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TPVG — TriplePoint Venture Growth BDC News Story

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TriplePoint Venture Growth Q2 net investment income falls on higher interest costs

TriplePoint Venture Growth Q2 net investment income falls on higher interest costs


Overview

  • US venture lender's Q2 net investment income fell on higher interest expense and lower prepayment income

  • Company announced $12.5 mln share repurchase program

  • Declared Q3 regular and supplemental distributions totaling $0.35 per share


Outlook

  • TriplePoint Venture Growth declares Q3 regular distribution of $0.23 per share

  • Company declares supplemental distributions totaling $0.12 per share for Q3 and Q4

  • Company says it continues diversification strategy in venture-growth-stage sectors


Result Drivers

  • LOWER PREPAYMENT INCOME AND YIELDS - Co said decrease in total investment and other income was mainly due to less prepayment income and lower investment yields, partly from decreases in the Prime rate

  • HIGHER INTEREST EXPENSE - Co attributed decline in net investment income to higher interest expense and less prepayment income

  • REALIZED GAINS FROM REVOLUT SALE - Co recognized net realized gains of $12.9 mln, mainly from partial sale of equity in Revolut Ltd and warrants in two portfolio companies


Company press release: ID:nBw2qDFFJa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Asset Value

$352.80 mln

Q2 Net Asset Value Per Share

$8.67


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy."

  • Wall Street's median 12-month price target for Triplepoint Venture Growth BDC Corp is $6.13, about 28.9% above its August 4 closing price of $4.75

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Aug 4 - Horizon Technology Finance Q2 NII per share falls on merger costs

  • Aug 5 - Trinity Capital's Q2 investment income rises

  • Aug 4 - SLR Investment Q2 net investment income falls on smaller portfolio, lower rates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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