Declares Third Quarter 2015 Dividend of $0.36 Per Share
MENLO PARK, Calif.--(BUSINESS WIRE)--
TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) (the “Company” or
"TPVG"), the leading financing provider to venture growth stage
companies backed by a select group of venture capital firms in the
technology, life sciences and other high growth industries, today
announced its financial results for the second quarter of 2015. TPVG
also declared a third quarter 2015 dividend of $0.36 per share.
Second Quarter 2015 Highlights:
-
GAAP net investment income and core net investment income1
of $6.3 million or $0.38 per share.
-
Net increase in net assets resulting from operations of $0.43 per
share.
-
Net asset value of $14.54 per share as of June 30, 2015.
-
Declared a second quarter regular dividend of $0.36 per share, paid on
June 16, 2015.
-
$62.0 million of signed term sheets during the second quarter; closed
$57.5 million of new debt commitments to domestic and international
venture growth stage companies.
-
Funded approximately $7.5 million in new investments and received
prepayments of $46.9 million in principal balance, resulting in a
total investment portfolio at June 30, 2015 of $208.3 million at fair
value.
-
17.9% weighted average portfolio yield for the second quarter.
-
Experienced liquidity event with portfolio company Endochoice
Holdings, Inc.’s initial public offering.
-
Subsequent to the end of the second quarter, raised $48.3 million of
net proceeds from the public offering of notes.
“Our performance this quarter reflects strong conditions in the venture
capital ecosystem and the strength of our venture lending model,” said
Jim Labe, chief executive officer and chairman of the board of TPVG. “We
expect our platform, our investment portfolio, and the venture lending
market as a whole to benefit from the sustained increase in investment
activity currently taking place among our select venture capital
sponsors and from the strong demand for debt by venture backed
companies.”
“We continue to see quality venture growth stage lending opportunities,”
said Sajal Srivastava, president and chief investment officer of the
Company. “We are deploying the proceeds from our follow-on equity
offering, portfolio repayments and recent debt offering in a disciplined
fashion to continue building and scaling our business.”
Portfolio and Investment Activity
During the second quarter of 2015, the Company entered into $57.5
million of new commitments, funded two debt investments with $7.5
million in principal balance, funded one equity investment for
approximately $0.5 million, and acquired warrants valued at
approximately $0.6 million. Three portfolio companies prepaid $46.9
million in principal balance of debt during the quarter. The weighted
average portfolio yield was 17.9% for the second quarter of 2015.
Excluding the impact of prepayments, the weighted average portfolio
yield was 14.3% for the current quarter. The Company calculates weighted
average portfolio yield as the annualized rate of the interest income
recognized during the period divided by the average amortized cost of
debt investments in the portfolio at the beginning of each month in the
period.
As of June 30, 2015, the Company had 70 investments in 28 companies. The
total cost and fair value of these investments were approximately $207.9
million and $208.3 million, respectively.
The following table shows detailed information of the total investment
portfolio as of June 30, 2015.
|
|
|
|
|
|
|
As of June 30, 2015
|
|
(dollars in thousands)
|
|
Cost
|
|
|
Fair Value
|
|
|
Net Unrealized
(Losses) Gains
|
|
|
Number of
Investments
|
|
Number of Companies
|
|
Debt Investments
|
|
$
|
197,780
|
|
|
$
|
194,864
|
|
|
$
|
(2,916
|
)
|
|
38
|
|
14
|
|
Warrants
|
|
|
6,654
|
|
|
|
8,791
|
|
|
|
2,137
|
|
|
25
|
|
25
|
|
Equity Investments
|
|
|
3,473
|
|
|
|
4,599
|
|
|
|
1,126
|
|
|
7
|
|
7
|
|
Totals
|
|
$
|
207,907
|
|
|
$
|
208,254
|
|
|
$
|
347
|
|
|
70
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded Commitments
As of June 30, 2015, the Company’s unfunded commitments totaled $147.5
million, $17.0 million of which is dependent upon customers reaching
certain milestones before being permitted to request funding. Of the
$147.5 million of unfunded commitments, $35.0 million will expire during
2015 and $112.5 million will expire during 2016 if not drawn prior to
expiration. Since these commitments may expire without being drawn upon,
unfunded commitments do not necessarily represent future cash
requirements or future earning assets for the Company.
Signed Term Sheets
During the second quarter, TriplePoint Capital (“TPC”) originated $62.0
million of signed, non-binding term sheets to venture growth stage
companies. All of these opportunities are subject to a number of
conditions including completion of due diligence, negotiation of
definitive documentation and investment committee approval, as well as
compliance with TPC’s allocation policy. Accordingly, there is no
assurance that any or all of these transactions will be completed or
assigned to the Company even though the Company is the primary vehicle
through which TPC focuses its venture growth stage business.
Results of Operations
For the second quarter of 2015, the Company’s total investment and other
income was $11.6 million as compared to $5.5 million for the second
quarter of 2014, representing a weighted average portfolio yield of
17.9% on its debt investments during the quarter as compared to 14.4%
for the second quarter of 2014. For the six months ended June 30, 2015,
the Company’s total investment and other income was $21.4 million,
representing a weighted average portfolio yield of 16.2% on its debt
investments.
Operating expenses for the second quarter of 2015 were approximately
$5.3 million as compared to $2.6 million for the second quarter of 2014.
Operating expenses for the second quarter of 2015 consisted of $1.4
million of base management fees, $1.6 million of income incentive fees,
$6 thousand of accrued capital gains incentive fees, $1.2 million of
interest expense and amortization of deferred credit facility costs,
$0.4 million of administration agreement expenses and $0.7 million of
general and administrative expenses. For the six months ended June 30,
2015, the Company’s operating expenses were $10.2 million.
For the second quarter of 2015, the Company recorded net investment
income of approximately $6.3 million, or $0.38 per share, as compared to
approximately $2.9 million, or $0.29 per share for the second quarter of
2014. The Company’s core net investment income, which excludes the
impact of the capital gains incentive fee, was approximately $6.3
million, or $0.38 per share, for the second quarter of 2015 as compared
to approximately $2.9 million, or $0.29 per share, for the second
quarter of 2014. For the six months ended June 30, 2015, the Company’s
net investment income was $11.2 million, or $0.84 per share, and core
net investment income was $11.0 million, or $0.81 per share. The Company
believes an important measure of the investment income that the Company
distributes each year is core net investment income since capital gains
incentive fees are accrued based on net realized and unrealized gains
but are not earned until net realized gains occur.
For the quarter, the Company’s net change in unrealized gains was
approximately $0.8 million, or $0.05 per share, as compared to an
unrealized gain of approximately $36 thousand for the second quarter of
2014. The net change in unrealized gains in the second quarter of 2015
consisted of approximately $30 thousand for the increase in fair value
of debt investments, approximately $0.2 million for increase in the fair
value of warrants and approximately $0.6 million for increase in the
fair value of equity. For the six months ended June 30, 2015, the
Company’s net change in unrealized losses was approximately $1.1
million, or $0.11 per share.
The Company’s net increase in net assets resulting from operations for
the second quarter of 2015 was approximately $7.1 million, or $0.43 per
share, as compared to $2.9 million, or $0.29 per share, for the second
quarter of 2014. For the six months ended June 30, 2015, the Company’s
net increase in net assets resulting from operations was approximately
$9.8 million, or $0.73 per share.
As of June 30, 2015, the Company had $3.5 million, or $0.21 per share,
of undistributed taxable income from ordinary income.
Credit Quality
The Company maintains a credit watch list with borrowers placed into one
of five categories based on management’s judgment of credit quality,
where Clear, or 1, is the highest rating and all new loans are initially
assigned a rating of White, or 2. During the three months ended June 30,
2015, in addition to the impact of new funding activity, three borrowers
rated White, or 2, were removed in conjunction with prepaying all of
their outstanding obligations. In addition, during this period, a new
obligor was rated Orange, or 4, after acquiring the assets of and
assuming the outstanding obligations owed by an obligor previously rated
Red, or 5. As of June 30, 2015, the weighted average investment ranking
of the Company’s debt investment portfolio was 2.01, as compared to 2.06
at the end of the prior quarter.
The following table shows the credit rankings for the debt investments
the Company has outstanding with 14 companies, as of June 30, 2015.
|
|
|
|
|
|
|
As of June 30, 2015
|
|
(dollars in thousands)
Category
|
|
Fair Value
|
|
|
Percentage of Debt
Investment Portfolio
|
|
Number of Portfolio
Companies
|
|
Clear (1)
|
|
$
|
29,763
|
|
|
|
15.3
|
|
%
|
|
|
1
|
|
White (2)
|
|
|
144,048
|
|
|
|
73.9
|
|
|
|
|
11
|
|
Yellow (3)
|
|
|
10,067
|
|
|
|
5.2
|
|
|
|
|
1
|
|
Orange (4)
|
|
|
10,986
|
|
|
|
5.6
|
|
|
|
|
1
|
|
Red (5)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
$
|
194,864
|
|
|
|
100.0
|
|
%
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value
As of June 30, 2015, the Company’s net assets were approximately $242.0
million, compared to approximately $237.9 million as of March 31, 2015.
The Company’s net asset value per share as of June 30, 2015 was $14.54
per share, compared to $14.48 per share as of March 31, 2015. The
increase in net asset value per share was the result of the Company’s
net increase in net assets resulting in operations for the period
exceeding dividends paid. These per share calculations are based on the
Company’s shares of common stock outstanding as of the end of the
respective periods.
Liquidity and Capital Resources
As of June 30, 2015, the Company had total cash of approximately $97.4
million and available capacity of $139.0 million under its revolving
credit facility. Subsequent to the end of the second quarter, the
Company raised $48.3 million of net proceeds from the public offering of
notes.
Dividend
The Company’s board of directors declared a quarterly dividend of $0.36
per share for the third quarter of 2015 payable on September 16, 2015,
to stockholders of record as of August 31, 2015.
Subsequent Events
Since June 30, 2015:
-
The Company entered into $50.0 million of new venture growth stage
commitments and funded $10.0 million in new investments.
-
TPC’s direct originations platform entered into $42.5 million of
additional non-binding signed term sheets with venture growth stage
companies.
-
The Company raised $48.3 million of net proceeds from the public
offering of notes.
Conference Call
The Company will host a conference call at 5:00 p.m. Eastern time today,
August 11, 2015, to discuss its financial results for the quarter ending
June 30, 2015. To listen to the call, investors and analysts should dial
877-201-0168 (domestic) or 647-788-4901 (international) and enter
conference ID 97009606. Please dial in at least five minutes before the
scheduled start time. A replay of the call will be available through
August 24, 2015, by dialing 855-859-2056 (domestic) or 404-537-3406
(international) and entering conference ID 97009606. The conference call
also will be available via a live audio webcast in the investor
relations section of the Company’s website, http://www.tpvg.com.
An online archive of the webcast will be available on the Company’s
website for 30 days after the call.
About TriplePoint Venture Growth BDC Corp.
TriplePoint Venture Growth BDC Corp. (the “Company”) (NYSE: TPVG) is an
externally managed, closed-end, non-diversified management investment
company that has elected to be regulated as a business development
company under the Investment Company Act of 1940, as amended. It was
formed to expand the venture growth stage business segment of
TriplePoint Capital LLC. The Company’s investment objective is to
maximize its total return to stockholders primarily in the form of
current income and, to a lesser extent, capital appreciation by
primarily lending with warrants to venture growth stage companies
focused in technology, life sciences and other high growth industries
backed by a select group of leading venture capital investors. More
information is available at http://www.tpvg.com.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements as such term is defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and such statements are intended to be
covered by the safe harbor provided by the same. Forward-looking
statements are subject to substantial risks and uncertainties, many of
which are difficult to predict and are generally beyond the Company's
control. Words such as "anticipates," "expects," "intends," "plans,"
"will," "may," "continue," "believes," "seeks," "estimates," "would,"
"could," "should," "targets," "projects," and variations of these words
and similar expressions are intended to identify forward-looking
statements. For a further list and description of such risks and
uncertainties, see the Company's final prospectus filed with the
Securities and Exchange Commission on March 30, 2015, annual report on
Form 10-K for the year ended December 31, 2014 filed with the Securities
and Exchange Commission on March 18, 2015, and other reports filed by
the Company with the Securities and Exchange Commission. The
forward-looking statements, and other risks, uncertainties and factors
are based on the Company's beliefs, assumptions and expectations of its
future performance, taking into account all information currently
available to the Company. Forward-looking statements are not predictions
of future events. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
|
|
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
December 31, 2014
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Investments at fair value (amortized cost of $207,907 and $256,485,
respectively)
|
$
|
208,254
|
|
|
$
|
257,971
|
|
|
Short-term investments at fair value (cost of $0 and $49,998,
respectively)
|
|
—
|
|
|
|
49,995
|
|
|
Cash
|
|
62,005
|
|
|
|
6,906
|
|
|
Restricted cash
|
|
35,408
|
|
|
|
8,033
|
|
|
Deferred credit facility costs and prepaid expenses
|
|
2,635
|
|
|
|
3,424
|
|
|
Total Assets
|
|
308,302
|
|
|
|
326,329
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Revolving credit facility payable
|
|
61,000
|
|
|
|
118,000
|
|
|
Payable for U.S. Treasury bill assets
|
|
—
|
|
|
|
49,998
|
|
|
Other payables, accrued expenses, and liabilities
|
|
5,311
|
|
|
|
13,352
|
|
|
Total Liabilities
|
|
66,311
|
|
|
|
181,350
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
$
|
241,991
|
|
|
$
|
144,979
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, par value $0.01 per share (50,000,000 shares
authorized; no shares issued and outstanding as of June 30, 2015
and December 31, 2014)
|
$
|
—
|
|
|
$
|
—
|
|
|
Common stock, par value $0.01 per share (450,000,000 shares
authorized; 16,642,184 and 9,924,171 shares issued and outstanding
as of June 30, 2015 and December 31, 2014, respectively)
|
|
167
|
|
|
|
99
|
|
|
Paid-in capital in excess of par value
|
|
239,344
|
|
|
|
142,635
|
|
|
Net investment income
|
|
24,048
|
|
|
|
12,808
|
|
|
Accumulated net realized losses
|
|
(317
|
)
|
|
|
—
|
|
|
Accumulated net realized losses
|
|
347
|
|
|
|
1,483
|
|
|
Dividend distributions
|
|
(21,598
|
)
|
|
|
(12,046
|
)
|
|
Net Assets
|
$
|
241,991
|
|
|
$
|
144,979
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value per Share
|
$
|
14.54
|
|
|
$
|
14.61
|
|
|
|
|
|
|
|
|
|
|
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30,
|
|
|
For the Six Months Ended
|
|
|
For the Period from
March 5, 2014
(Commencement
of
Operations) to
|
|
|
|
2015
|
|
|
2014
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
Investment Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from investments
|
|
$
|
10,487
|
|
|
$
|
5,394
|
|
|
$
|
19,648
|
|
|
$
|
6,702
|
|
Other income
|
|
|
1,119
|
|
|
|
95
|
|
|
|
1,766
|
|
|
|
95
|
|
Total investment and other income
|
|
|
11,606
|
|
|
|
5,489
|
|
|
|
21,414
|
|
|
|
6,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management fee
|
|
|
1,404
|
|
|
|
674
|
|
|
|
2,563
|
|
|
|
818
|
|
Income incentive fee
|
|
|
1,575
|
|
|
|
219
|
|
|
|
2,737
|
|
|
|
219
|
|
Capital gains incentive fee
|
|
|
6
|
|
|
|
7
|
|
|
|
(290
|
)
|
|
|
282
|
|
Interest expense and amortization of fees
|
|
|
1,194
|
|
|
|
776
|
|
|
|
2,838
|
|
|
|
930
|
|
Administration agreement expenses
|
|
|
406
|
|
|
|
340
|
|
|
|
777
|
|
|
|
392
|
|
General and administrative expenses
|
|
|
726
|
|
|
|
619
|
|
|
|
1,549
|
|
|
|
733
|
|
Total Operating Expenses
|
|
|
5,311
|
|
|
|
2,635
|
|
|
|
10,174
|
|
|
|
3,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
6,295
|
|
|
|
2,854
|
|
|
|
11,240
|
|
|
|
3,423
|
|
Net realized losses
|
|
|
-
|
|
|
|
-
|
|
|
|
(317
|
)
|
|
|
-
|
|
Net change in unrealized (losses) gains on investments
|
|
|
753
|
|
|
|
36
|
|
|
|
(1,136
|
)
|
|
|
1,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
7,048
|
|
|
$
|
2,890
|
|
|
$
|
9,787
|
|
|
$
|
4,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net investment income per share
|
|
$
|
0.38
|
|
|
$
|
0.29
|
|
|
$
|
0.84
|
|
|
$
|
0.35
|
|
Basic and diluted net increase in net assets per share
|
|
$
|
0.43
|
|
|
$
|
0.29
|
|
|
$
|
0.73
|
|
|
$
|
0.49
|
|
Basic and diluted weighted average shares of common stock outstanding
|
|
|
16,569,406
|
|
|
|
9,849,599
|
|
|
|
13,444,704
|
|
|
|
9,847,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30,
|
|
|
For the Six Months Ended
|
|
|
For the Period from
March 5, 2014
(Commencement
of
Operations) to
|
|
|
|
|
2015
|
|
|
2014
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average portfolio yield (1)
|
|
|
17.9
|
%
|
|
|
14.4
|
%
|
|
|
16.2
|
%
|
|
|
14.4
|
%
|
|
Coupon income (1)
|
|
|
10.6
|
%
|
|
|
11.1
|
%
|
|
|
10.8
|
%
|
|
|
11.1
|
%
|
|
Net amortization and accretion of premiums and discounts (1)
|
|
|
0.6
|
%
|
|
|
0.3
|
%
|
|
|
0.6
|
%
|
|
|
0.3
|
%
|
|
Net accretion of end-of-term payments (1)
|
|
|
3.1
|
%
|
|
|
3.0
|
%
|
|
|
3.0
|
%
|
|
|
3.0
|
%
|
|
Impact of prepayments (1)
|
|
|
3.6
|
%
|
|
|
0.0
|
%
|
|
|
1.8
|
%
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income to average net asset value (2)
|
|
|
10.5
|
%
|
|
|
8.0
|
%
|
|
|
11.6
|
%
|
|
|
7.4
|
%
|
|
Net increase in net assets to average net asset value (2)
|
|
|
11.8
|
%
|
|
|
8.1
|
%
|
|
|
10.1
|
%
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses to average net asset value (2)
|
|
|
8.9
|
%
|
|
|
7.4
|
%
|
|
|
10.5
|
%
|
|
|
7.3
|
%
|
|
Operating expenses excluding incentive fees to average net asset
value (2)
|
|
|
6.2
|
%
|
|
|
6.8
|
%
|
|
|
8.0
|
%
|
|
|
6.2
|
%
|
|
Income component of incentive fees to average net asset value (2)
|
|
|
2.6
|
%
|
|
|
0.6
|
%
|
|
|
2.8
|
%
|
|
|
0.5
|
%
|
|
Capital gains component of incentive fees to average net asset value
(2)
|
|
*
|
|
|
*
|
|
|
|
(0.3
|
)%
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Less than .005%
|
|
(1)
|
|
Weighted average portfolio yields for periods shown are the
annualized rate of the interest income recognized during the period
divided by the average amortized cost of debt investments in the
portfolio at the beginning of each month in the period.
|
|
(2)
|
|
Percentage is presented on an annualized basis.
|
|
|
|
|
The following table provides a reconciliation of net investment income
to core net investment income for the three and six months ended June
30, 2015, for the three months ended June 30, 2015, and for the period
from March 5, 2014 (commencement of operations) to June 30, 2014.
|
|
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
RECONCILIATION OF CORE NET INVESTMENT INCOME
(dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income and Core Net Investment Income
|
|
For the Three Months Ended June 30,
|
|
|
For the Six Months Ended
|
|
|
For the Period from
March 5, 2014
(Commencement
of
Operations) to
|
|
(dollars in thousands, except per share amounts)
|
|
2015
|
|
|
2014
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
Net Investment Income
|
|
$
|
6,295
|
|
|
$
|
2,854
|
|
|
$
|
11,240
|
|
|
$
|
3,423
|
|
Capital gains incentive fee
|
|
|
6
|
|
|
|
7
|
|
|
|
(290
|
)
|
|
|
282
|
|
Core Net Investment Income
|
|
$
|
6,301
|
|
|
$
|
2,861
|
|
|
$
|
10,950
|
|
|
$
|
3,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income per Share
|
|
$
|
0.38
|
|
|
$
|
0.29
|
|
|
$
|
0.84
|
|
|
$
|
0.35
|
|
Capital gains incentive fee per share
|
|
*
|
|
|
*
|
|
|
|
(0.03
|
)
|
|
|
0.03
|
|
Core Net Investment Income per Share
|
|
$
|
0.38
|
|
|
$
|
0.29
|
|
|
$
|
0.81
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Less than $0.005 per share
|
|
|
|
|
For the three and six months ended June 30, 2015, the Company recorded
accrued capital gains incentive fee of approximately $6 thousand and a
reversal of $0.3 million, respectively. For the three months ended June
30, 2014, the Company recorded accrued capital gains incentive fee of
approximately $7 thousand and $0.3 million for the period from March 5,
2014 (commencement of operations) to June 30, 2014. The capital gains
incentive fee accrual, as reported under generally accepted accounting
principles, is calculated on the basis of net realized and unrealized
gains and losses at the end of each period. The accrued capital gains
incentive fee related to the hypothetical liquidation of the portfolio
(and assuming no other changes in realized or unrealized gains and
losses) would only have become payable to its investment adviser in the
event of a complete liquidation of its portfolio as of period end and
the termination of the Investment Advisory Agreement (“Agreement”).
The amount of the capital gains incentive fee, if any, which will
actually be payable is determined in accordance with the terms of the
Agreement and is calculated as of the end of each calendar year (or upon
termination of the Agreement). The terms of the Agreement state that the
capital gains incentive fee calculation is based on net realized gains,
if any, offset by gross unrealized depreciation for the calendar year.
No effect is given to gross unrealized appreciation in this calculation.
|
____________________
|
|
1
|
|
Core net investment income is a non-GAAP measure and is provided in
addition to, but not as a substitute for, net investment income.
Core net investment income represents net investment income
excluding the Company’s capital gains incentive fee.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150811006288/en/
Source: TriplePoint Venture Growth BDC Corp.