Good afternoon, ladies and gentlemen, and welcome to the TriplePoint Venture Growth’s Second Quarter Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. After the speakers’ remarks there will be a question-and-answer period and instructions will follow at that time. This conference call is being recorded and a replay of the call will be available as an audio webcast on the TriplePoint Venture Growth website. I would now like to turn the call over to Trevor Martin. Mr. Martin, please go ahead.

Thanks Phil, and thank you everyone for joining us today. Here with me are Jim Labe, Chief Executive Officer and Chairman of the Board; and Sajal Srivastava, President and Chief Investment Officer; to share with you the results for the second quarter. Before I turn the call over to Jim, I would like to direct your attention to the customary Safe Harbor disclosure in our press release regarding forward-looking statements, and remind you that during this call we will make certain statements that will relate to the future events or the company’s future performance or financial condition, which may be considered forward-looking statements under Federal Securities Law. We ask that you refer to our most recent filings with the Securities and Exchange Commission for important factors that could cause actual results to differ materially from these statements. We do not undertake any obligation to update our forward-looking statements or projections unless required by law. To obtain copies of our latest SEC filings, please visit the company’s website at tpvg.com. Now I’ll turn it over to Jim.

Thanks Trevor, and welcome everyone to our second quarter earnings call. Before starting, I’m delighted to mention the addition of Andrew Olson who beings a strong skill set in venture lending BDC experience as the new CFO of our company, effective August 10. Let me now turn to the past quarter. The second quarter was a great quarter and we set some new records, including a net investment income or NII and in portfolio yield. In fact, this was also our second consecutive quarter of record NII thanks to customer prepayments. Consistent with the baseball analogy theme in our earnings calls, we cleared the bases and brought an all the runners this quarter. And we’re already in the batters parks which with some big hitters lined up for the next innings, the second half of 2017. I’m going to ask Sajal to provide the details of this past quarter and our exceptional results, but as proud as we are via accomplishments for last quarter, it’s behind us. I would like to spend this time talking about the future. We are encouraged by the outlook and the growth opportunities ahead of us and I would like to share a specific roadmap of specific direction that we are pursuing, that’s going to impact the rest of this year and also set us up for a strong 2018 as well. These aren’t new goals for us, but they’re really a specific course of action to capitalize on the increasing opportunities out there today. All of this which is being fueled by the underlying strong current market among our select venture capital inventors, but also the conditions in the venture lending market. Let me give you an idea of what we’re seeing. First, there’s record amounts of capital, which has been raised and being…

Thank you, Jim, and good afternoon everyone. In Q2, we signed approximately $144 million of term sheets at TriplePoint capital and closed $106 million of debt investments and $1 million of equity investments. On a year-to-date basis we signed $193 million of term sheets and closed $146 million of debt and equity investments. New customers in the quarter included Blue Bottle Coffee, which is a rapidly growing specialty coffee roaster retailer. The company capitalizes on a national-wide moment to source, roast and brew single origin coffee using partitional methods; I believe they call foam to mug [ph]. Blue Bottle has raised more than $120 million of equity capital from investors including Index Ventures, Google Ventures, Fidelity, Morgan Stanley and others. PillPack which is a full-service pharmacy that delivers a better simpler experience through convenient and presorted monthly packaging for medications, along with modern technology and personalized service, where customers can e-mail, text or call their PillPack pharmacists at any time to ask questions or clarify instructions. PillPack has raised more than $110 million of equity capital from investors including Accel Partners, Charles River Ventures, Menlo Ventures, Accomplice and others. View Glass which designs and manufactures dynamic glass for office and commercial buildings that can change tint in response to weather conditions or smartphone commands reducing heat and glare. View helps build owners save on HVAC system costs, as well as provide a high end-to-end experience. View’s installed its smart glass at 350 corporate offices, airports, hospitals, stadiums and universities, including Levi’s Stadium and San Francisco International Airport. View’s raised more than $750 million of financing from investors, including Coastal Ventures, Madrone Capital, Corning and others. View recently announced $200 million financing, which was led by TIAA and BlackRock. During the quarter we also invested equity in Casper, which is I’m…

Thanks, again, Sajal. At this point we will be happy to take your questions. Operator, could you please open the line.

Thank you, Jim. We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Jonathan Bock with Wells Fargo Securities. Please go ahead.

Good afternoon, James Howe filling in for Jonathan Bock, and thank you for taking my questions. First, there’s no doubt that you delivered strong results this quarter, but can you comment on the ability to truly scale this business. The portfolio today is really concentrated, I think just 16 portfolio companies in total. And so growth is really needed to diversify and also improve recurring cash flow, also a less concentrated portfolio would leave you with less impact from individual repayments. But with the short duration of assets it seems that TPVG is always battling to fully leverage the portfolio. So would investment team growth help here or is the market opportunity really more niche rather than something that can be scaled?

It’s Joe – I think an interesting question, I would say there are a couple of factors. I think first is a little bit of the challenge of our size and scale given our current market cap. So I’d say at the high level we see strong demand, strong market conditions, again, we have a $143 million of unfunded commitments, we have $115 million of the signed term sheets, we have several hundred million dollars of term sheets outstanding. And so we see, again, the ability to quickly grow and scale. I think our challenge has been we picked great companies. And when you work with great companies, other people, particularly, equity investors and acquires want to work with those same companies. And so to have 14 of our portfolio companies either acquired or closed make it around the financing, it’s a fact we’re very proud of. But at the same time, it causes the challenge that they’re either paying us off or there is lose in liquidity where the CFOs can do the math. And they’d say, great, that’s why I pay you 14-plus percent, so do I – well, I’m adding zero on the cash I have. And so I would say, again, these are good things, good reasons for why we had the prepaid, but we see strong demand, as Jim said, strong finish to grow the portfolio over the next couple of quarters.

That’s helpful and thank you for that. And then just next question on the restricted cash of $71 million. What falls into that bucket and why is that restricted?

Yes. When we get prepays from our portfolio companies, it goes to their pledged collateral for our credit facility. They have the flow through the waterfall of our credit line. So we don’t get those proceeds unless we apply it down to the principal balance or the next distribution date which is typically the 15 of the month.

That’s very helpful, thank you for that. And that’s it for me. Thank you for taking my questions.

Great.

The next question comes from Casey Alexander with Compass Point Research & Trading. Please go ahead.

Hi. A couple of questions here. In your subsequent events you call out that you’ve only had $1.8 million in prepayments thus far this quarter. And a competitor actually called out that they expected to see somewhat slower prepayments in Q3 and Q4. Do you get the same sense from the market and from your portfolio that that’s likely to be the case?

Hi, Casey, it’s Sajal here. Yes, I agree. I’d say as we feel that the level of prepayment activity is definitely slowed down given, again, the acquisitions and the equity activity.

So that you think would make it a little bit better runway to get back closer to your target leverage ratio then?

Correct, correct. Although we lose the benefit of obviously the accelerated fees and income from prepays which are nice, but yes absolutely helps us to greater growth filling up the portfolio.

Understood. Now you also mentioned that you’ll have in this coming quarter $1.1 million of accelerated unamortized costs from the call of the baby bond. There’s also going to be sort of interest crossover period, where both baby bonds are going to be outstanding at the same time. Do you know how much that sort of additional crossover interest is going to be? I mean, many BDCs just sort of said that that’s sort of a one-time transition cost that’s not repeatable. Do you have any sense for how much that’s going to be?

I’ve to do the math, but it’s essentially 30 days, right, so we gave the call notice that was 30 days to 40 days between when we gave the notice and when we actually paid off. It’s essentially a month and the six and three quarters is the double interest I guess is for the crossover period.

All right, okay. So would it be your estimation, obviously, the first two quarters have had a lot of prepays and net investment income far exceeded the dividend, but obviously the invested balance is well below and it would be reasonable to assume that the next quarter or two may come in shy of the dividend. But would it be reasonable to assume that in terms of your total results you’re likely to cover the dividend for the year?

Yes, Casey, that’s absolutely our goal. I think you get the game plan. We haven’t spent that much time on emphasizing. We really feel the commitment level and the fundings level and everything’s looking very good for third and fourth quarter and that’s our goal.

And to emphasize, on a absolutely on a taxable income basis we are highly confident that the portfolio today certainly know material changes will absolutely cover for the full year, and obviously the impact of accounting we haven’t talked with our finance department, they’re worried about the impact of one-time costs, but confident, highly confident on a taxable income basis, absolutely.

And just for my clarification. Can you walk me through that scenario with KnCMiner one more time please?

Sure. So as you recall, right, we’ve got the bankruptcy trust, which is liquidated assets; and being a bankruptcy trust, we’re at the final stages, though we’re still kind of going through the paperwork and the process to get the cash distribution from them which will be several million dollars. So that amount will paydown or balance. And the remaining balance that we have will be assumed and fold by GoGreen Light and then GoGreen Light is required to pay us under this equity royalty structure to get us whole. The great news as I mentioned last quarter and this quarter as well as we’ve got a nice small initial distribution based on GoGreen Light’s performance in 2016, which we weren’t expecting a profit distribution for our recovery model. So it’s a great nice upside to get that recovery this year, but we are expecting again the line share of trusts, proceeds from the asset sales this quarter. And then the remaining full liability will then be assumed by GoGreen Light.

I thought you did give a number for the amount of that distribution from GoGreen Light, am I right?

I don’t believe we have, but it’s several million. And, again, once we get it, we’ll…

No, I don’t mean from the bankruptcy trust, I mean from the profit sharing, from the royalty.

The amount that we have, well, it was $317 that we paid down this quarter. So that included – sorry, $317,000 so that included a portion of which was profit distribution and a portion was other collections that we had received from earlier KnC payments

Right. Okay, great. All right, thanks. Thanks for taking my questions, I appreciate it.

Thank you, Casey.

[Operator Instructions] This concludes our question-and-answer – looks like we have – okay. This concludes our question-and-answer session. I would like to turn the conference back over to Jim Labe for any closing remarks.

Great, thanks. I’ll close again by saying, we’re very excited about the potential to trajectory and the momentum here for last half of this year. And I want to express my appreciation to everyone for your continued interest and your support in TriplePoint Venture Growth. Thanks, and we’ll speak with you again soon.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.