TriplePoint Venture Growth: Portfolio Investment Write-Down
As we’ve reported on our Twitter News Feed, TriplePoint Venture Growth (TPVG) has been busy issuing 5mn new shares. As part of the process, the BDC is required to make some high level disclosures to prospective investors. These include an estimate of IVQ 2019 results some time ahead of the final results being published. TPVG indicates Net Investment Income Per Share (NIIPS) will be somewhere between $0.36-$0.40 in the period. Last quarter, NIIPS were $0.29. The 6 firm analyst consensus for the IVQ 2019 is $0.41, suggesting recurring earnings are both better than before and slightly less than hoped for.
TPVG also “realized a gain of $1.4 million on the sale of its equity investment in Farfetch UK Limited during the three months ended December 31, 2019″. As of September 30, 2019 – according to Advantage Data records– the FMV of the investment was $1.286mn and the original cost just $0.170mn, implying a $1.1mm potential gain. Apparently, the BDC has done a little better than expected in this instance.
However, TPVG also disclosed some expected unrealized losses for the IVQ 2019 would be impacting book value:
The Company expects to report an unrealized loss of $1.5 million attributable to market-price-related changes to its publicly traded common stock positions held as of December 31, 2019. As of January 7, 2020, the Company estimated that the unrealized loss attributable to market-price-related changes to its publicly traded common stock positions would be approximately $125,000.
The most important item in dollar terms was an update on the status of Harvest Power, a TPVG debt investment that suddenly joined the ranks of the BDC Under Performers in the IIIQ 2019 and which was discussed for the first time in its 5 year history on the BDC’s books on the last Conference Call held in November.
The BDC Credit Reporter has written a post about TPVG and the likely resolution of the Harvest Power investment based on this latest disclosure and other materials. Given that TPVG will be booking a further write-down in the value of the investment; a significant Realized Loss, and will be permanently losing investment income, this story seemed material enough to re-publish for the BDC Reporter’s readers and anyone with an interest in the high flying technology-focused BDC.
Already a Member? Log In
Register for the BDC Reporter
The BDC Reporter has been writing about the changing Business Development Company landscape for a decade. We’ve become the leading publication on the BDC industry, with several thousand readers every month. We offer a broad range of free articles like this one, brought to you by an industry veteran and professional investor with 30 years of leveraged finance experience. All you have to do is register, so we can learn a little more about you and your interests. Registration will take only a few seconds.