TriplePoint Venture Growth BDCNYSE: TPVG

We gave TPVG a Sell rating the last time around and came out ahead by not taking capital losses. TPVG has trailed BIZD by 18% since then. We review the Q1-2024 results and tell you why the dividend cut probability has gone up.

TriplePoint Venture Growth (NYSE:TPVG) will be holding their Q1 2024 Earnings Conference Call on May 1, 2024 at 5:00 PM ET. The call will feature James Labe, Sajal Srivastava, and Christopher Mathieu from the company. Various analysts from Wells Fargo, Piper Sandler, UBS, KBW, and Ladenburg Thalmann will also be participating in the call. Good afternoon, and welcome to the TriplePoint Venture Growth BDC Corp. First Quarter 2024 Earnings Conference Call.

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TriplePoint Venture Growth reported a larger-than-anticipated decline in net asset value and an increase in its payout ratio. The company's high non-accrual ratio and underwhelming investment performance raise concerns about the sustainability of its dividend. TPVG stock price has dropped and is now selling at net asset value, but caution is warranted due to the risk of a dividend cut.

We take a look at the action in business development companies through the third week of March and highlight some of the key themes we are watching. BDCs finished flat on the week, outperforming other income sectors amid falling equity prices and Treasuries due to higher than expected inflation. Q4 results for BDCs were strong, with the average total NAV return around 2.5% and net investment income increasing from Q3.

TriplePoint Venture Growth suffers from high non-accruals in its credit portfolio. The firm's NAV dropped 11% Q/Q to $9.21 per share in Q4 due to realized investment losses. The BDC's non-accrual percentage dropped to 4% in Q4 '23. TPVG had a 118% NII/dividend ratio in Q4 '23, and 129% in FY 2023. The dividend, for now, appears reasonably well-protected.

TriplePoint Venture Growth experienced a rough quarter with $52 million in realized losses and a decline in portfolio value. The company has been able to maintain its dividend by waiving the incentive fee, but this may lead to talent leaving the company. We tell you why TriplePoint Venture Growth is a Sell despite the high yield.

Triplepoint Venture Growth (NYSE:TPVG ) Q4 2023 Earnings Conference March 6, 2024 5:00 PM ET Company Participants James Labe - Co-Founder, Chairman & CEO Sajal Srivastava - Co-Founder, President, CIO, Secretary, Treasurer & Director Christopher Mathieu - CFO Conference Call Participants Brian McKenna - Citizens JMP Casey Alexander - Compass Point Research & Trading Christopher Nolan - Ladenburg Thalmann & Co. Paul Johnson - KBW Operator Good afternoon, ladies and gentlemen. Welcome to the Triplepoint Venture Growth BDC Corp. Fourth Quarter 2023 Earnings Conference Call.

TriplePoint Venture Growth (TPVG) came out with quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.58 per share a year ago.