TriplePoint Venture Growth BDC
TPVGFinancial Analysis · Updated May 29, 2026 · Coverage 2026-Q2
Latest Q Revenue
$25M
Q3 2024
TTM ROIC
14.4%
FY2023 · NII / Average Net Assets (BDC equivalent operating return)
Net Debt
$400M
Cash $20M · Debt $420M · FY2023
Diluted Shares
33M
FY2024E · -0.3% (buyback)
Business Overview
source: coverage-next-full | ticker: TPVG | step: "01" | created: 2026-05-29
Step 01 — Business Overview: TPVG (TriplePoint Venture Growth BDC Corp.)
Executive Summary
TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) is a specialty finance company that has elected to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. TPVG is externally managed by TriplePoint Capital LLC, a leading venture lending firm founded in 2012 by Jim Labe and Sajal Srivastava — the same team that previously built the venture lending practice at Lighthouse Capital Partners and then at Comerica Bank's venture lending division.
The core value proposition: TPVG provides debt capital (primarily term loans) to venture-backed, growth-stage technology and life science companies that are pre-profitability and therefore unable to access traditional bank financing or capital markets. In exchange, TPVG earns premium interest rates (typically 11–15% cash + 1–3% PIK) and receives equity "kickers" in the form of warrants on borrower stock — providing participation in equity upside if a portfolio company achieves a successful exit (IPO or M&A).
What Makes TPVG Unique Among BDCs
TPVG is a pure-play venture lending BDC — the only publicly traded BDC almost exclusively focused on VC-backed growth-stage companies. This contrasts with:
- Hercules Capital (HTGC): Similar strategy but broader sector coverage, larger scale (~$4B assets vs. TPVG ~$800M–$1B), and internally managed (cost advantage)
- Traditional BDCs (ARCC, MAIN, GBDC): Middle market lending to profitable companies; lower yield but lower credit risk
- Silicon Valley Bank (SIVB): Was the dominant venture lending bank; its March 2023 collapse removed a major competitor and briefly created significant opportunity for TPVG/HTGC
Business Model
Revenue Generation
- Interest Income (~85–90% of revenue): Floating rate loans (SOFR/Prime + spread) plus fixed floors, generating 12–16% gross yields on the debt portfolio
- Fee Income (~5–8%): Origination fees, prepayment fees, end-of-term (EOT) payments
- Dividend/Equity Income (<5%): From equity co-investments alongside debt
- Warrant Gains (variable): Fair value adjustments and realized gains on warrants received at origination; highly lumpy and dependent on portfolio company exits
The Venture Lending Thesis
- VC-backed companies have strong institutional sponsors (Sequoia, a16z, Benchmark, etc.) with incentive to support companies through difficulty
- Loan-to-value ratios are implicitly low because enterprise value of growth companies often far exceeds outstanding venture debt
- Warrants provide a "free" equity kicker: TPVG receives warrants for 1–5% of a borrower's fully diluted equity at the time of lending
- Post-money valuations from VC rounds provide reference points for NAV marks
Headquarters & Personnel
- HQ: 2755 Sand Hill Road, Menlo Park, CA 94025 (Silicon Valley heartland; same road as Sequoia, KKR, KPCB, etc.)
- Investment Manager: TriplePoint Capital LLC (external manager — NOT employees of TPVG)
- CEO: James P. Labe — co-founder of TriplePoint Capital; previously built venture lending at Lighthouse Capital Partners (1997–2006) and Comerica (2006–2012). Widely regarded as one of the original architects of institutional venture lending
- President/COO: Sajal Srivastava — co-founder; former president of venture banking at Lighthouse Capital; Stanford MBA
Portfolio Characteristics
| Characteristic | Typical Range |
|---|---|
| Number of Portfolio Companies | 30–55 active |
| Loan Size per Company | $5M–$50M |
| Loan Tenor | 24–48 months |
| Interest Rate | SOFR + 700–1,000 bps (typically 11–15% all-in) |
| PIK Component | 0–3% |
| Warrant Coverage | 1–5% of fully diluted equity |
| Industries | Technology (SaaS, fintech, marketplace), life sciences, consumer |
| Geography | ~95% US; small amount of international VC-backed companies |
Investment Selection Criteria
TPVG/TriplePoint Capital targets companies that:
- Are backed by top-tier VC firms (Tier 1 sponsors)
- Have achieved product-market fit and are in growth/scale phase
- Have 12–18 months of cash runway remaining after the loan
- Have a clear path to a liquidity event (IPO, strategic M&A, or next VC round)
- Operate in sectors with strong secular tailwinds
IPO History & Capital Structure
- IPO: March 5, 2014 at $15.00/share; raised approximately $90M
- Total shares outstanding (2024): ~33–35 million
- Market cap (2024): ~$300–$400M depending on share price
- Total net assets (NAV): ~$430–$460M at peak; declined to ~$400M range by 2024
- External borrowings: Senior secured notes, revolving credit facility — targeting 0.8–1.0x debt/equity
Key Differentiators vs. HTGC
| Factor | TPVG | HTGC |
|---|---|---|
| Management | External (fee conflicts) | Internal (aligned) |
| AUM | ~$800M–$1B | ~$3.5B–$4B |
| Diversification | Narrower (pure venture) | Broader (life sci, tech, sustainable) |
| Track record | Shorter (2014 IPO) | Longer (2005 IPO) |
| NAV stability | More volatile | More stable |
| Yield | Similar | Similar |
| P/NAV | Typically lower | Typically closer to 1x |
Financial Snapshot
source: coverage-next-full | ticker: TPVG | step: "04" | created: 2026-05-29
Step 04 — Financial Snapshot: TPVG (FY2021–FY2024)
Key Financial Summary — Annual
| Metric | FY2021 | FY2022 | FY2023 | FY2024E |
|---|---|---|---|---|
| Total Investment Income ($M) | ~$85M | ~$105M | ~$115M | ~$100M |
| Net Investment Income ($M) | ~$52M | ~$64M | ~$65M | ~$56M |
| NII per Share | ~$1.56 | ~$1.95 | ~$1.97 | ~$1.65 |
| Net Increase in Net Assets ($M) | ~$55M | -~$75M | -~$60M | -~$30M |
| Total Dividends Declared per Share | $1.44 | $1.44 | $1.56 | $1.44 |
| Net Asset Value per Share | ~$15.00 | ~$13.25 | ~$12.50 | ~$12.00 |
| Total Net Assets ($M) | ~$494M | ~$437M | ~$410M | ~$393M |
| Total Investments at Fair Value ($M) | ~$940M | ~$970M | ~$820M | ~$760M |
| Debt/Equity Ratio | ~0.92x | ~1.04x | ~0.88x | ~0.80x |
| Shares Outstanding (M) | ~33.0 | ~33.0 | ~32.8 | ~32.7 |
Note: FY2024E figures are estimates based on available quarterly data and management guidance. Exact figures subject to final 10-K filing.
NAV Per Share Trajectory — The Central Concern
NAV/share is the most important metric for BDC investors. TPVG's NAV/share has exhibited a structurally declining trend:
| Period | NAV/Share | Quarterly Change | Driver |
|---|---|---|---|
| Q4 2020 | ~$14.50 | — | COVID recovery |
| Q4 2021 | ~$15.00 | +3.4% | VC boom; warrant appreciation |
| Q1 2022 | ~$14.50 | -3.3% | Tech selloff; initial marks |
| Q2 2022 | ~$14.00 | -3.4% | Continued VC valuation pressure |
| Q3 2022 | ~$13.50 | -3.6% | Portfolio write-downs accelerate |
| Q4 2022 | ~$13.25 | -1.9% | Non-accruals rising |
| Q1 2023 | ~$13.00 | -1.9% | SVB crisis; sector stress |
| Q2 2023 | ~$12.75 | -1.9% | Elevated non-accruals |
| Q3 2023 | ~$12.50 | -2.0% | Realized losses from failures |
| Q4 2023 | ~$12.50 | flat | Stabilization |
| Q1 2024 | ~$12.25 | -2.0% | Continued mild pressure |
| Q2 2024 | ~$12.00 | -2.0% | Slow recovery trajectory |
| Q3 2024 | ~$12.00 | flat | Signs of stabilization |
| Q4 2024E | ~$12.00 | flat | Stable |
Key observation: TPVG has eroded approximately $3.00/share (~20%) in NAV since peak. This represents permanent capital loss not reflected in income statement performance alone.
Net Investment Income vs. Dividends — Coverage Analysis
| Year | NII/Share | DPS Declared | Coverage Ratio | Status |
|---|---|---|---|---|
| 2021 | ~$1.56 | $1.44 | 108% | Covered; building spillover |
| 2022 | ~$1.95 | $1.44 | 135% | Well covered; benefit of rising rates |
| 2023 | ~$1.97 | $1.56 | 126% | Well covered; dividend raised in 2023 |
| 2024E | ~$1.65 | $1.44 | 115% | Still covered but tightening |
Dividend history:
- 2014–2019: $1.44/share annual ($0.36/quarter) — paid quarterly
- 2020 (COVID): Dividend cut from $0.36 → $0.31/quarter
- 2021 recovery: Returned to $0.36/quarter ($1.44/year)
- 2023: Increased to $0.39/quarter (+ special dividends in some quarters)
- 2024: Returned to $0.36/quarter as portfolio income declined with portfolio payoffs
TPVG adopted a monthly dividend structure in later years ($0.12–$0.13/month) to better match BDC cash flow patterns.
Income Statement Detail (FY2023 — Most Recent Full Year)
| Line Item | Amount |
|---|---|
| Interest income (cash) | ~$95M |
| PIK interest income | ~$8M |
| Fee income | ~$10M |
| Dividend income | ~$2M |
| Total Investment Income | ~$115M |
| Management fees (base) | (~$17M) |
| Incentive fees (Part 1) | (~$9M) |
| Interest and debt fees | (~$20M) |
| Other operating expenses | (~$4M) |
| Total Expenses | (~$50M) |
| Net Investment Income | ~$65M |
| Net realized losses | (~$35M) |
| Net change in unrealized | (~$25M) |
| Net Decrease in Net Assets | (~$60M) |
Balance Sheet Snapshot (FY2023)
| Item | Amount |
|---|---|
| Total investments at fair value | ~$820M |
| Cash and equivalents | ~$20M |
| Other assets | ~$5M |
| Total Assets | ~$845M |
| Senior secured notes (public) | ~$180M |
| Revolving credit facility | ~$240M |
| Other liabilities | ~$15M |
| Total Liabilities | ~$435M |
| Net Assets (NAV) | ~$410M |
| Shares outstanding | ~32.8M |
| NAV per Share | ~$12.50 |
Portfolio Quality Metrics
| Metric | FY2021 | FY2022 | FY2023 | FY2024E |
|---|---|---|---|---|
| Non-accrual loans (% fair value) | ~1.5% | ~3.0% | ~5.5% | ~6.0% |
| Non-accrual loans (% cost) | ~2.0% | ~4.5% | ~8.0% | ~8.5% |
| Number of portfolio companies | ~50 | ~55 | ~48 | ~42 |
| New commitments ($M) | ~$650M | ~$700M | ~$400M | ~$350M |
| Portfolio repayments ($M) | ~$450M | ~$580M | ~$550M | ~$380M |
Valuation Context
| Metric | Historical Range | Current (2024) |
|---|---|---|
| Price / NAV | 0.7x – 1.1x | ~0.80–0.90x |
| Dividend Yield | 7% – 14% | ~10–12% |
| P/NII | 7x – 12x | ~8–9x |
Trading at a discount to NAV is normal for BDCs facing elevated credit stress. TPVG has consistently traded below HTGC's premium, reflecting the external management fee structure and higher portfolio risk perception.
Key Financial Risks to Track
- NAV erosion: The $3/share decline since 2021 peak is permanent capital loss — not cyclical
- Non-accrual creep: Every 1% increase in non-accrual rate costs ~$8–$10M in foregone annual income
- Leverage headroom: At 0.8–1.0x debt/equity, TPVG has limited ability to grow without dilutive equity issuance
- Dividend sustainability: NII coverage has improved with rising rates but could fall if portfolio shrinks or rates decline
- Fair value volatility: Mark-to-market adjustments on Level 3 assets can cause large quarter-to-quarter NAV swings
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $TPVG.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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