Triplepoint Venture Growth BDC Corp (TPVG) 2023 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the TriplePoint Venture Growth BDC Corporation First Quarter 2023 Earnings Conference Call. (Operator Instructions) This conference is being recorded, and a replay of this call will be available in an audio webcast on the TriplePoint Venture Growth website.

女士們先生們，下午好，歡迎來到 TriplePoint Venture Growth BDC Corporation 2023 年第一季度收益電話會議。 （操作員說明）正在錄製此會議，並將在 TriplePoint Venture Growth 網站上的音頻網絡廣播中重播此電話會議。

Company management is pleased to share with you the company's results for the first quarter of 2023. Today, representing the company is Jim Labe, Chief Executive Officer and Chairman of the Board; Sajal Srivastava, President and Chief Investment Officer; and Chris Mathieu, Chief Financial Officer.

公司管理層很高興與您分享公司 2023 年第一季度的業績。今天代表公司的是首席執行官兼董事會主席 Jim Labe； Sajal Srivastava，總裁兼首席投資官；和首席財務官 Chris Mathieu。

Before I turn the call over to Mr. Labe, I'd like to direct your attention to the customary safe harbor disclosure in the company's press release regarding forward-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 condition, 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 reflect 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.

在我將電話轉給 Labe 先生之前，我想請您注意公司新聞稿中有關前瞻性陳述的慣常安全港披露，並提醒您在本次電話會議期間，管理層將做出與相關的某些聲明未來事件或公司未來業績或財務狀況，根據聯邦證券法，這些被視為前瞻性陳述。您需要參考公司最近向美國證券交易委員會提交的文件，了解可能導致實際結果與這些陳述存在重大差異的重要因素。除非法律要求，否則公司不承擔任何更新任何前瞻性陳述或預測的義務。提醒投資者不要過分依賴電話會議期間做出的任何前瞻性陳述，這些陳述僅反映截至今天的管理層意見。要獲取我們最新提交給美國證券交易委員會的文件的副本，請訪問公司網站 www.tpvg.com。

Now I'd like to turn the conference over to Mr. Labe.

現在我想將會議轉交給 Labe 先生。

Good afternoon, everyone, and thank you for joining TPVG's First Quarter Earnings Call. During the first quarter of 2023, we continued to maintain our selective approach given these markets. We grew the portfolio to nearly $1 billion and generated net investment income, or NII, of $0.53 per share, continuing to demonstrate the earnings power of our portfolio. NII for the quarter exceeded our quarterly distribution of $0.40 per share. Including TPVG's most recent distribution increase in March of this year, we have now increased our quarterly distribution 11% since the third quarter of 2022.

大家下午好，感謝您參加 TPVG 第一季度財報電話會議。在 2023 年第一季度，鑑於這些市場，我們繼續保持我們的選擇性方法。我們將投資組合增加到近 10 億美元，並產生每股 0.53 美元的淨投資收益 (NII)，繼續證明我們投資組合的盈利能力。本季度的 NII 超過了我們每股 0.40 美元的季度分配。包括 TPVG 在今年 3 月的最近一次分銷增加，自 2022 年第三季度以來，我們現在已經將季度分銷增加了 11%。

Based on our net income during the quarter, we realized a 17.8% ROE, which is the second consecutive quarter we've been above the 17% ROE level. We also achieved a weighted average portfolio yield for the quarter of 14.7% and our 8th consecutive quarter of increasing core portfolio yield. While credit was impacted this quarter, given the current down cycle and macroeconomic market conditions, our team is working through these events in this cycle as it's part of the multi-decade experience in venture lending and our long-term track record.

根據本季度的淨收入，我們實現了 17.8% 的股本回報率，這是我們連續第二個季度高於 17% 的股本回報率水平。我們還實現了本季度 14.7% 的加權平均投資組合收益率，這是我們連續第 8 個季度提高核心投資組合收益率。雖然本季度信貸受到影響，但鑑於當前的下行週期和宏觀經濟市場狀況，我們的團隊正在處理本週期中的這些事件，因為這是風險貸款領域數十年經驗和我們長期業績記錄的一部分。

Given the unprecedented developments at both Silicon Valley Bank and Signature Bank last quarter and extending right into this quarter with First Republic Bank, there are significant and lasting impacts from these events, and we expect these developments will continue to have a monumental effect on our market. The demise of Silicon Valley Bank was a very unfortunate situation from an institutional and a human perspective.

鑑於上個季度矽谷銀行和 Signature Bank 的空前發展以及 First Republic Bank 一直延續到本季度，這些事件產生了重大而持久的影響，我們預計這些發展將繼續對我們的市場產生巨大影響.矽谷銀行的倒閉，無論是從制度還是從人的角度來看，都是一個非常不幸的情況。

From a market perspective, it is turning into a major game changer that is significantly and potentially permanently altered the competitive landscape for venture lending. Translating into what we believe are increased and growing opportunities for the overall TriplePoint Capital platform to capitalize over the long term, including a very promising long-term outlook for TPVG. While some banks are in the process of stepping in to fill the void created by SVB, their focus has been on traditional bank services such as depository, credit card, investment management and other services.

從市場的角度來看，它正在成為一個主要的遊戲規則改變者，顯著並可能永久地改變風險貸款的競爭格局。轉化為我們認為整個 TriplePoint Capital 平台長期資本化的機會增加和增長，包括 TPVG 非常有前途的長期前景。雖然一些銀行正在介入以填補 SVB 造成的空白，但他們的重點一直放在傳統的銀行服務上，例如存款、信用卡、投資管理和其他服務。

In terms of venture lending, given this emerging post-SVB environment, bank appetites have changed, and we have witnessed considerable tightening. As we've discussed in the past, this is a highly specialized business and venture lending has significant barriers to entry. To date, we really haven't seen any of these other banks or, for that matter, any other participants enter the venture lending market in a meaningful way.

在風險貸款方面，鑑於這種新興的後 SVB 環境，銀行的胃口發生了變化，我們目睹了相當大的緊縮。正如我們過去所討論的那樣，這是一項高度專業化的業務，風險貸款的進入壁壘很高。迄今為止，我們確實還沒有看到任何其他銀行，或者就此而言，任何其他參與者以有意義的方式進入風險貸款市場。

Based on conversations with our venture capital partners, portfolio companies and active prospects that are in the pipeline, now more than ever they recognizing the importance of separating the commercial bank and the lending relationship. As well as it's becoming more conscious of the hidden cost, limitations and the associated drawback of bank lending. This has further demonstrated the value of the TriplePoint financing relationship and the role and importance of our venture lending as part of these companies' overall financing strategies.

基於與我們的風險投資合作夥伴、投資組合公司和正在醞釀中的積極前景的對話，他們現在比以往任何時候都更加認識到將商業銀行和貸款關係分開的重要性。它也越來越意識到銀行貸款的隱性成本、局限性和相關缺點。這進一步證明了 TriplePoint 融資關係的價值以及我們的風險貸款作為這些公司整體融資戰略的一部分的作用和重要性。

The departure of SVB has also resulted in increased deal flow and has contributed to our building TriplePoint platform, which also includes providing newer replacement loans previously received from banks. At the platform level, we have a number of high-quality lending opportunities to companies backed by our select venture partners, where we are or will be replacing a major market participant who's no longer active or as active, and where we're becoming the new source for lending. The pipeline is continuing to build as these are not overnight situations and will continue to be part of our portfolio growth and build-out over the next few quarters and well into the future years.

SVB 的離開也導致交易流量增加，並有助於我們構建 TriplePoint 平台，其中還包括提供以前從銀行收到的更新的替代貸款。在平台層面，我們為我們精選的風險合作夥伴支持的公司提供了許多高質量的貸款機會，我們正在或將要取代不再活躍或不再活躍的主要市場參與者，並且我們正在成為新的貸款來源。管道正在繼續建設，因為這些不是一夜之間的情況，並將在未來幾個季度和未來幾年繼續成為我們投資組合增長和擴建的一部分。

Turning to the current venture markets. During the first quarter, we've continued to see lower venture capital investment activity quarter-over-quarter, driven by no surprise, primarily by the tightening monetary policy and the downturn in public company multiples and valuations. We're in a cycle. We're in a period of valuation resets for venture growth stage companies. Given this market backdrop, however, based on conversations with some of our venture capital partners, there's already early signs and a very widespread belief that investment momentum will pick up later this year and into 2024, especially given the $300 billion of PitchBook NVCA's estimated dry powder, that venture capital funds still have at their disposal.

轉向當前的風險市場。在第一季度，我們繼續看到風險資本投資活動環比下降，這不足為奇，主要是由於緊縮的貨幣政策以及上市公司市盈率和估值的下滑。我們處在一個循環中。我們正處於風險成長階段公司的估值重置時期。然而，在這種市場背景下，根據與我們一些風險投資合作夥伴的對話，已經有早期跡象並且人們普遍認為投資勢頭將在今年晚些時候和 2024 年回升，尤其是考慮到 PitchBook NVCA 估計的 3000 億美元幹資產粉末，風險投資基金仍然可以支配。

Although VCs continue to focus on existing companies and tell us they're continuing to weight out this market volatility, there's now a growing and strong sense among them forecasting better times ahead. With that said, across our sponsors' platform, we are finding new pockets of venture capital investment activity starting to pop up and witnessing investment appetite starting to increase in tech investing, and it's not only in such fields as generative AI, but in several other sectors as well. We continue to find the deals are still getting done. It's simply been taking longer and a slower pace.

儘管風險投資公司繼續關注現有公司並告訴我們他們正在繼續權衡這種市場波動，但現在他們越來越強烈地預測未來會更好。話雖如此，在我們贊助商的平台上，我們發現新的風險資本投資活動開始湧現，並見證了對科技投資的投資興趣開始增加，不僅在生成人工智能等領域，而且在其他幾個領域行業也是如此。我們繼續發現交易仍在完成。它只是花費了更長的時間和更慢的速度。

Within the pipeline, we also continue to have demand for venture lending from companies planning out their timetable and also encompassing debt in their financing strategies and capitalization plan. Some of these companies are seeking financing for opportunistic acquisitions or previously equity-only companies, which are continuing to turn towards debt and layering in as part of their go-forward plan. Venture growth stage companies that raised equity over the last year or so at attractive valuations continue to turn towards venture debt given the valuation-sensitive market.

在籌備中，我們還繼續有來自公司的風險貸款需求，這些公司正在規劃他們的時間表，並將債務納入他們的融資戰略和資本化計劃。其中一些公司正在為機會性收購或以前只持有股權的公司尋求融資，這些公司正在繼續轉向債務並作為其前進計劃的一部分進行分層。鑑於估值敏感的市場，在過去一年左右以具有吸引力的估值籌集股權的風險成長階段公司繼續轉向風險債務。

And finally, the longer time lines for public listings and the need for additional runway between equity rounds have been serving as another driver. Having stated all these opportunities, however, TPVG is going to continue to remain selective. As we concentrate on opportunistically ourselves investing in what we believe to be the highest quality venture growth stage companies. Consistent with our approach, we will focus on companies that have recently raised capital, have meaningful revenue scale and whose plans in the next 1 to 2 years will position them to perform well in this volatile economic environment and under these current challenges.

最後，公開上市的時間更長以及股權輪次之間需要額外的跑道一直是另一個驅動因素。然而，在陳述了所有這些機會之後，TPVG 將繼續保持選擇性。當我們專注於機會主義地投資於我們認為是最高質量的風險成長階段公司時。與我們的方法一致，我們將重點關注最近籌集資金、收入規模可觀且未來 1 至 2 年的計劃將使他們能夠在這種動蕩的經濟環境和當前的這些挑戰下表現良好的公司。

Despite the macroeconomic environment, inflationary concerns in the broader economy, a number of TPVG portfolio companies continue to grow, with some experiencing tailwinds for achieving profitability. We're pretty optimistic on the outlook for many of these diverse investments that we funded in 2022, and the portfolio benefits from investments in these sectors as diversified as network detection, frontier tech space, enterprise vertical software, fintech, next-generation sports, digital media and others, to name a few.

儘管宏觀經濟環境和整體經濟存在通貨膨脹擔憂，但許多 TPVG 投資組合公司仍在繼續增長，其中一些公司在實現盈利方面遇到了順風。我們對我們在 2022 年資助的這些多元化投資的前景非常樂觀，投資組合受益於對這些領域的投資，如網絡檢測、前沿技術空間、企業垂直軟件、金融科技、下一代體育、數字媒體和其他，僅舉幾例。

To wrap up, the exit of SVB during the end of March will have significant and lasting impacts on the market over the long term and create multiyear opportunities. We had these opportunities already underway for us in the wake of the SVB development to the widespread belief that investment momentum will pick up later this year and into 2024, and along with our select venture capital partners, forecast better times ahead.

總而言之，SVB 在 3 月底的退出將對市場產生重大而持久的長期影響，並創造多年的機會。在 SVB 發展之後，我們已經有了這些機會，人們普遍認為投資勢頭將在今年晚些時候和 2024 年回升，並與我們精選的風險投資合作夥伴一起預測未來的美好時光。

Based on our track record of working with these select venture capital partners and our success in investing approximately $10 billion of venture loans at the TriplePoint platform level, we will continue to draw on our differentiated platform and our experienced team to maintain the quality of our investment portfolio as well as to capitalize on these developments in a disciplined fashion over the long term to create sustainable shareholder value.

根據我們與這些精選風險投資合作夥伴的合作記錄以及我們在 TriplePoint 平台層面成功投資約 100 億美元的風險貸款，我們將繼續利用我們的差異化平台和經驗豐富的團隊來保持我們的投資質量投資組合以及長期以有紀律的方式利用這些發展來創造可持續的股東價值。

With that, I'll turn the call now over to Sajal.

有了這個，我現在將電話轉給 Sajal。

Thank you, Jim, and good afternoon. As Jim discussed, we continue to remain active in the venture lending market at our platform, TriplePoint Capital, and maintain our extremely selective and focused approach with $199 million of signed term sheets with venture growth stage companies in Q1. Given TPVG's leverage position, we are selectively allocating new commitments to TPVG with the majority going to other vehicles on the TriplePoint Capital platform and as a result for the first quarter, closed debt commitments at TPVG's totaled $4 million.

謝謝你，吉姆，下午好。正如吉姆所討論的那樣，我們繼續在我們的平台 TriplePoint Capital 的風險貸款市場保持活躍，並保持我們極具選擇性和專注的方法，在第一季度與風險成長階段的公司簽署了 1.99 億美元的條款清單。鑑於 TPVG 的槓桿地位，我們有選擇地向 TPVG 分配新的承諾，其中大部分用於 TriplePoint Capital 平台上的其他工具，因此在第一季度，TPVG 的已結債務承諾總額為 400 萬美元。

During the first quarter, we funded $57.6 million in debt investments to 11 portfolio companies, landing at the lower end of our guided range for the quarter, which carried an adjusted weighted average annualized portfolio yield of 14.1% at origination. Of the obligors funded during the quarter, roughly half generate annualized revenues in excess of $100 million, reflecting the increased size and scale of our portfolio company.

第一季度，我們向 11 家投資組合公司提供了 5760 萬美元的債務投資資金，處於我們本季度指導範圍的下限，調整後的加權平均年化投資組合收益率為 14.1%。在本季度獲得資助的債務人中，大約一半的年化收入超過 1 億美元，反映出我們投資組合公司的規模和規模不斷擴大。

Our core weighted average portfolio yield for Q1 was 14.7%, which was up from 14.2% in Q4 and represented our 8th consecutive quarterly increase. Our Q1 portfolio yield does not yet reflect the [225] basis point rate increases announced in February and March, which will more meaningfully impact portfolio yield starting in Q2. As a result, we are optimistic for another quarter of increased portfolio yield and for portfolio yield to continue to stay strong in 2023 given the rate environment.

我們第一季度的核心加權平均投資組合收益率為 14.7%，高於第四季度的 14.2%，這是我們連續第 8 個季度增長。我們的第一季度投資組合收益率尚未反映 2 月和 3 月宣布的 [225] 個基點利率上調，這將對從第二季度開始的投資組合收益率產生更有意義的影響。因此，鑑於利率環境，我們對投資組合收益率再增加四分之一以及投資組合收益率在 2023 年繼續保持強勁持樂觀態度。

Although we didn't have any prepayments in Q1, they continue to be a part of the business, and we still expect at least 1 to 2 customer prepayments per quarter with one previously announced prepayment expectation of ForgeRock's $30 million loan in conjunction with closing their take-private transaction in addition to others in the works.

儘管我們在第一季度沒有任何預付款，但它們仍然是業務的一部分，我們仍然預計每個季度至少有 1 到 2 個客戶預付款，其中一個是之前宣布的 ForgeRock 3000 萬美元貸款的預付款預期，同時關閉他們的除了正在進行的其他交易外，還進行了私有化交易。

In terms of our expectations for fundings in Q2 with our reduced allocation of new commitments to TPVG and low utilization of existing unfunded commitments, our forecast for gross investment fundings is in the range of $25 million to $75 million for the second quarter, down from our prior guidance of $50 million to $100 million with the potential to grow as we increase our allocation of new commitment to TPVG.

就我們對第二季度資金的預期而言，由於我們減少了對 TPVG 的新承諾分配以及現有無資金承諾的利用率較低，我們對第二季度總投資資金的預測在 2500 萬至 7500 萬美元之間，低於我們的預期5000 萬至 1 億美元的先前指導隨著我們增加對 TPVG 的新承諾的分配而增長的潛力。

During the quarter, we made continued progress on diversifying the TPVG portfolio by increasing the number of funded borrowers to 59 as compared to 48 1 year ago. In addition, our top 10 obligors represent 32% of our total debt investments as compared to 40% 1 year ago. While not typical for venture growth stage companies, more than half of our top 10 obligors are either EBITDA positive or are projected to achieve EBITDA. We continue to see equity fundraising activity in our portfolio despite the challenging environment, although at lower levels in Q1, which we believe was also impacted by events associated with the venture banking market during the quarter.

在本季度，我們通過將融資借款人的數量從一年前的 48 個增加到 59 個，在 TPVG 投資組合多元化方面取得了持續進展。此外，我們的前 10 大債務人占我們總債務投資的 32%，而一年前為 40%。雖然對於風險成長階段的公司來說並不典型，但我們前 10 大債務人中有一半以上的 EBITDA 為正或預計將實現 EBITDA。儘管環境充滿挑戰，但我們繼續在我們的投資組合中看到股權融資活動，儘管第一季度的水平較低，我們認為這也受到本季度與風險銀行市場相關事件的影響。

In Q1, 7 portfolio companies raised approximately $64 million of capital. This brings the total to 32 portfolio companies, raising over $1.6 billion of capital in the past year. We expect to see fundraising activity gradually pick up within our portfolio quarter-over-quarter over the course of the year. Our equity and warrant portfolio grew as well, with 155 warrant and equity investments as of Q1 '23 as compared to 128 investments as of 1 year ago. As of March 31st, we held warrants in 107 companies, up from 86 companies as of Q1 '22 and held equity investments in 48 companies, up from 42 companies as of Q1 '22, with a total cost and fair value of $71 million and $93 million respectively.

第一季度，7 家投資組合公司籌集了大約 6400 萬美元的資金。這使投資組合公司總數達到 32 家，在過去一年籌集了超過 16 億美元的資金。我們預計在這一年中，我們的投資組合中的籌款活動將逐季逐步回升。我們的股票和認股權証投資組合也在增長，截至 23 年第一季度，我們的認股權證和股權投資有 155 筆，而一年前為 128 筆。截至 3 月 31 日，我們持有 107 家公司的認股權證，高於 22 年第一季度的 86 家公司，持有 48 家公司的股權投資，高於 22 年第一季度的 42 家公司，總成本和公允價值為 7100 萬美元，分別為 9300 萬美元。

During the quarter, we saw a reduction in the fair value of our warrant and equity positions, reflecting market conditions as well as down rounds in some cases, despite strong underlying performance for many of our portfolio companies. It's important to note that we continue to have numerous companies that are growing and expanding and executing according to, in many cases, ahead of plan as well as achieving EBITDA, particularly those companies in the fintech, software, enterprise and travel segments, which is why we continue to expect our cumulative warrant and equity investments to generate realized gains in excess of our cumulative realized losses over the long term.

在本季度，我們看到我們的認股權證和股票頭寸的公允價值有所下降，反映了市場狀況以及某些情況下的低價融資，儘管我們的許多投資組合公司的基本業績都很強勁。重要的是要注意，我們仍然有許多公司在許多情況下根據計劃提前增長、擴張和執行，並實現了 EBITDA，特別是那些在金融科技、軟件、企業和旅遊領域的公司，這是為什麼我們繼續期望我們的累計認股權證和股權投資產生的已實現收益超過我們的長期累計已實現損失。

In terms of outlook for the portfolio and credit quality, given the environment for direct equity fundraising, the playbook for most of our portfolio companies is to continue to grow, but to do so thoughtfully, while optimizing their cash burn rates to extend their runway to either achieve profitability or for future equity rate.

就投資組合和信用質量的前景而言，鑑於直接股權融資的環境，我們大多數投資組合公司的策略是繼續增長，但要深思熟慮地這樣做，同時優化其現金消耗率以將其跑道擴展到要么實現盈利，要么為未來的股本率。

With this background, as of the end of the quarter, approximately 84% of our portfolio is ranked at our 2 best credit scores, which means that they are performing at or above expectations despite market conditions, and we upgraded one company from Category 2 to Category 1 with a principal balance of $15 million.

在此背景下，截至本季度末，我們投資組合中約 84% 的信用評分為我們的 2 最佳信用評分，這意味著儘管市場狀況不佳，它們的表現仍達到或高於預期，我們將一家公司從第 2 類升級為第 1 類，本金餘額為 1500 萬美元。

As Jim mentioned, credit was impacted during the quarter due to conditions in the equity fundraising market, which we believe were also impacted by events in the venture banking market. We downgraded Demain also known as Luko, an insurtech company with a principal balance of $17 million from Category 2 to Category 3 due to delays in its strategic financing process. We also downgraded RenoRun, a construction technology and logistics company with a principal balance of $3 million from Category 2 to Category 3. RenoRun has filed for creditor protection in Canada and facilitate a sale and liquidation process, and we look to our recovery on our loan, both from their cash on hand and other potential asset sales, including the entire enterprise and asset and [IP, sorry.]

正如吉姆所提到的，由於股權融資市場的狀況，本季度信貸受到影響，我們認為這也受到風險銀行市場事件的影響。我們將 Demain（也稱為 Luko）的評級從第 2 類降至第 3 類，原因是其戰略融資流程的延遲，這家保險科技公司的本金餘額為 1,700 萬美元。我們還將本金餘額為 300 萬美元的建築技術和物流公司 RenoRun 從第 2 類降級為第 3 類。RenoRun 已在加拿大申請債權人保護並促進銷售和清算流程，我們希望收回貸款，來自他們手頭的現金和其他潛在的資產銷售，包括整個企業和資產以及 [IP，抱歉。]

Underground Enterprises, an e-commerce retail with principal balance of $6 million, was a downgrade from Category 2 to Category 3 and has filed for Chapter 7 bankruptcy protection. We provided an inventory-based financing facility to the company and look to recovery on our loan from the underlying inventory as well as other potential asset sales, including the entire enterprise in IP. Pay favor, also known as Pill Club, an online pharmacy with a principal balance of $20 million filed for Chapter 11 bankruptcy protection with the intent to continue operations and potentially reorganize as a stand-alone enterprise or sell to another company. This is an ongoing situation, and we expect more developments to occur in the near term that could result in substantial or full recovery of our loan.

Underground Enterprises 是一家本金餘額為 600 萬美元的電子商務零售企業，評級從第 2 類降至第 3 類，並已申請第 7 章破產保護。我們向該公司提供了基於庫存的融資工具，並希望從基礎庫存和其他潛在資產銷售中收回我們的貸款，包括整個企業的知識產權。 Pay favour，也稱為 Pill Club，是一家本金餘額為 2000 萬美元的在線藥店，已根據美國破產法第 11 章申請破產保護，目的是繼續運營並可能重組為獨立企業或出售給另一家公司。這是一個持續的情況，我們預計在短期內會發生更多的事態發展，這可能會導致我們的貸款大量或全部收回。

Also during the quarter, VanMoof, an e-bike company with a principal balance of $23 million and Health IQ, an insurtech company, with a principal balance of $25 million, which were both previously rated 3, were downgraded to Category 4 as they continue to navigate through challenges in our sectors and businesses as well as developments in our strategic financing processes. We are in a challenging period of time for venture capital investing and for public technology companies and expect some obligors to experience stress.

同樣在本季度，本金餘額為 2300 萬美元的電動自行車公司 VanMoof 和本金餘額為 2500 萬美元的保險科技公司 Health IQ 之前均被評為 3 級，但隨著它們繼續進行，它們被降級為第 4 類應對我們部門和業務中的挑戰以及我們戰略融資流程的發展。對於風險資本投資和上市科技公司而言，我們正處於充滿挑戰的時期，預計一些債務人會承受壓力。

As we have demonstrated before, our teams have effectively managed through these situations. As a reminder, since TPVG's inception now 10 years ago, our cumulative net loss rate remains under 3% of cumulative commitments or 32 basis points per annum and 2% of fundings or 22 basis points per annum.

正如我們之前所展示的那樣，我們的團隊已經有效地應對了這些情況。提醒一下，自 TPVG 10 年前成立以來，我們的累計淨虧損率一直低於累計承諾的 3% 或每年 32 個基點，低於資金的 2% 或每年 22 個基點。

In closing, we remain focused on all aspects of our business, and we'll continue to follow our long-term playbook with a focus on generating strong returns for shareholders, meet the needs of venture growth stage companies and further nurturing strong relationships with our select venture capital partners.

最後，我們仍然專注於我們業務的各個方面，我們將繼續遵循我們的長期戰略，重點是為股東創造豐厚的回報，滿足風險成長階段公司的需求，並進一步與我們建立牢固的關係選擇風險投資合作夥伴。

With that, I'll now turn the call over to Chris.

有了這個，我現在將電話轉給克里斯。

Great. Thank you, Sajal, and hello, everybody.

偉大的。謝謝你，Sajal，大家好。

During the first quarter, we grew core income yields from our loan portfolio. We continue to diversify the portfolio. And while we had elevated leverage as of quarter end, we now sit with a record portfolio size, a diversified capital structure and ample liquidity to meet our targeted funding range.

在第一季度，我們提高了貸款組合的核心收入收益率。我們繼續多元化投資組合。雖然我們在季度末提高了槓桿率，但我們現在擁有創紀錄的投資組合規模、多元化的資本結構和充足的流動性來滿足我們的目標融資範圍。

Let me drill down a bit more and share an update on the financial results for the first quarter of 2023. Total investment income was $33 million as compared to $27 million for the first quarter of 2022. Our core portfolio yield, which excludes the impact of loan prepayment income was 14.7% on total debt investments as compared to 12.7% for the first quarter of 2022. The onboarding yields continue to be strong and stable.

讓我再深入一點，分享 2023 年第一季度財務業績的最新情況。總投資收益為 3300 萬美元，而 2022 年第一季度為 2700 萬美元。我們的核心投資組合收益率，不包括貸款預付收入佔總債務投資的 14.7%，而 2022 年第一季度為 12.7%。入職收益率繼續保持強勁和穩定。

Operating expenses were $15 million as compared to $13.8 million for the first quarter of '22. These expenses consisted of $9 million of interest expense, $4.3 million of management fees and $1.6 million of G&A expenses. Due to the shareholder-friendly structure of our total return requirement under the incentive fee structure, our income incentive fee expense was reduced by $3.7 million during the first quarter. We earned net investment income of $18.6 million or $0.53 per share compared to $0.44 per share in the same period last year.

營業費用為 1500 萬美元，而 22 年第一季度為 1380 萬美元。這些費用包括 900 萬美元的利息費用、430 萬美元的管理費和 160 萬美元的 G&A 費用。由於激勵費用結構下我們總回報要求的股東友好結構，我們的收入激勵費用支出在第一季度減少了 370 萬美元。我們的淨投資收益為 1860 萬美元或每股 0.53 美元，而去年同期為每股 0.44 美元。

Net change in unrealized losses on investments for the first quarter was $10.9 million, consisting of $6.6 million of net unrealized losses on the debt portfolio and $4.2 million of net unrealized losses on the warrant and equity portfolio, resulting from fair value adjustments. As of quarter end, total net assets were $414 million or $11.69 per share compared to $420 million or $11.88 per share as of December 31, 2022.

第一季度未實現投資損失的淨變化為 1090 萬美元，其中包括 660 萬美元的債務組合未實現淨損失和 420 萬美元的認股權證和股票組合的未實現淨損失，這些損失來自公允價值調整。截至季度末，總淨資產為 4.14 億美元或每股 11.69 美元，而截至 2022 年 12 月 31 日為 4.2 億美元或每股 11.88 美元。

Our Board of Directors declared a regular quarterly dividend of $0.40 per share. The dividend is from ordinary income to stockholders of record as of June 15, to be paid on June 30. In addition to over-earning the first quarter dividend, we continue to retain spillover income, which totaled $27 million or $0.70 per share at the end of the period to support additional regular and supplemental dividends in the future.

我們的董事會宣布定期派發每股 0.40 美元的季度股息。股息來自截至 6 月 15 日記錄在案的股東的普通收入，將於 6 月 30 日支付。除了超額賺取第一季度股息外，我們繼續保留溢出收入，總計 2700 萬美元或每股 0.70 美元期末以支持未來額外的定期和補充股息。

Now let's move to our investment commitments. We ended the quarter with $254 million of unfunded investment commitments of which an aggregate of $73 million was dependent upon the portfolio company reaching certain milestones. Of this total amount, $152 million or 60% of this total will expire during 2023.

現在讓我們談談我們的投資承諾。本季度結束時，我們有 2.54 億美元的無資金投資承諾，其中總計 7300 萬美元取決於投資組合公司是否達到某些里程碑。在這一總額中，1.52 億美元或總額的 60% 將在 2023 年到期。

Now just a quick update on our balance sheet leverage and overall liquidity. As of March 31, an aggregate of $395 million was outstanding in fixed rate investment-grade term notes and $220 million was outstanding on the revolving credit facility. In connection with the term notes, DBRS issued an investment-grade rating in connection with those transactions and recently reaffirmed our investment-grade standing at BBB.

現在快速更新我們的資產負債表槓桿和整體流動性。截至 3 月 31 日，固定利率投資級定期票據的未償還總額為 3.95 億美元，循環信貸額度的未償還總額為 2.2 億美元。關於定期票據，DBRS 對這些交易發布了投資級評級，最近重申了我們在 BBB 的投資級評級。

We ended the quarter with a leverage ratio of 1.49x. As of quarter end, the company had total liquidity of $188 million, consisting of $58 million in cash and $130 million available under the revolving credit facility. In addition to this liquidity, the existing seasoned and diversified portfolio provides predictable cash flows, which bodes well for sustained liquidity throughout 2023. Specifically, we have more than $130 million of contractual cash flows from the existing portfolio scheduled to flow back to the company in 2023 and more than $400 million throughout 2024.

我們以 1.49 倍的槓桿比率結束了本季度。截至本季度末，公司的流動資金總額為 1.88 億美元，其中包括 5800 萬美元現金和循環信貸額度下的 1.3 億美元可用資金。除了這種流動性之外，現有的成熟和多元化的投資組合還提供了可預測的現金流，這預示著整個 2023 年持續的流動性。具體而言，我們有超過 1.3 億美元的現有投資組合的合同現金流計劃於2023 年和整個 2024 年超過 4 億美元。

I'd also like to remind you that loan prepayments are a natural part of our venture lending model. And while they vary from quarter-to-quarter, we expect that they will have 1 to 2 customers prepay in any particular quarter over the long term. As an example, as Sajal had mentioned, we have line of sight on companies such as ForgeRock, which is expected to prepay all of its loans in Q2 or Q3 this year in an aggregate amount of $30 million.

我還想提醒您，提前還款是我們風險貸款模式的自然組成部分。雖然每個季度有所不同，但我們預計從長期來看，他們在任何特定季度都會有 1 到 2 個客戶預付款。例如，正如 Sajal 提到的，我們關注 ForgeRock 等公司，預計將在今年第二季度或第三季度預付總計 3000 萬美元的所有貸款。

In November, we announced the launch of an ATM stock issuance program. And although we have not issued any shares under that program as of today, we do look to issue shares over the coming year.

11 月，我們宣布啟動 ATM 股票發行計劃。儘管截至今天我們還沒有根據該計劃發行任何股票，但我們確實希望在來年發行股票。

So this completes our prepared remarks, and we'd be happy to take questions from you. And so operator, could you please open the line at this time?

我們準備好的發言到此結束，我們很樂意回答您的問題。那麼接線員，請您在這個時候打開線路好嗎？

(Operator Instructions) And our first question will come from Finian O'Shea with Wells Fargo.

（操作員說明）我們的第一個問題將來自富國銀行的 Finian O'Shea。

Question on leverage. Sajal, I know you gave a couple of guideposts on fundings and repays of ForgeRock and such. But where does that overall bring you per se, next quarter? And then where do you want the BDC to be in terms of net leverage right now?

關於槓桿的問題。 Sajal，我知道你給出了幾個關於 ForgeRock 的資金和償還等方面的指南。但是，下個季度，這整體會給你帶來什麼？然後，您希望 BDC 現在的淨槓桿率達到什麼水平？

Sure. Chris, do you want to actually take this question?

當然。克里斯，你真的想回答這個問題嗎？

Sure. Yes. So we're at 1.49x gross leverage. We do have cash on the balance sheet to essentially fund all of the current expected fundings for the next quarter. So Q2, we don't expect to increase leverage, but rather just use the liquidity on balance sheet. We'd look to the prepayments that we mentioned as well as just normal cash flows from the portfolio in Q3 and into Q4. So really not expecting much movement in overall leverage over the next quarter or 2. Depending on the prepayment activity, that will depend on what would look -- what we would look like at the end of the year as far as overall leverage.

當然。是的。所以我們的總槓桿率為 1.49 倍。我們的資產負債表上確實有現金，基本上可以為下一季度的所有當前預期資金提供資金。所以第二季度，我們不希望增加槓桿，而只是使用資產負債表上的流動性。我們將關注我們提到的預付款項以及第三季度和第四季度投資組合的正常現金流量。因此，真的不要期望下一季度或第二季度的整體槓桿率會有太大變化。根據預付款活動，這將取決於我們在年底的整體槓桿率方面的表現。

Helpful. And just a follow-up on the fundings both this quarter and for the anticipated ones this coming quarter. How much of that has been from previously underwritten unfunded commitments?

有幫助。並且只是對本季度和下個季度預期資金的跟進。其中有多少來自之前承保的無資金承諾？

Yes. Well, I'd say here in Q1 and Q2, it's 100% from existing unfunded -- or 90-plus percent from existing unfunded commitments given the slower pace of allocation to TPVG?

是的。好吧，我想在第一季度和第二季度在這裡說，鑑於分配給 TPVG 的速度較慢，它是 100% 來自現有的無資金承諾 - 或者 90% 以上來自現有的無資金承諾？

And any -- just final question. Any color you can give us on how much that reflects liquidity at the borrower level?

還有任何 - 最後一個問題。您可以給我們任何顏色來說明借款人層面的流動性有多少？

Yes, great question. So I would say, given what I would say is lower expected utilization than we anticipated. I think it's a function of the work that our portfolio companies are doing to balance this growth versus cash burn rate. I think in this environment, it's not growth at all costs. As I said earlier, I think it's a balance between appropriate levels of growth and having sufficient cash runway plus having line of sight to EBITDA profitability or beyond. So I'd say it's -- lower utilization is just a reflection of lower cash burn rates and more effective use of their existing cash resources and being more disciplined when it comes to growth outlook.

是的，很好的問題。所以我想說，鑑於我要說的是預期利用率低於我們的預期。我認為這是我們的投資組合公司為平衡這種增長與現金消耗率所做的工作的結果。我認為在這種環境下，這不是不惜一切代價的增長。正如我之前所說，我認為這是適當的增長水平與擁有足夠的現金跑道以及對 EBITDA 盈利能力或更高的視線之間的平衡。所以我想說的是——較低的利用率只是較低的現金消耗率和更有效地利用現有現金資源以及在增長前景方面更加自律的反映。

Our next question will come from Crispin Love with Piper Sandler.

我們的下一個問題將來自 Crispin Love 和 Piper Sandler。

Just first, looking at asset quality -- looking at (inaudible) you have zero investments right now in the Red category, but as you mentioned, 3 companies filed for bankruptcy since quarter end. And Sajal, you mentioned some comments on recovery for those in those investments. But can you dig a little deeper into that as to what types of recovery you might expect on those investments on either a percentage or a dollar basis and then your confidence there?

首先，看看資產質量——看看（聽不清）你現在在紅色類別中的投資為零，但正如你提到的，自季度末以來有 3 家公司申請破產。 Sajal，你提到了一些關於這些投資中的恢復的評論。但是你能否更深入地研究一下，你可能期望這些投資在百分比或美元基礎上出現什麼樣的複蘇，然後是你的信心？

Yes. Again, obviously, these are ongoing situations. And so it's hard to give full information just because they continue to develop. But I would say, as we said in our prepared remarks, I mean, I think we generally are confident for or believe to see full or complete recovery, assuming facts and circumstances as of today and developments that we expect to occur.

是的。同樣，顯然，這些都是持續的情況。因此很難僅僅因為它們在繼續發展就提供完整的信息。但我要說的是，正如我們在準備好的發言中所說，我的意思是，我認為我們通常有信心或相信會看到全面或完全的複蘇，假設今天的事實和情況以及我們預計會發生的事態發展。

Great. And then just relatedly, can you speak to kind of your credit quality outlook broadly in the portfolio just in the current environment separate from those investments? And then just some thoughts if you think we would be see -- if we might see additional bankruptcies over the near term, just given the environment?

偉大的。然後與此相關的是，您能否在與這些投資分開的當前環境中，廣泛地談談您在投資組合中的信用質量前景？然後只是一些想法，如果你認為我們會看到 - 如果我們可能會在短期內看到更多的破產，只是考慮到環境？

Yes. Let me start, and then I'll ask Jim to jump in. So I'd say, listen, I think, a critical outlook for venture lending, venture debt is a direct equity investment environment. And so I would say Q1 is absolutely a challenging environment for direct equity investing. I think, as Jim mentioned, due to market conditions and critical factors in the equity world, and I think it was further exacerbated by the developments, as Jim mentioned, in the venture banking environment.

是的。讓我開始，然後我會請吉姆加入。所以我會說，聽著，我認為，風險貸款的關鍵前景，風險債務是直接股權投資環境。所以我想說，第一季度對於直接股權投資來說絕對是一個充滿挑戰的環境。我認為，正如吉姆提到的那樣，由於市場條件和股票世界的關鍵因素，而且我認為正如吉姆提到的風險銀行環境的發展進一步加劇了這種情況。

So if you add that, yes, the month of March was very much a challenging time for both VCs and venture banks and companies as they were sort of navigating the volatility and the uncertainty in that environment. And so I think what you saw is a lot of financing activity and other strategic events either paused or delayed. And it's just to see kind of things and conditions improve and then those things either continue or not continue.

因此，如果你補充說，是的，對於風險投資公司、風險投資銀行和公司來說，3 月份是一個非常具有挑戰性的時期，因為他們正在應對這種環境中的波動和不確定性。所以我認為你看到的是許多融資活動和其他戰略事件要么暫停要么延遲。只是看到一些事情和條件有所改善，然後這些事情要么繼續，要么不繼續。

And so I'd say, again, Q1, in my opinion, was probably one of the worst quarters from a direct equity investment environment because of all of those factors. As we look to Q2, Q3 and beyond, as Jim mentioned, I think our select VCs are -- they're deploying capital, they're being selective of how they're deploying capital. And so we have indicators to see that, listen, we think it's going to stabilize and then pick up ideally over the course of this year and into '24.

所以我要說，在我看來，由於所有這些因素，第一季度可能是直接股權投資環境中最糟糕的季度之一。正如吉姆所提到的，當我們展望第二季度、第三季度及以後時，我認為我們選擇的風險投資公司是——他們正在部署資本，他們正在選擇如何部署資本。因此，我們有指標可以看到，聽著，我們認為它會穩定下來，然後在今年和 24 年期間理想地回升。

As we look to credit outlook, again, I think the really good news is that our portfolio companies have been preparing and have been cutting burn, managing runway, adding capital to their balance sheets. And again, I think a critical element was the other -- the venture banking developments and the volatility and uncertainty in Q1 brought a lot of things to the head. So I think we're expecting stability when it comes to the rest of the portfolio. But again, it's all critical on direct equity investment activity stabilizing and picking up over the course of the year for those companies that may not be profitable or have sufficient runway into 2024 and beyond.

當我們再次展望信用前景時，我認為真正的好消息是我們的投資組合公司一直在準備並一直在削減開支、管理跑道、為資產負債表增加資本。再一次，我認為另一個關鍵因素是風險銀行業務的發展以及第一季度的波動和不確定性帶來了很多事情。因此，我認為我們期望投資組合的其餘部分保持穩定。但同樣，對於那些可能無法盈利或有足夠的跑道進入 2024 年及以後的公司來說，這對於直接股權投資活動在一年中穩定和回升至關重要。

Yes. And I think you covered it nicely. I can't really add much other than -- again, there's been a pullback by some of the venture funds, no surprise in this market. But there's also, at the same time, companies are going through some stressful situations and continue to conserve cash, moderate their burn rates revise growth plans to more moderate growth plans and work on the path to profitability, but it's also going to be balanced by not only the amount of dry powder, but within the portfolio, as I mentioned, there's a number of companies that are experiencing some tailwinds in this environment. And an example, the company today in the portfolio not public, but just signed a term sheet at an uptick, which given this environment is maybe some signs of where things are headed. But just working through the situations and the outlook looks pretty good in terms of the end of the year '24 for tech investing.

是的。我認為你涵蓋得很好。我真的不能補充太多——再一次，一些風險基金出現了回調，這在這個市場上並不奇怪。但與此同時，公司也正在經歷一些壓力大的情況，並繼續保存現金，緩和他們的消耗率，將增長計劃修改為更溫和的增長計劃，並努力實現盈利，但它也將通過以下方式來平衡正如我所提到的，不僅是乾火藥的數量，而且在投資組合中，有許多公司在這種環境下正經歷一些順風。舉個例子，今天投資組合中的公司沒有公開，但剛剛簽署了一份條款清單，考慮到這種環境，這可能是事情發展方向的一些跡象。但是，就 24 年底的技術投資而言，只要解決這些情況，前景看起來就相當不錯。

And our next question will come from Kevin Fultz with JMP Securities.

我們的下一個問題將來自 JMP 證券公司的 Kevin Fultz。

There's a figure in the PitchBook NVCA venture monitor that highlights the funding gap that has recently accelerated within late-stage VC. Essentially, the figure shows that late-stage capital demand to supply ratio reached a decade high in the first quarter of 2023 at just about 3.2x, it compares to 0.9x in the first quarter of 2022. I'm curious what your view is on the shift in capital availability for late-stage companies, both what you're seeing in the market and within your own portfolio? And what that could mean in terms of portfolio company liquidity should the trend in capital demand to supply remain inbound, so I guess, even deteriorate further?

PitchBook NVCA 風險監測中有一個數字突出顯示了後期風險投資中最近加速的資金缺口。從本質上講，該圖顯示後期資本需求與供應比率在 2023 年第一季度達到十年來的最高水平，僅為 3.2 倍左右，而 2022 年第一季度為 0.9 倍。我很好奇您的看法關於後期公司資本可用性的變化，您在市場上和您自己的投資組合中看到了什麼？如果資本需求供應的趨勢繼續向內，那麼這對投資組合公司的流動性意味著什麼，所以我猜，甚至進一步惡化？

Yes, Kevin, that's -- it's a good question. So I would say a couple of factors as we look to the later-stage companies, right? Those are companies where the valuation methodology is probably more reliant on the public comparables and the public multiples. And so I think the challenge is, again, as Jim alluded to, there is a mismatch in terms of where prior round valuations were during '21 and '22 for a number of these companies and where multiples are today. And so the playbook for those companies is you've got to make the decision, will you grow into your current valuation? And if so, then the playbook is, listen, how can we extend runway? Add some incremental capital from your existing investors to get to -- and then hope for multiple -- some multiple recovery, but fundamentally, it's just a function of time and your valuation is not an obstacle for raising incremental capital.

是的，凱文，這是一個很好的問題。因此，當我們關注後期公司時，我會說幾個因素，對嗎？這些公司的估值方法可能更依賴於公開的可比對象和公開的市盈率。因此，我認為挑戰再次是，正如吉姆所暗示的那樣，對於這些公司中的許多公司，在 21 世紀和 22 世紀的前一輪估值與今天的市盈率方面存在不匹配。因此，這些公司的劇本是你必須做出決定，你會成長為目前的估值嗎？如果是這樣，那麼劇本就是，聽著，我們怎樣才能延長跑道？從你現有的投資者那裡增加一些增量資本，以達到——然後希望多次——一些多重複蘇，但從根本上說，這只是時間的函數，你的估值並不是籌集增量資本的障礙。

I think for other companies where, listen, they were valued on robust multiples that may not come back or on growth rates that are not capable in this environment, they have to make the hard decision of, do you do the down round? Do you do other forms of financing flat rounds with [preps]. And so I think that it's a valuation issue for a number of companies. And then I'd add, the other element of it is the participants in that stage of the market included venture funds, PE funds, hedge funds, crossover funds.

我認為對於其他公司來說，聽著，他們的估值是基於可能不會恢復的強勁倍數，或者是基於在這種環境下無法實現的增長率，他們必須做出艱難的決定，你是否進行低價融資？您是否使用 [preps] 進行其他形式的融資。所以我認為這是許多公司的估值問題。然後我要補充的是，它的另一個要素是那個市場階段的參與者包括風險基金、私募股權基金、對沖基金、交叉基金。

And so I'd say, again, given the multiple compression, a number of those nontraditional participants experienced major markdowns on their public book, have markdowns in their private book. And so they're currently not as active as they used to be. And so that's also what's causing the shortfall or the mismatch in the demand versus supply. So what you need is you need time to transpire, you need multiple accretion. You need good data points. You need good companies to come to market. And so I'd say, again, that's why we're expecting to see this recovery come later this year or not in the next quarter or so, but later this year into '24, as a number of those factors all improve and come together.

所以我要說的是，考慮到多重壓縮，許多非傳統參與者在他們的公共書籍中經歷了重大降價，在他們的私人書籍中也有降價。因此，他們目前不像以前那樣活躍。因此，這也是造成供需短缺或不匹配的原因。所以你需要的是你需要時間來蒸騰，你需要多重吸積。你需要好的數據點。你需要好的公司才能進入市場。所以我要說的是，這就是為什麼我們預計今年晚些時候或下個季度左右不會看到這種複蘇，但今年晚些時候進入 24 世紀，因為許多這些因素都會改善並到來一起。

They also tend to be opportunities for us to look at. The key is selectivity and being highly selective, but these are actually opportunities as well for our venture lending in the pipeline.

它們也往往是我們關注的機會。關鍵是選擇性和高度選擇性，但這些實際上也是我們正在籌備中的風險貸款的機會。

And our next question will come from Ryan Lynch with KBW.

我們的下一個問題將來自 KBW 的 Ryan Lynch。

My first one just has to do with given your current leverage ratio of 1.49x and around $175 million of unfunded commitments that are the line and certain milestones. Is it fair to assume that throughout the majority of 2023 that new fundings will primarily be to existing portfolio companies and you'll use repayments and prepayments pretty much to just deleverage the balance sheet?

我的第一個只是與考慮到您當前的 1.49 倍槓桿率和大約 1.75 億美元的未融資承諾有關，這些承諾是線和某些里程碑。假設在 2023 年的大部分時間裡，新資金將主要流向現有的投資組合公司，並且您將使用還款和預付款幾乎只是為了去槓桿化資產負債表，這是否公平？

Yes, I think that's right.

是的，我認為這是對的。

Okay. And then the other one that I had, I'd love to just hear, and I guess, it's sensitive, but so if you can't -- whatever you can say it's fine. But I'm curious to hear your thoughts on an investment like The Pill Club, I mean, there's been an article out there to talk about the bankruptcy and a huge decline in revenue as well as huge legal fees in that business. I can't see -- I don't see it's financial, so I don't know if they're sitting on a bunch of cash or something like that.

好的。然後是我的另一個，我很想听聽，我想，它很敏感，但如果你不能——不管你能說什麼都沒關係。但我很想听聽你對像 Pill Club 這樣的投資的看法，我的意思是，那裡有一篇文章討論破產和收入的大幅下降以及該業務的巨額法律費用。我看不到 - 我看不到它是財務方面的，所以我不知道他們是否坐擁大量現金或類似的東西。

Your earlier loan is just over collateralized by something like that. I guess, what gives you the confidence to mark that investment where it is as well as there's other loans in the portfolio that are in bankruptcy or in the process of bankruptcy. I think you guys have marked pretty close to par, what in either the Pill Club specifically or any other investments that are going through this period gives you the confidence kind of mark on where you are despite sort of these fundamental deterioration in the...

你之前的貸款只是被類似的東西抵押了。我想，是什麼讓你有信心在投資組合中標記該投資以及投資組合中處於破產或正在破產過程中的其他貸款。我認為你們已經非常接近標準桿，特別是在 Pill Club 或正在經歷這一時期的任何其他投資中，儘管這些基本面惡化，但你們對自己所處的位置充滿信心。

Right, let me answer that. I think a great question. So I have to remember that they're easier path to -- if you wanted to shut down a company, you don't necessarily go through the bankruptcy process. So from our perspective, in collaboration with the companies investors select these C funds. You look at when there's value, there's interest in those assets, there's value in those assets and you look at what's the best path to free up those assets to either reemerge or to sell to other parties.

好吧，讓我回答這個問題。我認為這是一個很好的問題。所以我必須記住，他們更容易——如果你想關閉一家公司，你不一定要經歷破產程序。因此，從我們的角度來看，投資者會與公司合作選擇這些 C 基金。你看看什麼時候有價值，對這些資產有興趣，這些資產有價值，你看看什麼是釋放這些資產以重新出現或出售給其他方的最佳途徑。

So I would say there's a playbook in managing stress credit situations, and it's a function of our assessment of underlying value in our playbooks with our teams. And so I would say the -- and then as you look to the method by which you look to recovery, as you said, right? There are various assets these companies have. In certain cases, when we're doing inventory financing were secured not only by a formula-based financing for that inventory. So we're not financing 100%, generally it's a discount. So we're secured by that underlying inventory plus we have the enterprise, too.

所以我想說有一個管理壓力信用情況的劇本，它是我們與團隊一起評估劇本中潛在價值的函數。所以我會說 - 然後當你看看你希望恢復的方法時，就像你說的那樣，對嗎？這些公司擁有各種資產。在某些情況下，當我們進行庫存融資時，不僅通過該庫存的基於公式的融資來保證。所以我們不是 100% 融資，通常是折扣。因此，我們受到基礎庫存的保護，而且我們也擁有企業。

So as you look to recovery, it's great the underlying asset that we financed and then the value of the business, the intellectual property, whatever it may be. When you look to -- as again, other scenarios, right? There's a liquidity, there's cash. And so again, you look through the benefit of liquidation process is an orderly way to unlock those assets to the senior creditors. And then again, I'd say more broadly, we look to acquirers out there in this environment they generally want things clean and free. So again, I think a bankruptcy process and for companies themselves, right, there's a way when there's strong solid fundamentals of these businesses but they may have unsecured claims or creditors.

因此，當你期待復甦時，我們資助的基礎資產很好，然後是業務價值、知識產權，無論它是什麼。當您再次查看其他場景時，對嗎？有流動性，就有現金。因此，您再次看到清算過程的好處是將這些資產解鎖給優先債權人的有序方式。再一次，我想更廣泛地說，我們期待在這種環境下的收購者，他們通常想要乾淨和免費的東西。因此，我再次認為，對於公司本身而言，破產程序是正確的，當這些企業具有堅實的基本面但它們可能有無擔保債權或債權人時，有一種方法。

And so going through the Chapter 11 process in general is a way to, again, cleanse, cleanup, restructure, secure debt and then come back and again, give it another shot or sell to other companies. So again, I think that it's our team's assessment of the playbook, the path and the underlying assets and in collaboration with our companies, we determine the course of action. And that's how we look to set our fair values based on our assessment of the probabilities and the likelihood and the values of those assets.

因此，一般來說，通過第 11 章流程是一種再次清理、清理、重組、擔保債務然後再回來，再試一次或賣給其他公司的方法。因此，我再次認為，這是我們團隊對劇本、路徑和基礎資產的評估，並與我們的公司合作，我們決定了行動方案。這就是我們如何根據我們對這些資產的概率和可能性以及價值的評估來設定我們的公允價值。

And then just one last one, if I could. You mentioned you think investment momentum, meaning venture capital and investors, that momentum potentially picking up later this year and into 2024. I'm just curious, what are the drivers behind that position. Just as it seems like most of the indicators today seem that things are just going to get tighter sort of throughout the year with probably continually fairly high rates to slow down the economy. There's obviously been stress in the lending system and then probably some realized losses in some venture capital equity portfolios. So it just seems that obviously, I know you'd like that, that investment activity to pick up later this year in 2024. But I guess, what are the factors that you think could reverse and make that the case?

然後是最後一個，如果可以的話。你提到你認為投資勢頭，即風險資本和投資者，這種勢頭可能會在今年晚些時候和 2024 年回升。我很好奇，這種立場背後的驅動因素是什麼。就像今天的大多數指標一樣，似乎全年情況只會變得更加緊張，可能會持續保持相當高的利率以減緩經濟。貸款系統顯然存在壓力，然後可能在一些風險資本股權投資組合中出現一些已實現的損失。所以看起來很明顯，我知道你希望今年晚些時候 2024 年投資活動回升。但我想，你認為有哪些因素可以逆轉並實現這種情況？

I can grab that and yes, feel free to add, Sajal. Venture capital investing is about the long term and it's for the long term, and these are typically 10-year plus investment funds, and they're looking at the future. They're not looking at this quarter or today's interest rate increases. Those are not factors. What are the factors are, well, one, there's about $300 billion-plus of dry powder that is looking to get deployed. Two, we are headed in terms of my rounds towards more of a, call it, a rational or reasonable valuation type market after the highs of the recent past. And so there's another momentum for investing.

我可以抓住它，是的，隨時添加，Sajal。風險資本投資是關於長期的，而且是長期的，這些通常是 10 年以上的投資基金，他們著眼於未來。他們沒有關注本季度或今天的加息。這些都不是因素。有哪些因素，嗯，第一，有大約 3000 億美元以上的干火藥正在尋求部署。第二，就我的輪次而言，在最近的高點之後，我們正在走向一個可以稱之為理性或合理估值類型的市場。因此，還有另一種投資動力。

Three is tech investing is not dead. And if anything, it as folks look towards efficiencies, particularly if we had more towards a recession and everything else is artificial AI, which is all day conversations and kind of the new environment here post the last very high couple of years of valuation is something that's very appealing because these are investments in 3, 5 years or whatever may be IPOs. And so there's opportunities.

三是科技投資並未消亡。而且，如果有的話，那就是人們期待效率，特別是如果我們更傾向於經濟衰退，而其他一切都是人工人工智能，這是整天的對話，在過去幾年的估值非常高之後，這裡的新環境是某種東西這非常有吸引力，因為這些是 3 年、5 年或任何可能是 IPO 的投資。所以有機會。

And I'll just finish, feel free to add Sajal, but some of the best investments we've done historically here at TriplePoint as well as within the venture lending decades have been investing in these down cycle periods. We're in a down cycle and some of the best tech successes of the past were born perhaps 2008, '09 and so forth. So there's a lot of things shaping up ripe for venture capital investing in later this year, next year in the future.

我將結束，隨時添加 Sajal，但我們在 TriplePoint 歷史上以及在風險貸款幾十年內所做的一些最佳投資一直在投資這些下行週期。我們正處於下行週期，過去一些最成功的科技成果可能誕生於 2008 年、09 年等等。因此，今年晚些時候、明年未來的風險投資有很多事情已經成熟。

Yes. I mean, I'll only add 2 things. One is we're also leading these insights, Ryan, from conversations with the funds themselves. And I'd say it's a function. What we're seeing is the clearly the more experienced funds that have weathered the storm that have been through cycles definitely view this environment as having the potential for opportunity of some of the best deals to get done, but it's a question of when you capitalize, actually, the second, but it's building. And I think that's what we're talking to is that momentum is building over time as quality companies and new entrepreneurs come to market.

是的。我的意思是，我只會添加兩件事。一是我們也通過與基金本身的對話來引導這些見解，Ryan。我會說這是一個功能。我們所看到的是，經歷過週期風暴的經驗豐富的基金顯然認為這種環境具有完成一些最佳交易的機會，但問題是你何時利用，實際上，第二個，但它正在建設中。而且我認為這就是我們正在談論的是，隨著優質公司和新企業家進入市場，勢頭正在逐漸增強。

And then I'd say the other piece of it is just from the communication to their investors. So to their LPs, venture fundraising -- given the fundraising that's gone on and the marketing and the messaging, they're also signaling that they do expect it to pick up and that they expect '23 vintages, '24 vintages really to be some of their better vintages given the environment.

然後我會說另一部分只是來自與投資者的溝通。因此，對於他們的有限合夥人，風險籌款——考慮到正在進行的籌款以及營銷和信息傳遞，他們也表示他們確實希望它能夠回升，並且他們預計“23 個年份，”24 個年份確實是一些考慮到環境，他們的年份更好。

Our next question will come from Casey Alexander with Compass Point.

我們的下一個問題將來自 Compass Point 的 Casey Alexander。

Is it safe to say that RenoRun, Underground and Hey Favor will all go on nonaccrual in the second quarter unless something?

可以肯定地說，RenoRun、Underground 和 Hey Favor 將在第二季度全部以非應計收益方式進行，除非發生什麼情況？

Yes. So unless something happens more immediate, that would be a fair assumption.

是的。因此，除非有更直接的事情發生，否則這將是一個合理的假設。

Okay. Secondly, in relation to Hey Favor and rolling back to Medly Health, in both cases, there were some form of management fraud that contributed to the situation. And it looks to me like they came out of the same underwriting pod. I mean is there a flaw in your underwriting process that you've failed to pick up on the situations that existed in Hey Favor and Medly Health?

好的。其次，關於 Hey Favor 和回滾到 Medly Health，在這兩種情況下，都存在某種形式的管理欺詐，導致了這種情況。在我看來，它們就像來自同一個承保艙。我的意思是，您的承保過程中是否存在缺陷，您沒有意識到 Hey Favor 和 Medly Health 中存在的情況？

Okay. So to answer, absolutely not. Again, we stand by our underwriting and our track record, again, as you look, we've had 170 obligor borrowers at TPVG. We've had credit losses in roughly 10% to 11%. Our loss rates are 3% of commitments, 2% of funding. So I would say the data speaks for itself that our underwriting and our track record over the long-term works. And so I'd say that's my first answer. I would say, again, we're not suggesting at both companies where they're fraud. I think Medly it's again in the public -- in the filings, not suggesting fraud at Hey Favor. And again, I think all are unique circumstances and situations.

好的。所以要回答，絕對不是。再一次，我們堅持我們的承銷和我們的業績記錄，再一次，正如你所看到的，我們在 TPVG 有 170 個義務借款人。我們的信用損失大約在 10% 到 11% 之間。我們的損失率為承諾的 3%，資金的 2%。所以我想說數據本身就說明了我們的承保和我們在長期工作中的業績記錄。所以我會說這是我的第一個答案。我要再說一遍，我們並不是在暗示兩家公司存在欺詐行為。我認為 Medly 再次出現在公眾面前——在文件中，而不是暗示 Hey Favor 存在欺詐行為。再一次，我認為所有這些都是獨特的情況和情況。

And our next question will come from Christopher Nolan with Ladenburg Thalmann.

我們的下一個問題將來自 Christopher Nolan 和 Ladenburg Thalmann。

Is [that Move] and Hi.Q the 2 Canadian companies that you were discussing earlier in terms of going into the bankruptcy process?

[that Move] 和 Hi.Q 是您之前討論過的兩家即將進入破產程序的加拿大公司嗎？

No, no. The one Canadian company was RenoRun.

不，不。一家加拿大公司是 RenoRun。

Okay. So [High Move] and Hi.Q, which I believe are both nonaccrual this quarter are completely separate from that.

好的。所以 [High Move] 和 Hi.Q，我認為本季度都是非應計的，與此完全分開。

They're not -- they did not file for bankruptcy, correct?

他們不是——他們沒有申請破產，對嗎？

Okay. Any details you can provide on that? Or is that something that...

好的。您可以提供任何詳細信息嗎？或者那是什麼……

Again, as we mentioned in the prepared remarks, I think they were downgraded due to just challenges in the their market environments and some of their performance as well as their financing processes.

同樣，正如我們在準備好的評論中提到的那樣，我認為他們被降級是因為他們的市場環境、他們的一些業績以及他們的融資流程面臨的挑戰。

And this concludes our question-and-answer session. I'd like to turn the conference back over to Mr. Jim Labe for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議轉回 Jim Labe 先生的閉幕詞。請繼續，先生。

Thank you, operator. As always, I'd like to thank everyone for listening and participating in today's call. We look forward to talking with you all again next quarter. Thanks again, and everyone, have a nice day. Goodbye.

謝謝你，運營商。一如既往，我要感謝大家聆聽和參與今天的電話會議。我們期待下個季度再次與大家交談。再次感謝大家，祝你有美好的一天。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。感謝您參加今天的演講。您現在可以斷開線路。