Trinity Capital Inc (TRIN) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen. My name is Jim, and I will be your conference operator today. At this time, I would like to welcome everyone to Trinity Capital's third quarter 2024 earnings conference call. (Operator Instructions)

女士們、先生們，早安。我叫吉姆，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Trinity Capital 2024 年第三季財報電話會議。（操作員指令）

It is now my pleasure to turn the call over to Ben Malcolmson, Head of Investor Relations for Trinity Capital. Please go ahead.

現在我很高興將電話轉給 Trinity Capital 投資人關係主管 Ben Malcolmson。請繼續。

Thank you, and welcome to Trinity Capital's earnings conference call for the third quarter of 2024. Today, we are joined by Kyle Brown, Chief Executive Officer; Michael Testa, Chief Financial Officer; and Jerry Harder, Chief Operating Officer. Also joining us for the Q&A portion of the call are Ron Kundich, Chief Credit Officer; and Sarah Stanton, Chief Compliance Officer and General Counsel.

謝謝，歡迎參加 Trinity Capital 2024 年第三季財報電話會議。今天，我們邀請到了執行長 Kyle Brown； Michael Testa，財務長；以及營運長傑瑞·哈德（Jerry Harder）。首席信貸官 Ron Kundich 也參加了本次電話會議的問答環節；以及首席合規官兼總法律顧問 Sarah Stanton。

Trinity's financial results were released earlier today and can be accessed on our Investor Relations website at ir.trinitycap.com. Before we begin, I would like to remind everyone that certain statements made during this call may be deemed forward-looking statements under federal securities laws. Because these forward-looking statements involve known and unknown risks and uncertainties. We encourage you to refer to our most recent SEC filings for information on some of these risk factors. Trinity Capital assumes no obligation or responsibility to update any forward-looking statements.

Trinity 的財務結果已於今天早些時候發布，可在我們的投資者關係網站 ir.trinitycap.com 上查閱。在我們開始之前，我想提醒大家，根據聯邦證券法，本次電話會議中發表的某些聲明可能被視為前瞻性聲明。因為這些前瞻性陳述涉及已知和未知的風險和不確定性。我們鼓勵您參閱我們最近的美國證券交易委員會 (SEC) 文件，以獲取有關其中一些風險因素的資訊。Trinity Capital 不承擔更新任何前瞻性陳述的義務或責任。

Now allow me to turn the call over to Trinity Capital's CEO, Kyle Brown.

現在，請允許我將電話轉給 Trinity Capital 的執行長 Kyle Brown。

Thank you, Ben. Thanks, everyone, for joining us today. In the third quarter, our strategies performed strongly, helping us deliver record results. Top highlights from Q3 include record net investment income of $29 million, a 26% increase versus Q3 of last year. Net asset value grew to $757 million, up 11% from $680 million last quarter. Platform AUM reached a record $2 billion. In Q3, we made a record $459 million of investments, gross fundings, which was largely driven by $406 million of secured loans and included debt investments to 11 new portfolio companies.

謝謝你，本。感謝大家今天的參與。第三季度，我們的策略表現強勁，幫助我們取得創紀錄的業績。第三季的主要亮點包括創紀錄的 2,900 萬美元淨投資收入，比去年第三季成長 26%。淨資產價值成長至 7.57 億美元，較上一季的 6.8 億美元成長 11%。平台AUM達到創紀錄的20億美元。第三季度，我們的投資總額達到了創紀錄的 4.59 億美元，其中主要包括 4.06 億美元的擔保貸款和對 11 家新投資組合公司的債務投資。

Trinity paid a cash dividend of $0.51 per share, representing our 19 consecutive quarter of a consistent or increased dividend. We're proud of our performance in Q3 as our five distinct business verticals continue to fuel our growth and take market share. As a reminder, our verticals are tech lending, equipment finance, life science, warehouse financing and sponsor finance, which focuses on private equity-backed businesses.

Trinity 支付了每股 0.51 美元的現金股息，這是我們連續 19 個季度保持穩定或增加的股息。我們對第三季的表現感到自豪，因為我們的五個不同的垂直業務繼續推動我們的成長並佔據市場份額。提醒一下，我們的垂直產業包括科技貸款、設備融資、生命科學、倉庫融資和贊助商融資，專注於私募股權支持的企業。

Each of our business verticals has its own experienced team, to lead origination, credit and portfolio management functions, giving them the ability to scale efficiently. Our strategic growth initiatives have generated extraordinary momentum, highlighting our commitment to expanding the platform. Trading capital is first an alternative asset management company as well as a direct lender. We continue to see efficiencies of scaling our balance sheet at the public company level, and we're now hyper-focused on building out our asset management business to invest in our various business verticals.

我們的每個垂直業務領域都有自己經驗豐富的團隊來領導發起、信貸和投資組合管理職能，使他們能夠有效地擴大規模。我們的策略成長計畫已產生非凡動力，凸顯了我們擴大平台的決心。交易資本首先是一家另類資產管理公司，同時也是一家直接貸款人。我們繼續看到在上市公司層級擴大資產負債表的效率，現在我們高度專注於拓展我們的資產管理業務，以投資我們的各個垂直業務。

We're different than externally managed BDCs in that when you buy our stock, you're buying into a pool of diversified assets, yes, but you're also buying into a management company. We are not like externally managed BDCs that are simply pool of assets. It's also important to note that because we're an internally managed BDC, our employees, management and Board all own the same shares as our investors.

我們與外部管理的 BDC 的不同之處在於，當您購買我們的股票時，您購買的是多元化資產池，是的，但您也購買了一家管理公司。我們並不像外部管理的 BDC 那樣只是資產池。另外需要注意的是，由於我們是內部管理的 BDC，我們的員工、管理階層和董事會都擁有與我們的投資者相同的股份。

This maintains 100% alignment with our shareholders and a focus on delivering growing returns for our investors. Earlier this year, we expanded into Europe, given us increased global exposure and better access to an active tech landscape, which in turn allows us to support high-growth companies across multiple continents.

這與我們的股東保持了100％的一致，並專注於為我們的投資者帶來不斷增長的回報。今年早些時候，我們將業務擴展到歐洲，從而增加了我們的全球曝光度並讓我們能夠更好地進入活躍的技術領域，進而使我們能夠支援多個大洲的高成長公司。

We intend to replicate the success that we've had here in the US with our complementary lending businesses in Europe and beyond. Regarding deployment, we maintain a strong investment pipeline, including $660 million in unfunded commitments, leaving us well positioned for our continued growth. As a reminder, a vast majority of Trinity's unfunded commitments are subject to ongoing diligence and approval by our investment committee. Credit and underwriting, portfolio management are all fundamental to our success over the long term. We have a unique structure characterized by collaboration between originations, credit and portfolio teams to manage our inbound opportunities and active portfolio companies.

我們打算透過在歐洲及其他地區的互補貸款業務複製我們在美國的成功。在部署方面，我們保持強大的投資管道，包括 6.6 億美元的未撥付承諾，這為我們持續成長提供了有利條件。提醒一下，Trinity 的絕大多數未撥付承諾均需經過我們投資委員會的持續審查和批准。信貸和核保、投資組合管理都是我們長期成功的基礎。我們擁有獨特的結構，其特點是發起、信貸和投資組合團隊之間的協作，以管理我們的入站機會和活躍的投資組合公司。

We remain very selective and adhere to a rigorous diligence process. Only a small percentage of inbound deals reached the underwriting stage. This proactive approach greatly mitigates risk and positions us to excel in all macroeconomic cycles. At Trinity, we pride ourselves on three core principles: exhibiting uncommon care for our employees, customers and stakeholders, two, serving our clients by being partners rather than just money, and three, by providing outsized returns for our shareholders. Investing in our teams and systems is key to our growth and enabling us to further diversify our investments to create a best-in-class direct lending platform.

我們保持嚴格的選擇性並遵守嚴格的盡職調查程序。只有一小部分入境交易進入承銷階段。這種積極主動的方法大大降低了風險，使我們在所有宏觀經濟週期中都表現出色。在 Trinity，我們以三個核心原則為傲：一是對我們的員工、客戶和利害關係人表現出非凡的關懷；二是作為合作夥伴而非僅以金錢來服務我們的客戶；三是為我們的股東提供超額的回報。投資我們的團隊和系統是我們成長的關鍵，並使我們能夠進一步實現投資多樣化，以創建一流的直接借貸平台。

We are excited about the future and look forward to continuing to capitalize on our momentum as we continue to maximize value for our shareholders.

我們對未來充滿期待，並期待繼續利用我們的發展勢頭，繼續為股東創造最大價值。

And with that, I'll turn the call over to Michael Testa, our CFO, to discuss financial results in more detail. Michael?

接下來，我將把電話轉給我們的財務長邁克爾·泰斯塔 (Michael Testa)，更詳細地討論財務結果。麥可？

Thank you, Kyle. In the third quarter, we achieved a record total investment income of $61.8 million, resulting in a 33% increase over the same period in 2023. Our effective yield on the portfolio for Q3 was once again an industry-leading 16.1%, and our core yield, which excludes fee income was strong at 14.9%. Net investment income for the third quarter was $29 million or $0.54 per basic share compared to $23 million or $0.58 per basic share in the same period of the prior year. The increase of $6 million or 26% year-over-year net investment income growth is primarily attributable to the continued earnings power of Trinity's growing platform while the decrease in net investment income per share is mostly attributable to the shares issued over the past year.

謝謝你，凱爾。第三季度，我們實現了創紀錄的 6,180 萬美元的總投資收益，較 2023 年同期成長 33%。我們第三季投資組合的有效收益率再次達到業界領先的 16.1%，不包括費用收入的核心收益率高達 14.9%。第三季的淨投資收益為 2,900 萬美元，即每股基本收益 0.54 美元，去年同期為 2,300 萬美元，即每股基本收益 0.58 美元。投資淨收益年增 600 萬美元或 26%，主要歸因於 Trinity 不斷發展的平台的持續盈利能力，而每股淨投資收益的減少主要歸因於過去一年發行的股票。

Our net investment income per share represents 106% coverage of our quarterly distribution. Our estimated undistributed taxable income is approximately $64.5 million or $1.12 per share. We continue to reinvest this capital for the benefit of our investors while maintaining a consistent and meaningful distribution. Our platform continues to generate strong returns for our BDC shareholders with ROAE of 16.2% and based on net investment income over the average equity and ROAA of 7.1% based on net investment income over average total assets.

我們的每股淨投資收益佔季度分配的 106%。我們估計未分配應稅收入約為 6,450 萬美元或每股 1.12 美元。我們將繼續將這些資本再投資於投資者的利益，同時保持一致且有意義的分配。我們的平台繼續為 BDC 股東創造強勁回報，ROAE 為 16.2%（基於淨投資收益除以平均股權），ROAA 為 7.1%（基於淨投資收益除以平均總資產）。

As of September 30, 2024, our NAV was $757 million, up from $680 million as of June 30, 2024. And our corresponding NAV per share was $13.13 at the end of Q3, an increase from $13.12 as of June 30, 2024. The increase in net assets per share was primarily due to the net investment income exceeding a dividend and accretive ATM offering, partially offset by the portfolio activity and new RSA issuance in September.

截至 2024 年 9 月 30 日，我們的資產淨值為 7.57 億美元，高於 2024 年 6 月 30 日的 6.8 億美元。我們相應的每股資產淨值為第三季末的 13.13 美元，高於 2024 年 6 月 30 日的 13.12 美元。每股淨資產的增加主要由於投資收益淨額超過股息和增值 ATM 發行，部分被 9 月份的投資組合活動和新的 RSA 發行所抵消。

During the quarter, we continued to strengthen our balance sheet and enhanced liquidity through a variety of capital markets activities. We expanded our ATM program. And in Q3, we raised $80 million in gross proceeds at an accretive premium to NAV to fund our ongoing portfolio growth. We further upsized our credit facility to $510 million in total commitments, which is diversified across a total of 13 banks.

本季度，我們透過各種資本市場活動繼續加強資產負債表並增強流動性。我們擴大了 ATM 計劃。在第三季度，我們以高於資產淨值的增值溢價籌集了 8,000 萬美元的總收益，以資助我們持續的投資組合成長。我們進一步將信貸額度擴大至總承諾額度 5.1 億美元，分散在總共 13 家銀行。

We raised $115 million through the issuance of investment-grade unsecured notes maturing in 2029, and these notes are callable after two years trade on our ticker, TRINI -- and subsequent to end of the quarter, we further enhanced our liquidity position by raising $142.5 million of unsecured private placement notes with maturities ranging from 2027 to 2029.

我們透過發行 2029 年到期的投資等級無擔保票據籌集了 1.15 億美元，這些票據在我們的股票代碼 TRINI 上交易兩年後可贖回——在本季度末之後，我們透過籌集 1.425 億美元的無擔保私募票據進一步增強了我們的流動性狀況，這些票據的到期日從 2027 年不等。

Our reliance on unsecured -- our reliance on secured debt continues to be at a conservative level and adjusted for the recent private placement issuance is under 30%. We also continue to realize the benefits of a co-investment in a joint venture and vehicles under the RIA subsidiary, which in Q3 provided approximately $1.6 million or $0.03 per share of incremental income to the BDC.

我們對無擔保債務的依賴——我們對有擔保債務的依賴仍然處於保守水平，經最近的私募發行調整後低於 30%。我們也持續實現對 RIA 子公司旗下合資企業和企業進行共同投資的益處，這在第三季為 BDC 提供了約 160 萬美元或每股 0.03 美元的增量收入。

During Q3, we syndicated $41 million to these vehicles. As of September 30, we had more than $250 million of assets under management in these private vehicles, providing incremental capital for growth and accretive returns to our shareholders. Our net leverage ratio, which represents principal debt outstanding less cash on hand, was 1.2 times as of September 30, 2024.

在第三季度，我們向這些工具聯合投資了 4,100 萬美元。截至 9 月 30 日，我們在這些私人工具中管理的資產超過 2.5 億美元，為我們的股東提供了成長的增量資本和增值回報。截至 2024 年 9 月 30 日，我們的淨槓桿率（即未償還本金債務減去庫存現金）為 1.2 倍。

Our strong liquidity position with diverse capital sources, both from capital raised by the BDC and through our wholly owned RIA subsidiary provides Trinity with a flexible flexibility to manage a strong pipeline and be opportunistic in the marketplace.

我們擁有強大的流動性狀況和多元化的資本來源，既有來自 BDC 籌集的資本，也有透過我們全資擁有的 RIA 子公司籌集的資本，這為 Trinity 提供了靈活的能力來管理強大的管道並在市場上抓住機會。

I'll now turn the call over to our COO, Gerry Harder to discuss our portfolio performance and platform in more detail. Gerry?

現在，我將把電話轉給我們的營運長 Gerry Harder，更詳細地討論我們的投資組合表現和平台。格里？

Thank you, Michael. Since our last earnings call, Trinity has continued to focus on executing across our five business verticals, which strengthen and diversify our platform while enhancing our ability to offer customized financing solutions to our evolving client base of growth-oriented companies. We remain dedicated to supporting companies at every stage of their growth journey.

謝謝你，麥可。自上次財報電話會議以來，Trinity 一直專注於執行我們的五個垂直業務，這加強並多樣化了我們的平台，同時增強了我們為不斷發展的成長型公司客戶群提供客製化融資解決方案的能力。我們始終致力於為公司在成長的每個階段提供支援。

At the end of the third quarter, on a cost basis, our total portfolio consisted of approximately 76% secured loans, 18% equipment financing, 4% equity and 2% warrants. The composition of our portfolio remained consistent with prior quarters with diversification across investment type, transaction size, industry and geography. Our portfolio is segmented across 22 industry categories with our largest industry exposure, finance and insurance, representing 18.1% of the portfolio at cost. This exposure is spread across 15 borrowers and includes both term loans and asset-backed warehouse facilities.

截至第三季末，以成本計算，我們的總投資組合約包括 76% 的擔保貸款、18% 的設備融資、4% 的股票和 2% 的認股權證。我們的投資組合組成與前幾季保持一致，投資類型、交易規模、產業和地理多樣化。我們的投資組合涵蓋 22 個行業類別，其中最大的行業是金融和保險，以成本計算佔投資組合的 18.1%。此風險敞口涉及 15 個借款人，包括定期貸款和資產支持倉儲設施。

Our next largest industry concentrations or medical devices and space technology, representing 11.4% and 9.8% of the portfolio at cost, respectively. Life sciences related industries collectively made up 26.3% of our total portfolio on a cost basis. Among our five business verticals, the detailed breakdown of our fundings in Q3 was as follows, 39.8% to tech lending, 29.4% to life sciences, 15.7% to warehouse financing, 9.1% to equipment financing and 5.4% to sponsor finance. As of the end of Q3, our largest debt financing is to Solaris Corporation, which represents 3% of our debt portfolio and 2.8% of our total portfolio on a cost basis.

我們的下一個最大產業集中度是醫療設備和太空技術，以成本計算分別佔投資組合的 11.4% 和 9.8%。以成本計算，生命科學相關產業占我們總投資組合的 26.3%。在我們的五個垂直業務中，第三季的融資明細如下：科技貸款佔39.8%，生命科學佔29.4%，倉庫融資佔15.7%，設備融資佔9.1%，贊助商融資佔5.4%。截至第三季末，我們最大的債務融資是向 Solaris Corporation 提供的，按成本計算，占我們債務投資組合的 3% 和總投資組合的 2.8%。

Our 10 largest debt investments collectively represent 22.4% of our total portfolio on a cost basis. Now turning our focus to credit. The credit quality of our portfolio improved quarter-over-quarter with approximately 98.6% of our portfolio performing on a fair value basis. Our average internal credit rating for the third quarter stood at 2.9% based on our one to five rating system with five indicating very strong performance.

以成本計算，我們的 10 大債務投資總計占我們總投資組合的 22.4%。現在我們將焦點轉向信用。我們投資組合的信用品質較上季改善，其中約 98.6% 的投資組合以公允價值為基礎表現。根據我們的一到五級評級系統，我們第三季的平均內部信用評級為 2.9%，其中五級表示表現非常強勁。

This rating is an increase from the average credit rating in each of the last four quarters and is attributable to a combination of credit upgrades to existing portfolio companies as well as strong originations of new credits within the third quarter. As a percentage of the debt portfolio on a cost basis, credits within the lowest two tiers remain virtually unchanged from Q2. Quarter-over-quarter, while the number of portfolio companies on nonaccrual increased from four to five our nonaccrual credits decreased on both a cost and fair value basis.

該評級較過去四個季度的平均信用評級有所上升，這歸因於現有投資組合公司的信用升級以及第三季度新信貸的強勁發放。以成本為基礎的債務組合百分比來看，最低兩個層級的信貸與第二季相比幾乎沒有變化。與上一季相比，雖然不計息的投資組合公司數量從 4 家增加到 5 家，但我們的不計息信用額度在成本和公允價值基礎上均有所減少。

Our portfolio company, Nexi, was removed from nonaccrual as the transaction was fully realized in Q3 and and a very slight decrease versus our Q2 net asset value. Two smaller credits, Sun Basket and Form Logic were placed on nonaccrual within the quarter. At the end of Q3, our nonaccrual credits had a total fair value of approximately $22.2 million, representing 1.4% of the total debt portfolio, a slight decrease from Q2.

我們的投資組合公司 Nexi 被從不提列中剔除，因為交易已在第三季完全實現，並且與我們第二季的淨資產價值相比略有下降。本季度，兩項規模較小的信貸，Sun Basket 和 Form Logic 均被列為不計息信貸。截至第三季末，我們的未計息信貸總公允價值約為 2,220 萬美元，佔債務總額的 1.4%，較第二季略有下降。

At quarter end, 80% of our total principal outstanding was backed by first position leans on enterprise equipment or both. For our financings covered by all asset leans, the weighted average loan-to-value sits at 22.1%, while over two-third of these companies have a loan-to-value of less than 15%. These statistics demonstrate that our portfolio companies are generally not over-levered and are in a healthy position to service the debt even in instances when our loan may not be in first position.

截至季末，我們未償還本金總額的 80% 由企業設備的一級部位支持，或兩者兼具。對於我們涵蓋的所有資產負債表的融資，加權平均貸款價值比為 22.1%，而超過三分之二的公司的貸款價值比低於 15%。這些統計數據表明，我們的投資組合公司通常沒有過度槓桿化，即使在我們的貸款可能不是第一名的情況下，也能夠健康地償還債務。

Year-to-date through September 30, our portfolio companies have collectively raised $2.9 billion of equity, already surpassing the total amount of portfolio raised in all of 2023. 32 of Trinity's portfolio companies raised equity in Q3 versus 26 in Q2 and 22 in Q1. These encouraging stats speak to our portfolio's quality and ability to secure funding in an evolving market. In closing, we want to emphasize that our credit quality and portfolio management are the utmost importance to Trinity. One of Trinity's hallmarks is that our staff members think and operate like shareholders, and we always strive for resolutions that benefit both our investors and our partners.

截至 9 月 30 日，我們的投資組合公司共籌集了 29 億美元的股權，已經超過了 2023 年全年籌集的投資組合總額。這些令人鼓舞的數據證明了我們的投資組合的品質以及在不斷變化的市場中獲得融資的能力。最後，我們要強調的是，我們的信用品質和投資組合管理對 Trinity 來說至關重要。三一的一個特點是，我們的員工像股東一樣思考和行動，我們始終努力尋求有利於我們的投資者和合作夥伴的解決方案。

At this time, we'd like to open the line for questions. Operator?

現在，我們想開放熱線來回答問題。操作員？

(Operator Instructions)

（操作員指令）

Casey Alexander, Compass Point.

凱西亞歷山大，Compass Point。

I guess it's still morning here in I think this is a sort of a multipart question, but it's an extraordinary amount of originations during the quarter. And investors have sort of been trained to be somewhat wary of growth that comes at that kind of pace. And so I'm curious -- how you feel about growing at that kind of pace and still making sure that credit quality stays really pristine.

我想現在還是早上，我認為這是一個多部分的問題，但本季的發起數量非常多。投資者已經習慣了對這種速度的成長保持警惕。所以我很好奇——您對以這樣的速度增長同時仍然確保信用品質保持良好有何感想。

You did have a couple of new non-accruals in this quarter. One of them, which is an equipment finance company. And so I think it's just something that investors are always going to keep an eye on when you're growing at that pace and would really like to hear from you how you intend to keep that credit quality pristine when you're growing at such a rapid pace.

本季確實出現了幾項新的不提項目。其中一家是設備融資公司。所以我認為，當你以這樣的速度成長時，投資者總是會關注這一點，他們真的很想聽聽你打算如何在如此快速的成長速度下保持良好的信用品質。

Casey, this is Gerry. I'll start out with that one on the multipart. So we are aware of that sentiment from investors, that wariness. And -- but the way we think about it is the diversification across our business verticals. And we've got extremely experienced individuals who are focusing on these verticals both leading the vertical market and also leading the credit within the vertical markets. So we built Trinity intentionally to scale and our credit quality is going to show itself over time as it has throughout our track record. So we very much want our investors to believe that we've built this to scale, and we're going to show folks that we have.

凱西，這是格里。我將從多部分中的這一部分開始。所以我們意識到投資人的這種情緒、這種警覺性。而且 — — 但我們思考的方式是跨業務垂直領域的多樣化。我們擁有非常有經驗的人員，他們專注於這些垂直領域，既引領垂直市場，也引領垂直市場內的信貸。因此，我們有意建立 Trinity 來擴大規模，我們的信用品質將隨著時間的推移而顯現，就像我們的過往記錄一樣。因此，我們非常希望我們的投資者相信我們已經將這個規模擴大了，而且我們會向人們展示我們做到了。

All right. My next question relates to that. Because of the large amount of originations that you had in this quarter -- you also sold a considerable amount of stock to the equity ATM program. It actually increased shares outstanding by more than 10% quarter-over-quarter. If you think about that seems like an amount that maybe might be more appropriate for a syndicated stock offering as opposed to being out in the market every day with an ATM program of that size. How do you balance the scales of where you raise equity and the manner in which you raise equity relative to that rate of growth?

好的。我的下一個問題與此有關。由於本季度您發起的交易量很大，因此您也向股權 ATM 計劃出售了大量股票。事實上，其流通股數比上一季增加了 10% 以上。如果您仔細想想，似乎這個金額可能更適合於聯合股票發行，而不是每天在市場上使用這種規模的 ATM 程式。您如何平衡股權融資的地點和方式與成長率之間的平衡？

Yeah. Casey, this is Kyle. We're being opportunistic raising both equity and debt. We're looking at the opportunities in front of us, and we're taking advantage of them. This is a really efficient way to raise equity. We're doing it on balance sheet at the public company level. We're doing it off balance sheet onto the RIA. And we're doing it in a way that's accretive to investors. So we'll continue to deploy capital if the opportunity is there. We'll continue to raise equity and debt when the opportunity is there, and we're going to do it in the most efficient manner in a way that's good for investors, which I think we've shown.

是的。凱西，這是凱爾。我們正在抓住機會，籌集股權和債務資金。我們正在尋找面前的機會並正在利用它們。這是一種真正有效的提高股本的方法。我們在上市公司層級的資產負債表上進行此項工作。我們正在將其從資產負債表轉移到 RIA 上。而且我們正在以一種對投資者有利的方式實現這一目標。因此，如果有機會，我們將繼續部署資本。當有機會時，我們將繼續籌集股權和債務，並且我們將以最有效的方式、以對投資者有利的方式來進行，我認為我們已經展示了這一點。

I'm not sure that entirely answers my question. Because the question was how do you balance between an ATM versus a syndicated equity offering, knowing that when you're raising equity to that extent, being out in the market every day has some impact on the valuation of the stock?

我不確定這是否完全回答了我的問題。因為問題是，你如何在 ATM 和聯合股票發行之間取得平衡，同時要知道，當你將股本籌集到這種程度時，每天進入市場會對股票估值產生一定影響？

You talk about doing an overnight opposed to an ATM Casey?

你說的是過夜而不是使用 ATM 機，凱西？

Correct. Correct.

正確的。正確的。

I mean we've done a fair bit of that. I mean we're doing it for five years now. And I guess, every time we do an 80%, we do overnight. The stock has been affected in a big way. That's probably affected shareholders in a more negative way. And it's more costly. I mean we use the ATM, it's a 1% fee. -- to raise equity. We do it overnight. It's a at a cost of 6% to 8%. So if we can access the ATM, it costs a lot less, saves money for shareholders.

我的意思是我們已經做了很多了。我的意思是我們已經這樣做了五年了。我想，每當我們完成 80% 的目標時，我們都需要通宵完成。股票受到很大影響。這可能會對股東產生更負面的影響。而且成本也更高。我的意思是我們使用 ATM，費用是 1%。 ——提高股權價值。我們連夜完成這件事。成本為 6% 至 8%。因此，如果我們可以使用 ATM，成本就會大大降低，從而為股東節省金錢。

Christopher Nolan, Ladenburg Tallman.

克里斯多福諾蘭，拉登堡塔爾曼。

Mike, what was the driver of the realized loss in the quarter?

麥克，本季實現虧損的原因是什麼？

Yeah. That was one of the positions we noted in Jerry's remarks, as Nexi that was realized this quarter. Again, we have marked that down fair value in the past quarters. So from a NAV perspective is neutral on that realization, you saw an unrealized flip, was a big driver there.

是的。這是我們在傑瑞的評論中提到的立場之一，正如 Nexi 在本季實現的那樣。我們在過去幾季中再次降低了該公允價值。因此，從 NAV 的角度來看，對這一實現持中立態度，您看到未實現的翻轉，這是其中一個重要驅動因素。

Great. Next question is operating expenses. It seems to be growing. Where are you guys making your investments? And what's the run rate we should expect for coming quarters?

偉大的。下一個問題是營運費用。它似乎還在增長。你們在哪裡投資？我們預期未來幾季的運行率是多少？

Yeah. I think Q3, you saw that tick up. Again, we've been making hires throughout the first half of the year and into this quarter, as Gerry said, building out the five different verticals and each of the teams underneath that. So I think Q3 is probably a good run rate you'll see for the next quarter or so.

是的。我認為在第三季度，你看到了這種上漲。再次，正如 Gerry 所說，我們在今年上半年和本季一直在招募員工，建立五個不同的垂直部門以及其下屬的各個團隊。因此我認為第三季的運行率可能是下個季度左右的良好表現。

Great. Final question. For these off-balance sheet vehicles, what's your threshold in terms of an IRR? I know you're looking at various strategies, but trying to see what's the minimum IRR that you seek from them?

偉大的。最後一個問題。對於這些表外工具，您的內部報酬率 (IRR) 門檻是多少？我知道您正在研究各種策略，但想知道您希望從中尋求的最低 IRR 是多少？

I mean right now, since it's a co-investment vehicle, the return should be very similar to the return on an investment in (inaudible) . So I think the profile, again, we expect having fees also to increase the IRR in these balance sheet vehicles. But yes, I think, overall, to the investor of that off-balance sheet vehicle would be very similar to Trin.

我的意思是，現在，由於它是一種共同投資工具，因此回報應該與投資回報非常相似（聽不清楚）。因此我認為，我們預期費用也會增加這些資產負債表工具的 IRR。但是的，我認為，總體而言，對於投資者來說，該表外工具與 Trin 非常相似。

Bryce Rowe, B. Riley.

布萊斯·羅，B.萊利。

A couple of questions here. Maybe just a piggyback on Chris' question about expenses. Obviously, in growth mode, you've been growing the expense base -- and an advantage that internally managed BDCs have, and you can see it with Main Hercules Capital Southwest is a much lower kind of operating leverage ratio, expense ratio well below 2% and at least two of those three cases, you all are maybe a little earlier in your stage of growth at this point. But Kyle, maybe you can just comment on when you think you might see the inflection point in terms of your leverage ratio or expense ratio from a 3% -- to maybe 3% to 4% level right now and maybe working its way down. At what point will we start to see that inflect?

這裡有幾個問題。也許只是對克里斯關於費用問題的回應。顯然，在成長模式下，您一直在增加費用基礎 - 這是內部管理的 BDC 所具有的優勢，您可以從 Main Hercules Capital Southwest 看到，其經營槓桿率要低得多，費用率遠低於 2%，並且在上述三種情況中至少有兩種，您目前可能都處於增長階段的早期階段。但是 Kyle，也許您可以評論一下，您認為何時可能會看到槓桿率或費用率的拐點，從現在的 3% 到 3% 到 4% 的水平，然後可能逐漸下降。什麼時候我們會開始看到這種改變？

Yeah. I think -- listen, I mean, it's apples and orders when you're comparing us to even a Capital Southwest. I mean we've got 100 employees and they're nearly 100 employees, and they've got 30 we have fundamentally just different businesses. And so we're building this business right now. We are hiring our expenses we're not optimizing for lowering our expenses right now for earnings. We're growing earnings. And so you will see that as we continue to scale, you'll see that number come down, but we've been able to continue to build the team hire in advance and grow earnings for investors at the same time.

是的。我認為——聽著，我的意思是，當你將我們與首都西南航空進行比較時，這就是蘋果和訂單。我的意思是我們有 100 名員工，他們有將近 100 名員工，而他們有 30 名員工，我們的業務從根本上完全不同。所以我們現在正在建立這個業務。我們正在僱用員工來承擔費用，我們目前並沒有優化以降低費用來獲取收益。我們的收入正在增加。因此，你會看到，隨著我們不斷擴大規模，你會看到這個數字下降，但我們已經能夠繼續提前建立團隊，同時為投資者增加收益。

And I think you're going to continue to see that. There will be efficiencies of scale -- you will see like Main Street, they have a thriving off balance sheet management business now, and they've been able to downstream some of their expenses there. You'll see that with us as well. And so I think over the next 12 months, you'll see that number probably from a ratio percentage come down, but we are growing this business. if opportunity is there for us to continue growing, we're going to keep doing it. We're going to keep hiring ahead of that, like we've done historically, while also increasing returns for investors at the same time. We've been able to do that.

我想你會繼續看到這種情況。規模效益將會實現——你會看到，像 Main Street 一樣，他們現在擁有蓬勃發展的表外管理業務，並且他們已經能夠在那裡削減部分開支。您也會在我們這裡看到這一點。因此我認為在接下來的 12 個月裡，你會看到這個數字的比例可能會下降，但我們正在發展這項業務。如果我們有機會繼續發展，我們就會繼續做下去。我們將像以前一樣繼續提前招聘，同時增加投資者的回報。我們已經能夠做到這一點。

Yeah. Understood. Not trying to say that I get the apples to oranges, but just thinking about holistically the benefit of internally managed and why internally managed BDCs trade at a premium. And I think that's part of it, the fact that you can capture operating leverage as you grow.

是的。明白了。我並不是想說我懂得如何將蘋果和橘子進行比較，而只是整體地思考內部管理的好處以及為什麼內部管理的 BDC 會溢價交易。我認為這其中的一部分原因是你可以在發展過程中獲得經營槓桿。

You'll see that with us. And you'll see that leverage -- you'll also see that as we continue to manage more money off balance sheet and generate more management fees and incentive fees. You'll see that that benefit as being an internally managed business as well there.

您將與我們一起見證這一點。您將會看到這種槓桿作用——您還會看到，我們將繼續管理更多的表外資金並產生更多的管理費和激勵費用。您會發現，作為內部管理的企業，這種做法同樣有好處。

Yeah. Okay. The hiring and the focus on growth has certainly paid off in terms of originations picking up and especially here in the third quarter. Just kind of how do you guys how should we, as I guess, investors and analysts think about the pace of originations. Can you sustain this level of originations over the foreseeable future? Or will it be kind of more ebbs and flows in terms of what the overall number looks like?

是的。好的。招募和對成長的關注確實帶來了回報，尤其是在第三季度，業務發起的增加。我想問的是，你們該如何看待發起的速度。在可預見的未來你能維持這種發起水準嗎？或者從整體數字來看，會不會有更多的起伏？

We are -- if you break down the originations between our different business verticals, you'll see it's pretty balanced. Each of those verticals is growing at a nice clip right now. We do think the originations is sustainable. We are a little bit ahead of plan, but it's really not -- we don't feel like we're over our skis from an origination standpoint. Most of those deals, our credit and our underwriting is as focused as ever. And we're not seeing some increased percentage of deals get across the finish line.

如果您分解我們不同垂直業務之間的起源，您會發現它非常平衡。目前，每個垂直行業都在快速成長。我們確實認為起源是可持續的。我們比計劃稍微提前了一點，但事實並非如此——從起源的角度來看，我們並不覺得我們已經超越了目標。在大多數交易中，我們的信貸和承保仍然像以往一樣集中。但我們並沒有看到交易達成的比例增加。

This is exactly how we've done things historically. The amount of deals that are crossing the finish line, that percentage has not changed. And so we're seeing a larger top of funnel because we've expanded the business verticals. And so as we continue to build out these businesses, we think the originations is sustainable for us.

這正是我們在歷史上所做的事。完成的交易數量，即百分比，並沒有改變。由於我們擴大了業務垂直領域，因此我們看到了更大的漏斗頂部。因此，隨著我們繼續拓展這些業務，我們認為這些起源對我們來說是可持續的。

Last one for me. When you look at maybe the breakdown of the portfolio, it looks like the warrant portfolio saw a nice uptick both from a cost basis and a fair value basis perspective. Is that just purely a function of getting warrants with some of the new originations?

對我來說是最後一個。當您查看投資組合的細目時，似乎認股權證投資組合從成本基礎和公允價值基礎的角度都出現了良好的上漲。這是否只是為了獲得一些新發起的認股權證的功能？

Yeah. I mean, yeah, that's a lot of that has to do with the venture debt business. And you see we have a large war portfolio as the market improves, that can go up. And so we're seeing some of the benefits of that there.

是的。我的意思是，是的，這很大程度上與風險債務業務有關。而且您會看到，隨著市場的好轉，我們擁有龐大的戰爭投資組合，其價值還會上升。所以我們在那裡看到了它的一些好處。

Matthew Hurwit, Jefferies.

傑富瑞 (Jefferies) 的馬修赫維特 (Matthew Hurwit)。

Just wondering if we could have a bit more detail on the puts and takes from the nonaccruals decreasing quarter-on-quarter. I know you mentioned NEXI and then two companies that were added, but might be good to have some detail on those two companies, any of the other puts and takes?

我只是想知道我們是否可以更詳細地了解非應計項目逐季減少的看跌和看漲情況。我知道您提到了 NEXI 以及隨後添加的兩家公司，但如果您能詳細了解這兩家公司以及其他公司的利弊，會更好嗎？

Sure. Matthew, this is Ron Kundich, Chief Credit Officer. Thanks for the question. The two companies that were added as a nonaccrual last quarter, one of them was a small equipment financing. And the other one was an aged term loan in our venture debt practice. I'd call it a normal transition, right. Nothing abnormal about those two credits. They just got to a point where we prudently put them on nonaccrual. Of course, Nexi rolled off as a result of recognizing that transaction during the quarter. The most important note is as we look at ours nonaccruals that credit bucket decreased on both the cost and a fair market value basis, Q3 versus Q2.

當然。馬修，這是首席信貸官羅恩昆迪奇 (Ron Kundich)。謝謝你的提問。上個季度被添加為不提列的兩家公司，其中一家是小型設備融資公司。另一個是我們風險債務業務中的一筆長期定期貸款。我稱之為正常轉變，對吧。這兩筆學分沒有什麼不正常的。他們只是到了一個我們謹慎地將其置於不計息狀態的地步。當然，Nexi 因在本季確認了該筆交易而退出市場。最重要的一點是，當我們查看我們的不計提項目時，第三季與第二季相比，信貸額度在成本和公平市場價值基礎上都有所下降。

And -- so consistent with the other things you've heard in the Q&A here, the underwriting rigor remains strong at the top of the funnel or at the top of the portfolio, if you will. And important to note that each vertical, as Gerry alluded to, has its own distinct team and included in that team as a portfolio management team that manages each portfolio and their experts in their respective verticals.

並且 - 與您在問答環節聽到的其他內容一致，承保嚴格性在漏斗頂部或投資組合頂部仍然很強，如果你願意的話。值得注意的是，正如 Gerry 所提到的，每個垂直行業都有自己獨特的團隊，而該團隊中包括投資組合管理團隊，負責管理每個投資組合及其各自垂直行業的專家。

Okay. Great. And then could you just provide what the time line typically is to get from a signed term sheet to a commitment? And then from a commitment to a funded loan I can see that they've all grown nicely, but yes, if you could provide some color there?

好的。偉大的。那麼您能否提供一下從簽署條款清單到做出承諾的一般時間表呢？然後從對一筆已發放貸款的承諾中，我可以看到它們都發展得很好，但是，你能提供一些細節嗎？

Yeah, it really depends on the business. But I think, generally speaking, 90 to 120 days from start to finish. Yes.

是的，這確實取決於業務。但我認為，一般來說，從開始到結束需要 90 到 120 天。是的。

I see. So from signed term sheet to funding. Okay.

我懂了。因此，從簽署條款清單到提供資金。好的。

So term sheet to funding. Yeah, 45 days.

因此，條款清單就是融資。是的，45天。

Okay. Great. And then last, if I could just ask how you think about the dividend and when to increase it? There's some discussion of rates impacting earnings. So just your thoughts there?

好的。偉大的。最後，我可以問一下您如何看待股利以及何時增加股利嗎？有一些關於利率影響收入的討論。那麼這只是你的想法嗎？

Yeah. I think we've kept the dividend steady. We certainly could have increased it, but we're really focused on just keeping it stable, building earnings per share seeing some of that NAV growth and then we'll, with the Board decide on when to increase it. So our goal as an internally managed BDC, with managed funds now is to grow earnings over time and grow the dividend over time. So that is our stated goal we'll decide on a quarterly basis when to bring that up as we see earnings continue to drive forward.

是的。我認為我們保持了穩定的股息。我們當然可以增加它，但我們真正關注的是保持它的穩定，建立每股收益，實現部分資產淨值增長，然後我們將與董事會決定何時增加它。因此，作為內部管理的 BDC，我們現在管理的資金的目標是隨著時間的推移增加收益並隨著時間的推移增加股息。所以這是我們的既定目標，我們將根據季度情況決定何時提出這一目標，因為我們看到收益繼續向前發展。

Finian O'Shea, Wells Fargo Securities.

富國證券的 Finian O’Shea。

A lot of discussion on internal today. but seeing you're only getting maybe a touch of credit for that in your stock price. We're seeing if there's any appetite to flip over to external and how you would look at that sort of debate?

今天內部討論很多。但你可能只會從股票價格中獲得一點點收益。我們正在觀察是否有任何轉向外部的興趣，以及您如何看待這種爭論？

No, we're not doing it. We're not thinking about it. This internal structure is ideal for what we do. We have been -- we have done a great job of raising capital through the public markets, to the capital markets. We've delivered a best-in-class return to investors. We have delivered over $8 per share since we went public. We've raised over $1 billion of equity and debt. We're now raising money off balance sheet.

不，我們不會這麼做。我們還沒考慮這個。這種內部結構對於我們的工作來說是理想的。我們一直透過公開市場、向資本市場籌集資金，做得非常出色。我們為投資者帶來了一流的回報。自上市以來，我們的每股收益已超過 8 美元。我們已經籌集了超過10億美元的股權和債務。我們現在正在進行表外籌集資金。

All of the management fees and incentive fees, 100% go to investors we can drive up earnings per share, we can drive up to be best-in-class ROE. We are an asset management company in a BDC wrapper and it is awesome for investors. We are not ever going to do that. We're not thinking about it -- and we this growth story with a really consistent and great dividend, Fin.

所有管理費和激勵費 100% 都歸投資者所有，這樣我們就可以提高每股收益，可以提高到一流的 ROE。我們是一家 BDC 包裝下的資產管理公司，這對投資者來說非常棒。我們永遠不會這麼做。我們沒有考慮過這個問題——我們的成長故事有著真正穩定和豐厚的股息，Fin。

So -- that's what shareholders need to know. That's what they need to understand. And hopefully, over time, we'll get the price that we deserve, which is much higher than where it is right now. And I think our shareholders are pretty excited about what we're doing.

所以——這就是股東需要知道的。這就是他們需要理解的。希望隨著時間的推移，我們能夠得到應得的價格，比現在高得多。我認為我們的股東對於我們所做的事情感到非常興奮。

Paul Johnson, KBW.

保羅·約翰遜，KBW。

Just wanted to ask, I'm sorry if you said it on the call, I didn't catch it, but how are the -- just the AUM and collectively in the JV and the RIA, How's that been scaling? I think it was close to about close to about $500 million last quarter. Is there any growth there this quarter versus last?

只是想問一下，如果您在電話中說過，我很抱歉，我沒聽清楚，但是——只是 AUM 以及 JV 和 RIA 的總體情況如何，擴展情況如何？我認為上個季度的金額接近 5 億美元。與上一季相比，本季有成長嗎？

Yeah, Paul, this is Mike. We did syndicate close to $40 million this quarter. Our balance sheet just continues to ramp. So I think you'll see that Again, in a joint venture, there is a bit of seasoning that goes on. So a lot of the prior quarter fundings get syndicated the following quarter. So you'll see that next quarter from this quarter in the joint venture, but then also the vehicle, the private vehicle under the a subsidiary that's just going to continue to ramp. We are looking to obtain leverage and at a bank facility for that. So we're building up capacity in that vehicle as well.

是的，保羅，我是麥克。本季我們確實籌得了近 4,000 萬美元。我們的資產負債表持續成長。因此我認為你會發現，在合資企業中，需要進行一些調味過程。因此，許多上一季的融資都會在下一季進行聯合融資。因此，您會看到，從本季開始，合資公司將在下個季度實現成長，而子公司旗下的私人公司也將持續成長。我們正在尋求獲得槓桿以及銀行融資的機會。因此我們也在增強該車輛的產能。

Okay. And then one question on the improvement in the credit rating. I think Brice may have asked this question. But -- so the improvement of 2.9% versus 2.7%. Is that primarily just due to the strong growth this quarter? Or were there meaningful upgrades and credit ratings?

好的。然後是關於信用評級提高的一個問題。我認為布萊斯可能問過這個問題。但是——2.9% 的改善對 2.7% 的改善也是如此。這主要只是因為本季的強勁成長嗎？或者是否有有意義的升級和信用評級？

And then my second question for that would be, just can you just remind us for any new investments, I guess, for a new company, new platform investment, where where do those get placed in terms of the sort of default credit rating initially when it's placed into the portfolio.

然後我的第二個問題是，您能否提醒我們，對於任何新的投資，對於新公司，新平台投資，當它們被放入投資組合時，最初的違約信用評級是怎樣的？

That's a great question. This is Gerry. I can take that. So yeah, we did see improvements this quarter. Now some of it is a little bit a rounding, right. So it was 2.7 to something now to 2.8 high something. So it looks maybe a one decimal place like a bigger jump than it is. But nonetheless, we did have -- we spoke in our prepared remarks about the amount of capital that our portfolio companies raised like they had a great quarter, right, in terms of capital raising. And so the two biggest factors within our credit rating system, our cash runway and performance to plan. And so you can imagine cash runway improving for a number of credits that did raise capital.

這是一個很好的問題。這是格里。我可以接受。是的，我們本季確實看到了改善。現在其中一些有點四捨五入，對吧。所以現在是 2.7 左右，到 2.8 高左右。因此，看起來小數點後一位的差異可能比實際情況更大。但儘管如此，我們在準備好的評論中確實談到了我們的投資組合公司籌集的資金數額，就籌集資金而言，他們度過了一個很棒的季度。因此，我們的信用評等體系中最重要的兩個因素是現金流量和計畫績效。因此，你可以想像，許多確實籌集了資金的信貸的現金流將會得到改善。

When we bring in new credits, they will generally land around that high end of what we call performing. So in that $2.90 range. We like our new credits to show us for a bit before we place them in one of the upper tiers. But I think we did bring in a very strong cohort this quarter. So I think the uptick was a function of capital raising companies -- portfolio companies performing well and strong originations, kind of in equal parts.

當我們引入新的榮譽時，它們通常會落在我們所謂的表演的高端。因此在 2.90 美元的範圍內。我們希望我們的新積分能夠先展示一段時間，然後再將其放入較高的層級中。但我認為本季我們確實引進了一支非常強大的隊伍。所以我認為，這種上漲是融資公司的結果——投資組合公司表現良好以及發起強勁，兩者的作用是一樣的。

Got it. That's very helpful. And then just a quick question on the European expansion. I guess, how is the foreign exposure, how would that affect the nonqualified assets in the portfolio. I don't think it's a very big piece of the portfolio, but would that require any kind of second credit facility or any sort of multi-credit facility to be able to expand that business and how would that flow through, I guess, the interest statement because I think I may have seen that some of those loans pay in dollars, but if you could expand on that, that would be helpful.

知道了。這非常有幫助。然後我簡單問一下關於歐洲擴張的問題。我想，海外風險敞口如何，會對投資組合中的非合格資產產生什麼影響？我認為這不是投資組合中很大的一塊，但是這是否需要任何類型的二級信貸工具或任何類型的多信貸工具才能擴大業務，以及這將如何影響利息報表，因為我想我可能已經看到其中一些貸款以美元支付，但如果你能詳細說明這一點，那將會很有幫助。

Yeah, Paul, I'll start and the rest of the team chime in. From a nonqualified bucket, as you mentioned, European or foreign investments would fall into there. Right now, that book is overall, all the nonqualified assets are about 13%. So plenty of room in that bucket to continue to fund those assets that are foreign. Right now, all our majority of our loans and financings are all in US dollars.

是的，保羅，我先開始，其他隊員也加入進來。從不合格類別來看，正如您所說，歐洲或外國投資都屬於這一類別。目前，該帳面總體上所有非合格資產約佔 13%。因此，這個桶子裡有足夠的空間來繼續為這些外國資產提供資金。目前，我們的大部分貸款和融資都是以美元計價的。

As you mentioned, we do have the ability to land in a foreign denominated currency, which we could utilize a credit facility in that foreign currency to minimize the FX risk. Our goal there is just to repeat what we've done here over there. And with the RIA, it gives us the ability to raise capital -- so when we do start having some issues maybe with growth there with the size of that bucket, we have the ability to raise capital in a vehicle that's dedicated just to that purpose. So -- we have a really great opportunity to grow it. We have a great opportunity to raise additional capital dedicated to those investments.

正如您所說，我們確實有能力以外幣計價，我們可以利用該外幣的信用額度來最大限度地降低外匯風險。我們的目標只是重複我們在那裡所做的事情。透過 RIA，我們能夠籌集資金 - 因此，當我們確實開始遇到一些問題，例如與資金池規模的增長有關時，我們有能力透過專用於此目的的工具來籌集資金。所以——我們有一個非常好的機會來發展它。我們有絕佳的機會籌集額外資金用於這些投資。

Got it. And then I would imagine that you're looking at a lot of new sponsors for that market. I guess if that's true, I mean, what is kind of the threshold for a new deal and new sponsors, there a deeper diligence process just because it's a new market. How does that work?

知道了。然後我可以想像你正在為該市場尋找許多新的贊助商。我想如果這是真的，我的意思是，新交易和新贊助商的門檻是什麼樣的？ 僅僅因為這是一個新市場，就需要更深入的盡職調查過程。這是如何運作的？

Yeah. I mean, Ron, you could jump in as well here, but we're not doing anything that we haven't done historically. So we've been doing business in Europe at a smaller scale for 10 years. And so deals have to go through the same exact process.

是的。我的意思是，羅恩，你也可以加入進來，但我們不會做任何我們歷史上沒有做過的事情。因此，我們已經在歐洲以較小的規模開展業務十年了。因此交易必須經過完全相同的流程。

This is Ron. It's the same underwriting rigor that we use here in the states. The gentleman we've brought on to lead that effort as a venture debt pro who's been lending to venture-backed companies out there for over a decade. So in he's a known quantity is known to us. We didn't hire a stranger, right. We hired someone that we have some track record with on a personal level as well. So the question is a good one, but for now, it's same marching orders, same underwriting criteria, Gerry mentioned a couple of the portfolio criteria earlier in an earlier answer. So same process.

這是羅恩。這與我們在美國採用的承保嚴格程度是一樣的。我們聘請的這位先生來領導這項工作，他是一位風險債務專家，十多年來一直為風險投資支持的公司提供貸款。所以他是我們所知道的一個已知量。我們沒有僱用陌生人，對吧。我們僱用了一位在個人層面上與我們有一定合作記錄的人。所以這個問題很好，但就目前而言，它是相同的行軍命令，相同的承保標準，Gerry 在先前的回答中提到了幾個投資組合標準。所以過程相同。

And as we build out that team, we're going to bring in individuals who are experienced doing business in that geography, right. We're not looking to send over from Phoenix or the Bay Area. We're going to grow that team with folks that are in market in the UK.

當我們組建這個團隊時，我們會引進在該地區有商業經驗的人才。我們不打算從鳳凰城或灣區發送。我們將透過吸收英國市場的人才來擴大這個團隊。

Doug Harter, UBS.

瑞銀的道格·哈特（Doug Harter）。

Hoping you could talk about your outlook to continue to grow the RIA channel and kind of how we should think about the operating leverage for that to fall to the bottom line for ten shareholders?

希望您能談談您對繼續發展 RIA 管道的展望，以及我們應該如何考慮將經營槓桿降至十位股東的底線？

Doug, we're really focused on raising capital for the RIA both as a kind of co-investment vehicle for across the platform. and then also raising capital specifically for our different verticals and getting the appropriate leverage for the different risk that each of those businesses take. And so -- that's a big focus for us now and into next year.

道格，我們真正專注於為 RIA 籌集資金，將其作為整個平台的共同投資工具。然後還專門為我們不同的垂直行業籌集資金，並針對每個業務所承擔的不同風險獲得適當的槓桿。所以——這是我們現在和明年關注的重點。

Our goal there is to raise capital where we can charge management fees and incentive fees, all of which will flow to our investors. -- it's going to be a big part of our future. I can't give you specific numbers. I hope to give you more detailed information in the not-so-distant future. But in raising capital is a lot. It's difficult. It's hard. It takes a long time to raise capital privately. And we have been at it for a while. We've seen some success we hope to see more of it in the non-suggistant future.

我們的目標是籌集資金，收取管理費和激勵費，這些資金都將流向我們的投資者。 ——它將成為我們未來的重要組成部分。我無法給你具體的數字。我希望在不久的將來能為您提供更詳細的資訊。但在籌集資金方面卻很多。它很難。這很難。私募融資需要很長時間。我們已經這樣做了一段時間了。我們已經看到了一些成功，我們希望在不久的將來看到更多的成功。

And that concludes our Q&A portion for today's conference. I'm pleased to turn the floor back to CEO, Kyle Brown for any additional or closing remarks.

今天會議的問答部分到此結束。我很高興將發言權交還給執行長凱爾布朗 (Kyle Brown)，請他發表任何補充意見或結束語。

Thank you. We're proud of the third quarter results and look forward to updating you on our 2024 results during our next call in February. Also, we look forward to seeing many of you at our investor event in Manhattan on November 19, and -- if you'd like to attend, please contact our Head of Investor Relations Ben Malcolmson. I'd like to thank everybody for participating in our call today. We appreciate your interest and investment in Trinity Capital. Have a great rest of your day. Thanks.

謝謝。我們對第三季的業績感到自豪，並期待在 2 月的下次電話會議中向您通報我們的 2024 年業績。此外，我們期待在 11 月 19 日於曼哈頓舉行的投資者活動中見到你們，如果您想參加，請聯絡我們的投資者關係主管 Ben Malcolmson。我想感謝大家今天參加我們的電話會議。我們感謝您對 Trinity Capital 的關注與投資。祝您剩餘的時光愉快。謝謝。

Ladies and gentlemen, this does conclude today's conference, and we thank you all for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束，感謝大家的參與。您現在可以斷開連線。