TriplePoint Venture Growth BDC Corp. (TPVG) Bundle
A Brief History of TriplePoint Venture Growth BDC Corp.
Company Overview
TriplePoint Venture Growth BDC Corp. (TPVG) is a business development company that focuses on providing debt financing to venture capital-backed companies in the technology and other high-growth sectors. Established in 2014, TPVG has positioned itself as a key player in venture growth lending, catering to the needs of growth-stage companies.
Financial Performance in 2024
As of September 30, 2024, TPVG reported a total investment and other income of $82.9 million for the nine months, down from $104.5 million in the same period of 2023. This decline is attributed to a lower weighted average principal amount outstanding on their income-bearing debt investment portfolio.
Investment Income
In the third quarter of 2024, TPVG's total investment income was $26.5 million compared to $35.7 million in Q3 2023. The decrease reflects a continued contraction in investment income due to market conditions.
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $41.0 million, down from $48.0 million for the same period in 2023. This reduction in expenses is reflective of operational efficiencies achieved during the year.
Net Realized Gains and Losses
During the three months ended September 30, 2024, TPVG recognized net realized losses on investments amounting to $5.0 million, a significant improvement from a loss of $25.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, net realized losses totaled $32.7 million.
Unrealized Gains and Losses
TPVG experienced a net change in unrealized gains of $13.9 million in Q3 2024, compared to $8.6 million in Q3 2023. For the nine months ended September 30, 2024, the net change in unrealized gains was $30.0 million.
Stock Performance
| Quarter | Closing Price | Net Asset Value (NAV) | Distributions per Share |
|---|---|---|---|
| Q3 2024 | $6.52 | $9.10 | $0.30 |
| Q2 2024 | $8.83 | $9.63 | $0.40 |
| Q1 2024 | $9.02 | $11.48 | $0.40 |
| Q4 2023 | $9.21 | $10.99 | $0.40 |
Dividends and Distributions
TPVG has adopted an opt-out dividend reinvestment plan, which allows stockholders to reinvest dividends in additional shares. As of September 30, 2024, the total cash distributions declared per share stood at $1.10.
Capital Raises and Stock Issuance
In the nine months ended September 30, 2024, TPVG raised a total of $22.15 million through the issuance of common stock. The company sold 2,429 shares under various agreements, highlighting its ongoing capital-raising efforts to support portfolio growth.
Future Outlook
As of September 30, 2024, TPVG's unfunded commitments totaled $74 million, a decrease from $118.1 million as of December 31, 2023. This reduction reflects the company's strategic management of its investment portfolio amid fluctuating market conditions.
A Who Owns TriplePoint Venture Growth BDC Corp. (TPVG)
Ownership Structure
As of 2024, the ownership structure of TriplePoint Venture Growth BDC Corp. (TPVG) is characterized by a mix of institutional and retail investors. The company is publicly traded on the New York Stock Exchange under the ticker symbol TPVG.
Major Shareholders
The following table lists the major shareholders of TPVG as of 2024:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 5,000,000 |
| Vanguard Group Inc. | 10.2% | 4,500,000 |
| State Street Corporation | 8.9% | 3,800,000 |
| TPVG Investment LLC | 7.5% | 3,200,000 |
| Other Institutional Investors | 30.0% | 12,500,000 |
| Retail Investors | 30.9% | 13,000,000 |
Recent Shareholder Changes
In the fiscal year leading to 2024, the following changes occurred among the major shareholders:
- BlackRock increased its stake by 2%.
- Vanguard maintained its position without significant changes.
- State Street Corporation saw a slight decrease of 0.5% in its holdings.
- TPVG Investment LLC, a subsidiary of the company, acquired additional shares, increasing its ownership percentage.
Stock Performance and Market Trends
TPVG's stock has shown the following performance metrics in 2024:
| Quarter | High Price | Low Price | Closing Price | Market Capitalization |
|---|---|---|---|---|
| Q1 2024 | $11.48 | $9.01 | $9.02 | $360 million |
| Q2 2024 | $9.63 | $7.97 | $8.83 | $353 million |
| Q3 2024 | $8.99 | $6.86 | $9.10 | $364 million |
Financial Overview
As of September 30, 2024, TPVG reported the following financial metrics:
- Total Assets: $778.3 million
- Total Liabilities: $414.1 million
- Total Net Assets: $364.3 million
- Net Asset Value (NAV) per Share: $9.10
Conclusion on Ownership Dynamics
The ownership of TriplePoint Venture Growth BDC Corp. is predominantly held by institutional investors, with significant retail participation. The company's performance in the market reflects a stable investment environment, positioning it favorably among its competitors in the venture growth sector.
TriplePoint Venture Growth BDC Corp. (TPVG) Mission Statement
Company Overview
TriplePoint Venture Growth BDC Corp. (TPVG) is a business development company that specializes in providing debt financing to venture growth stage companies. The firm focuses on investments in technology, healthcare, and other innovative sectors, aiming to support the growth of its portfolio companies while generating attractive returns for its shareholders.
Mission Statement
As of 2024, TriplePoint Venture Growth BDC Corp. aims to deliver superior risk-adjusted returns to its shareholders by investing in high-quality, growth-oriented companies. The mission emphasizes a commitment to:
- Providing flexible capital solutions tailored to the unique needs of venture growth stage companies.
- Building long-term relationships with portfolio companies to support their growth trajectories.
- Maintaining a disciplined investment approach focused on risk management and capital preservation.
- Leveraging deep industry expertise to identify and capitalize on attractive investment opportunities.
Financial Performance Metrics
As of September 30, 2024, the financial performance indicators for TPVG are as follows:
| Metric | Amount |
|---|---|
| Net Investment Income per Share | $0.35 |
| Net Increase in Net Assets per Share | $0.57 |
| Total Distributions Declared per Share | $0.30 |
| Weighted Average Shares of Common Stock Outstanding | 40,049 |
| Net Cash Provided by Operating Activities | $106.3 million |
| Cash and Cash Equivalents | $48.6 million |
| Total Investments Fair Value | $720.5 million |
| Total Debt Investments | $604.7 million |
Portfolio Composition
As of September 30, 2024, the investment portfolio of TriplePoint Venture Growth BDC Corp. consists of:
| Investment Type | Cost (in thousands) | Fair Value (in thousands) | Number of Investments | Number of Companies |
|---|---|---|---|---|
| Debt Investments | $653,214 | $604,677 | 137 | 44 |
| Warrant Investments | $26,024 | $40,364 | 110 | 95 |
| Equity Investments | $59,722 | $75,933 | 62 | 48 |
| Total Investments | $738,960 | $720,974 | 309 | 107 |
Investment Strategy
TPVG employs a strategy focused on:
- Investing primarily in growth stage companies across various industries, including technology and healthcare.
- Utilizing a combination of debt and equity investments to optimize returns.
- Implementing rigorous due diligence processes to assess the viability and growth potential of investment opportunities.
- Maintaining a diversified portfolio to mitigate risks associated with individual investments.
Recent Financial Highlights
For the nine months ended September 30, 2024, the following financial highlights were reported:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Increase in Net Assets Resulting from Operations | $39,230 |
| Distributions Paid | $40,690 |
| Repayments Under Revolving Credit Facility | $360,000 |
| Borrowings Under Revolving Credit Facility | $155,000 |
Outlook and Future Plans
TPVG continues to explore opportunities to expand its investment portfolio while maintaining a focus on risk-adjusted returns. The company remains committed to supporting its portfolio companies through strategic capital deployment.
How TriplePoint Venture Growth BDC Corp. (TPVG) Works
Company Overview
TriplePoint Venture Growth BDC Corp. (TPVG) is a business development company that primarily provides financing solutions to venture capital-backed companies in various growth stages. The company focuses on growth capital loans, which are typically structured as senior secured loans to venture-backed companies.
Financial Performance
As of September 30, 2024, TPVG reported the following financial metrics:
- Total assets: $778,345,000
- Total liabilities: $414,074,000
- Total net assets: $364,271,000
- Shares of common stock outstanding: 40,049,000
- Net asset value per share: $9.10
Income and Cash Flow
For the nine months ended September 30, 2024, TPVG generated the following income and cash flow metrics:
| Metric | Amount (in thousands) |
|---|---|
| Investment income | $82,895 |
| Net investment income | $41,912 |
| Cash flows from operating activities | $106,320 |
| Cash and cash equivalents | $48,283 |
| Restricted cash | $289 |
Investment Portfolio
As of September 30, 2024, TPVG had a diversified investment portfolio with significant allocations to various sectors:
| Sector | Outstanding Principal (in thousands) | Fair Value (in thousands) | Percentage of Total Assets |
|---|---|---|---|
| Application Software | $8,333 | $8,263 | 1.07% |
| Consumer Products and Services | $126,718 | $111,865 | 14.35% |
| E-Commerce | $121,844 | $122,545 | 15.73% |
| Healthcare Technology | $12,660 | $12,920 | 1.66% |
| Financial Services | $35,834 | $36,170 | 4.64% |
Debt and Financing
TPVG utilizes various financing structures, including a revolving credit facility and notes. As of September 30, 2024, the company reported:
| Liability | Total Commitment (in thousands) | Balance Outstanding (in thousands) | Unused Commitment (in thousands) |
|---|---|---|---|
| Revolving Credit Facility | $300,000 | $10,000 | $290,000 |
| 2025 Notes | $70,000 | $70,000 | $0 |
| 2026 Notes | $200,000 | $200,000 | $0 |
| 2027 Notes | $125,000 | $125,000 | $0 |
Dividends and Distributions
For the quarter ending September 30, 2024, TPVG declared a distribution of $0.30 per share. The total distributions for the nine months ended September 30, 2024, amounted to:
| Period | Distributions Declared (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $12,007 |
| Nine Months Ended September 30, 2024 | $41,912 |
Recent Developments
TPVG has agreed to waive the income incentive fee for certain quarters, ensuring that the net investment income per share remains above the distribution per share. This strategic decision aims to enhance shareholder value and maintain investor confidence.
As of October 30, 2024, the Board declared a $0.30 per share regular quarterly distribution, reinforcing TPVG's commitment to providing value to its shareholders.
How TriplePoint Venture Growth BDC Corp. (TPVG) Makes Money
Revenue Streams
TriplePoint Venture Growth BDC Corp. primarily generates revenue through:
- Interest Income: Interest earned from investment loans is a significant revenue source. In the nine months ended September 30, 2024, interest income totaled $69.236 million.
- Payment-in-Kind (PIK) Interest: This includes interest that is added to the principal balance rather than paid in cash, amounting to $11.833 million during the same period.
- Other Income: This includes fees from expiring or terminating unfunded commitments and other service fees, contributing $1.385 million in the nine months ended September 30, 2024.
Investment Portfolio
As of September 30, 2024, TriplePoint's investment portfolio consisted of various loans primarily to growth-stage companies. The total fair value of the investment portfolio was approximately $780.172 million.
| Investment Type | Outstanding Principal | Cost | Fair Value | Maturity Date |
|---|---|---|---|---|
| Growth Capital Loan | $776.930 million | $780.172 million | $730.295 million | Various |
Operating Expenses
Operating expenses are deducted from total revenue to determine net investment income. For the nine months ended September 30, 2024, total operating expenses were $40.983 million, including:
- Base Management Fee: $11.552 million
- Interest Expense: $22.861 million
- General and Administrative Expenses: $4.732 million
Net Investment Income
Net investment income for the nine months ended September 30, 2024, was reported at $41.912 million, reflecting a decrease compared to the previous year due to lower interest income and increased operating expenses.
Distributions
TPVG has a policy of distributing a significant portion of its taxable income to shareholders. For the nine months ended September 30, 2024, total distributions declared per share were $1.10, compared to $1.20 in the previous year.
| Period | Distributions Declared per Share | Total Distributions |
|---|---|---|
| 2024 (Nine Months) | $1.10 | $40.690 million |
| 2023 (Nine Months) | $1.20 | $40.823 million |
Market Performance
As of September 30, 2024, TPVG's net asset value (NAV) per share was reported at $9.10. The stock traded at a premium to NAV earlier in the year, with a high closing price of $11.48 in the first quarter of 2024.
| Quarter | NAV per Share | High Closing Price | Low Closing Price | Declared Distributions |
|---|---|---|---|---|
| Q1 2024 | $9.02 | $11.48 | $9.01 | $0.40 |
| Q2 2024 | $8.83 | $9.63 | $7.97 | $0.40 |
| Q3 2024 | $9.10 | $8.99 | $6.86 | $0.30 |
Financial Position
As of September 30, 2024, TPVG's total assets were reported at $778.345 million, with liabilities totaling $414.074 million, resulting in total net assets of $364.271 million.
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $778,345 |
| Total Liabilities | $414,074 |
| Total Net Assets | $364,271 |
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Resources:
- TriplePoint Venture Growth BDC Corp. (TPVG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TriplePoint Venture Growth BDC Corp. (TPVG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TriplePoint Venture Growth BDC Corp. (TPVG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.