TriplePoint Venture Growth BDC Corp. Q4 FY2025 earnings call

• 2025 was a year of meaningful progress and improved performance across the portfolio, with efforts to increase scale, durability, income-generating assets, and NAV. - Closed $508 million of new debt commitments in 2025, a significant increase from 2024, with highest originations activity in over two years. - Benefited from uptick in venture capital investment activity, with deal value in core venture growth market segment rising 131% year over year. - Made progress diversifying business with 28 new borrowers in 2025, focusing on high potential durable sectors including AI. - Positioned to benefit from secular trends in sectors like aerospace, defense, infrastructure, and advanced manufacturing. - Successfully refinanced $200 million in 2026 notes in first quarter of 2025. - Sponsor purchased over 1.8 million shares of TPVG during third and fourth quarters of 2025, and advisor's income incentive fee waiver extended through 2026.

In 2025, the investment portfolio grew year over year. TPVG closed $508 million of new debt commitments to venture growth stage companies, a significant increase from $175 million in 2024. Ended the year with $287 million in fundings, more than double the previous year. Net investment income for 2025 was $42.3 million or $1.05 per share on total investment and other income of $90.9 million. Weighted average annualized portfolio yield on debt investments was 13.7% for the year. Net asset value increased year-over-year to $8.73 per share at December 31, 2025. Fourth quarter total investment and other income was $22.5 million, weighted average annualized portfolio yield on debt investments was 12.7%. Net investment income for the fourth quarter was $9.9 million or $0.25 per share. Net increase in net assets resulting from operations was $8.1 million or $0.20 per share. The portfolio had various credit rating category updates with prepayments, repayments, and fair value adjustments.

• Quarterly target for new funding in 2026 continues to be in the 25 to 50 million range unless there's higher than expected prepayment activity. - Any overall optimism about IPO markets probably delayed, but M&A discussions picking up. - Focus on strengthening balance sheet, driving portfolio scale and quality, rotating portfolio into newer vintages, resolving credit situations, and growing NAV and shareholder value.

• Volatility in the market could delay IPO activity. - Uncertainty regarding valuations and multiples in M&A transactions. - Impact of macroeconomic factors on the venture market and portfolio performance. - Fluctuations in fair value of warrant and equity portfolio due to various factors like sector performance and company results.

Q: Two debt investment names raised money this quarter, is it a low number historically and macro for venture?

A: It's a reflection of the freshness of the portfolio's vintages, with fundraising activity expected more in 2026 and 2027 due to new obligors added.

Q: Change in strategy?

A: Playbook is refined every year, focused on multifaceted approach including strengthening balance sheet, driving new investments, resolving credit situations, etc.

Q: Worked through most negative marks?

A: Can't say fully out of the woods, but proactive in resolving situations and making progress.

Q: Prepayments visibility and share repurchases?

A: Currently not much visibility on remaining quarter prepayments, but management considers share repurchases to create value.

Q: Software portfolio composition and confidence?

A: Majority of software exposure from last two years, mostly AI native or enabled.

Q: M&A and IPO expectations?

A: IPO activity delayed, but M&A discussions picking up.

Q: AI impact on operations?

A: Using AI in due diligence, back office operations, and some portfolio companies' businesses.