TriplePoint Venture Growth BDC Corp.

Good afternoon, ladies and gentlemen. Welcome to the TriplePoint Venture Growth BDC Corp. Fourth 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 TriplePoint Venture Growth website. Company management is pleased to share with you the company's results for the fourth quarter and full fiscal year 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 cautionary Safe Harbor disclosure in the company's press release regarding four 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 Commission for important factors that could cause actual 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 reflects 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 fourth quarter earnings call. 2025 was a year of meaningful progress and improved performance across the portfolio. We continued taking important steps aimed at increasing TPVG scale, durability, income-generating assets, and NAV, as we seek to create enduring shareholder value over the long term. During the year, our team executed with discipline and focus, proactively managing our portfolio and selectively capitalizing on opportunities with high-quality U.S.-based venture growth stage companies. We're pleased to have achieved progress in strengthening the portfolio during 2025 and continuing to resolve past credit situations, while at the same time making strong progress on our path of portfolio diversification, geographic, and investment sector rotation. The portfolio continued to stabilize during the year, with NAV increasing year over year from 2024 to 2025. We believe this reflects the progress we're making in creating a more durable platform and portfolio that's supportive of increasing NAV over time. In 2025, the investment portfolio grew year over year. TPVG closed $508 million of new debt commitments to venture growth stage companies. This represents a significant increase from the $175 million we recorded back in 2024, and it marks the highest levels of originations activity in over two years. In the second half of the year, as expected, our fundings began to increase. as we executed on the pipeline and existing borrowers drew on their committed facilities amid the improvements in the venture landscape. We ended the year with $287 million in fundings, more than double that of the previous year. The demand for venture debt remains active, and our platform ended the year with a pipeline exceeding $2 billion. We benefited from the notable uptick in venture capital investment activity throughout 2025. According to PitchBook, venture capital deal value increased to $339 billion across more than 16,000 deals as of the end of 2025, second highest in a decade. Deal value in our core venture growth market segment rose 131% year over year. As a result to this strong market environment, in 2025, we signed $1.2 billion of term sheets alone with venture growth stage companies at our sponsor, TriplePoint Capital, one of the largest venture lending firms serving this market. Taking a closer look at the portfolio, throughout the year, we made significant progress diversifying our business with commitments to eight new borrowers during the fourth quarter and 28 new borrowers in 2025. This was an increase of 250% over the previous year. These borrowers are all in what we believe are high potential durable sectors, including those leveraging AI to drive product differentiation, market disruption, and efficiency. We continue to take advantage of this strong market demand, preferring companies with meaningful revenues, strong margins, solid cash runways, and at or near EBITDA positive, or would pass to cash flow generation and debt service without the need for further equity fundraising. Turning to our ongoing portfolio investment sector rotation, and in particular, AI, we believe AI is no longer a cyclical theme. It's a structural multi-decade transformation reshaping every sector of the economy. AI alone represented 65% of the total U.S. venture deal value last year and 39% of the deal count, underscoring both the scale and the breadth of capital flowing into the space. We expect this momentum to continue, driving significant venture investment activity this year and a sustained opportunity as a result for us in the years to come. Over the past, we've been proud to support innovative AI leaders in our portfolio, such as Observe AI, Etched, Eridu, Marvin, Encode, and Encharge AI, among others. These companies reflect our strategy of backing what we believe to be category-defining companies at the forefront of applied AI infrastructure and deployment. We'd be remiss not to discuss our current view of SaaS and the potential impact AI has on this industry. Despite persistent headwinds warning a SaaSpocalypse, we believe concerns surrounding software and SaaS markets, especially those for venture capital-backed businesses, are overstated. While this is clearly a headline issue, this is more problematic in our minds for PE sponsors and middle market lenders dealing with those legacy software companies in their portfolios and believe it's less relevant in the VC industry, particularly at these venture growth stages. We note that most of the TPVG portfolio companies in this space are typically considered AI-native or AI-enabled companies and market disruptors, not the disrupted, and are leveraging AI natively to enhance product offerings, or driving more efficient operations, or taking market share from those legacy incumbents. As we highlighted in the last four earnings calls, we've been adding AI-enabled software companies ever since AI and the large language models began gaining widespread adoption in 2023. If you look at the makeup of our portfolio, while under 35% of our exposures could be classified in that broader software categories, 70% of those companies that we invested in were 2024 and 2025 vintage investments. All companies which we invested in during the last two years during this AI era, and all of them with AI enablement and tech forward AI attributes. Importantly, even those vintages prior to 2024, only five companies by count, are all made of embedded vertical application software companies that are so entrenched and mission critical, it'd be a major challenge to replace them. It's not all AI. In addition to it, we continue to pursue opportunities in other diversified sectors. We're witnessing a renewed focus on American domestic priorities particularly in aerospace and defense, infrastructure, and the ongoing of advanced manufacturing. Policy tailwinds and national security are driving notable capital markets activity, reinforcing the durability of investment in those sectors. We're positioning TPVG to benefit directly from these secular trends through portfolio companies such as Parry Labs, USCT, Valor, and Standard Bots, among others. These are businesses that align with national priorities and are building mission-critical technologies. As capital increasingly flows towards these strategic sectors, supported by federal policy and procurement reform, we believe venture-backed innovators in cybersecurity, aerospace, defense, robotics, energy and resources, and advanced manufacturing will remain durable recipients of both equity and venture debt capital. I'd say we're also encouraged by the health of these venture markets and some re-emerging signs of liquidity with M&A and IPOs. As the exit market continues to improve, we are well positioned to realize value for shareholders with our sizable equity and warrant portfolio. At year's end, we held warrant positions in 118 portfolio companies and equity investments in 55. As we've been mentioning, we have positions in several leading companies cited as top IPO candidates, including Cohesity, Zevs, Revolut, Dialpad, Filevine, Grub Market, and others. Finally, in the first quarter of 2025, and building off the momentum of a strong year performance, we successfully refinanced our $200 million in 2026 notes. This further strengthens our capital structure, and Mike will provide further details during his prepared remarks. We intend to continue building on the momentum we experienced in 2025, positioning TPVG for growth and shareholder value creation. with the strong support of our sponsor, TriplePoint Capital, the parent of our investment advisor. TPC brings an exceptional brand name, reputation, proven track record, venture capital relationships, and direct originations capabilities. As we mentioned last quarter, our advisor's income incentive fee waiver has been extended through 2026. And in addition, Our sponsor also purchased more than 1.8 million shares of TPVG during the third and fourth quarters under the discretionary share purchase program. In summary, we delivered measurable progress in 2025 and saw improved venture market conditions throughout the year. As we look ahead, we're excited about the path forward and believe the combination of durable AI tailwinds, strong demand, disciplined underwriting, and creative customized structuring places us in a strong position to capitalize on these market conditions in 2026 and beyond. Let me turn the call over now to you, Sajal.

Thank you, Jim, and good afternoon. 2025 was a year of disciplined execution as we continue to build a strong foundation and position TPVG for the long term. Beginning with investment activity, TriplePoint Capital signed $207 million of term sheets with venture growth stage companies during Q4 and $1.2 billion for the full year, up more than 60% from $736 million of signed term sheets in fiscal year 2024. With regards to new investment allocation to TPVG during the fourth quarter, our advisor allocated $90 million in new commitments with 12 companies to TPVG. Two-thirds of the commitments made during the fourth quarter were to new portfolio companies, reflecting our focus on the obligor diversification and sector rotation. For the full year, we closed $508 million of debt commitments with 28 new portfolio companies and seven existing obligors, up almost two times from the $175 million of debt commitments in 2024 with 13 companies. As mentioned during our Q3 call, in anticipation of prepayment and scheduled repayment activity during this quarter, we exceeded our guided range and funded $93 million in debt investments to 16 companies. These funded investments carried a weighted average annualized portfolio yield of 12%. For the full year, we funded $287 million in debt investments to 31 companies, up more than 100% from 135 million to 13 companies in 2024. The lower overall onboarding yields in 2025 reflect a number of factors in addition to the declining rate environment, including originating revolving loans, which enable us to be the sole lender to our portfolio companies, lending to more robust enterprises from a size and scale perspective, including EBITDA positive companies, and lower OID as a result of reduced enterprise valuations. During Q4, we had 44 million of loan prepays from relatively seasoned loans, resulting in an overall weighted average portfolio yield of 12.7%, and excluding prepayments, our core portfolio yield was 12.1%. For the full year, we had 120 million of loan prepays as compared to 170 million of loan prepayments in fiscal year 2024. We also had $64 million of scheduled principal amortization and repayments under revolvers during the quarter. For the full year, we had $92 million of these payments, which together with the previously mentioned $120 million of prepays provided us substantial liquidity to reinvest in our portfolio and to use strategically as we refinance and optimize our go-forward debt stack. During the fiscal year, our investment portfolio grew by over $100 million, or 15%, as a result of new fundings exceeding prepayment, repayment, and amortization within the portfolio. Of our 55 obligors with outstanding loans as of year-end, seven were added in 2024 and 22 were added in 2025, so progress on our plans for obligor, vintage, and sector rotations. Although we continue to see robust demand for debt financing from venture growth stage companies, as demonstrated by our 155 million of new term sheets and 15 million of funding so far in Q1, quarterly target for new funding continues to be in the 25 to 50 million range for 2026, unless we have line of sight to higher than expected prepayment activity. Two portfolio companies with debt outstanding raised 71 million of equity capital during the quarter, And for the full year, 15 debt portfolio companies raised $474 million of equity capital. Although down from 2024, it is not unexpected, given the number of new obligors we have added in the past year. In addition, the pace of up-round valuations has picked up, which is reflected well in our credit quality, as well as the warranted equity investments associated with these investments. No new companies were added to our credit watch list during the quarter, and the weighted average credit ranking of our portfolio slightly improved from Q3. During the quarter, we saw a fair amount of prepayment and repayment activity, along with both net unrealized and net realized gains in the debt portfolio from the resolution of credit situations, in addition to fair value adjustments related to obligor performance, sector outlook changes, and foreign currency exchange. Briefly reviewing material updates across all of our credit rating categories, during the quarter, we had two Category 1, or clear rated obligors, repay their loans. We added $72 million of loans to 13 obligors to Category 2, or white rating, as a result of new investment activity, offset by $42 million of loans to five companies as a result of prepayments and repayments due to acquisition, the most material being 30 Madison, which closed its acquisition by RemedyMeds. As a reminder, 30 Madison was an existing TPVG portfolio company, but also acquired the assets of TPVG portfolio company Pill Club and assumed our outstanding loans. This transaction represents a full recovery, inclusive of end-of-term payments on both transactions. With regards to our Category 3, or yellow-rated loans, during the quarter, we saw a partial prepay for one obligor, Fair value increases in our loans to Flink as a result of its recently announced equity raise, as well as reductions in the fair value of our loans to Prodigy Finance, a fintech focused on lending to international graduate students due to sector and business performance. With regards to Category 4 or Orange-rated loans, the most material development is associated with our portfolio company Naked, an EBITDA-positive Swedish women's fashion e-commerce company. During the quarter, Naked's lenders, which includes TPVG and other investment vehicles controlled by our sponsor, have recapped and restructured the company and now own a controlling position of the equity of the company. As part of this process, the lenders reduce the total amount of debt outstanding by converting a portion of the outstanding loans into a hybrid loan instrument, which we now treat as an equity investment on our balance sheet. and a small amount into common equity to take the controlling position. As part of our process, we experienced gains as a result of getting full recognition for unaccrued interest, end-of-term payments, and fees, which was higher than both our cost basis and fair value. The lenders are working with Naked to evaluate strategic alternatives for the business over the next 12 to 18 months. Our sole category five, or red obligor, FUBANA, continues to work through its recovery process. And here in Q4, we received recoveries of approximately 25% of Q4's fair value. We believe that the resolution on 30 Madison Pill Club and the developments with Naked demonstrate that while some of these credit journeys may take longer than expected, our continued efforts have the potential to work out in our favor. As of year end, we held warrants in 118 companies, and equity investments in 55 companies, with a total fair value of $138 million, up from warrants in 98 companies and equity investments in 48 companies, with a fair value of $116 million last year. During the quarter, we did experience a fair amount of volatility in our warrant equity portfolio, resulting in an overall net unrealized loss, despite the unrealized gains from our debt investments and a slight reduction in our NAV for the quarter, although NAV is still up 12 cents year over year. These unrealized warranted equity losses were driven from fair value marks on Prodigy's preferred equity, which as previously mentioned was due to performance and sector concerns, and write-offs resulting from companies acquired or where our investments expired, offset by unrealized gains from positive results from recent equity rounds by Upgrade, Filevine, Foo Footage, and others. As we take a step back to assess 2025 and our outlook for 2026, our playbook continues to be focused on building a strong foundation for TBVG and positioning TBVG for the long term by strengthening our balance sheet, driving portfolio scale and quality, rotating the portfolio into newer vintages, resolving credit situations, increasing the earnings power of our business, and growing net asset value and shareholder value over the long term. With that, I will now hand the call over to Mike.