Q2 2025 TriplePoint Venture Growth BDC Corp Earnings Call
I ask questions and instructions will follow at that time. This conference is being recorded and a replay of the call will be available and an audio webcast on the triple point venture growth website.
Speaker #1: Good afternoon, ladies and gentlemen. Welcome to the Triplepoint Venture Growth BDC Corp second quarter 2025 earnings conference call. At this time, all lines have been placed in the listen-only mode.
Management is pleased to share with you the company's results for the second quarter of 2025 today, representing the company is Jim <unk>, Chief Executive Officer, and Chairman of the board.
Speaker #1: After the speakers' remarks, there will be an opportunity to ask questions and instructions will follow at that time. This conference is being recorded, and a replay of the call will be available in an audio webcast on the Triplepoint Venture Growth website.
All three of US Saba, President and Chief investment Officer, and Mike <unk>, Chief Financial Officer.
Speaker #1: Company management is pleased to share with you the company's results for the second quarter of 2025. Today, representing the company, is Jim Labe, Chief Executive Officer and Chairman of the Board.
Before I turn the call over to Mr. La Bae I'd like to direct your attention to the customary safe Harbor disclosure in the company's press release regarding forward looking statements and remind you that during this call management will be will make certain statements that relate to future events or the company's future performance or financial condition, which are.
Speaker #1: Sajal Srivastava, President and Chief Investment Officer; and Mike Wilhelms, Chief Financial Officer. Before I turn the call over to Mr. Labe, I'd like to direct your attention to the customary Safe Harbor disclosure in the company's press release regarding statements.
<unk> forward looking statements under federal Securities Law.
You are asked to refer to the company's most recent filings with the Securities and Exchange Commission for important factors that could cause actual results to differ materially from these statements.
Speaker #1: And remind you that during this call, management will be will make certain statements that relate to future events or the company's future performance, or financial condition, which are considered forward-looking statements under federal securities law.
<unk> does not undertake any obligation to update any forward looking statements or projections unless required by law investors are cautioned not to place undue reliance on any forward looking statements made during the call, which reflect management's opinions only as of today to obtain copies of our latest SEC filings.
Speaker #1: You are asked to refer to company's most recent findings with the Securities and Exchange Commission for important factors that could cause actual forward-looking results to differ materially from these statements.
Speaker #1: The company does not undertake any obligation to update any forward-looking statements or projections unless required by law. Investors are cautioned not to place undue reliance on any forward-looking statements made during the call which reflect management's opinions only as of today.
Please visit the company's website at Www Dot T. T V. G. Dotcom now I'd like to turn the conference over to Mr. <unk>.
Thank you operator, good afternoon, everyone and welcome to the <unk> second quarter earnings call.
Speaker #1: To tain copies of our latest SEC filings, please visit the company's website at www.ppvg.com. Now, I'd like to turn the conference over to Mr. Labe.
Before I get into the second quarter update I'll remind everyone that our focus remains on taking steps to increase the scale durability and the income generating asset to TPG.
Speaker #2: Thank you, Operator. Good afternoon, everyone, and welcome the TPVG second quarter earnings call. Before I get into the second quarter update, I'll remind everyone that our focus remained on taking steps to rease the scale, durability, and the income-generating assets of TPVG.
And our sights are set on setting the stage now for the future.
I'd also like to highlight the TPG sponsor an adviser implemented two measures that we believe further strengthen their alignment of interests with TPG shareholders.
And which I'll get into a little later in my remarks, as well as aligning our distribution level with our current earnings.
Speaker #2: And our sites are set on setting the stage now for the future. I'd also like to highlight that TPVG sponsor and advisor implemented two measures: that we believe further strengthen their alignment of interests with TPVG's shareholders, and which I'll get into a little later in my remarks, as well as aligning our distribution level with our current earnings.
The second quarter marked another quarter of increased investment activity, we grew the debt investment portfolio to $663 million at cost.
Continue to capitalize on the strong demand from venture growth stage companies in the favorable investment sectors that we're focused on these days.
Speaker #2: The second quarter marked another quarter of increased investment activity. We grew the debt investment portfolio to $663 million at cost. And continued to capitalize on the strong demand from venture growth-stage companies in the favorable investment sectors that were focused on these days.
So in term sheets with venture growth stage companies at our sponsor Triple point capital finish strong last quarter over.
Over the last three quarters, we now have signed term sheets for venture growth stage companies that have exceeded $875 million.
Speaker #2: Find term sheets with venture growth-stage companies at our sponsor, Triplepoint Capital, Finnish Strong last quarter. Over the last three quarters, we now have signed term sheets for venture growth-stage companies that have exceeded $875 million.
Both debt commitments and fundings also increased during the quarter, reaching their highest level since fiscal 2022, and which helped translate into Q2 fundings that exceeded our guided range.
This is the highest level of funding activity in the last 10 quarters.
Speaker #2: Both debt commitments and fundings also increased during the quarter, reaching their highest level since fiscal 2022, and which helped translate into Q2 fundings that exceeded our guided range.
At quarters end, our pipeline also continued to remain at near record highs since its peak back in 2021.
While we anticipate these notable increases in signed term sheets and commitments all bode well for future growth.
Speaker #2: This is the highest level of funding activity in the last 10 quarters. At quarters end, our pipeline also continued to remain at near-record highs since its peak back in 2021.
We expect this portfolio of growth is going to take some time.
And to materialize over the next several quarters because of the level and amount of prepayment and also the rate of utilization of our unfunded commitments over the course of the year.
Speaker #2: While we anticipate that these notable increases in signed term sheets and commitments all bode well for future growth, we expect this portfolio growth is going to take some time.
Touching on the market, while some uncertainties and volatility certainly remain in the venture capital market here in Q2 investment activity continued in venture growth stage deal activity Serge driven by the persistent momentum going on in the AI space.
Speaker #2: And to materialize over the next several quarters, because of the level and amount of prepayments. And also the rate of utilization of our underfunded commitments over the course of the year.
Speaker #2: Touching on the market, while some uncertainties and volatility certainly remained in venture capital market here in Q2, investment activity continued and venture growth-stage deal activity surged driven by the persistent momentum going on in the AI space.
According the pitch book NVCA for the first half of 2025 $84 billion of venture growth stage investments were deployed across an estimated 499 deals.
Pitchfork also noted positive developments in the broader venture capital IPO market in the M&A markets in Q2 <unk>.
Speaker #2: According to PitchBook NVCA, for the first half of 2025, 84 billion of venture growth-stage investments were deployed across an estimated 499 deals. PitchBook also noted positive developments in the broader venture capital IPO market and the M&A markets in Q2.
<unk> generating 68 billion across 294 exit marking the highest quarterly value since Q4 2021.
There really hasn't been an increase in M&A and IPO activity for sure.
Speaker #2: Generating $68 billion across 294 exits, marking the highest quarterly value since Q4 2021. They really has been an increase in M&A and IPO activity for sure, although somewhat limited, but increasing last quarter.
Somewhat limited, but increasing last quarter.
Given tpg's relative lease sizable equity and warrant portfolio, we stand to unlock value in the portfolio as he exit market continues to evolve in this window I have been talking about opens up a little further.
As an example, we have substantial holdings in revolute.
Speaker #2: Given TPVG's relative sizable equity and warrant portfolio, we stand to unlock value in the portfolio as the exit market continues to evolve and this window I've been talking about opens up a little further.
We also have warrant positions and some leading companies, which we reported publicly is potential future IPO candidate and includes names such as cohesive resolute.
Speaker #2: As an example, we have substantial holdings and Revolut. We also have warrant positions in some leading companies which were reported publicly as potential future IPO candidates.
<unk> dialed pad file vine and others.
At quarter's end TPG held warrant positions and some 106 portfolio companies.
And equity investments in 52 companies.
Speaker #2: It includes names such as Cohesity, Revolut, Zebs, DialPad, Filevine, and others. At quarters end, TPVG held warrant positions in some 106 portfolio companies, and equity investments in 52 companies.
Turning to the broader portfolio, our focus is on growing and diversifying the portfolio.
We actively added new borrowers in Q2 focused on high potential and durable sectors such as AI.
We remain excited by the market opportunity present.
Speaker #2: Returning to the broader portfolio, our focus is growing and diversifying the portfolio. We actively added new borrowers in Q2 focused on high potential and durable sectors such as AI.
And we think it will be a massive mega trend that persists for many years to come.
We will continue on our path to pursue selectivity diversification and investment sector rotation as we grow.
Speaker #2: We remain excited by the market opportunity AI presents and we think it'll be a massive megatrend that persists for many years to come. We will continue on our path to diversification, and investment sector rotation as we grow.
And in addition to AI. This includes other sectors, we see as attractive such as vertical software Fintech Aerospace and defense robotics, cyber security and health Tech.
During the second quarter, we added several new AI companies to our portfolio, including Marvin eightfold in rather stack.
Speaker #2: And in addition to AI, this includes other sectors we see as attractive, such as verticalized software, fintech, aerospace and defense, robotics, cybersecurity, and health tech.
These are companies, which are leveraging AI to redefine and disrupt various horizontal functions of the enterprise, including marketing sales and HR.
Speaker #2: During the second quarter, we added several new AI companies to our portfolio, including Marvin, Eightfold, and RudderStack. These are companies which are leveraging AI to redefine and disrupt various horizontal functions of the enterprise, including marketing, sales, and HR.
We never cease to be amazed by the speed of advancement across every corner of our economy. We've.
We believe AI is providing a renaissance and macro tailwind to the broader technology sector with a potential to surpass the impact of the internet cloud computing or the mobile revolution.
Speaker #2: We never cease to be amazed by the speed of advancement across every corner of our economy. We believe AI is providing a renaissance and macro tailwind to the broader technology sector, with the potential to surpass the impact of the internet, cloud computing, or the mobile pursue selectivity, revolution.
As we invest in today's attractive sectors. Our focus remains on companies that have recently raised capital have ample cash runways have backing from our select venture capital investors and our led by prudent management teams.
All with business models that have attractive unit economics.
Speaker #2: As we invest in today's attractive sectors, our focus remains on companies that have recently raised capital and have ample cash runways, have backing from our select venture capital investors, and are led by prudent management teams.
We strive to emphasize better capitalized companies with visibility to profitability and also business models reflective of today's venture market conditions and valuations.
Speaker #2: All with business models that have attractive unit economics. We strive to emphasize better capitalized companies with visibility to profitability, and also business models reflective of today's venture market conditions and valuations.
In summary, while we are encouraged by our steadily increasing investment activity in the venture market improvements in trends our portfolio growth is definitely taking longer than expected given the prepayment activity and the rate of unfunded commitments utilization.
Speaker #2: In summary, while we're encouraged by our steadily increasing investment activity in the venture market improvements and trends, our portfolio growth is definitely taking longer than expected, given the prepayment activity and the rate of unfunded commitments utilization.
As alluded, let me touch on a few recent developments, which we believe demonstrates alignment with shareholders.
And positions the company to provide long term shareholder returns as we continue to take steps to increase TPG scale durability income generating asset in its NAV over the long term.
Speaker #2: As alluded, let me touch on a few recent developments which we believe demonstrate alignment with shareholders. And position the company to provide long-term shareholder returns.
Underlying its commitment and support of TPG and our growth strategy, our sponsor Triple point capital announced the discretionary share program today to acquire up to $14 million of the company's outstanding shares of common stock over the next 12 months in the open market subs.
Speaker #2: As we continue to take steps to increase TPVG's scale, durability, income-generating assets, and its NAV over the long term. Underlying its commitment and support of TPVG and its growth strategy, our sponsor, Triplepoint Capital, announced the discretionary share program today to acquire up to $14 million of the company's outstanding shares of common stock over the next 12 months in the open market.
To regulatory and other customary limitations.
Over time, we believe this will translate into an increasing insider ownership with TPG and provide even greater alignment with our shareholders.
The board also made the decision to reduce our regular quarterly distribution of <unk> 23 per share.
Speaker #2: Subject to regulatory and other customary limitations. Over time, we believe this will translate into an increasing insider ownership of TPVG and provide even greater alignment with our shareholders.
This was a difficult, but we believe prudent decision that will enable us to better align our distribution levels as fundings under newer commitments gradually continue to materialize and our historical prepayment activity remains present within the portfolio.
Speaker #2: The board also made the decision to reduce our regular quarterly distribution to 23 cents per share. This was a difficult, but we believe, prudent decision that will enable us to better align our distribution levels as fundings under newer commitments gradually continue to materialize and our historical prepayment activity remains present within the portfolio.
This decision also took into consideration the expectation of future rate cuts by the fed.
As well as the higher interest rate environment, we will face on refinancing our notes maturing in early 2026.
We believe most importantly.
Speaker #2: This decision also took into consideration the expectation of future rate cuts by the Fed, as well as the higher interest rate environment we will face on refinancing our notes maturing in early 2026.
This puts us in a more favorable position to over earn our dividend regularly.
Finally, subsequent to the quarter's end our advisor amended its existing income incentive fee waiver to ways in full quarter.
Speaker #2: We believe most importantly, this puts us in a more favorable position to over-earn our dividend regularly. Finally, subsequent to the quarter's end, our advisor amended its existing income incentive fee waiver to waive in full its quarterly income incentive fee for the remainder of this year as well.
Quarterly income incentive fee for the remainder of this year as well.
Along with the support of our sponsor and adviser we believe we're setting the stage for and continue on the path for the future to create long term shareholder value.
With that let me turn the call over to social <unk>.
Thank you Jim and good afternoon regarding the investment portfolio activity during Q2 Triple point capital signed $242 million of term sheets with venture growth stage companies compared to $188 million of term sheets in Q2, 2004 and $315 million in Q1 2025.
Speaker #2: Along with the support of our sponsor and advisor, we believe we're setting the stage for and continue on the paths for the future to create long-term shareholder value.
Speaker #2: With that, let me turn the call over to Sajal.
Speaker #3: Thank you, Jim. And good afternoon. Regarding investment and portfolio activity during Q2, TriplePoint Capital signed $242 million of term sheets with venture growth-stage companies, compared to $188 million of term sheets in Q2 2024 and $315 million in Q1 2025.
With regards to new investment allocation to <unk> during the second quarter, TPG, sorry, TPC allocated $160 million in new commitments with eight companies to TPG compared to $52 million in Q2, 2024 and $77 million in Q1 2025.
Speaker #3: With regards to new investment allocation to TPVG during the second TPVG, sorry, TPC allocated $160 million in new commitments with eight companies to TPVG, compared to $52 million in Q2 2024 and $77 million in Q1 2025.
75% of the portfolio companies, we extended commitments to during the quarter were new customers all of which fall in the AI and enterprise software sectors, reflecting our focus on obligor diversification and sector rotation.
During the second quarter, we exceeded our guided range and funded $79 million of debt investments to nine companies as compared to 39 million to five companies in Q2, 2024, and 28 million to five companies. In Q1 2025. These funded investments carried a weighted average annualized portfolio yield.
Speaker #3: 75% of the portfolio companies we extended commitments to during the quarter were new customers, all of which fall in the AI and enterprise software sectors, reflecting our focus on obligatory diversification and sector rotation.
Speaker #3: During the second quarter, we exceeded our guided range and funded $79 million in debt investments to nine companies, as compared to $39 million quarter, to five companies in Q2 2024, and $28 million to five companies in Q1 2025.
12, 3% down from 13, 3% in Q1.
During Q2, we had $44 million of loan prepayments, resulting in an overall weighted average debt portfolio yield of 14, 5% exclude.
Speaker #3: These funded investments carried a weighted average annualized portfolio yield of 12.3%, down from 13.3% in Q1. During Q2, we had $44 million of loan prepayments resulting in an overall weighted average debt portfolio yield of 14.5%.
Excluding prepayments our core portfolio yield was 13, 6%, which was down from 14, 1% in Q1.
During the quarter, we grew our debt investment portfolio for the first time materially since Q1 2023, as a result of new fundings exceeding both prepayment repayment.
Speaker #3: Excluding prepayments, our core portfolio yield was 13.6%, which was down from 14.1% in Q1. During the quarter, we grew our debt investment portfolio for the first time materially since Q1 2023, as a result of new fundings exceeding both prepayment, repayment, and amortization activity within the portfolio by $31 million.
Amortization activity within the portfolio by $31 million.
Although we continue to see robust demand for debt financing for venture growth stage companies as demonstrated by our $114 million of new commitments and $21 million of funding. So far in Q3, our quarterly target for new fundings continues to be in the $25 million to $50 million range for Q3 2025.
Speaker #3: Although we continue to see robust demand for debt financing from venture growth-stage companies, as demonstrated by our $114 million of new commitments and $21 million of funding so far in Q3, our quarterly target for new fundings continues to be in the 25 to 50 million range for Q3 2025, with the potential to be at the higher end or slightly above the range in Q4.
<unk>.
With the potential to be at the higher end or slightly above the range in Q4.
However, we continue to expect at least one repayment event per quarter of this year, which will likely result in our ability to achieve substantial portfolio growth occurring over the course of 2026, when we expect prepayment activity has slowed down and potentially our quarterly new debt funding range to expand.
Speaker #3: However, we continue to expect at least one repayment event per quarter this year, which will likely result in our ability to achieve substantial portfolio growth occurring over the course of 2026, when we expect prepayment activity to slow down, and potentially our quarterly new debt funding range to expand.
Five portfolio companies with debt outstanding raised $216 million during the quarter compared to four portfolio companies raising $137 million in Q1.
As of quarter end, we held warrants and 106 companies and equity investments in 52 companies with a total fair value of $127 million.
Speaker #3: Five portfolio companies with debt outstanding raised $216 million during the quarter, compared to four portfolio companies raising $137 million in Q1. As of quarter end, we held warrants in 106 companies, and equity investments in 52 companies, with a total fair value of $127 million.
From Q1, as a result, primarily of $7 3 million markup in our warrant and equity holdings in revenue.
Our markup this quarter reflects an adjusted value based on the annual financial statements Revolute filed in April, which announced revenues of $4 billion up 72% and net profit of $1 billion roughly double from 2023.
Speaker #3: Up from Q1, as a result primarily of a $7.3 million markup in our warrant and equity holdings in Revolut. Our markup this quarter reflects an adjusted value based on the annual financial statements Revolut filed in April, which announced revenues of $4 billion, up 72%, and net profit of $1 billion, roughly double from 2023.
In July it was reported that revolute raised $2 billion of equity at a 75 billion valuation, which bodes well for further potential appreciation of our holdings as well as does the successful U S. IPO of chime, which operates in the similar sector to revenue.
Speaker #3: In July, it was reported that Revolut raised $2 billion of equity at a $75 billion valuation, which bodes well for further potential appreciation of our holdings, as well as does the successful US IPO of Chime, which operates in a similar sector to Revolut.
During the quarter, one company with a principal balance of $2 1 million was downgraded from category two to category three due to delays in strategic and our fundraising process, but we believe remains on track and one company Truvada and <unk> marketplace for restaurants and retailers in.
Speaker #3: During the quarter, one company with a principal balance of $2.1 million was downgraded from category two to category three due to delays in strategic and/or fundraising process, but we believe remains on track.
In America with a principal balance of $11 million was downgraded from category two to category four as a result of investors walking from assigned term sheet and withdrawing their support for the company. We are working with the company and their advisors to evaluate strategic options for the company to maximize value and recovery.
Speaker #3: And one company, Frubana, a B2B marketplace restaurants and retailers in Latin America, with a principal balance of $11 million, was downgraded from category two to category four as a result of investors walking from a signed term sheet and withdrawing support for the company.
While we are starting to see improving market conditions in the venture market as a whole there continue to be events, which adversely impacts specific sectors or sub sectors and caused certain types of investors to pull back our cause transactions, including M&A to be delayed or fall apart. Despite continued underlying performance by the <unk>.
Speaker #3: We are working with the company and their advisors to evaluate strategic options for the company, to maximize value and recovery. While we are starting to see improving market conditions in the venture market as a whole, there continue to be events which adversely impact specific sectors or subsectors, and cause certain types of investors to pull back, or cause transactions, including M&A, to be delayed or fall apart, despite continued underlying performance by the company, and result in its accelerated decline.
Company and result in accelerated decline you.
We will continue to real time, SaaS portfolio company developments performance and outlook over the course of the year and update our marks and values accordingly.
With regards to tariffs as we discussed last quarter. Although the situation continues to evolve we have reviewed our portfolio and have not seen any material impact to those few companies that may have some U S tariff exposure.
Speaker #3: We will continue to real-time assess portfolio company developments performance and outlook over the course of the year, and update our marks and values accordingly.
Most of these companies have been actively working to explore opportunities to change their supply chains and source products and lower tariff regions decreased pricing and or expand their sales outside of the U S.
Speaker #3: With regards to tariffs, as we discussed last quarter, although the situation continues to evolve, we have reviewed our portfolio, and have not seen any material impact to ose few companies that may have some US tariff exposure.
In closing, we remain aligned to disciplined and mindful of the volatile market environment, while executing on our plan for positioning TPG for the long term by building overall scale diversification and durability targeting well positioned and well capitalized new customers in attractive sectors and driving.
Speaker #3: Most of these companies have been actively working to explore opportunities to change their supply chains and source products in lower tariff regions, increase pricing, and/or expand their sales outside of the US.
Speaker #3: In closing, we remain aligned to disciplined and mindful of the volatile market environment, while executing on our plan for positioning TPVG for the long term, by building overall scale, diversification, and durability, targeting well-positioned and well-capitalized new customers and attractive sectors, and driving investment fundings and our earnings power to build shareholder value.
Fundings and our earnings power to build shareholder value.
With that I'll now turn the call over to Mike.
Thank you <unk> and Hello, everyone.
During the second quarter, we funded $79 million of new debt investments up from $28 million in the prior quarter and received $45 million in prepayments and early repayments driving a net increase of $31 million and our debt investment portfolio at cost.
Speaker #3: With that, I'll now turn the call over to Mike.
Speaker #4: Thank you, Sajal. And hello, everyone. During the second quarter, we funded $79 million of new debt investments, up from $28 million in the prior quarter.
As of June 32025, the company had total liquidity of $313 million, consisting of cash cash equivalents and restricted cash of $63 million and available capacity under its revolving credit facility of $250 million.
Speaker #4: And received $45 million in prepayments and early repayments, driving a net increase of $31 million in our debt investment portfolio at cost. As of June 30th, 2025, the company had total liquidity of $333 million, consisting of cash, cash equivalents, and restricted cash of $63 million, and available capacity under its revolving credit facility of $250 million.
Of the $250 million of available capacity under the revolving credit facility. There was $91 million of available borrowing base that could be drawn as of June 32025.
We ended the quarter with $185 million of floating rate unfunded investment commitments of which $27 million was dependent upon certain portfolio of companies reaching specific milestones.
Speaker #4: Of the $250 million of available capacity under the revolving credit facility, there was $91 million of available borrowing base that could be drawn as of June 30th, 2025.
Our unfunded investment commitments expire over the next two and a half years with $20 million expiring in 2025 $88 million expiring in 2026 and $77 million expiring in 2027.
Speaker #4: We ended the quarter with $185 million of floating rate unfunded investment commitments, of which $27 million was dependent upon certain portfolio companies reaching specific milestones.
The end of quarter unfunded commitments represented 58% increase from the prior quarter, reflecting the continued expansion of our investment pipeline over recent quarters and successful conversion of signed term sheets into closed commitments.
Speaker #4: Our unfunded investment commitments expire over the next two and a half years, with $20 million expiring in 2025, $88 million expiring in 2026, and $77 million expiring in 2027.
We ended the quarter with a leverage ratio of one to two times after netting the cash on our balance sheet net leverage stood at 1.04 times.
Speaker #4: The end of quarter unfunded commitments represent the 58% increase from the prior quarter, reflecting the continued expansion of our investment pipeline over recent quarters and successful conversion signed term sheets into closed commitments.
Given the cash we have on our balance sheet the available borrowing base at quarter end and our target leverage range of one three times to one four times. We believe we have ample funding capacity for unfunded commitments and for the upcoming refinancing discuss later in my prepared remarks.
Speaker #4: We ended the quarter with a leverage ratio of 1.22 times. After netting the cash on our balance sheet, net leverage stood at 1.04 times.
Speaker #4: Given the cash we have on our balance sheet, the available borrowing base at quarter end, and our target leverage range of 1.3 times to 1.4 times, we believe we have ample funding capacity for our unfunded commitments and for the upcoming refinancing discussed later in my prepared remarks.
Turning to our operating results for the second quarter total investment income was $23 3 million with a portfolio yield of 14, 5% as compared to $27 1 million with a portfolio yield of 15, 8% for the prior year period.
Speaker #4: Turning our operating results. For the second quarter, total investment income was $23.3 million, with a portfolio yield of 14.5%, as compared to $27.1 million, with a portfolio yield of 15.8% for the prior year period.
The decrease in total investment income was due primarily to a lower average debt portfolio as compared to a year ago, while the lower portfolio yield reflected the impact of prime rate reductions and less accelerated prepayment income in the quarter.
For the second quarter total operating expenses were $12 million as compared to $14 5 million for the prior year period.
Speaker #4: The decrease in total investment income due primarily to a lower average debt portfolio, as compared to a year ago, while the lower portfolio yield reflected the impact of prime rate reductions and less accelerated prepayment income in the quarter.
These expenses consisted of $6 7 million of interest expense $3 3 million of base management fees 629000 of administrative agreement expenses and $1 4 million of G&A expenses due.
Speaker #4: For the second quarter, total operating expenses were $12 million, as compared $14.5 million for the prior year period. These expenses consisted of $6.7 million of interest expense, $3.3 million of base management fees, $629 thousand of administrative agreement expenses, and $1.4 million of G&A expenses.
Due to the shareholder friendly total return requirement under the incentive fee calculation the incentive fee waivers from the company's advisor there were no income incentive fees during the second quarter of 2025.
In the current quarter, one 3 million events income incentive fees were earned but fully waived by the advisor as a result of the fee waivers mentioned by Jim earlier, we will not incur any income incentive fee expense for the remainder of 2025.
Speaker #4: Due to the shareholder-friendly total return requirement under the incentive fee calculation, the incentive fee waivers from the company's advisor there were no income incentive fees during the second quarter of 2025.
The company's net investment income for the second quarter of 2025 was $11 3 million or <unk> 28 per share as compared to a net investment income of $12 6 million or <unk> 33 per share for the second quarter of 2024.
Speaker #4: In the current quarter, $1.3 million of income incentive fees were earned, but fully waived by the advisor. As a result of the fee waivers mentioned by Jim earlier, we will not incur any income incentive e expense for the remainder of 2025.
Speaker #4: The company's net investment income for second quarter of 2025 was $11.3 million, or $28 cents per share, as compared to a net investment income of $12.6 million, or $33 cents per share for the second quarter of 2024.
For the second quarter of 2025 net realized losses on investments totaled $32000. During the second quarter of 2024, the company recognized net realized losses on investments of $18 8 million.
Net change in unrealized gains on investments for the second quarter of 2025 was $1 9 million.
Speaker #4: For the second quarter 2025, net realized losses on investments totaled $32,000. During the second quarter 2024, the company recognized net realized losses on investments of $18.8 million.
Consisting of $6 8 million of net unrealized gains on the existing warrant and equity portfolio, resulting from fair value adjustments and $5 8 million of net unrealized gains from foreign currency adjustments, partially offset by $10 7 million of net unrealized losses on the debt investment portfolio result.
Speaker #4: Net change and unrealized gains on investments for the second quarter of 2025 was $1.9 million. Consisting of $6.8 million of net unrealized gains on the ing warrant and equity portfolio resulting from fair value adjustments, and $5.8 million of net unrealized gains from foreign currency adjustments.
<unk> from fair value adjustments.
During the second quarter of 2024, the company recognized net unrealized gains on investments of $14 9 million.
Speaker #4: Partially offset by $10.7 million of net unrealized losses on the debt investment portfolio resulting from fair value adjustments. During the second quarter of 2024, the company recognized net unrealized gains on investments of $14.9 million.
The company's net realized and unrealized gains were $1 9 million for the second quarter of 2025 compared to net realized and unrealized losses of 4.01 million for the second quarter of 2024.
The company's net sorry, the company's net increase and net assets, resulting from operations for the second quarter of 2025 was $13 2 million or 33 per share as compared to a net increase in net assets, resulting from operations of $8 6 million or 22 per share for the second quarter.
Speaker #4: The company's net realized and unrealized gains were $1.9 million for the second quarter 2025, compared to net realized and unrealized losses of $4.0 million, for the second quarter of 2024.
Speaker #4: The company's net assets, sorry, the company's net increase in net assets resulting from operations for the second quarter of 2025 was $13.2 million, or $33 cents per share, as compared to a net increase in net assets resulting from operations of $8.6 million, or $22 cents per share for the second quarter 2024.
2024.
As of June 32025, net asset value was $348 7 million or $8 65 per share compared to $347 million or $8 62 per share as of March 31, 2000 2025.
Speaker #4: As of June 30th, 2025, net asset value was $348.7 million, or $8.65 per share. Compared to $307 million, or $8.62 per share, as of March 31st, 2025.
On August 5th our board declared a regular quarterly dividend of <unk> 23 per share payable on September 30 to shareholders of record.
As of September 16th.
While we remain focused on increasing net investment income in the coming quarters, we reduced the dividend from $32 23 per share to better align distribution levels as fundings from newer commitments continue to ramp and prepayment activity remains present in the portfolio.
Speaker #4: On August 5th, our board declared a regular quarterly dividend of $23.00 per share, payable on September 30th to shareholders of as of September 16th.
Speaker #4: While we remain focused on increasing net investment income in the coming quarters, we reduced the dividend from $0.30 to $0.23 per share, to better align distribution levels as fundings from newer commitments continue to ramp and prepayment activity remains present in the portfolio.
We believe this adjustment also positions the company to over earn future dividends and prepare for the anticipated increase in our cost of debt capital as we look ahead to refinancing $200 million of our $375 million in total fixed rate notes maturing in the first quarter of 2020.
Speaker #4: We believe this adjustment also positions the company to over-earn future dividends and prepare for the anticipated increase in our cost of debt capital as we look ahead to refinancing $200 million of our $375 million in total fixed-rate notes, maturing in the first quarter of 2026, with a 4.5% fixed coupon.
Six with a four 5% fixed coupon.
At quarter end, we had estimated spillover income of $42 million or $1 <unk> per share.
Now an update on our capital structure and liquidity.
As of quarter end total debt outstanding was $425 million consisting of $375 million in fixed rate investment grade term notes and $50 million drawn on our $300 million floating rate revolving credit facility.
Speaker #4: At quarter end, we had estimated spillover income of $42 million, or $1.04 per share. Now, an update on our capital structure and liquidity. As of quarter end, total debt outstanding was $425 million, consisting of $375 million in fixed rate investment grade term notes, and $50 million drawn on our $300 million floating rate revolving credit facility.
Our fixed rate term notes have scheduled maturities in March of 2026 February of 2027 in February of 2028.
With $200 million of four 5% fixed rate notes maturing in March 2026, and given the current interest rate environment. Our capital management strategy remains focused on preserving liquidity and financial flexibility to address this refinancing on favorable terms, while continuing to support growth.
Speaker #4: Our fixed-rate term notes have scheduled maturities in March of 2026, February of 2027, and February of 2028. With $200 million of $4.5% fixed-rate notes maturing in March 2026, and given the current interest rate environment, our capital management strategy remains focused on preserving liquidity and financial flexibility to address this refinancing on favorable terms, while continuing to support growth in our investment portfolio and providing shareholder returns in the form of quarterly dividends.
In our investment portfolio and providing shareholder returns in the form of quarterly dividends.
As we evaluate refinancing options and market timing for the March 2026 maturity. Our key objective is to optimize both our fixed versus floating rate mix and our term versus revolving debt profile.
At this time, we expect to refinance the 200 million maturity with a combination of issuing a new tranche of fixed rate unsecured notes in the first quarter of 2026 and use available cash and revolver capacity to retire the remaining balance.
Speaker #4: As we evaluate refinancing options and market timing the March 2026 maturity, a key objective is to optimize both our fixed versus floating rate mix and our term versus revolving debt profile.
Looking ahead, we anticipate increased use of our floating rate revolving credit facility in connection with our refinancing plans for.
Speaker #4: At this time, we expect to refinance the $200 million maturity with a combination of issuing a new tranche of fixed-rate unsecured notes in the first quarter 2026, and use available cash and revolver capacity to retire the remaining balance.
The 300 million facility is scheduled for renewal in November 2025, and we plan to size and structure it to align with our projected long term capital strategy.
Speaker #4: Looking ahead, we anticipate increased use of our floating-rate revolving credit facility in connection with our refinancing plans. The $300 million facility is scheduled for renewal in November 2025, and we plan to size and structure it to align with our projected AUM and -term capital strategy.
Sure.
This completes our prepared remarks today and so operator could you. Please open the line for questions at this time.
We will now begin the question and answer session.
I'll ask a question you May press Star then one on your Touchtone phone, if you're using a speakerphone. Please pick up your handset before pressing the keys if at any time in your question has been addressed and you would like to withdraw. It. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Speaker #4: This completes our prepared remarks today, and so Operator, could ou please open the line for questions at this time?
Speaker #2: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you're using a speaker phone, please pick up your handset before pressing keys.
Our first question comes from Kristen.
Piper Sandler.
Speaker #2: If at any time your question has been addressed and you would like to withdraw it, please press star, then two. At this time, we will pause momentarily to assemble our rafter.
Please go ahead.
Thank you good afternoon first on the outlook for fundings second quarter's very strong pipeline still seems to be strong, but you're still expecting $25 million to $50 million per quarter I think over the near term can you just dig into that a little bit more I understand the third quarter can be a little bit seasonally slower for VC.
Speaker #2: Our first question comes from Kristen Love of Piper Sandler. Please go ahead.
Speaker #5: Thank you. Good afternoon. First, on the outlook for fundings, second quarter is very strong. Pipeline still seems to be strong. But you're still expecting 25 to 50 million per quarter.
I'm wondering if that's a factor and then just share some thoughts for the fourth quarter in 2026, just based on what Youre seeing today.
Speaker #5: I ink over the near term, can you just dig into that a little bit more? I understand the third quarter can be a little bit seasonally slower for VC, so wondering if that's a factor.
Hi, Chris, but it sounds well I'll take it so I think it's a combination of lower utilization of historical unfunded commitments.
Lower upfront utilization of new upfront commitments.
Speaker #5: And then just share some thoughts for the fourth quarter in 2026, just based on what you're seeing today.
I would say that.
The combination then for Q3, a little bit of seasonality as you said, although we've got a strong start to the quarter. So far and then Q4 as I guided expecting to be probably at the higher range and potentially above given against Q4 tends to be a busier quarter as well.
Speaker #3: Hi, Kristen. It's Sajal. I'll take it. So I think it's a combination of lower utilization, of historical unfunded commitments, lower upfront utilization of new upfront commitments, so I'd say that's the combination.
Speaker #3: And then for Q3, a little bit of seasonality, as you said, although we've got a strong start to the quarter so far. And then Q4, as I guided expecting to be probably at the higher range and potentially above, given again, Q4 tends to be a busier quarter as well.
Alright, perfect and then just.
Second question for me I saw the.
To your point capital stock purchase program definitely good to see there, but would you also expect to be active with stock buybacks or is that unlikely right now just as you.
<unk> liquidity with some of the maturities coming up.
Speaker #5: Okay. Perfect. And then just a second question for me. I saw the Triplepoint Capital stock purchase program definitely good to see there. But would you also expect to be active with stock buybacks, or is that unlikely right now, just as you preserve liquidity with of the maturities coming up?
Yes, I'll take that Christian I think its mostly ourselves and the board.
Having in mind, creating long term shareholder value. So we're always actively considering assessing really what comes down to capital allocation.
Presently.
Speaker #2: Yeah. I'll take that, en. I think it's mostly ourselves and board having in mind creating long-term shareholder value. So we're always actively considering assessing really what comes down a capital allocation.
Capital allocation its financial flexibility, so we need to think about our unfunded commitments, we need to think about.
Our upcoming maturities debt maturities in 2026, we have to think about keeping within our targeted leverage range refinancing the debt as I mentioned and really the financial flexibility, we got the depth grading and some other things coming up.
Speaker #2: And presently, in terms of capital allocation, it's financial flexibility. So we need to think about our unfunded commitments. We need think about our upcoming matured debt maturities in 2026.
Also having the liquidity and the capital.
Speaker #2: We have to think about keeping within our targeted leverage range, refinancing the debt, as I mentioned, and really the financial flexibility we got the debt rating and some other things coming up.
That's right, but having said all of that.
We've done buybacks in the past.
The board will continue to consider actively all these capital allocation issues and balances, including a buyback.
Speaker #2: And also having the liquidity and the capital that's right. But having said all that, we've done buybacks in the past. The board will continue to consider actively all these capital allocation issues and balances including a buyback.
Great. Thank you Jim and I appreciate you taking my questions.
The next question comes from Douglas Harter of UBS.
Please go ahead.
Thanks.
Speaker #5: Great. Thank ou, Jim and Sajal. Appreciate ou both taking my questions.
I guess.
Can you just talk.
About the repayment activity kind of what what is what.
Speaker #2: The next question comes from Douglas Harder of UBS. Please go head.
Is it that youre seeing that that's kind of.
Cause it not to be somewhat elevated.
Thats holding back growth and why do you expect that to slow next year.
Speaker #6: Thanks. I ess can you just talk about the repayment activity kind what is it that you're seeing that's kind of causing that to be somewhat elevated?
Yes, I'll take it.
Doug So I would say it continues to be robust equity funding.
Raising activity from portfolio companies and so we're seeing an element of that with the prepayment activity.
Speaker #6: That's holding back growth and why do ou expect that to slow next year?
Seeing <unk>.
Speaker #3: Yeah. I'll take it. Doug. So I would say it continues to be robust equity funding raising activity from Portfolio Companies. And so we're we're seeing an element of that with the prepayment activity.
M&A and other activity as well which is.
It is also occurring and then I think as we look to 2026 again the seasonality of the portfolio of the vintages. The portfolio. We would expect again the older vintages have very much completed their prepayment activity. We will have fresher newer vintages from the fundings that we have and so we would expect prepayment.
Speaker #3: We're seeing M&A and other activity as well, which is also occurring. And then I think as we look to just 2026 again, the seasonality of the portfolio, the vintages of the portfolio, we would expect again the older vintages have very much completed their prepayment activity.
To be.
More delayed in 2026, if anything more back half loaded and into 2027.
Great I appreciate that social.
Speaker #3: We will have fresher, newer vintages from the fundings that we have. And so we would expect prepayment activity to be more delayed in 2026 if anything more back half-loaded and into 2027.
This concludes the question and answer session I would like to turn the conference back over to Mr. Kim <unk> for any closing remarks.
As always I'd like to thank everyone for listening and participating in today's call. We look forward to updating and talking with you all again next quarter.
Speaker #5: Great. Appreciate that, Sajal. Thanks.
Speaker #2: This concludes the question and answer session. I would like to turn the conference back over to Mr. Jim Labe for any closing remarks.
Thanks, again and have a nice day.
The conference has now concluded thank you for attending today's presentation.
Speaker #7: As always, I'd like to thank everyone for listening and participating in today's call. We look forward to updating and talking with you all again next quarter.
Speaker #7: Thanks again, and have a nice day.