TriplePoint Venture Growth BDC Corp is an externally managed closed end non diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940 and also as a regulated investment company under Subchapter M of the Internal Revenue Code. The firm was formed as a Maryland corporation on June 28 2013 to expand the venture growth stage business segment of TP C’s investment platform. Its investment objective is to maximize total return to stockholders primarily through current income and to a lesser extent capital appreciation by lending typically with warrants to venture growth stage companies focused in technology and other high growth industries that are backed by TP C’s select group of leading venture capital investors.

The company generates revenue mainly from interest income on its loan portfolio which includes growth capital loans equipment financings and revolving loans. In addition it receives fees such as facility fees prepayment fees and other loan related charges. Equity related returns come from warrant investments and direct equity investments in the same borrowers allowing the firm to participate in any upside when the borrower’s value increases. The combination of interest fees and equity upside provides the firm’s total return to shareholders. The firm also realizes capital gains when it exercises its warrant holdings or sells its direct equity positions following a liquidity event such as an initial public offering or a strategic sale.

The firm operates in the venture growth debt market which is characterized by high barriers to entry and limited participation from traditional lenders. Its competitors include other business development companies investment banks venture oriented banks commercial finance companies and private equity or hedge funds that also target venture backed companies. The company’s competitive advantages stem from TP C’s long standing reputation its deep relationships with leading venture capital investors and the Four Rs philosophy emphasizing relationships reputation references and returns. Its specialized expertise in technology and high growth sectors enables it to structure customized financing solutions that include warrant kickers giving it an edge over more conventional lenders. Through TP C’s established network the firm gains access to a proprietary flow of investment opportunities that are not broadly available to other lenders.

The company’s customers are venture growth stage enterprises operating in technology and other high growth industries that have received backing from leading venture capital investors. These borrowers range from software and hardware firms to biotech and clean technology companies seeking capital to scale operations extend run length fund product development or pursue strategic milestones. The filing does not disclose specific borrower names so the description is limited to the types of companies served. Loan proceeds are generally used to support working capital fund equipment purchases finance acquisitions or extend the company’s cash runway before a future equity round.