TriplePoint Venture Growth BDC Corp.

Good afternoon, ladies and gentlemen. Welcome to the Triple Point Venture Growth BDC Corp. Third Quarter 2025 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. After the speaker's 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 Triple Point Venture Growth website. Company management is pleased to share with you the company's results for the third quarter of 2025. Today representing the company is Jim LeBay, Chief Executive Officer and Chairman of the Board, Sajal Srivastava, President and Chief Investment Officer, and Mike Wilhelms, Chief Financial Officer. Before I turn the call over to Mr. LeBay, 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 make certain statements that relate to future events or the company's future performance or financial conditions, which are considered forward-looking statements under federal securities law. You are asked to refer to the company's most recent filings with the Securities and Exchange Commissions for important factors that could cause extra results to differ materially from these statements. 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. To obtain copies of our latest SEC filings, please visit the company's website at www.tpvg.com. Now I'd like to turn the conference over to Mr. LeBay.

Thank you, Operator. Good afternoon, everyone, and welcome to TPVG's third quarter earnings call. During the third quarter, our focus remained on furthering our strategy to increase TPVG scale, durability, income-generating assets, and NAV over the long term. We're pleased with the progress we've made in the quarter working towards these important objectives, and we expect fundings to continue to materialize over the next few quarters as we progress on our path of portfolio diversification and investment sector rotation. In addition to covering the dividend for the quarter and increasing our NAV, the third quarter marked one of growth and increased investment activity for TPVG. We took advantage of strong demand from high-quality venture growth stage companies in the sectors we are focused on to grow the debt investment portfolio. During the quarter, TPVG experienced its highest level of debt commitment and funding since 2022. resulting in Q3 fundings that significantly exceeded our guided range, reaching the highest level in 11 quarters. Importantly, Q3 also represented the highest level of signed term sheets with venture growth stage companies at our sponsor, TriplePoint Capital. Looking at the last three quarters alone, signed term sheets for venture growth stage companies at TPC reached almost 1 billion. At quarter's end, Our pipeline also continued to remain at near record highs since 2021. Touching on the overall venture capital market, while some uncertainties and volatility certainly still remain, investment activity is rising, and venture capital deal activity increased during the quarter, due primarily to all this momentum going on in the AI space. According to PitchBook, AI investments accounted for more than two-thirds of the venture deal value last quarter. For mega deals, it was more than 70% of the deal value, a level not seen since 2021 and 2022. Another encouraging sign were increases in M&A and IPO activity, which collectively generated more than $75 billion across 362 exits. the strongest quarter for venture-backed companies since the pandemic. Turning to our own internal tracking, the number of equity rounds closed by our select venture capital investors year-to-date has already exceeded the aggregate total for all of last year by 34 percent. All these trends hold promise for what we believe are signs for continuing improvement for the venture markets versus those upheavals in the last half of 2021 and right through late 2022. We're also seeing a notable decrease in equity financing down rounds and an increase in up rounds. These days, more and more, I hear the word uptick in conversations and venture circles. And certain companies, in fact, are experiencing oversubscribed equity rounds, And there's an active secondary market, which has come back for some companies as well, including a few of our portfolio companies. There's growing optimism that venture companies are beginning to find some paths to liquidity, and should IPO and M&A markets for venture companies continue on this improvement, it represents additional opportunities. One of the potential benefits of our venture lending business that's often overlooked are the warrants we receive as part of our loan transactions and our equity investments. We have a sizable equity and warrant portfolio with warrant positions in 112 portfolio companies and equity investments in 53. As the exit market continues to evolve, we're well positioned to realize value for shareholders. We hold positions in a number of companies which has also appeared in industry publications on their notable top IPO candidates list. Companies such as Cohesity, Zevs, Revolut, Dialpad, Filevine, and others. While we're encouraged by market and portfolio developments, we remain highly focused on monitoring and working through credit situations, primarily investments from the pre-market change period, and Sajil will discuss those more in detail later in this call. Taking a closer look at the portfolio, we're pleased to report continued progress on diversification, as we made commitments to nine new borrowers during the quarter, and now 19 new borrowers year to date. As part of the diversification, we've also been leaning into increased companies characterized by substantial revenues, strong margins, solid cash runways, at or near EBITDA positive, and with a clear path to cash flow generation and debt service without the need for further equity fundraising. They're generally more mature companies. They have stronger profiles and were the senior lender, often with revolving loans, with the tradeoff being lower yields given their more mature profiles. Turning to investment sector rotation, we continue to actively add new borrowers focused on high potential and durable sectors, especially those that are able to leverage AI to drive product differentiation, market disruption, and efficiency. We remain excited by the horizontal market opportunity AI presents, and we believe it will be a massive megatrend that persists for many years to come. Similar to our select venture capital investors, AI is a clear center of gravity. The technology combines massive growth potential with equally large capital requirements, particularly around GPUs, data center infrastructure, and unique models trained on proprietary data. These dynamics play directly to the strengths and advantages of our venture lending. providing non-dilutive growth capital to high-growth companies in capital-intensive markets. Over the past two years, we've been active in lending across a full AI stack, from semiconductor companies enabling AI inference, like Etched, to networking infrastructure companies to power the next generation of AI data centers, like AirDew. All these companies are experiencing market tailwinds and thriving in the new era of AI. Given this significant interest in AI, however, the key for us is to be disciplined in our underwriting. In AI, our focus is on whether the company's technology translates into durable, defensible value. That means real differentiation in data or model performance, early proof of enterprise adoption, and strong gross margins after infrastructure costs. We believe the companies that will win tend to build leverage over time. Their models are going to be getting smarter, their integration stickier, and their cost of incremental insight goes down, not up. Outside of AI, The path continues to pursue selectivity, diversification, and investment sector rotation, and we continue to make great strides. We're actively investing in attractive fields outside of just AI, verticalized software, fintech, aerospace and defense, robotics, cybersecurity, and health tech, among others. As we seek to capitalize on these compelling opportunities and grow and diversify the portfolio, We continue to do so with an emphasis on U.S. companies, companies that are better capitalized and have visibility to profitability, as well as business models reflective of today's market conditions and the valuations. We continue to focus on companies that have recently raised capital, have ample cash runways, and have backing from one or more of our select venture investors. In summary, Q3 represented a quarter of progress for us as we seek to increase TPVG's scale, durability, income-generating assets, and NAV over the long term. Importantly, we are positioning TPVG for the future to create shareholder value with the strong support of our sponsor, TPC. As we mentioned in our last quarter, As of this call, our sponsor announced the discretionary share purchase program and further demonstrating alignment with TPVG shareholders. Our advisor amended its existing income incentive fee waiver to waive in full its quarterly income incentive for each quarter in 2026. Later on the call, Mike will provide an update on these topics. With that, let me turn the call over to Sajal.

Thank you, Jim, and good afternoon. Regarding investment portfolio activity during Q3, TriplePoint Capital signed 421 million of term sheets with venture growth stage companies compared to 93 million of term sheets in Q3 2024 and 242 million in Q2. On a year-to-date basis, TPC has signed 978 million of term sheets versus 412 million over the same period in 2024. With regards to new investment allocation to TPVG during the third quarter, our advisor allocated 182 million in new commitments with 12 companies to TPVG, compared to 51 million in Q3 2024 and 160 million in Q2 2025. Seventy-five percent of the portfolio companies we extended commitments to during the quarter were new customers, 90 percent of which are in the AI, enterprise software, and semiconductor sectors, reflecting our focus on obligor diversification and sector rotation. On a year-to-date basis, we have closed 418 million to 19 new portfolio companies and six existing portfolio companies, as compared to 103 million to five new portfolio companies and four existing portfolio companies over the same period in 2024. Of our 49 obligors with outstanding loans as of 9-30, four were added to the portfolio in 2023, Six were added in 2024, and 11 were added here in 2025. So, progress on our plans for obligor, vintage, and sector rotation. As Mike will cover, our outstanding unfunded obligations include 10 new customers, which have yet to utilize their commitments and should add to our customer count and rebalancing efforts. During the third quarter, in anticipation of prepayment and scheduled repayment activity in Q4, we exceeded our guided range and funded $88 million in debt investments to 10 companies, as compared to $33 million to four companies in Q3 2024 and $79 million to nine companies in Q2 2025. These funded investments carried a weighted average annualized portfolio yield of 11.5%, down from 12.3% in Q2 and 13.3% in Q1. The lower overall onboarding yields in Q3 reflect a number of factors, including a higher percentage of revolving loans, enabling us to be the sole lender to our portfolio companies, more robust enterprises from a size and scale perspective, including EBITDA-positive borrowers, intentionally driving higher utilization of unfunded commitments at closing given substantial borrower cash cushion levels, lower OID as a result of reduced enterprise valuations, as well as the declining rate environment. On a year-to-date basis, we have funded 194 million to 22 companies at a weighted average yield of 12.1%, as compared to funding 85 million to 10 companies at a weighted average yield of 14.5%, over the same period in 2024. During Q3, we had 15 million of loan repayments, resulting in an overall weighted average debt portfolio yield of 13.2 percent. Excluding prepayments, our core portfolio yield was 12.8 percent, which was down from 13.6 percent in Q2, reflecting the impact of lower yields from new assets we are onboarding, as discussed earlier. On a year-to-date basis, we have had 76 million of loan prepayments as compared to 118 million of prepayments over the same period in 2024. As I will discuss in more detail shortly after quarter's end, we received principal repayments totaling 47.5 million so far in Q4. During the quarter, our debt investment portfolio grew by over 73 million as a result of new fundings exceeding prepayment, repayment, and amortization within the portfolio. This is the third consecutive quarter we've increased our debt investment portfolio on a cost basis, representing nearly 110 million of growth year-to-date, as compared to 127 million of portfolio reduction last year. Although we continue to see robust demand for debt financing from venture growth stage companies, as demonstrated by 123 million of new term sheets, 17 million of new commitments, and 18 million of funding so far in Q4, Our quarterly target for new fundings continues to be in the $25 to $50 million range for Q4 2025 in early 2026 as we manage liquidity going into our debt financing process. During the quarter, four portfolio companies with debt outstanding raised $50 million of capital compared to five portfolio companies with debt outstanding raising $216 million during the second quarter. We believe Q3 numbers were lower primarily due to timing and expect robust activity here in Q4. On a year-to-date basis, 13 portfolio companies with debt outstanding have raised compared to $402 million of capital last year. As of quarter end, we held warrants in 112 companies and equity investments in 53 companies, with a total fair value of $134 million, up from $127 million in Q2, primarily related to a markup in our equity holdings in grub market due to strong performance and improving market multiples. During Q3, one portfolio company with a principal balance of $29.8 million was upgraded from white to clear. One portfolio company with a principal balance of $2.1 million was upgraded from yellow to white. One portfolio company, Prodigy Finance, a fintech focused on international graduate students, with a principal balance of $40.8 million, was downgraded from white to yellow, and one portfolio company, Frubana, with a principal balance of $11.1 million, was downgraded to red and moved to non-accrual as we finalized our recovery process. We did actually see slight improvements in our expected recovery from Q2's mark on Frubana, despite the downgrade. During the quarter, we saw a $2.5 million increase in the fair value of our loans in orange-rated portfolio company, Roli, which in addition to winning Time Magazine's Innovation of the Year Award for the third time, held the first close of a new equity round from its existing investors, as well as holds a signed term sheet from additional investors to participate. As I mentioned earlier, we experienced a $5.7 million unrealized gain on our equity investment in Grub Market as a result of performance. As a reminder, Grub Market acquired the assets of our portfolio company, Good Eggs, in Q3 2024, and we received this equity for consideration of our then outstanding loans. Although we took a $4.6 million realized loss on our $12 million loan at the time of the transaction, this gain reduces that loss in its entirety on an unrealized basis and reflects well in our team's recovery efforts on the Good Eggs transaction. As I mentioned earlier, here in Q4, we received $47.5 million of prepayments mostly from two portfolio companies, 30 Madison and Moda Operandi. 30 Madison announced its acquisition by RemedyMeds in Q3, and as part of the transaction, nearly $30 million of our outstanding position has been paid down in Q4, with our remaining $20 million exposure amortizing over the next three months. As a reminder, 30 Madison was an existing TPVG portfolio company, but also acquired the assets of TPVG portfolio company PillClub and assumed our outstanding loans of $20 million in full. This transaction represents a full recovery, including end-of-term payments on both transactions, but as a reminder, both were quite seasoned loans, so very little incremental contribution to income here in Q4. We also anticipate 30 Madison to be upgraded to clear rating here in Q4. We also experienced a $15.7 million pay down on our loans to Moda Operandi here in Q4, a yellow-rated asset, as a result of the company raising incremental equity and debt financing, and our remaining loans of $10 million have had their maturity dates extended. And should Moda continue to perform well, we would anticipate the company to be upgraded to white over time. While some of these journeys may take longer than expected, these developments demonstrate why our team continues to dedicate time and effort on the recovery journey, and also that we are building some momentum with regards to some of our historical names. In closing, we remain aligned with our stakeholders, disciplined in our underwriting, and mindful of the volatile market environment as we execute on our plan for positioning TPVG for the long term. We continue to target well-positioned and well-capitalized new customers and attractive sectors to drive investment fundings and earnings power to build shareholder value. With that, I'll now turn the call over to Mike.