative have Our recent increased in maintain we past most four our December almost going per special distributions and distribution Over XXXX. also this basis distributions,

venture company QX, in steadily. billion, XXXX. XXXX $X.XX the the policy Turning in the quarterly have investment in an deals activity. since capital of activity for second XXX quarter dropped estimated Tightening a market. to downturn valuations total Quarter-over-quarter closed public According lowest deal to continued off and impact monetary value multiples the to and venture PitchBook, of

investments companies, companies, to with all when new many and year spend growth have existing to plans continue at Venture of of costs. and growth prior encouraging their capital are costs, rates. be For it burn comes at with cash revise continuing investors selective time moderate especially monthly plans investments, conserving to cash portfolio all to shifted

are and reduced growth coming. and small runway grounds convertibles, environment, to past inside plans today's cash In investor-led profitability

a Given raising in aggressive valuations and environment companies, for this from revenue capital challenge. the some a often reduced past outlook, is

down resets rounds. This period of and is potential a valuation

scenario, be anticipate realms all face we there more companies the this future. not will down in While will

bank as to the a companies having capital servicing our as pricing itself. key, indifferent is the As we're round in lender, equity in debt

XXXX, been the bright one fundraising. to venture first While in we expect has in market these the trends capital of continue venture spot half

for the capital XXXX, and Although this venture strong exceptionally lending was down, investing well fundraising the pace bodes in business. was venture

XXX billion, across amount in is than pool closed raised. $XXX PitchBook, annual funds couldn't dry be more now for a There of be setting to record estimated for access. $XXX capital an stronger which sidelines of a continues powder to XXXX, companies, there billion capital sitting to record According the quality and on

recent and of some a already on conversations powder. Based had belief I've in of and dry large up especially half investment pick our funds, XXXX, given of second select will widespread several signs this early with are there amount this that momentum the year into

general still companies, volatility These waiting market focusing wait somewhat tell investors us times there. they're game Although out existing is there ahead. sentiment out but a on of to better forecast

investments In to simply our still It's appetite taking and we in and longer of we're portfolio, to little finding little said, pockets starting are witnessing finding increase pop getting done. pace. starting slower a up that a that are new investing. With technology deals

the about investment to portfolio. continues to long-term. Turning the It be

While three, we one, years about can't down tech has cycle, five ignore the the investing been always present out, long-term.

that companies reached quarter billion, capital market credits which in quarter's end, $X.X raised it current record raised nearly full XX At notable came Despite almost XX% for investment alone. representing year, than are of increase to companies, a that of our volatility, last last the more our billion million active $X portfolio $XXX year. was the portfolio

outstanding portfolio investments also those where a warrants have is of even we across debt equity when companies and to no addition there our we In debt. spans have companies where outstanding, active number diverse

portfolio. more in, comment in years XXX in the equity we and Sajal about have more fact, investments companies. than portfolio warrant will Collectively,

number environment, and potentially companies to portfolio headed the recession, Despite into broader a continue economy grow. concerns, a the macroeconomic of TPVG inflationary

Earnin, such Sports companies as to media as space such next-generation it many Orbital, as cybersecurity in Metropolis in the diverse as sports Hover, on a of the sectors and Some Loft are for XXXX, funded class in achieving robotics, as profitability companies includes we such companies experiencing few. are in We're particular, such others, Overtime Core and vertical tailwinds such the investments software we and days. Lite, such these as and Synapse name Fintech of optimistic outlook digital

market of opportunistic plans growth-stage pipeline venture financing for growing and in some pipeline, lending companies we Turning further to acquisitions. their see utilize as debt encompass timetable, out our financing or their continue a to plan and demand this into capitalization

with our to scale, plans two well continue whose have companies perform the this raised recently economic revenue environment one that years capital, in long-standing should volatile and we currently to times. in Consistent focus have next approach, significant challenging and on

prospects. its we continue in will attractive that in establish of have our companies, and by investing compelling backed TPVG approach select capital companies generally investors venture believe long-term growth-stage

operating and team to along Sajal further create draw long-term with company TriplePoint's have for the market diverse we're XX than record and best value. together to position more shareholder worked our track years now I through environment, of cycle-tested to experience poised on

Based some if on the and dynamic we experience the you managing and have for can be through our times cycles, advantageous experience capitalizing know-how productive venture most markets of multiple on lending learned the that opportunities. have

lay these may long-term. The that positive seas through yields business calmer over and inevitably the today's key is market navigate the to to We have a the future choppy how ones ahead. believe knowing effect on venture-lending

but through business in the however, to written We've capture best time continue historically the debt now to up multiple that the in for investment these this in transactions of through also and pipeline. cycles some learned growth, cycles, business is to we've We've the together, working not been sake opportunities downturns. of run quality the been have the

behind footnote year's which is former us and Medly, a portfolio provide short I'd on last with event. like now to company,

challenges deal venture not with and if part all a when. lenders it's downturns, the question of to While market business hardwired credit a as and but

never which very venture-lending should we've and characterized business. was that experienced before of this years the XX by sudden be extenuating extraordinary being It noted circumstances, unpredictable in my development in

filings, bankruptcy the financial commitments accounting original employees, loss inception the Medly of X% improper we of was almost stock rate so year, write-off our founders. the of in this lower, value XX financing and and X% include conducted by activities fundings, unsold if ago, currently under year. TPV's above or by hold. years publicly the the slightly cumulative basis loss net Including and the you points and including of of remains since last held per anticipated the stated As certain precipitated discovery And cumulative former nine operational, full of irregularities

is be works outlier, loss as only, really of fundings. Further, Medly to net a remove to X.X% cumulative rate were illustrative around exercise if an more out one the

unforeseen path nine-year now an net our building well investment and income forward over-earning upon shareholders. record TPVG's as generating to as continuing unfortunate and track almost and is cumulatively yield, dividend, attractive development, our While portfolio our of returns providing attractive

portfolio, generated record To wrap the up, to $X NII. we power the and portfolio billion of earnings nearly demonstrated our grew

manner, demand venture regular our again and remains focus continue provide As continuing are for achieve highly further to capital beyond. to market and to seek about, believe in quarterly a the distribution NII today's speaking we and expect activity over later And We're mindful continued to current mentioned, our volatility once I've with yield year of this as solutions invest we return our pleased on reduced investment to have selective positioned growth. been we time. increasing portfolio an and increased shareholders well venture-lending

call turn I'm the going over to Sajal. that, to With

and Jim, you, Thank good afternoon.

our term made value. portfolio all us our sustainable portfolio increasing increasing believe to the XXXX, that for critical well we position During growing we progress portfolio, our and and long in shareholder diversification, yield elements funding create

progress we through continuing XXXX, while we these year, disciplined. to pursue the be and to the As of throughout goals continue course will focused

XXXX. XXXX, our and as review as will year key QX highlight for I background, that with So performance in expectations well full

activity our XX closed million highest to we opportunities. Regarding Capital $XXX sheets investment discipline TPVG. term stage QX, QX, with and closed sheets quality continued debt and during as TriplePoint commitments of companies of reflected at portfolio only we growth million $XXX seek term Signed signed select during companies, the commitments venture to

we were portfolio to companies companies new capital the the during and were other companies. portfolio quarter, XX the half Of debt half existing committed

We of also portfolio in XX equity and received $XXX,XXX investments direct in at $X.X companies two made companies. million warrants valued

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

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

we see Given half as originations our expect year the activity course year. the of current particular, market the second in to to of XXXX look a we and increase whole, the conditions, over as in

for a During QX. debt from range lower we of yield XX in our companies, origination, portfolio million $XX XX.X% guided of the annualized funded investments to QX which at in at landed weighted These XX.X% quarter, the carried XXXX. portfolio average debt end investments up fourth

origination. investments year, with During funded debt at of a the $XXX companies XX we average XX.X% portfolio record full weighted million of yield to a

During in an portfolio yield million in $XX average had XX.X%. QX, of repayments, weighted overall we loan resulting

up quarterly increase. was consecutive seventh represented XX.X%, prepayments, XX.X% portfolio Excluding core QX our from and yield in

announced on to not out XXth, more fully I would the in portfolio starting basis which point increase will like December yield does portfolio also QX. our QX point impact reflect XX meaningfully that

for in we to a As to portfolio result, are portfolio the rate stay yield optimistic XXXX, given of increased strong environment. continue and another yield for quarter

we XXXX, yield million loan year. overall resulting $XXX of had In portfolio in prepayment, the for XX.X% average of weighted an

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

our in in and for of sake. for range quarter $XXX quality QX gross to for $XXX portfolio market $XXX be but including terms year between We expectations $XX for not million capital, creates for $XXX to QX, the we volatility likely $XXX million will of fundings believe growth's compromise current full the additional with and QX each on growth million In debt, likely range. our million for the investment in range is portfolio million million XXXX, forecast each and and demand venture our the that focus QX to

XXXX. are we origination, cash runway their draw have particular, expect scale on concentrating lines more will revenue even growth. they In recently likely that more will capital time on or hand in equity early XXXX at have raised of and on Since existing companies later such companies with we

a Turning appreciate be part the being returned we and accelerated capital is generated. income to that loan prepayments. business They of continue as our the as well to

We continue to expect one quarter. prepayments to per two customer

number in as also the of XX, obligors by year to TPVG diversifying portfolio continued the to increasing We progress XX one funded compared ago. made

total our to of year XX% represent investments XX%, as obligors compared ago. XX debt top our addition, In one

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

XX the brings XXXX. During XX the $X.X eight on top over companies in of portfolio billion quarter, companies over portfolio capital. This raising companies of during raising XXXX $X.X $XXX to raised billion million capital total over of

compared portfolio to warrant XXX warrant of as with and of as as QX as equity well investments equity investments Our ago. year XXXX, and grew XXX one

XXXX, from with cost and companies monetization with fair in XX of time December over as QX QX companies ultimately and from these held the instruments $XX excited investments up XX, nevertheless XXX our high-yielding warrants companies, they when of value do be a As we in up held as XX continue of of $XX million, respectively. debt companies, of XX equity associated total We XXXX million for and exit. investments to

during our shares traded sold fact, we generating quarter, in $X.X In of realized million publicly the Forgerock, gains.

investments addition, warrant and to many leaders industry like Monzo, believe FlashParking, our equity this and EarnIn, market in in gains realized in and hold which In substantial economic Upgrade, well perform promising of continue we companies, generate others, several will Cohesity, we private current Marama FinancialForce, adjusted marks. environment, Revolut, including and excess grow

cumulative the equity of gains long-term. realized generate warrant our our to expect losses we over in investments importantly, realized excess More cumulative

or our two above scores, of credit best to means credit they at quality. expectations. are that on Moving Approximately XX% performing portfolio which ranked is our in

IQ, from processes. due million of balance category downgraded Both principal two principal balance was prepayment. insurtech an with VanMoof, million of to removed one e-bike an $XX the company, company million due their of category downgraded OneSource Health balance During were in three. one were and from with principal a company $X.X strategic with to a to financing Virtual, quarter, category developments $XX

with realized credit during earnings As call in to the watch Health discussed, removed its and XX, December, filing December and we an Medly list. QX in X-K loss filing on with further downgraded our bankruptcy it disclosed red, initially from from conjunction the yellow

companies sizable investors. continued resulting Turning of outlook. and VC that a our stable, for the extended portfolio their We of whole cash the of as is select fundraising the position operating many our support to and our believe our continued runway, credit given outlook efforts portfolio

be With and that will venture stress. said, capital for companies experiencing for in a volatile market obligors investing there public technology

provide is in investors through possible proactive as identifying their as to and as on best as we approach alongside them have Our done to we our assistance as these companies early challenging list times. can, be manage watch

were [ph] examples payoffs tremendous in of on companies had list of Instruments, loans are our historically that Virtual watch stress through Imperfect Foods,, teams resulting managing in and Hired where Xeris our our success full. in situations,

we and generating at remain capital focus with business, playbook needs for our with aspects all on further we'll meeting and returns to closing, In follow raise-stage a venture nurturing our strong long-term focused on partners. continue our shareholders, strong of relationships companies metro the select

Chris. now the call I'll turn over that, With to

Sajal, you, everybody. Thank hello, Great. and

loan our the our long-term of in once leverage portfolio rates included rate interest we and utilization During to debt target levels. again We core increased diversify saw deployed the sources capital while experienced fourth the attractive notes quarter, and portfolio. We continued on revolving stable facility, using leverage, to ratio the growth our investment-grade fixed commitments. income credit from portfolio which overall on continuing

for levels total year-over-year. income The and and investment NII total investment portfolio quarter both XX% reached the year. increased increased XX% Total XX% increased XX% -- year-over-year. Of note, investment year-over-year. income both record the NII for

rate And diversified we from structure of a XXXX quarter the capital dividend the with by liquidity a size, dividends per Quarterly ample ready. year XX% a entered increased share to last portfolio from record X% and $X.XX at and ago.

me the Let for on quarter and share an a update year bit the of fourth for drill XXXX. and financial the full down results

quarter, period. fourth the compared income total total million portfolio year yield with as $XX.X the investment for a million, XX.X% of debt was prior and investments XX.X% to For $XX.X on

year income as balance, prior prior well reported as of the average for average XX.X% XX.X% $XXX.X yield reflects compared for Total portfolio million full the investment period. a investment a on as for the year debt weighted and totaling higher the full Total full million $XX.X year. for reached income We year, to increased the portfolio. a investment record, an yield

debt XXXX in XXXX. those to times in to first in increases that indexed X the increase to of a quarter increased with of fourth two X.X%, rate and rate rate. are our X.XX% Recall further Prime the quarter investments prime floating

So prime rate each does so investments. interest increases, the of when on rate those

we pleased revenue increased existing year-over-year, and in expect within further portfolio be We're portfolio yields the our to continue to prime In yields expansion revenue that XXXX. loan rate recognize on during onboarding in floating the from rate part expansion strong XXXX, experienced increased record and higher we to due XXXX.

a investment of of year record with at year-end, balance, ago. million the portfolio The year-end was compared reaching a XX% a prior the a quarter, as period. $XXX.X million also operating record level year $XX total fourth value for portfolio Total income result increase fair the of representing expenses $XX were from for million to

of million $X.X of and the $X.X return our fee structure, administrative the quarter of under the total million reduced and income the of interest fee fees incentive expenses. expense, $X.X during was Operating consisted XXXX million fourth general requirement $X.X income base Due expenses of incentive component of million fourth management to quarter. our for by

growth compared increase in operating period. full $XX as was million the component in assets year for overall under year and prior leverage incentive million during an the primarily for were XXXX. full expenses in total million $XX.X incentive were of management. Again, year Total $X.X the fees the to the expenses income our requirement of increase by return due by under driven to overall fee, The the operating reduced

or $XX.X the share, for year Net quarter Net or investment full for the $X.XX of share $X.XX per period. XXXX, prior the was for compared $X.XX per compared to income to or million million income prior or was for year investment the per $X.XX fourth $XX.X per year $XX.X $XX period. million share million share

realized in of investments ForgeRock. from XXX from $X.X the realized sale the Medly traded $XXX, net losses, other of million the quarter, losses by recognized partially primarily from recognized realized shares company of Health gains offset held disposition million the publicly of and of During on $XX fourth $XX million,

and $X.X of warrant previous foreign million, million on $XX gains in our adjustments. also recognized adjustments, previous $X.X investments Net unrealized unrealized fair was and debt portfolio unrealized market our currency on of losses on of portfolio net reversal as ForgeRock. net unrealized of equity of losses quarter consisting million change value from was reversals for on losses net and million from unrealized gains losses $X the

$XXX distribution The prior $XXX Of $XXX share as of company's was December. share asset value end. the of million $X.XX and to in total net by $XX.XX declared per net the or quarter year-end asset special paid -- $XX.XX or the note, as million quarter per fourth of value was compared in impacted per share

of regular quarterly stockholders Directors an Given our from of distribution of per XX. X% March compared declared earnings, $X.XX prior of ordinary on to as record year from income March the of paid of XX% Board a be and a the dividend increase to share, and is ago. The increase strength XX an quarter to

additional In addition quarter, dividend of in totaled year to $XX.X this retain regular or support we income at the spillover share to the and continue to overearning supplemental $X.XX end million which per the future. dividends the

of million total the $XXX certain commitments. our million ended portfolio dependent commitments, turn will amounts, of Now companies upon was Of let me this milestones. of investment to with year expire which We the XXXX. reaching these investment unfunded $XX $XXX million during

Now liquidity. just sheet, the a overall and update quick balance on leverage

form year, outstanding million term end As rate the investment-grade outstanding, of million on credit in revolving the debt $XXX an was and $XXX of our million of notes of facility. $XXX the of fixed aggregate

and line partnership. us are scheduled period to facility. all with expense our facility when to November prepayments maturity May the allows of syndicate and under by efficiently lenders debt In XXXX interest amendment our $XXX XXXX, reducing the million outstanding our extended of date long-term the commitments to XXXX. we revolving manage amended The This this continued occur. Total successfully credit

with a the year X.XX leverage ended times ratio. We

hand on ratio leverage cash times. Our was X.XX net of

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

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

Specifically, to million in flows the XXXX. flow scheduled to company back contractual of the we existing $XXX have more from cash than portfolio

to the We grow expect credit to with the when draw accretive leverage. funds needed under portfolio facility

shares may over we the an in been look stock issued to issuance as have shares today, program. Additionally, of No the but issue coming announced we November, launch ATM of year.

We'd our today. concludes you from to prepared happy This remarks take be this questions at time.

So the could open you line? please operator,

you. of Yes, Thank course.

Sandler. now session. will from begin question-and-answer The Crispin Piper Instructions] with [Operator this first the We comes Please go Love evening ahead. question

Thanks. Good everyone. morning,

curious portfolio just on I'm liquidity. First, your companies

in what environment? So, the norms, of cite have in of on you hand with XX-month coupled compares terms burn to companies how companies are volatility liquidity? your and on And able how limiting cash historical to common are portfolios of company's percent stock liquidity that focused some are given markets, given your runway just

have actively more more for little Good and is monitoring But and way. Crispin, it's cash than good about our question, months. yeah, six the XX something Yeah. -- months TPVG, think morning, of I said, of follow companies basis. And over XX% afternoon, good that runway – you so sure XX% than than XX% a by it we and more a on

I And doesn't capital liquidity include the that have our from from us. say commitments from would they perspective,

equity that's capital. hand with their have cash on So they that

So drive getting would that, cash up. unfunded speaking, burn I seeing lower. rates and percentages generally and And we're those from our numbers lower say commitments then

the be year we of course well. runway of the expect over majority the So portfolio companies extended for the as to

question leverage a end Sajal, is currently you, the your then is, remarks, of there. Chris, next near helpful Great. which to but Okay. it and little alluded Thank your I X.XX targeted end range. your And at believe at you of the is very times, Jim bit high

me raise you leverage of lower? remind lead just to equity what your what can So might capital And those are? levels bring target ranges to first, types you levels

Yeah.

the X.XX about do number. gross million, have cash on the $XX million $XX We balance is of the sheet. So

I X.XX, is So in of as would the our which net level or range. describe kind true

are overnight. worrying the about X.X, without trigger within continue kind acceptable So those to ranges to and X.X, for pulling of all X.X operating

amount of year. pre-payment will of projected, the sight generate liquidity portfolio plus generated from significant this the the Chris I proceeds said, have a We that portfolio activity. we $XXX line million itself have think the of cash Given sort of

I you appreciate questions. Perfect. taking And my Thank you.

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

Hi. points looking Medly Good the compared the would is question. Health, change quarter-over-quarter you for provide a lower the taking and XX just afternoon, bit in increased than any insight to the impacted prime thank you yield basis can move which there? quarter, my have Coupon I Was guess, for rate. expected given September I by I'm

Yes.

Sajal So mentioned part, of late primary which one the one quarter. the is in happened changes

see we'll of some here impact full So the yes, so to benefit But was put non-accrual Medly that QX. there back X, in October on we from that as well.

Okay.

keep portfolio in of fixed mind, rate, then one-third And two-thirds the rate. is is floating

won't rates So again, you a point-for-point direct see as XXX% increase.

sense. one all were just loans they was dip off makes Medly are question think, Health. repaid end post end. just and two, That Health that clerical Sure. Medly then investments And schedule I quarter to small outstanding the noticed wanted that of quarter I on confirm scanning now. books investments at and I the

the repayment behind transaction, Yes, described, the financing. bargain the Jim those is we us, struck They The full for can off including last confirm week. paid as of DIP we that.

That’s it me. for Great. Okay. taking questions. my Thanks for

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

saying did Medly Back sort a hear failed you again. guys. to correctly Hey imploded of equity raise? the company I following Jim, that

healthy acquisition than dollars significant delivery much forward a number business a putting and more bit time, able and to I'm little with this that equity revenue there optionally elaborate that. did and accretive and portfolio an Medly, they digital legal Bank a scale, raise of ongoing was case But behind the were a with further at Valley lenders it's we also to actually this, not but in was it are including pharmacy exposure. us. There in caught and and moving up matters. Silicon

a discovered, and for then as there inside just to debt financing, filled us the additional things financing mentioned the had maybe finance to plan it filings and to that that talked of clarify, -- together impropriety when was existing Yes. that the Chris, financings as the that's investors were from a was imploded. some us And was but investors profitability activity so it that about of company, post Jim financing kind well bankruptcy put and had when

follow-up related a your that, equity, as that rounds? companies saying guess I of many are are I you're I down but raising in comments, portfolio mean doing know they And your to

mentioned rounds in the the bit. of protection do a round. we're have the payments down focused I there both. Yes, going our also the on mixture passing companies. be, rounds, and There's way, raising of debt doing there's number and They're But of as capital I and by for will companies down more a round but a kind that down But we more service. little in up on. yes, making anticipate mentioned, We sure,

just Chris, reset to the then the And gains Great. does to capital going cumulative a or is on reminder, it look back every IPO? year, back

no goes cumulative. the There's reset. to It's back It IPO.

Okay.

think. So for whole fee should thing the Medly incentive impact accruals quarters, I would at least a couple of

and as well. recovery QX, now, portfolio, -- unknown as to It the was in QX it's right be there'll but but we expect expected incentive impact no QX some for impact impact fully in Yes. there the fee overall impacted some some

Understood.

Thanks Okay. for taking questions. my

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

expected wanted for $XXX just But going funding of your scheduled million funding standpoint, from a given Hey, on year, to $XXX you to basically $XXX commentary on guys know the match repayment. Yes, good I at touch point, first in said I where million. expect aren't your repayments leverage afternoon. million the this to you year. you are your

guys going the level investments be something this that? prepayments you for be number probably And of at so gross just throughout or that you missing -- repayments that for $XXX I are funded really to get with am to looking scheduled million was going the year, above the

interesting an It's question, Ryan. Yeah.

is surprising -- So somewhat is seeing say commitments. unfunded I of would it's what generally we're overall lower utilization

capital, it's equity the And cutting to to this so portfolio think quality looking necessarily -- a raising fund their focusing into they're leverage burn, testament on companies and in that not again, dip focusing on them to the I of environment.

overall, So utilization. in say, unfunded I'd we've definitely a seen drop

right now equity And commented I I'd it's the think that are then a raised companies with generally were new on, as say, have transactions to balance, recently companies we that round. look as we origination, originating

So their significant appropriate valuations we're company or fresh are, multiples reset but where on is vis-à-vis seeing sitting valuations liquidity.

And as operate so they expecting so significant but to grow, at closing, utilization continue execute, more over we're not half utilization loaded. time back

here And activity continue and pick so said, pace at the and the course see current to be although that's of our we why, fundings the the we second originations up originations over as quarter first as up. see funding, growing second and light half. we pick then But will in

that half funding new then the you correct companies, just by And commitments companies already existing or those were brand half me Out fundings that I'm Okay. were guess, this Yeah, those you and drawn understood. quarter said businesses new, commitments or…? in down existing to unfunded those to that are of if of portfolio companies committed existing I were wrong, your are believe companies, I those are companies. were portfolio to those that

clarify just Yeah, to commitment. the

So half and of to portfolio the commitments new new half were companies. quarter, to the existing during made portfolio companies were

new utilization. that not commitments. was So was That

with one on. and there was Were could process situation. have any different backdrop you be future? then pretty me. Okay. that that I'm whole unusual the it scenario some done a sense. of some there like very that curious, the sounds the That in just Reading last learned for just stuff could -- one the guys Medly, going And went on from just understanding improprieties been on a makes was lessons unusual what done

saying and by of a had facts unusual that start very circumstances. set I'd

are off As were others, also exposed. I other all and guard lenders, SCB, caught there mentioned,

be any So, I just there'd different. don't think

is whole, let more take learning Well, as I Yes. as think a a holistically. situation every experience. lender Listen, me a credit it

can XX great from specific will the doing. from Jim LTV about and things absolutely learn there's to learning they're news Ryan, together, is hard analyzing have plans, would continue people again, you things so activities, -- it's why it. of I'd a when I to you ratios, business talk absolutely, say, years and learning And impropriety reason I ratios, but are that debt-to-equity that, So learn. -- but we'll of we and takeaways say

was in there to I on gun, look and But have very we're say would necessarily activities our smoking having to back say, that auditors and no identified I speak, lawyers credit internally and So, our with activities originations we as open-minded accountants would that techniques. so it. conversations would

of totally kind with Okay. time afternoon. nature all That’s the of getable this investment. I appreciate the from and unusual that me. Understood

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

Thanks.

As thank months like to to all and the look another again quarter, I'd in very our with you always, We for forward call in everyone participating two or today. in listening next so. talking

nice everyone, again, thanks a day. So, have and Goodbye.

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

disconnect. now may You