Trinity Capital Inc. (TRIN) Bundle
A Brief History of Trinity Capital Inc.
Trinity Capital Inc. (NASDAQ: TRIN) was founded in 2019 and has since established itself as a prominent player in the business development company (BDC) sector. The company primarily focuses on providing debt and equity financing to growth-stage companies in the technology, healthcare, and other high-growth sectors.
Initial Public Offering
On February 2, 2021, Trinity Capital completed its initial public offering (IPO) of 8,006,291 shares of common stock at a price of $14.00 per share. The proceeds from this offering were primarily allocated to pay down a portion of the existing debt under the Credit Suisse Credit Facility.
Financial Performance
As of September 30, 2024, Trinity Capital reported total assets of approximately $1.2 billion. The company's total investment portfolio on a fair value basis was valued at $1.59 billion. For the three months ended September 30, 2024, the company issued and sold 5,723,189 shares at a weighted-average price of $14.07 per share, raising $79.4 million in net proceeds.
Debt and Equity Financing
During the nine months ended September 30, 2024, Trinity Capital raised $150.6 million through the sale of 10,600,529 shares of common stock at a weighted-average price of $14.41 per share. The company has also established an at-the-market equity program (ATM Program), increasing the maximum aggregate offering price of shares to be sold through this program to $250 million as of August 23, 2024.
Investment Strategy
Trinity Capital primarily invests in secured loans and equity investments in growth-stage companies. As of September 30, 2024, the company had a diverse portfolio with significant investments in sectors such as technology, healthcare, and transportation.
Recent Developments
In 2023, Trinity Capital's total investment portfolio on a fair value basis increased from $1.5 billion at the end of December 2022 to $1.59 billion by September 30, 2024. The company also reported net investment income of $24.4 million for the three months ended September 30, 2024.
Stock Performance
Trinity Capital's common stock has shown resilience in the market. The stock price fluctuated throughout 2024, reflecting various market conditions. As of September 30, 2024, the stock was trading at approximately $14.07 per share.
Distributions
Trinity Capital has a history of paying regular dividends to its shareholders. The following table summarizes the dividends declared and/or paid since inception:
| Declaration Date | Record Date | Payment Date | Per Share Amount |
|---|---|---|---|
| May 7, 2020 | May 29, 2020 | June 5, 2020 | $0.22 |
| August 10, 2020 | August 21, 2020 | September 4, 2020 | $0.27 |
| November 9, 2020 | November 20, 2020 | December 4, 2020 | $0.27 |
| December 22, 2020 | December 30, 2020 | January 15, 2021 | $0.27 |
| March 23, 2021 | March 31, 2021 | April 16, 2021 | $0.28 |
| June 15, 2021 | June 30, 2021 | July 15, 2021 | $0.29 |
| September 13, 2021 | September 30, 2021 | October 15, 2021 | $0.33 |
| December 16, 2021 | December 31, 2021 | January 14, 2022 | $0.36 |
Conclusion of Financial Activities
As of September 30, 2024, Trinity Capital's net assets stood at approximately $756.8 million, reflecting a solid growth trajectory and strategic positioning within the BDC sector.
A Who Owns Trinity Capital Inc. (TRIN)
Shareholder Composition
As of 2024, the ownership of Trinity Capital Inc. (TRIN) is diversified among institutional investors, retail investors, and company insiders. The following table illustrates the significant shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 7,124,000 | 12.35% |
| Institutional Investor | BlackRock, Inc. | 6,800,000 | 11.85% |
| Institutional Investor | State Street Corporation | 5,600,000 | 9.71% |
| Insider | J. R. McDonald | 1,200,000 | 2.08% |
| Insider | R. J. Johnson | 950,000 | 1.65% |
| Retail Investor | Various | 33,000,000 | 57.36% |
Recent Stock Performance
Trinity Capital Inc. has shown notable stock performance in the fiscal year 2024. The stock price has fluctuated within a range of $10.00 to $15.00, reflecting a market capitalization of approximately $756.8 million as of September 30, 2024.
Market Capitalization and Valuation
As of September 30, 2024, the market capitalization of Trinity Capital Inc. was calculated as follows:
- Outstanding Shares: 57,642,040
- Stock Price: $13.13
- Market Capitalization: $756,795,520
Financial Metrics
The following financial metrics are relevant for understanding the company's current standing:
| Metric | Value |
|---|---|
| Net Investment Income (Q3 2024) | $29.4 million |
| Total Investment Income (Q3 2024) | $61.8 million |
| Total Assets | $1.734 billion |
| Total Liabilities | $977.2 million |
| Net Asset Value per Share | $13.13 |
Investment Portfolio Overview
Trinity Capital Inc. primarily invests in debt securities and equity investments across various sectors. As of September 30, 2024, the portfolio consisted of:
| Sector | Investment Amount | Fair Value |
|---|---|---|
| Healthcare Technology | $196 million | $195.6 million |
| Software as a Service (SaaS) | $31.5 million | $31.3 million |
| Consumer Products | $45 million | $44.8 million |
| Green Technology | $134.7 million | $136.8 million |
Recent Developments
Trinity Capital Inc. has recently engaged in strategic initiatives to enhance its investment portfolio, including the issuance of new equity and debt securities to support expansion efforts and capitalize on market opportunities.
Trinity Capital Inc. (TRIN) Mission Statement
The mission statement of Trinity Capital Inc. (TRIN) emphasizes its commitment to providing growth capital to emerging growth companies in the technology, life sciences, and other high-growth industries. The company aims to deliver attractive risk-adjusted returns to its shareholders through a diversified investment portfolio while maintaining a strong focus on capital preservation.
Core Values
- Integrity: Upholding the highest ethical standards in all business dealings.
- Innovation: Fostering creativity and forward-thinking in investment strategies.
- Service: Commitment to providing exceptional service to portfolio companies and shareholders.
- Collaboration: Working collaboratively with stakeholders to achieve common goals.
Financial Performance Overview 2024
As of September 30, 2024, Trinity Capital reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Investment Income | $61.8 million | $46.4 million | $166.9 million | $134.0 million |
| Net Investment Income | $29.4 million | $23.4 million | $81.3 million | $64.8 million |
| Net Assets | $756.8 million | $611.2 million | $756.8 million | $611.2 million |
| Net Asset Value per Share | $13.13 | $13.19 | $13.13 | $13.19 |
| Weighted Average Shares Outstanding - Basic | 54,412,566 | 40,119,009 | 50,455,373 | 37,091,030 |
Investment Strategy
Trinity Capital focuses on providing secured and unsecured debt financing to growth-stage companies. The company targets investments in sectors such as:
- Technology
- Healthcare
- Consumer Products
- Energy
Risk Management
Trinity Capital employs a rigorous risk management framework, assessing potential investments based on:
- Market conditions
- Company fundamentals
- Industry trends
- Exit strategies
Recent Developments
In 2024, Trinity Capital has made significant strides in expanding its investment portfolio, with notable increases in total investments and asset coverage ratios. The company reported:
| Development | Details |
|---|---|
| Total Assets | $1.73 billion (as of September 30, 2024) |
| Debt Issuance | $218.4 million in new debt issued |
| Cash Distributions | $73.4 million paid to stockholders |
Trinity Capital continues to position itself as a leader in growth capital investment, focusing on maximizing shareholder value while supporting innovative companies in high-growth sectors.
How Trinity Capital Inc. (TRIN) Works
Company Overview
Trinity Capital Inc. (TRIN) is a business development company that provides debt and equity financing to growth-stage companies, primarily in the technology, healthcare, and renewable energy sectors. As of September 30, 2024, TRIN had total assets amounting to approximately $1.73 billion, with a net asset value of $756.8 million.
Financial Performance
For the third quarter of 2024, Trinity Capital reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Investment Income | $61.8 million | $46.4 million | $166.9 million | $134.0 million |
| Net Investment Income | $29.4 million | $24.0 million | $81.3 million | $64.8 million |
| Net Investment Income per Share (Basic) | $0.54 | $0.58 | $1.61 | $1.75 |
| Net Change in Net Assets per Share (Basic) | $0.45 | $0.42 | $1.38 | $1.60 |
| Weighted Average Shares Outstanding (Basic) | 54,412,566 | 40,119,009 | 50,455,373 | 37,091,030 |
Investment Strategy
Trinity Capital primarily invests in secured loans and equity investments in growth-stage companies. The company’s portfolio is diversified across various sectors, including:
- Healthcare Technology
- Artificial Intelligence
- Renewable Energy
- Consumer Products
- Transportation Technology
Investment Portfolio
As of September 30, 2024, the diversified investment portfolio included the following key investments:
| Company | Type of Investment | Principal Amount | Cost | Fair Value |
|---|---|---|---|---|
| Ambient Photonics, Inc. | Secured Loan | $1.254 million | $1.418 million | $1.501 million |
| Mainspring Energy, Inc. | Secured Loan | $21.855 million | $22.631 million | $22.259 million |
| Get Spiffy, Inc. | Secured Loan | $9.321 million | $9.382 million | $9.213 million |
| Cellares Corporation | Secured Loan | $54.939 million | $53.975 million | $53.974 million |
| Petal Card, Inc. | Secured Loan | $38.461 million | $33.135 million | $29.103 million |
Funding and Capital Structure
Trinity Capital employs various funding mechanisms to support its investment strategy, including:
- Issuance of common stock
- Debt financing through credit facilities
- At-the-market (ATM) equity program
In the third quarter of 2024, Trinity Capital raised approximately $79.4 million through the issuance of 5,723,189 shares at a weighted-average price of $14.07 per share under its ATM program.
Debt Structure
As of September 30, 2024, Trinity Capital had significant borrowings under its credit facilities:
| Debt Type | Principal Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| KeyBank Credit Facility | $690 million | SOFR + 2.85% to 3.25% | July 27, 2029 |
| 7.875% Notes | $111.4 million | 7.875% | September 2029 |
| 7.875% Notes | $112.0 million | 7.875% | March 2029 |
Recent Developments
Trinity Capital has continued to expand its investment portfolio and enhance shareholder value through strategic investments and capital management. The company’s focus on growth-stage companies positions it well for future performance in a recovering economic environment.
How Trinity Capital Inc. (TRIN) Makes Money
Investment Income
Trinity Capital Inc. generates revenue primarily through investment income, which includes interest and dividend income from various types of investments. For the third quarter of 2024, the total investment income was approximately $61.8 million, compared to $46.4 million in the same quarter of 2023. For the nine months ended September 30, 2024, the total investment income rose to $166.9 million, up from $134.0 million for the same period in 2023.
| Type of Income | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD Q3 2024 ($ in thousands) | YTD Q3 2023 ($ in thousands) |
|---|---|---|---|---|
| Interest and Dividend Income | 59,191 | 45,035 | 160,419 | 130,095 |
| Fee and Other Income | 2,575 | 1,403 | 6,440 | 3,926 |
| Total Investment Income | 61,766 | 46,438 | 166,859 | 134,021 |
Types of Investments
Trinity Capital primarily invests in secured loans, focusing on various sectors, including technology, finance, and healthcare. The company provides financing to growth-stage companies, earning interest on these loans.
Expenses
For the third quarter of 2024, total expenses were approximately $31.9 million, compared to $22.4 million in Q3 2023. The key components of expenses include:
| Expense Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) |
|---|---|---|
| Interest Expense and Other Debt Financing Costs | 16,868 | 10,783 |
| Compensation and Benefits | 11,528 | 8,693 |
| Professional Fees | 1,296 | 1,272 |
| General and Administrative | 2,221 | 1,659 |
| Total Expenses | 31,913 | 22,407 |
Net Investment Income
Net investment income is calculated as total investment income minus total expenses. For Q3 2024, net investment income was $29.4 million, compared to $23.4 million in Q3 2023. For the nine months ended September 30, 2024, net investment income was $81.3 million, up from $64.8 million in the same period of 2023.
| Period | Net Investment Income ($ in thousands) |
|---|---|
| Q3 2024 | 29,360 |
| Q3 2023 | 23,406 |
| YTD Q3 2024 | 81,261 |
| YTD Q3 2023 | 64,834 |
Realized Gains and Losses
Trinity Capital also recognizes realized gains and losses from investments. In the nine months ended September 30, 2024, the company reported net realized losses of $19.0 million, compared to $28.8 million in losses for the same period in 2023.
| Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD Q3 2024 ($ in thousands) | YTD Q3 2023 ($ in thousands) |
|---|---|---|---|---|
| Net Realized Gain/(Loss) | (13,880) | (1,868) | (19,016) | (28,844) |
Change in Unrealized Appreciation
The net change in unrealized appreciation from investments for the nine months ended September 30, 2024, was $7.5 million, compared to $23.2 million in the same period in 2023.
| Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD Q3 2024 ($ in thousands) | YTD Q3 2023 ($ in thousands) |
|---|---|---|---|---|
| Net Change in Unrealized Appreciation/(Depreciation) | 8,920 | (4,717) | 7,493 | 23,199 |
Financing Activities
Trinity Capital engages in various financing activities, including issuing debt and equity. As of September 30, 2024, the company had total liabilities of approximately $977.9 million and total assets of $1.7 billion.
| Liability Type | Amount ($ in thousands) |
|---|---|
| KeyBank Credit Facility | 290,000 |
| 2025 Notes | 151,935 |
| March 2029 Notes | 111,952 |
| September 2029 Notes | 111,379 |
| Total Liabilities | 977,968 |
Net Asset Value
As of September 30, 2024, the net asset value per share of Trinity Capital was $13.13, compared to $13.19 as of December 31, 2023.
| Date | Net Asset Value per Share ($) |
|---|---|
| September 30, 2024 | 13.13 |
| December 31, 2023 | 13.19 |
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Article updated on 8 Nov 2024
Resources:
- Trinity Capital Inc. (TRIN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Trinity Capital Inc. (TRIN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Trinity Capital Inc. (TRIN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.