TriplePoint Venture Growth BDC NYSE: TPVG reported lower investment income and a decline in net asset value in the third quarter of 2026, as the sale of its largest loan investment and a slowdown in new lending weighed on results. Management said funding activity rebounded after the quarter ended.
Net investment income fell to $6.6 million, or $0.16 per share, from $8.3 million, or $0.21 per share, in the second quarter. Total investment and other income declined to $20.2 million from $22.1 million, while net asset value fell to $8.32 per share from $8.67.
Chief Financial Officer Mike Wilhelms said the decline in investment income primarily reflected the July 1 disposition of the company’s investment in Prodigy Finance. Lower accelerated income from loan prepayments also contributed to the drop in net investment income.
Funding rebounds after slow quarter
TriplePoint funded $700,000 in debt investments during the third quarter, down from $47.8 million in the preceding quarter. The company closed $43 million in new debt commitments across eight portfolio companies, up from $29.8 million across five companies in the second quarter.
Chief Executive Officer Jim Labe attributed the low funding figure to timing and documentation, saying some transactions moved into the fourth quarter. He said the slowdown was not related to a change in the market, pipeline or originations.
President and Chief Investment Officer Sajal Srivastava said TriplePoint had funded $57.4 million in the fourth quarter through the time of the call, exceeding its previously guided range of $25 million to $50 million. It had also allocated $60 million of new commitments to three companies during the quarter to date.
Wilhelms said $25 million to $50 million remains a reasonable funding range for future quarters, though prepayments and scheduled maturities could push funding above that level. He said the company had received approximately $73 million in prepayments in the fourth quarter to date, generating more than $2 million in accelerated income expected to benefit fourth-quarter results.
Portfolio losses pressure net asset value
TriplePoint sold its debt and equity investments in Prodigy Finance to a third party for $43.8 million, consistent with the investment’s second-quarter valuation, Srivastava said. Management described the sale as part of an effort to diversify the portfolio, reduce exposure to older investments and lower payment-in-kind, or PIK, income.
PIK interest income declined to $2.5 million, or approximately 12% of total investment and other income, from $3 million in the second quarter. Wilhelms said reducing PIK exposure remains important to improving the quality of recurring earnings.
The company recorded $8.3 million in net realized and unrealized investment losses during the quarter. Those included $13.6 million in losses across the debt portfolio and a $3.5 million unrealized loss on its GrubMarket equity investment, partly offset by a $7.8 million unrealized gain on Revolut and $1 million in net unrealized gains across other warrant and equity investments.
Wilhelms said investment losses accounted for approximately $0.20 of the $0.35-per-share decline in net asset value. The remainder primarily reflected distributions exceeding net investment income, including a $0.06-per-share supplemental payment.
Srivastava said the company upgraded Trendly from its yellow-three to white-two credit category, while downgrading Jokr and Flink from white-two to yellow-three. TriplePoint also made fair-value adjustments on other loans, including Roli and Hydrow.
Dividend and refinancing remain in focus
The board declared a regular fourth-quarter distribution of $0.23 per share. A final $0.06 installment of a previously declared supplemental distribution is payable December 30.
Asked how TriplePoint would bring earnings back to the regular dividend level, Wilhelms said $0.23 per share remains the target for now but is subject to change. He said the board evaluates dividend policy quarterly, considering earnings power, projected earnings, taxable income, liquidity and shareholders’ long-term interests.
TriplePoint ended September with $168 million in liquidity, including $150 million of available capacity under its revolving credit facility. Gross leverage declined to 1.18 times from 1.26 times at the end of June. Unfunded commitments totaled $171.6 million, of which approximately $54 million are scheduled to expire by year-end if not drawn.
Wilhelms said refinancing $125 million of unsecured notes due in February 2027 remains a high financial priority. He also confirmed that the company had not repurchased shares under the buyback authorization announced in May, citing liquidity, leverage, unfunded commitments and upcoming debt maturities as considerations.
TriplePoint’s adviser extended its waiver of quarterly income incentive fees through all of 2027. The adviser has waived those fees since the first quarter of 2025.
Separately, Srivastava is leaving his roles as president and chief investment officer at year-end. Ian Schworer, a 12-year TriplePoint veteran, will become chief investment officer, while Labe will remain CEO.
About TriplePoint Venture Growth BDC (NYSE:TPVG)
TriplePoint Venture Growth BDC Corp. is a business development company that provides financing to venture growth-stage companies. The company primarily invests in businesses backed by venture capital or private equity sponsors, with an emphasis on companies that have developed products or services and are seeking capital to support expansion, acquisitions, working capital and other corporate purposes.
Its investment portfolio is focused largely on companies in technology, life sciences and other high-growth industries.
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