TPVG Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 11:10 AM CDT 21 min read

Image source: The Motley Fool.

DATE

May 6, 2026, 5 p.m. ET

CALL PARTICIPANTS

• Chairman and Chief Executive Officer — James Labe

• President and Chief Investment Officer — Sajal Srivastava

• Chief Financial Officer — Mike Wilhelms

Need a punctuation from a Motley Fool analyst? Email [email protected]

Full Conference Call Transcript

James Labe: Thank you, operator. Good afternoon, everyone, and invited to TPVG's archetypal 4th net call. During the archetypal quarter, we continued to instrumentality steps to presumption TPVG to fortify its portfolio portion maintaining our semipermanent accent connected expanding its durability, income-generating assets and NAV to make enduring shareholder value. We besides stay focused connected portfolio diversification into high-quality task maturation signifier companies successful AI and different charismatic concern sectors. Touching connected immoderate highlights successful the archetypal quarter. We generated NII of $0.23 per share, covering our dividend and funded much than $26 cardinal successful indebtedness investments wrong our guided range. For the quarter, our weighted mean annualized portfolio output accrued to 13.5% compared to 12.7% successful the erstwhile quarter.

During the quarter, we lowered our gross leverage ratio and reduced our outstanding unfunded committedness obligations by 20% to $207 million. Meanwhile, our pipeline of task maturation signifier companies astatine the TriplePoint Capital level level remains beardown and bodes good for TPVG to capitalize connected charismatic lending opportunities implicit the agelong term. We besides took further steps to fortify our fiscal flexibility during the quarter, and Mike volition supply much details successful his remarks. The wide task superior markets proceed to strengthen. In fact, PitchBook labeled the archetypal quarter's VC marketplace arsenic 1 for the grounds books.

According to PitchBook, task superior woody worth accrued to $267 billion, with the 4th already exceeding each afloat twelvemonth total, but for 2021 and 2025. No surprise, but AI continued to predominate marketplace activity, representing 89% of the archetypal 4th woody worth and 43% of the full woody count, some grounds highs. AI companies present correspond astir 45% of each U.S. marketplace worth and companies wrong the assemblage are completing caller backing rounds astatine materially higher valuations, larger step-ups and a faster cadence than non-AI peers. We expect this volition proceed to substance the beardown request for task lending and besides beryllium a payment to our existing warrant and equity concern portfolio. Turning to the portfolio strategy.

There's been nary change, and we proceed our ongoing way of concern assemblage rotation and portfolio diversification crossed AI and different charismatic sectors specified arsenic verticalized software, fintech, aerospace and defense, robotics, cybersecurity and wellness tech, among others. Our absorption remains connected borrowers successful precocious imaginable durable sectors, including those leveraging AI to thrust merchandise differentiation, marketplace disruption and efficiency. Our precedence remains connected backing category-defining companies astatine the forefront of applied AI infrastructure and deployment. Specifically, we're arrogant to enactment AI innovators and enactment that respective of our AI and AI adjacent portfolio companies experienced worth appreciation successful the quarter.