TriplePoint Q3 2022 Earnings Report
Key Takeaways
TriplePoint Venture Growth BDC Corp. announced strong financial results for Q3 2022, achieving a record portfolio fair value of $962 million and net investment income of $0.51 per share. The company increased its distribution to $0.37 per share for the fourth quarter of 2022, demonstrating its significant earnings power.
Signed $268.8 million of term sheets and closed $103.3 million of new debt commitments.
Funded $101.7 million in debt investments to 14 portfolio companies with a 14.5% weighted average annualized portfolio yield at origination.
Earned net investment income of $16.9 million, or $0.51 per share.
Increased and declared a fourth quarter distribution of $0.37 per share.
TriplePoint
TriplePoint
Forward Guidance
TriplePoint Venture Growth BDC Corp. is well-positioned to capitalize on the demand for venture growth debt investments and aims to enhance shareholder returns.
Positive Outlook
- TPC’s direct originations platform entered into $96.3 million of additional non-binding signed term sheets with venture growth stage companies
- The Company funded $27.9 million in new investments
- The Company received $33.8 million of principal prepayments generating more than $1.0 million of accelerated income
- ForgeRock, Inc. announced that it has entered into a definitive agreement to be acquired by Thoma Bravo, for $23.25 per share, in an all-cash transaction valued at approximately $2.3 billion.
- Increased distribution for the fourth quarter
Challenges Ahead
- Preliminary information regarding certain recent negative developments at portfolio company Medly Health Inc., which we believe could result in a future credit rating downgrade of their outstanding loans.
- Unfunded commitments totaled $331.1 million, of which $128.4 million was dependent upon portfolio companies reaching certain milestones.
- Net realized losses on investments of $13.2 million, resulting primarily from the sale of Pencil and Pixel, Inc.
- Net change in unrealized losses on investments for the third quarter of 2022 was $3.2 million
- Net increase in net assets resulting from operations was $0.4 million, or $0.01 per share