TriplePoint Venture Growth BDC Corp. (TPVG)

NII per share of $0.21 for Q2 2026 covers the declared regular distribution of $0.23 per share at approximately 91%, falling below the 95–105% range for a score of 3. However, the company supplements this with declared supplemental distributions of $0.12 per share, bringing total distributions to $0.35 per share, which is well above NII. Year-to-date NII of $0.43 per share against distributions of $0.46 per share shows tight but manageable coverage. The company has maintained distributions without cuts over the visible period, and the adviser is actively waiving incentive fees to support coverage, indicating flexibility typical of the 3-anchor profile.

TPVG demonstrates strong balance sheet positioning with gross leverage of 1.26x and net leverage of 1.22x, both comfortably within typical BDC operating bands. The company maintains investment-grade rating from DBRS (BBB low with stable outlook) and has diversified funding sources including debt facilities. The capital structure shows adequate liquidity with $140.6 million in unfunded commitments and disciplined deployment. However, the score reflects that leverage sits at the upper-middle range rather than the center of the band, and the filing does not explicitly detail the maturity ladder or breakdown between secured versus unsecured funding, preventing a perfect 5 score despite otherwise strong metrics.

Non-accruals at 0.5% of fair value are well below the 1% threshold for a score of 5, indicating strong portfolio credit quality. PIK income of 3.039 million on a 22.1 million total income base represents approximately 13.7% of income, placing it in the 5-10% range typical of a score of 3, though closer to the upper end. However, the company realized net gains of 12.952 million in Q2 2026 and 12.655 million year-to-date, demonstrating positive realized gains over time as required for a score of 5. The combination of minimal non-accruals, moderate PIK levels, and consistent realized gains suggests performance between anchors 4 and 5, warranting a score of 4 given the PIK component is elevated relative to the 5% threshold.

TPVG's portfolio quality falls below the 3-anchor threshold. While the company holds debt investments in 53 portfolio companies with a weighted average investment ranking of 2.28, the portfolio exhibits significant junior-capital characteristics: 0.5% of fair value is in non-accruals, indicating credit stress; the company maintains substantial warrant (117 companies) and equity positions (60 companies) alongside debt, typical of venture lending with subordinated risk; and the portfolio is concentrated in venture-growth-stage and AI companies, which are inherently cyclical and high-risk sectors. The debt portfolio's 12.9% yield reflects risk compensation rather than defensive positioning. Without disclosed first-lien percentages or top-10 concentration metrics, the available data suggests a junior-capital-heavy, cyclical portfolio inconsistent with the 3-anchor's 60-80% first-lien requirement.

TPVG uses an external management structure with TriplePoint Capital LLC as adviser, charging base management fees of $3.6 million quarterly (approximately 1.5% annualized on assets under management). The filing shows an income incentive fee waiver of $1.3 million in Q2 2026, indicating a standard incentive fee structure with hurdle provisions. NAV per share was $8.67 as of June 30, 2026, compared to $8.65 as of March 31, 2026, showing essentially flat NAV growth over the short term, though the earnings release emphasizes long-term NAV enhancement goals. The fee structure and NAV trajectory align with the rubric's anchor 3 description of standard external fees with hurdle and roughly flat NAV performance.

Mechanical valuation (D-07): current ratio 0.54 vs 9-point own history, percentile rank 0.00.