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Investor Presentation Q u a r t e r E n d e d S e p t e m b e r 3 0 , 2 02 4 N o v e m b e r 6 , 2 0 2 4 w w w. t p v g . c o m
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Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio companies; our relationships with third parties including but not limited to lenders and venture capital investors; the impact and timing of our unfunded obligations; the expected market for venture capital investments; the effect of and uncertainties related to macroeconomic factors such as fluctuating inflation and interest rates, and adverse developments affecting the financial services industry and venture banking ecosystem; the performance of our portfolio and other investments that we may make in the future; the impact of investments that we expect to make; actual and potential conflicts of interest with TriplePoint Capital LLC (“TPC”) and TriplePoint Advisers LLC (our “Adviser”) and its senior investment team and Investment Committee; our contractual arrangements and relationships with third parties; the dependence of our future success on the general economy and its impact on the industries in which we invest; the ability of our portfolio companies to achieve their objectives, or to obtain financing and working capital on attractive terms or at all; our expected financings and investments; the ability of the Adviser to locate suitable investments for us and to monitor and administer our investments; the ability of our Adviser to attract, retain and have access to highly talented professionals, including our Adviser's senior investment team; our ability to maintain our qualification as a regulated investment company, or “RIC,” and as a business development company, or “BDC;” the adequacy of our available liquidity, cash resources and working capital and compliance with covenants under our borrowing arrangements; the timing of cash flows, if any, from the operations of our portfolio companies; and the declaration, payment, amount and/or timing of future dividends or distributions. Such forward-looking statements are typically preceded by, followed by or otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission (“SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. We believe that the assumptions on which any forward-looking statements are based are reasonable. However, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this presentation should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. For a further discussion of factors, risks and uncertainties that could cause our future results to differ materially from any forward-looking statements, see the sections entitled "Risk Factors" and other disclosure in the Company’s most recently filed annual report on Form 10-K and its other public SEC filings. This presentation contains statistics and other data that has been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data. These materials and any presentation of which they form a part are neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company in any jurisdiction where the offer or sale is not permitted or would be unlawful under the securities laws of such jurisdiction. The information presented in this presentation is as of September 30, 2024 unless indicated otherwise. Forward Looking Statements 2
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TriplePoint Venture Growth BDC Corp. 3 Externally-Managed BDC Focused on Providing Customized Debt Financing With Warrants and Direct Equity Investments to Venture Growth Stage Companies in Technology and Other High Growth Industries Backed by a Select Group of Venture Capital Firms
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TriplePoint Venture Growth BDC Corp. Overview 4 (1) As of September 30, 2024. (2) A rating from DBRS, Inc., or any other rating agency, is not a recommendation to buy, sell or hold securities of TriplePoint Venture Growth BDC Corp. Ratings are subject to revision, suspension or withdrawal at any time by the relevant rating agency. (3) As of September 30, 2024 since commencement of operations on March 5, 2014. Gross Leverage Ratio NII Return (Average Equity & Average Assets) Cumulative Net Investment Income since inception has consistently exceeded cumulative distributions (3) DISTRIBUTIONS DECLARED $0.30 For Q4 2024 EQUITY RESEARCH COVERAGE 8 analysts CREDIT RATING (2) BBB (low) COMMON STOCK TPVG (NYSE) MARKET CAP (1) $283 million Price / NAV (1) 0.78x
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TriplePoint Venture Growth BDC Corp. Overview HIGHL Y DIFFERENTIATED BUIL T FOR SUCCESS ALIGNED WITH PUBLIC SHAREHOLDERS DELIVERING RESUL TS - The 4 R’s - Relationships Reputation References Returns 5
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TriplePoint Venture Growth BDC Corp. Overview HIGHL Y DIFFERENTIATED ▪ Provide highly-customized, senior secured “growth capital” loans ▪ Targeted returns of 10% - 18% on debt investments from interest and fees ▪ Additional upside through equity “kickers” in the form of warrants ▪ Ability to grow faster, finance business expansion & extend runway – enabling companies to achieve more milestones and command a higher future valuation ▪ Longer exit timing for IPOs and M&A requires more capital ▪ Enables diversification of funding sources ▪ Large & growing market opportunity for lending to venture growth stage companies ▪ Highly fragmented, underserved market with high barriers to entry ▪ Complements equity investment from VC investors which helps to reduce downside INVESTMENT OBJECTIVE USE CASE FOR VENTURE LENDING MARKET OPPORTUNITY ▪ Lend to venture capital backed companies at the venture growth stage ▪ Target companies backed by a select group of leading venture capital investors ▪ Focus on technology and other high-growth industries ▪ Venture growth stage companies have distinct risk-mitigating characteristics INVESTMENT STRATEGY 6
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TriplePoint Venture Growth BDC Corp. Overview BUIL T FOR SUCCESS • Highly experienced executive and investment teams with co-founders that have worked together for more than 25 years • Proprietary processes benefiting from co-founders’ track record of lending to more than 2,500 companies and deploying more than $13 billion of capital (1) • All deal flow is directly originated – generally do not utilize brokers/agents or syndications • Leads / referrals are primarily sourced from venture capital and industry relationships • Managed by an affiliate of TriplePoint Capital, the leading global financing partner to venture capital backed companies across all stages of development • Exceptional brand name, reputation, track record, venture capital investor relationships and direct originations capabilities INDUSTRY LEADING EXPERTISE DIRECT ORIGINATIONS UNIQUE SPONSOR RELATIONSHIP • Externally-managed business development company (BDC) • Common stock trades on the New York Stock Exchange: “TPVG” • $395.0 million in aggregate principal amount of private institutional notes STRUCTURE 7(1) Includes track records prior to TriplePoint Capital.
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TriplePoint Venture Growth BDC Corp. Overview ALIGNED WITH PUBLIC SHAREHOLDERS • Co-investment exemptive relief order received in March 2018 • Received shareholder approval for 150% asset coverage in June 2018 • Investment grade credit rating of BBB (low) from DBRS • All equity offerings have been at or above net asset value • Have not requested shareholder approval to raise equity below NAV • Adviser has paid more than $14 million of offering expenses since inception • Sold $22 million of stock to funds managed by Goldman Sachs Asset Management, LP in a PIPE transaction in October 2017 at a premium to NAV • Raised $40.5 million of net proceeds under the at-the-market equity offering program (“ATM Program”) DISCIPLINE IN MANAGING CAPITAL NON-DILUTIVE EQUITY OFFERINGS • 1.75% management fee • 8% annualized hurdle rate for income incentive fee • Total return requirement whereby incentive fees are capped at 20% of cumulative net increase in net assets resulting from operations since IPO date • Income incentive fee reduced by $8.4 million in 2024 due to the total return requirement • For the calendar year 2025, the Adviser has agreed to waive the portion of its quarterly income incentive fee if and to the extent that, after payment of such income incentive fee, net investment income per share for such quarter is below the distribution per share for such quarter SHAREHOLDER FRIENDL Y FEE STRUCTURE 8(1) Including commissions.
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TriplePoint Venture Growth BDC Corp. Overview DELIVERING RESUL TS (1) Signed term sheet amounts not necessarily indicative of opportunities available to TPVG. (2) As of 9/30/2024. Includes investments acquired from TriplePoint Capital and originated since IPO. (3) The Company’s weighted average annualized portfolio yield on debt investments may be higher than an investor’s yield on an investment in shares of its common stock. The weighted average annualized portfolio yield on debt investments does not reflect operating expenses that may be incurred by the Company. Please refer to footnote (1) on slide 36 of this presentation for more information on the calculation of the weighted average annualized portfolio yield on debt investments. (4) Annualized based on $0.30 of distributions declared in Q4 2024 and a closing stock price of $7.06 as of September 30, 2024. (5) Total return is the change in the ending stock price of the Company’s common stock plus distributions paid for the period assuming participation in the Company’s dividend reinvestment plan divided by the 9/30/2024 closing stock price of the Company’s common stock. ▪ $16.05 of cumulative distributions declared per share since IPO through Q4 2024 including $0.45 of special distributions ▪ $0.30 per share distribution for Q4 2024, a 17.0% annualized dividend yield(4) ▪ Total return of 76.8% since IPO & total return of (25.3)% year to date(5) ▪ 16.0% NII return on average equity & 6.9% NII return on average assets year to date ▪ $721.0 million portfolio at fair value, consisting of $604.7 million of loans to 44 obligors and $116.3 million of warrants and equity investments with 105 companies ▪ 2.17 weighted average credit ranking of the debt investment portfolio ▪ Weighted average annualized portfolio yield on debt investments of 15.7% in Q3 2024 SHAREHOLDER RETURNS HIGH YIELDING, HIGH QUALITY PORTFOLIO(2)(3) ▪ $8.3 billion of cumulative signed non-binding venture growth stage term sheets at TPC(1) ▪ $4.0 billion of cumulative originations ▪ $2.7 billion of cumulative fundings DEMONSTRATED ORIGINATIONS CAPABILITIES(2) 9
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• Eight debt portfolio companies raised an aggregate $655.6 million of capital in equity financing rounds Investment Activity Business Results Portfolio Company Updates Financial Results Third Quarter 2024 Highlights • Net investment income (NII) of $13.8 million, or $0.35 per share • Generated $8.8 million of net realized and unrealized gains, resulting in net increase in net assets from operations of $22.6 million, or $0.57 per share • Increased net asset value to $364.3 million, or $9.10 per share, an increase of 3.2% from prior quarter • Declared and paid quarterly distribution totaling $0.30 per common share • Estimated spillover income totaled $41.5 million or $1.03 per share • Signed term sheets of $93.4 million with venture growth stage companies at TPC • Closed $41.0 million of debt commitments to 4 portfolio companies and $0.5 million of equity commitments to 1 portfolio company • Funded $33.0 million in debt investments to 4 portfolio companies • Achieved an 15.7% weighted average annualized portfolio yield on total debt investments for the quarter • Realized a 15.4% return on average equity, based on NII during this quarter 10
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Business Results 11 Other Activity Subsequent to Quarter End(1) (1) Through November 5, 2024. Third Quarter 2024 Highlights (continued) Liquidity and Capital Resources • Renewed the Revolving Credit Facility to, among other things, extend the revolving period to November 30, 2025 and the scheduled maturity date to May 30, 2027, as well as set total commitments to $300 million • Ended the quarter with a 1.11x gross leverage ratio • Liquidity of $338.6 million, comprised of $48.6 million of cash and cash equivalents (including restricted cash) as of September 30, 2024 and $290.0 million of credit facility availability • $74.0 million of unfunded commitments as of September 30, 2024 • Improved debt investment portfolio weighted average investment ranking to 2.17 • One portfolio company was upgraded from White to Clear • One portfolio company was upgraded from Yellow to White • One portfolio company was upgraded from Orange to Yellow • One portfolio company was downgraded from Clear to White Credit Developments • TPC’s direct originations platform entered into $70.0 million of additional non -binding signed term sheets with venture growth stage companies • The Company’s investment adviser agreed to waive the portion of its quarterly income incentive fee if and to the extent that, after payment of such income incentive fee, the Company’s net investment income per share for such quarter is below the quarterly distribution per share for such quarter. The income incentive fee waiver will be effective commencing with the quarter ending March 31, 2025 until and including the quarter ending December 31, 2025
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Trailing Five Quarter KPIs 12(1) Signed term sheets at TriplePoint Capital; closed commitments at TPVG. (2) Warrant and equity investments reflect number of portfolio companies in each of the respective investment types. KPI Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ORIGINATIONS (1) $58m signed venture growth stage term sheets $6m closed commitments $100m signed venture growth stage term sheets $4m closed commitments $130m signed venture growth stage term sheets $10m closed commitments $188m signed venture growth stage term sheets $52m closed commitments $93m signed venture growth stage term sheets $41m closed commitments FUNDED DEBT INVESTMENTS $13m $24m $14m $39m $33m UNFUNDED COMMITMENTS $142m $118m $73m $71m $74m DEBT PORTFOLIO YIELD 15.1% with prepays 14.1% without prepays 15.6% with prepays 14.4% without prepays 15.4% with prepays 14.7% without prepays 15.8% with prepays 13.9% without prepays 15.7% with prepays 14.9% without prepays PORTFOLIO STATISTICS (2) 54 funded borrowers 154 warrant & equity investments 7.8% Debt Portfolio WA LTV 49 funded borrowers 143 warrant & equity investments 7.9% Debt Portfolio WA LTV 49 funded borrowers 143 warrant & equity investments 7.8% Debt Portfolio WA LTV 44 funded borrowers 140 warrant & equity investments 7.8% Debt Portfolio WA LTV 44 funded borrowers 143 warrant & equity investments 7.6% Debt Portfolio WA LTV NET REALIZED & UNREALIZED GAINS/(LOSSES) $(17.0m) $(46.1m) $(7.5m) $(4.0m) $8.8m NII /NINA $0.54 / $0.06 $0.47 / $(0.79) $0.41 / $0.21 $0.33 / $0.22 $0.35 / $0.57 NAV $10.37 -3.2% $9.21 -11.2% $9.02 -2.1% $8.83 -2.0% $9.10 3.2% GROSS LEVERAGE RATIO 1.62x 1.76x 1.27x 1.15x 1.11x CREDIT SCORE 2.10 2.14 2.21 2.24 2.17 NON -ACCRUALS COST/FV % OF DEBT 11.1% / 5.0% 5.3% / 4.0% 8.5% / 6.8% 10.2% / 8.2% 4.4% / 3.0% STOCK PRICE $10.46 at 09/30 (1.01x Q3 NAV) $10.86 at 12/31 (1.18x Q4 NAV) $9.48 at 03/31 (1.05x Q1 NAV) $8.03 at 06/30 (0.91x Q2 NAV) $7.06 at 09/30 (0.78x Q3 NAV)
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Investment Highlights Experienced Team With Time -Tested Processes Large And Growing Market With High Barriers to Entry Industry Leading Sponsor With Premium Brand, Track Record and Platform Strong Financial Profile With Large Committed Credit Facility Attractive Risk - Adjusted Returns With Equity Upside Potential Differentiated Investment Strategy 13
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Highly Experienced Management Team 14 J I M LABE Chairman & Chief Executive Officer S A J A L S R I VA S TAVA President & Chief Investment Officer Have provided more than $13.0 billion in debt financing to over 2,500 venture capital-backed companies across two venture lending platforms TriplePoint’s co-founders have worked together for more than 25 years • Co-Founder of TriplePoint Capital • Pioneer of the Venture Leasing and Lending Industry • Founder and CEO of Comdisco Ventures • Co-Founder of TriplePoint Capital • Head of the Investment & Credit Team at Comdisco Ventures • Technology Investment Banking at Prudential Securities Supported by a team of more than 60 professionals
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TriplePoint Capital - Industry Leading Venture Lending Credit Platform The leading global financing provider devoted to serving venture capital backed companies throughout their lifespan KEY HIGHLIGHTS ▪ Launched in 2005 by Jim Labe and Sajal Srivastava ▪ Headquartered on Sand Hill Road in Silicon Valley with regional offices in New York City, San Francisco and Boston ▪ Provides debt, equity and complementary services to privately-held, venture capital-backed companies across all stages of development around the world PLATFORM ▪ Exceptional brand name, reputation, venture capital investor relationships & direct originations capabilities ▪ Since inception, the TriplePoint platform has committed +$13 billion to 900+ companies across the globe ▪ Manages an on-balance sheet lending vehicle, two permanent capital vehicles (BDCs), GP/LP fund and other vehicles EXPERIENCE ▪ Highly experienced team utilizing proprietary and proven methods for investment process and portfolio management ▪ Distinct focus on and deep relationships with a select group of leading venture capital investors and their portfolio companies ▪ Unique multi-stage investment focus – the TriplePoint Lifespan Approach to venture lending 15
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TriplePoint Capital Differentiated Investment Strategy 16 Target venture capital backed companies across the globe Invest with TPC’s Select Group of leading venture capital investors Primary focus in technology and other high-growth industries Unique, multi-stage investment approach – the Lifespan Approach 100% directly originated assets Senior secured loans with equity kickers in the form of warrants
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TriplePoint Capital - Financed 650+ Leading Companies(1) 17 (1) Selected list of current and past TriplePoint Capital customers including at TPVG.
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TriplePoint Capital’s Unique Lifespan Approach SEED STAGE EARLY STAGE LATER STAGE VENTURE GROWTH STAGE PUBLIC • “Start-ups” in “conceptual phase” • No product development • Angel and seed investors • Product development • Initial revenues • One or more rounds of venture financing • Further product development • Generating early revenues • Additional rounds of venture financing • “Crossed the chasm” • Generally at least $20 million in revenues • Building critical mass and commanding market position • Received several rounds of venture capital • Preparing for liquidity event • Publicly traded shares VENTURE CAPITAL-BACKED LIFECYCLE STAGES Identifies Strong Opportunities and Establishes Relationships Across All Stages 18 TPVG’s Target Stage
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TPVG’s Approach / Venture Growth Stage Venture Growth Stage Seed Stage Early Stage Later Stage We Take Our Customers Through The Red Zone To the End Zone 19
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Value Proposition of Venture Debt Why Do High Growth Companies Use Venture Debt? 20 Lowers upfront cost of capital expenditures Complements existing equity capital and helps boost returns for existing investors Less dilutive than raising additional equity capital sooner Helps finance acceleration and/or expansion of the business Provides runway extension for achieving additional milestones Additional business validation provides negotiating leverage for higher valuations
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Venture Debt Provides Compelling Relative Risk-Adjusted Returns 10-18% (1) Higher Return Potential Through Warrants and Prepayments TARGETED UNLEVERED RETURNS ▪ Generally short term financings (3-4 years) ▪ Typically amortizing facilities ▪ Prepayments typically boost returns from acceleration of fees and penalties ▪ Target loan-to-enterprise value of under 25% at time of underwriting ▪ Low total leverage profiles of obligors ▪ Benefit from equity cushion of VC sponsors ▪ Obligors typically preparing for an IPO or M&A in the next 1-3 years (1) Excludes equity and warrant gains. Returns based on upfront fees, interest rates, and end of term payments. No guarantee targeted return will be achieved. High Yields to Maturity With VC Equity Support & Low Total Leverage 21
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Venture Growth Stage Market V E N T U R E B A N K S E A R L Y S T A G E D E B T F U N D S O T H E R V E N T U R E B D C s L A T E R S T A G E D E B T F U N D S O P P O R T U N I S T I C D E B T F U N D S S E E D S TA G E E A R LY S TA G E L AT E R S TA G E V E N T U R E G R O W T H S TA G E P U B L I C 22 Fragmented Market with Limited Competition Given High Barriers to Entry
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Illustrative TPVG Product Pricing Summary 23 PRODUCT TRANSACTION SIZE TERM COLLATERAL WARRANTS Growth Capital Loans $5mm-$50mm 36 – 60 Months Senior On All Assets Typically Equipment Financings $5mm-$25mm 36 – 48 Months Equipment Typically Revolving Loans $1mm-$25mm 12 – 36 Months Senior On All Assets And/or Specific Asset Financed Typically Warrants Percentage of Loan Amount --- --- --- Direct Equity $100k-$5mm --- --- --- Customized Debt Financing Based on Analysis of the Prospective Obligor
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Time-Tested Investment Process & Portfolio Management ▪ Leads and initial screening ▪ Process takes approximately 2 weeks to 3 or more months ▪ Initial screening performed ▪ Diligence process and detailed credit memorandum (2-4 weeks) ▪ New borrowers analyzed weekly by senior investment team ▪ Transaction presented to Investment Committee for approval ▪ Transaction negotiations and legal diligence / review ▪ Status discussed weekly with senior team ▪ 2-5 weeks, in parallel with diligence process ▪ Day-to-day servicing ▪ Coordinates funding requests ▪ Tracks / verifies borrower assets and collateral ▪ Tracks financial performance, compliance and risk rating ▪ Reviews all borrower updates ▪ Status / issues discussed regularly with senior team ▪ Deteriorating borrowers posted to “Credit Watch List” ▪ Actively works to maintain an open dialogue to limit the likelihood of a default ▪ Decision to restructure, settle, request early pay- off or wait for an external event ▪ Sells collateral with the help of management, repossesses and auctions assets INVESTMENT PROCESSPORTFOLIO MANAGEMENT ADMINISTRATION MONITORING CREDIT WATCH LIST WORK-OUT & RESTRUCTURING ORIGINATIONS INVESTMENT & CREDIT ANAL YSIS INVESTMENT COMMITTEE LEGAL Benefits From More Than 30 Years of Experience and Expertise 24
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Strong, Disciplined Portfolio Growth – As of 9/30/24 25 Signed Term Sheets at TPC; Commitments and Fundings at TPVG ($mm) (1) (1) Signed term sheet amounts not necessarily indicative of opportunities available to TPVG.
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High Yielding, High Quality Portfolio(1) 26 DEBT INVESTMENT FAIR VALUE $604.7 Million DEBT INVESTMENT COST BASIS $653.2 Million NUMBER OF LOANS 137 NUMBER OF OBLIGORS 44 DEBT PORTFOLIO WEIGHTED AVERAGE YIELD ON DEBT INVESTMENTS 15.7% COUPON INCOME 12.7% COST ACCRETION 0.9% END OF TERM PAYMENTS 1.3% PREPAYMENTS 0.8% YIELD PROFILE $158.2 MILLION (2) WARRANT PORTFOLIO $158.2 MILLION (2) EQUITY PORTFOLIO WARRANT FAIR VALUE $40.4 Million WARRANT COST BASIS $26.0 Million NUMBER OF WARRANTS 110 NUMBER OF COMPANIES 95 DIRECT EQUITY FAIR VALUE $75.9 Million DIRECT EQUITY COST BASIS $59.7 Million NUMBER OF INVESTMENTS 62 NUMBER OF COMPANIES 48 $604.7 MILLION 15.7% YIELD(2) $40.4 MILLION $75.9 MILLION (1) All data as of September 30, 2024 unless otherwise noted. (2) For the three months ended September 30, 2024.
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$0.5m 2x $1.1m 2x $0.5m 2x $1.3m 8x $1.0m 8x $1.8m 160x Warrant & Direct Equity Investments • GAAP fair value does not reflect potential future value • Generally, fair value based on most recent round of financing and attributes value to warrants & shares based on liquidation preference order rather than conversion to common, which is more common in a successful M&A or IPO • Generally, target return multiples of 2x-5x on each investment at time of investment • Nominal warrant exercise value is $70.6 million as of 9/30/24 • Warrant and equity investment returns offset credit losses and have the potential to create value in excess of losses (accretive to NAV) Future Potential Book Value Upside Significant Realized Gains GAAP Cost Basis GAAP unrealized Gain Warrant Investments in 95 Companies110 $14.3m $26.0m GAAP Cost Basis GAAP unrealized Gain Direct Equity Investments in 48 Companies62 $16.2m $59.7m COMPANY REALIZED GAIN MULTIPLE OF COST BASIS $27.1m 26x $3.4m 4x $6.5m 13x 27 $2.9m 105x $1.8m 3x
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Portfolio Overview – Secured, Diversified Lending(1) Diversified Across Subsectors of High Growth Industries (1) Figures based on fair value as of September 30, 2024 unless otherwise noted. 28 Secured by Either the Entire Enterprise or Specific Assets Portfolio of Fixed and Floating Rate Loans (Based on Outstanding Principal)
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Impact from Changes in Interest Rates Approximate Annual NII Per Share Impact Resulting from Changes in Prime Rate(1) 6 0 . 0 % F l o a t i n g R a t e Po r t f o l i o W i t h 3 . 2 5 % o r h i g h e r P r i m e R a t e f l o o r s . C o m m i t m e n t s f l o a t u n t i l f u n d i n g . (1) NII per share calculated based on 40,049,002 common shares outstanding and a static debt investment portfolio and borrowing amounts under our financing arrangements as of September 30, 2024, assuming an immediate and sustained change in interest rates as noted. 9 7 . 5 % F i x e d R a t e D e b t A s o f S e p t e m b e r 3 0 , 2 0 2 4 . 29 $0.26 $0.17 $0.08 $0.04 $(0.04) $(0.08) $(0.14) $(0.19) ($0.25) ($0.20) ($0.15) ($0.10) ($0.05) $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 300 bps increase 200 bps increase 100 bps increase 50 bps increase (50) bps decrease (100) bps decrease (200) bps decrease (300) bps decrease Net Increase in NII Per Share Basis Point Change in Prime Rate
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Credit Watch List Overview(1) 30 (1) Debt investment figures based on fair value as of September 30, 2024. (2) The Company maintains a credit watch list with portfolio companies placed into one of five categories, with Clear, or 1, being the highest rating and Red, or 5, being the lowest. Generally, all new loans receive an initial grade of White, or 2, unless the portfolio company’s credit quality meets the characteristics of another risk category. Q3 2024 Detailed Credit Ratings(2) Category Fair Value ($mm) % Of Debt Investment # Of Portfolio Companies Clear (1) $72.2 12.0% 4 White (2) $392.1 64.8% 29 Yellow (3) $107.8 17.8% 6 Orange (4) $32.5 5.4% 4 Red (5) $0.1 0.0% 1 $604.7 100.0% 44
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Active Customers with Debt Outstanding 31
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Warrants and/or Equity Outstanding 32
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Warrants and/or Equity Outstanding (cont.) 33
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Financial Highlights As of September 30, 2024
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Key Financial Highlights – 9/30/2024 35 Total Investment Income ($mm) Net Investment Income ($mm) Total Investments ($mm) Total Assets ($mm) Note: Total Investments and Total Assets shown on a fair value basis.
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High-Yielding Portfolio(1) 36 (1) Weighted average portfolio yields on debt investments for periods shown are the annualized rates of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The calculation of weighted average portfolio yields on debt investments excludes any non-income producing debt investments, but includes debt investments on non-accrual status. The weighted average yields reported for these periods are annualized and reflect the weighted average yields to maturities. The weighted average portfolio yields on debt investments reflected above do not represent actual investment returns to the Company’s stockholders.
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Strong Yields Enhanced By Prepayments(1) 37 Yields on Debt Investments Early Prepays (1) Weighted Average Portfolio Yield on Debt Investments includes all prepayment income.
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Financial Highlights 38 NII Return on Average Equity (ROAE) and NII Return on Average Assets (ROAA) Gross Leverage Ratio
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Income Statement (1) 39(1) In Thousands, except per share data, ratios and percentages. 3 Months Ended September 30, 2024 3 Months Ended September 30, 2023 9 Months Ended September 30, 2024 9 Months Ended September 30, 2023 Investment Income Interest Income from Investments $25,951 $34,070 $81,069 $100,825 Other Income $564 1,668 1,826 3,693 Total Investment and Other Income $26,515 35,738 82,895 104,518 Operating Expenses Base Management Fee $3,418 4,596 11,552 13,403 Income Incentive Fee – – – – Interest Expense and Amortization of Fees $7,148 9,297 22,861 28,486 Administration Agreement Expenses $580 579 1,838 1,720 General and Administrative Expenses $1,584 2,162 4,732 4,389 Total Operating Expenses $12,730 16,634 40,983 47,998 Net Investment Income $13,785 19,104 41,912 56,520 Net Realized Gains (Losses) $(5,040) (25,556) (32,693) (23,730) Net Change in Unrealized Gains (Losses) $13,889 8,600 30,011 (43,818) Net Realized and Unrealized Gains (Losses) $8,849 (16,956) (2,682) (67,548) Net Increase (Decrease) in Net Assets Resulting from Operations $22,634 $2,148 $39,230 $(11,028) Net Investment Income Per Share $0.35 $0.54 $1.08 $1.59 Net Increase (Decrease) in Net Assets Per Share $0.57 $0.06 $1.01 ($0.31) Weighted Average Shares Outstanding 39,954 35,609 38,782 35,453 Interest Coverage (NII / Interest Expense) 1.93 x 2.05 x 1.83 x 1.98 x ROAA 6.7% 7.8% 6.9% 7.5% ROAE 15.4% 20.0% 16.0% 18.7%
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Balance Sheet(1) 40(1) In Thousands, except per share data and ratios. As of September 30, 2024 As of December 31, 2023 Assets Investments at Fair Value $720,974 $802,145 Cash and Cash Equivalents 48,283 153,328 Restricted Cash 289 18,254 Deferred Credit Facility Costs 4,575 2,714 Prepaid Expenses and Other Assets 4,224 2,384 Total Assets $778,345 $978,825 Liabilities Revolving Credit Facility $10,000 $215,000 2025 Notes, Net 69,895 69,738 2026 Notes, Net 199,373 199,041 2027 Notes, Net 124,326 124,117 Base Management Fee Payable 3,418 4,490 Other Accrued Expenses and Liabilities 7,062 20,133 Total Liabilities $414,074 $632,519 Total Net Assets $364,271 $346,306 Net Asset Value Per Share $9.10 $9.21 Gross Leverage Ratio 1.11 x 1.76 x
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Financial Results Quarterly NAV Roll Forward 41
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Disciplined and Diversified Capital Raising Since IPO(1) 42 Equity Capital Raises(2) Debt Capital Raises(2)(3)(4) (1) Dollars shown in millions. (2) Exclusive of underwriting discounts / commissions and offering expenses. (3) Does not include the Adviser Revolver Facility. (4) On August 6, 2024, the Company’s Revolving Credit Facility was renewed and commitments were reset to $300 million, among other changes Received Investment Grade Rating Private Placement Notes 5yr – 5.00% BBB (DBRS) Private Placement Notes 5yr - 4.50% BBB (DBRS)
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Diversification of Debt & Laddered Maturities 43 (1) Revolving Credit Facility was most recently amended and extended in August 2024. An additional $100 Million is available subject to approval by Lenders. (2) As of September 30, 2024. (3) Does not include amortization of loan fees. (4) Spread fluctuates between 3.2% and 3.5% depending on a percentage of commitments drawn. Debt Instrument Security Facility/ Issuance Size Outstanding(2) Rating Interest Rate(3) Maturity Primary Financial Covenants Revolving Credit Facility SPV Structure $300 Million(1) $10 Million(1) N/A 3.50% + 3- Month SOFR(4) Revolving Period: 11/30/2025 Maturity: 5/30/2027 Asset coverage, minimum equity & asset quality tests 2025 Notes Senior Unsecured $70 Million $70 Million BBB (low): DBRS 4.50% - Fixed March 19, 2025 Asset coverage, interest coverage, minimum shareholders’ equity 2026 Notes Senior Unsecured $200 Million $200 Million BBB (low): DBRS 4.50% - Fixed March 1, 2026 Asset coverage, interest coverage, minimum shareholders’ equity 2027 Notes Senior Unsecured $125 Million $125 Million BBB (low): DBRS 5.00% - Fixed February 28, 2027 Asset coverage, interest coverage, minimum shareholders’ equity
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Research Coverage Casey Alexander (646) 452-7083 calexander@compasspointllc.com Christopher Nolan (212) 409-2068 cnolan@landenburg.com 44 Finian O’Shea, CFA (212) 214-5082 finian.oshea@wellsfargo.com Paul Johnson (617) 848-2777 johnsonpa@kbw.com Brian McKenna (212) 906-3545 bmckenna@jmpsecurities.com Mitchel Penn, CFA (212) 667-7136 Mitchel.Penn@opco.com Crispin Love (212) 466-7938 Crispin.Love@psc.com Doug Harter (212) 882-0080 Douglas.Harter@ubs.com
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Appendix
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Source: NVCA as of September 30, 2024 Strong Demand For Venture Debt 46 Venture Capital-Backed Companies Rely on a Combination of Equity and Debt to Fund Growth Demand for venture debt is driven by VC fundraising and investment activity Extended timing from initial funding to M&A, IPO, or Buy Out further drives demand for debt Over $400 billion raised by US VCs over the past 5 years US VC Fundraising Activity More than 60,000 investments made representing over $1 trillion over the past 5 years US VC Deal Activity