More Problems at TriplePoint Venture Growth BDC (TPVG)
TriplePoint Venture Growth BDC (NYSE: TPVG — $240 million) is a Business Development Company that lends money “primarily to venture growth stage companies focused in technology and other high growth industries.” The Bear Cave first published on TriplePoint in May 2023 and wrote:
“TriplePoint is encumbered by high fees, weak management, and a weaker loan book saddled by portfolio company bankruptcies and upside-down startups. The Bear Cave believes TriplePoint’s equity may be severely impaired, if it has any value at all.
For a sense of TriplePoint’s troubles, investors need to look no further than its publicly disclosed net asset value, which has declined from $14.01 per share in Q4 2021 to $13.84 in Q1 2022, $13.01 in Q2 2022, $12.69 in Q3 2022, and $11.88 in Q4 2022…
The Bear Cave believes TriplePoint’s net asset value decline will accelerate in the coming quarters as TriplePoint may need to take significant write-downs in its loan book.”
Since then, TriplePoint’s net asset value declined to $9.21 per share in Q4 2023 and declined further to $8.61 per share in Q4 2024.
Today, The Bear Cave believes TriplePoint’s old troubled loans have been replaced by new troubled loans and the company will need to make significant write-downs and additional dividend cuts going forward. As a result, The Bear Cave believes TriplePoint will continue to be a long-term underperformer.
Let’s dig in.