Dividend Detective: Business Development Corps.

Ares Capital

June '21: Core EPS $0.53, up 36%. Per share net investment income even at $0.39. Total portfolio investments up 27% to $17.136 billion. Net asset value $18.16 per share vs. $15.83.

6/1/12: From January 1, 2011 through March 31, 2012, Triangle Capital's book value has grown 25% compared to 4% for Ares Capital. During that time, Triangle's total return (share price growth plus dividends) was 21% vs. 6% for Ares. We are selling Ares Capital and replacing it with Main Street Capital which has grown its book value by 20% for the same timeframe.

Forecast: FY 12/2012 EPS Growth 1% Book Value Growth: 3%

Background
Founded in 2004, Ares typically makes loans in the $10 million to $250 million range to privately-held mid-sized (EBITDA $10 million to $250 million) companies located in North America. Ares may also take equity positions in its client companies. In April 2010, Ares acquired Allied Capital, the first, and formerly the largest BDC. The acquisition made Ares, with $12 billion under management, the U.S.' largest BDC. Ares Capital is externally managed by a unit of of Ares Management LLC, an SEC registered investment adviser.

Quarterly Reports

March '12: EPS (core) $0.38, up 23% vs. year-ago. Net investment EPS $0.36, up 50%. Net realized loss -$0.04 per share vs. +$0.26 gain. Net unrealized per-share gain $0.17 vs. $0.11. At 3/31, investments totaled $5.20 billion vs. year-ago $4.26 billion. Per-share net assets $15.47 vs. year-ago $15.45 and $15.34 at 12/31. At 3/31, 3.6% of assets were on non accrual. Raised $125 million by selling 7.00% Senior notes due in 2022, raised another $252.5 million by selling 16.4 million new shares, and made a deal to borrow up to $200 million from Sumitomo Mitsui Bank for up to 8 years at a 3.2% or so interest rate. In March, began offering financing services to venture capital firms. Raised around $170 million by selling convertible senior notes maturing in 2017. In February, dividend up 3% to $0.37.

December '11: EPS (core) $0.48, up 14% vs. year-ago. Net investment EPS $0.45, up 41% vs. year-ago. Net realized loss -$0.04 per share vs. +$0.22 gain. Net unrealized per-share gain $0.17 vs. $0.25. At 12/31, investments $5.09 billion vs. year-ago $4.32 billion. Per-share net assets $15.34 vs. year-ago $14.92 and $15.13 at 9/30. At 12/31, 1.5% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 3.3% of assets on non accrual. Earnings call transcript. In October, dividend up $0.01 (3%) to $0.36.

September '11: EPS (core) of $0.43, up 13%. Net investment EPS $0.48 vs. $0.37. Net realized gains $0.24 per share vs. $0.00. Net unrealized per-share loss -$0.52 vs. +$0.30. At 9/30, investments $5.05 billion vs. year-ago $4.15 billion. Per-share net assets $15.13 vs. year-ago $14.43 and $15.28 at 6/30. At 9/30, 1.4% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 4.0% of assets on non accrual. Earnings call transcript.

June '11: EPS (core) $0.34, up $0.02. Net investment EPS $0.21, down $0.05. Net realized gains -$0.08 per share loss vs. $0.06 gain. Net unrealized per-share gains $0.05 vs. $0.38. At 6/30, investments $4.64 billion vs. $3.79 billion. Per-share net assets $15.28 vs. $11.21. At 6/30, 1.9% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 3.5% of assets on non accrual.

March '11: EPS (core) $0.31, up 11%. GAAP EPS $0.61, even. Net investment EPS $0.24, down $0.01. Net realized gains $0.26 per share vs. -$0.04 loss. Net unrealized per-share gains $0.11 vs. $0.40. At 3/31, investments $4.26 billion vs. $2.22 billion. Per-share net assets $15.45. At 3/31, 2.6% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 4.8% of assets on non accrual. Earnings call transcript. Raised $575 million selling 5.75% Convertible Senior Notes due 2016.

December '10: EPS (core) $0.42, up 14%. GAAP EPS $0.79, up 23%. Net investment EPS $0.32 vs. $0.35. Net realized gains $0.22 per share vs. -$0.38 loss. Net unrealized per-share gains $0.25 vs. $0.67. At 12/31, investments $4.32 billion vs. year-ago $2.17 billion. Per-share net assets $14.92 vs. $11.44. 2.3% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 3.8% on non-accrual status. Earnings call transcript. Raised $190 million selling 11.5 million new shares at $16.50 Raised $200 million by selling 7.75% unsecured notes maturing in 2040.

September '10: EPS (core) $0.38, up $0.02. GAAP EPS $0.67 vs. $0.62. Net investment EPS $0.37 vs. $0.32. Net realized gains $0.06 per share vs. -$0.01 loss. Net unrealized per-share gains $0.30 vs. $0.31. At 9/30, investments $4.15 billion vs. $2.17 billion. Per-share net assets $14.43 vs. $11.16. At 9/30, 2.2% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 7.5% of assets on non-accrual status. Earnings call transcript.

June '10: EPS (core) $0.32, down $0.01. GAAP EPS $1.73 vs. $0.36. Net investment EPS $0.26 vs. year-ago $0.33. Net realized gains $0.06 per share vs. -$0.01 loss. Net unrealized per-share gains $0.38 vs. -$0.04 loss. At 6/30, investments $3.79 billion vs. $2.18 billion. Per-share net assets $14.11 vs. $11.21. At 6/30, 2.3% of investments (excluding acquired from Allied Capital) on non-accrual (delinquent) status. Counting Allied, 7.5% of assets on non-accrual status. Earnings call transcript.

March '10: EPS (core) $0.29 vs. $0.31. GAAP EPS $0.61 vs. $0.36. Net investment EPS $0.25 vs. $0.31. Net realized losses -$0.04 per share vs. +$0.25. Net unrealized gains $0.40 vs. -$0.20 loss. At 3/31, investments $2.220 billion, up 10%. Grades outstanding loans from 1 to 4, where 4 is best. At 3/31, average grade 3.1. Non-accrual (delinquent) loans 1.0% of total investments. Earnings call transcript. Completed acquisition of Allied Capital. Raised $254 million by selling 21 million shares at $12.75.

December '09: core EPS $0.37, up 12%. Net investment EPS $0.35, up 6%. Net realized losses -$0.38 per share vs. $0.02 profit. Net unrealized gains $0.67 vs. -$1.49 loss. At 12/31, investments $2.172 billion, up 10% vs. year-ago. At 12/31, average loan grade 3.5. Non-accrual (delinquent) loans 0.5% of total investments. Agreed to acquire Allied Capital for $3.47/share.

September '09: core EPS $0.36, up 6%. Net investment EPS $0.32, down 6%. Net realized losses -$0.01 per share vs. +$0.05. Net unrealized gains $0.31 vs. -$0.81 loss. At 9/30, investments $1.97 billion, even. At 9/30, average loan rating 3.0. Non-accrual (delinquent) loans 1.7% of total investments.

Back to Business Development Corps.

Compass Diversified Holdings

Sell Compass Diversified
Compass does not offer goods or services to consumers or to other companies. Instead, it is a holding company that owns interests in companies that do offer such services. Thus, if we are to make money holding Compass shares, over time, the per-share book value (assets minus liabilities) and or the per-share cash available for distribution would have to increase. That isn't happening.

10/17/11: Compass sold its majority interest in Staffmark Holdings to a Japanese company for $295 million (including loan assumptions). Compass expects to record a $75 million ($1.60/share) to $90 million ($1.93/share) profit on the sale.

Compass paid $58 million to acquire a controlling interest in CamelBak Products, a maker of of personal hydration gear such as free water bottles, hydration backpacks, and hydration accessories as well as specialized military gloves and performance accessories for outdoor, recreation and military use.

In April, Compass said that its Staffmark Holdings (CBS Personnel) unit had filed paperwork with the SEC stating that it intends to offer shares to the public in an IPO.

Forecast: FY 12/2011 EPS Growth: 3% Book Value Growth: -9%

Background
Compass buys small U.S. companies that have strong positions in niche markets with good long-term cash flow growth prospects. Holdings currently include: AMF Holdings, dba American Furniture (upholstered furniture), Anodyne Medical Device (specialty beds, mattresses, etc.), Staffmark Holdings, formerly, CBS Personnel (temporary and contract staffing), Compass Holdings dba Advanced Circuits (printed circuit boards), Fox Factory (high-end suspension products for mountain bikes, all terrain vehicles, etc.), Halo Lee Wayne, dba Halo (customized promotional products), and Liberty Safe & Security Products (home and gun safes). Compass targets a 3- to 5-year holding time for each firm. Compass is classified as a partnership for U.S. federal income tax purposes. As such, Compass is not generally subject to Federal or State income tax. The annual income, losses, deductions or credits of the Trust flow through to the shareholders.

Quarterly Reports

June '11: EPS $0.14 vs. year-ago -$0.04 loss. Cash available for distribution (CAD) $0.36 per share, up $0.01 vs. year-ago. Revenues up 6% to $428 million.

March '11: EPS loss -$0.15 vs. -0.44 loss. Revenues up 20% to $424 million. $0.16/share non-cash impairment charge drove earnings negative. Cash available for distribution (CAD) up 27% to $14.29 million ($0.31/share), below the $0.36 actually distributed. "Joe Massoud, Compass' CEO, took leave of absence to focus on informal regulatory inquiry on matters unrelated to CODI." Massoud also resigned from the Board. In March, dividend up 6% to $0.36.

December '10: EPS loss -$0.03 vs. -$0.05 loss. Cash available for distribution (CAD) $21.38 million ($0.48/share) vs. $17.92 million ($0.49/share). Revenues up 21% to $438.9 million. Raised $83.7 million selling 4.95 million shares at $16.90.

September '10: EPS (continuing) $0.29 vs. $0.06. Counting non-cash impairment charge, EPS -$0.72. CAD $23.8 million ($0.57/share) vs. $11.7 million ( $0.32/share). Revenues up 42% to $400.8 million. Acquired 84% of Hawaii-based ERGO Baby Carrier, maker of wearable baby carriers, baby backpacks, and related products. ERGObaby's former owner and certain other investors still own 16%. ERGObaby's revenues $22.8 million in 2009.

June '10: EPS -$0.04 loss vs. +$0.02. CAD $14.8 million ($0.36/share) vs. $7.8 million ( $0.24/share). Revenues up 41% to $404.3 million. Non-cash charge drove earnings negative. Raised $73.4 million by selling 6.4 million new shares at $15.10. At the same time, a shareholder sold 1.3 million existing shares at same price.

March '10: EPS loss -$0.44 vs. -$0.87 loss. CAD $11.3 million ($0.31/share) vs. minus -$.4 million. Revenues up 29% to $353.6 million. Bought Liberty Safe & Security Products, a maker of home and gun safes, with 2009 sales of $73.8 million, for $70 million. Expects Liberty to add $0.10 to $0.15 per share in annual cash flow. Advanced Circuits unit bought Circuit Express, a maker of prototype and low-volume circuit boards, primarily for aerospace and defense related customers, for $15.6 million. Revenues $16.4 million in 2009. Will fund purchase with cash on hand.

December '09: EPS loss -$0.05 vs. $0.04 profit. CAD $17.9 million ($0.49/share) vs. $11.2 million ($0.36/share). Revenues down 3% to $362.1 million.

September '09: EPS $0.06 vs. $0.17. CAD $0.32 per share vs. $0.50. Quarter distributions 106% of cash available for distribution. Revenues down 22% to $324.2 million.

June '09: EPS $0.02 vs. $0.01 (operating). Revenues down 28% to $287.5 million. Operating cash flow $16.8 million, down 33%. Sold two businesses in year-ago quarter, which have not been replaced, so year-ago comparisons not meaningful. In May, said generating sufficient cash flow to maintain dividend at current levels. In June, raised $45.1 million (net) by selling 5.8 million new shares at $8.85. Current liquid assets (excluding inventories) $5.65 per share. Current per-share quarterly dividend rate $0.34.

March '09: EPS loss -$0.87 vs. -$0.03 loss. $1.90 per share non-cash impairment charge related to book value of Staffmark. CAD -$0.01 per share, vs. year-ago +0.31. Revenues down 22% to $274.9 million.

December '08: EPS $0.04 vs. -$0.11 loss. CAD $0.35 vs. $0.56. Revenues +42% to $374.8 million. Administrative and other overhead costs +47%. Said no significant debt due before 2013. Earnings call transcript. In October, dividend up 5% to $0.34.

September '08: EPS $0.17, up 21%. CAD +22% to $0.50. Revenues +91% to $413.6 million. Earnings call transcript.

June '08: EPS (operating) of $0.01 vs. $0.04. Counting the sale of two businesses, EPS $2.30. Including business sales, revenues up 102% to $398.9 million. Agreed to sell Aeroglide for $85.6 million (paid $60 million in February 2007). Completed sale of Silvue Technologies for $95 million (paid $44 million in May 2006).

March '08: EPS loss -$0.03 vs. +$0.09 (excluding non-recurring). Operating cash flow $0.96 vs. loss. Revenues +111% to $372.8 million. Earnings call transcript. Bought Fox Factory, and Staffmark Investment.

December '07: EPS loss $0.11 vs. $0.85 loss. Operating cash flow +32% to $1.33. Cash available for distribution +19% to $0.57. Revenues +68% to $288 million. Earnings call transcript. Changed name to "Compass Diversified Holdings" from "Compass Diversified Trust." Distribution up 8% to $0.325.

September '07: EPS $0.14 vs. loss. CAD $0.41/share, +4%. Total CAD +62%, but shares out +57%. Revenues +48% to $235.3 million. Acquired American Furniture Manufacturing, a maker of low-priced upholstered furniture for $92.5 million.

June '07: EPS $0.09. CAD $0.35 per share. Revenues $218.2 million.

March '07: EPS $1.81. CAD $0.31 per share. Paid $119 million to acquire controlling interests in Halo Branded Solutions and Aeroglide. Results included 31 days of operations for those firms.

May-Dec '06: EPS loss of $1.52. CAD $1.87 per share.

Back to Business Development Corps.

Hercules Technology Growth Capital

7/1/22: We're advising selling Hercules Capital. See write-up at top for details.

In February, Hercules announced a $0.15 per share supplemental quarterly dividend to be paid in addition to its regular $0.33 per share quarterly payout for the next four quarters. Hercules was previously paying a $0.07 per share quarterly special payout.

Background
Hercules Capital offers senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries.

Quarterly Reports

March '22: Net investment EPS $0.30, down $0.06 vs. year-ago. Debt investment portfolio (at cost) up 10% vs. year-ago to $2.410 billion. Net asset value down 5% vs. year-ago to $10.82 per share.

December '21: Net investment EPS $0.02 below year-ago. Debt investment portfolio (at cost) $2,390.9 million vs. year-ago $2,099.5 million. Net asset value $11.22 per share vs. year-ago $11.26. In October, quarterly dividend up 3% ($0.01) to $0.33, and also declared $0.07 special payout to be paid simultaneously with quarterly dividend. Last year, paid a $0.02 per share special payout.

September '21: Net investment EPS $0.33, down $0.01. Debt investment portfolio (at cost) down 1% vs. year-ago to $2.263 billion. Net asset value down 2% to $11.54 per share.

June '21: Net investment EPS $0.32, up 4%. Debt investment portfolio (at cost) up 5% to $2.399 billion. Net asset value up 15% to $11.71 per share. In April, declared a $0.28 per-share supplemental distribution, payable over the next four quarters ($0.07/share per quarter).

March '21: Net investment EPS $0.30 vs. $0.37. Debt investment portfolio (at cost) up 7% vs. year-ago to $2.403 billion. Net asset value up 15% to $11.36 per share. In February, declared $0.05 per-share special payout, down from year-ago $0.08.

December '20: Net investment EPS $0.37, up 5%. Debt investment portfolio (at cost) down 3% to $2.100 billion. Net asset value up 9% to $11.26 per share. In October, declared $0.02 special dividend.

September '20: Net investment EPS $0.34, down $0.03. Debt investment portfolio (at cost) up 9% to $2.284 billion. Net asset value down 1% to $10.26 per share.

June '20: Net investment EPS $0.32, down 11%. Net investment portfolio up 9% to $2.28 billion. Net asset value down 4% to $10.19 per share.

March '20: Net investment EPS 0.37, up 40%. Debt investment portfolio up 17% to $2.243 billion. Net asset value down 3% to $9.92 per share. In February, declared special $0.08 per share dividend to be paid in addition to regular $0.32 per share quarterly payout.

December '19: Net investment EPS $0.38, up 31%. Distributable net operating EPS up 14% to $0.40 per share. Debt investment portfolio up 24% to cc Net asset value up 5% to $10.34 per share. In October, declared an $0.03 per share special dividend paid concurrently with its regular $0.32 per share November payout.

September '19: Net investment EPS $0.37, up 33%. Distributable net operating EPS up 15% to $0.39 per share. Debt investment portfolio up 31% to $2.10 billion. Net asset value even at $10.38 per share. In July, in addition to its regular $0.32 per share quarterly payout, declared a special $0.02 per share dividend. In July, elevated interim CEO Scott Bluestem to the permanent CEO position. Bluestem replaced former CEO and founder Manuel Henriquez, who was involved in the college admissions scandal.

June '19: Net investment EPS $0.36, up 38%. Distributable net operating EPS up 38% to $0.40 per share. Net investment portfolio up 49% to $2.316 billion. Net asset value up 4% to $10.59 per share. In April, dividend up 3% ($0.01) to $0.32, also declared $0.01 "supplementary" payout.

March '19: Net investment EPS 0.32, up 3%. Distributable net operating income even at $0.34 per share. Debt investment portfolio up 40% to $1.913 billion. Net asset value up 6% to $10.26 per share.

December '18: Net investment EPS $0.32, up 25%. Distributable net operating income up 13% to $0.35 per share. Debt investment portfolio up 22% to $1.753 billion. Net asset value down 1% to $9.90 per share. In November, declared a $0.02 per share special dividend.

September '18: Net investment EPS $0.31, up 7% vs. year-ago. Distributable net operating income up 10% to $0.34 per share. Debt investment portfolio up 22% to $1.608 billion. Net asset value up 4% to $10.38 per share.

June '18: Net investment EPS (adjusted) down 6% to $0.29. Distributable net operating income down 12% to $0.29 per share. Debt investment portfolio up 13% to $1.554 billion. Net asset value up 13% to $10.22 per share.

On May 3, 2017, Hercules said it would ask shareholders to approve changing its internally managed structure to an externally managed structure. If approved, Hercules would have paid management and incentive fees to a new company, Hamilton Advisers and employees would have become employees of Hamilton Advisers. The change would probably have cut reported earnings by around 1% of net asset value. That news triggered a 17% share price drop and Hercules withdrew the plan on May 15. The share price recovered only modestly and ended the month with a 14% loss.

Sell Hercules Capital

Despite withdrawing its original plan, Hercules seems determined to convert to an externally managed structure and will probably introduce a revised version in the near future. If and when it does, regardless of the merits of the new plan, its share price will undoubtedly take another hit. There's no point in waiting for that shoe to drop.

Quarterly Reports

December '15: Net investment income (adjusted) $0.29, up 16%. Distributable net operating income (adjusted) up 10% to $0.32. NAV 2% to $9.94. Investment portfolio (fair value) $1.201 billion up 18%.

September '15: net investment income $0.33, up 10%. Distributable net operating income up $0.01 to $0.36 per share. NAV down 3% to $10.02. Investment portfolio (fair value) $1.152 billion up 15%.

June '15: net investment income $0.23 vs. $0.30. Distributable net operating EPS down 21% to $0.27. NAV down 3% vs. to $10.26. Investment portfolio up 25% vs. to $1.397 billion.

March '15: Net Investment EPS (adjusted) $0.20, down 33%. Distributable net operating EPS down 19% to $0.25. NAV down 1% to $10.47. Investment Portfolio even at $1.159 billion. Sold 7.59 million new shares at $13.64.

December '14: Net Investment EPS (adjusted) $0.26, down 16%. Distributable net operating EPS $0.29 vs. $0.34. NAV $10.18, down 3%. Investment Portfolio at 12/31 $1.021 billion vs. $910.3 million.

September '14: Net investment EPS (adjusted) $0.32 vs. $0.35. Total investment income down 10% to $37.019 million. Distributable net operating EPS down $0.03 to $0.35. NAV $10.29/share) vs. $10.51/share. Floating interest rate debt: 98.1% of portfolio.

June '14: Net investment EPS $0.30 per share, up 3%. Total investment income $35.8 million, up 16%. Distributable net operating EPS $0.34, up 9%. Net assets $658.909 million ($10.53/share) vs. $621.8 million ($10.09/share).

March '14: net investment EPS $0.30, up 22%. Total investment income $35.8 million, up 16%. Distributable net operating EPS $0.33, up 23%. Net assets $653.302 million ($10.58/share) vs. $650.007 million ($10.51/share).

December '13: net investment EPS $0.31, up 24%. Total investment income $33.25 million, up 21%. Distributable net operating EPS $0.34, up 26%. Net assets $660.0 million ($10.51/share) vs. $516.0 million ($9.75/share). In November, dividend up 11% to $0.31.

September '13: Net investment EPS $0.35, up 90%. Total investment income $41.05 million, up 72%. Distributable net operating EPS $0.38, up 86%. Net assets $643.4 million ($10.42/share) vs. $469.1 million ($9.42/share). In July, dividend up 4% to $0.28.

June '13: Net investment EPS (adjusted) $0.29, up 25%. Total investment income $34.525 million, up 45%. Distributable net operating EPS $0.32 vs. $0.28. Net assets $621.8 million ($10.09/share) vs. $474.8 million ($9.54/share). In May, dividend up 8% to $0.27.

March '13: Net investment EPS (adjusted) $0.27, up 13%. Total investment income $30.957 million, up 38%. Distributable net operating income $0.30/share vs. $0.26. Net assets $615.6 million ($10.00/share) vs. $485.4 million ($9.76/share). Netted $95.3 million by selling 8.05 million new shares at $11.90 per share. In February, dividend up 4% ($0.01) to $0.25.

December '12: Net investment EPS (adjusted) $0.25 per share, even. Total investment income $27.395 million, up 29%. Distributable net operating income $0.27/share vs. $0.27. Net assets $516.0 million ($9.75/share) vs. $431.0 million ($9.83/share). Raised $129 million by selling notes paying 3.32%.

September '12: Net investment EPS (adjusted) $0.23, up 15%. Total investment income $23.901 million, up 28%. Distributable net operating income $0.26/share vs. $0.22. Net assets $469.1 million ($9.42/share).

KCAP Financial Holdings

6/1/14: Although our best performer year-to-date, we expect KCAP Financial to underperform during the balance of 2014. We're selling KCAP to focus on BDCs with stronger growth prospects.

KCAP reported March quarter Net investment (NI) income of $0.24 per share, even with analyst forecasts, and even with year-ago. Net asset value (NAV) totaled $7.62 per share up 1% vs. year-ago. The fair value of KCAP's investment portfolio at 3/31 was $479.3 million ($14.37/share) vs. year-ago $279.6 million ($7.63/share). Good investment portfolio growth, otherwise, lackluster report.

Forecast FY 2014 EPS Growth: 15% Book Value Growth: -3%

Background
KCAP, formerly Kohlberg Capital, makes loans mostly in the $1 million to $10 million range to lower middle-market firms. KCAP's Katonah Debt Advisors unit manages collateralized loan obligation funds (CLO Funds) which invest in broadly syndicated loans, high-yield bonds and other credit instruments. In February 2012, KCAP acquired Trimaran Advisors, a CLO manager similar to Katonah Debt Advisors that had $1.4 billion of assets under management. At that time, KCAP also acquired equity interests in certain CLO Funds managed by Trimaran Advisors. KCAP expects its CLO management business to be a main driver of earnings and cash flow growth.

Quarterly Reports

December '13: Net investment (NI) EPS $0.24, down $0.03 vs. year-ago. Net asset value (NAV) $7.51 per share down 4% vs. year-ago. Fair value of investment portfolio at 12/31 $440.5 million vs. $312.0 million.

September '13: NI EPS $0.23, down $0.01. NAV $7.96 per share at 9/30, up 2%. Investment income from debt securities up 4% to $3.717 million. Dividends received from CLO Fund investments (affiliates) down 3% to $5.109 million. Dividends from affiliate asset managers $3.325 million vs. $0.925 million. Fair value investment portfolio $440.5 million. In September, dividend down 11% to $0.25.

June '13: NI EPS $0.20, down $0.03. NAV $8.24 per share at 6/30, up 8%. Investment income from debt securities up 12%. Dividends received from CLO Fund investments (affiliates) down 9% to $4.558 million. Dividends from affiliate asset managers $3.300 million vs. $1.200 million. Fair value investment portfolio $436.5 million.

March '13: NI EPS $0.23, up 9%. NAV at 3/31 $8.33 per share, up 7%. Investment income from debt securities $2.478 million vs. $2.502 million. Dividends from CLO Fund investments (affiliates) $5.481 million vs. $3.614 million. Dividends from affiliate asset managers $3.000 million vs. $0.825 million. Fair value investment portfolio $356.9 million. Sold 5.4 million new shares at $9.75.

December '12: NI EPS $0.28. NAV at 12/31 $7.85. Investment income from debt securities $3.761 million. Dividends from CLO Fund investments (affiliates) $5.305 million. Dividends from affiliate asset managers $1.750 million. Fair value investment portfolio $279.6 million. Raised $36 million selling 7.375% notes due September 2019. In December, dividend up 17% to $0.28.

September '12: NI EPS $0.27, up 50%. Per share NAV $7.82. Investment income from debt securities up 26% to $3.570 million. Dividends from CLO Fund investments (affiliates) up 53% to $5.259 million. Dividends from affiliate asset managers up 81% to $0.925 million. Fair value investment portfolio $289.5 million. In July, name change to KCAP financial from Kohlberg Capital.

June '12: Per share net investment income $0.23, up 92%. Per share net asset value $7.66. Investment income from debt securities up 30% to $2.671 million. Dividends received from CLO Fund investments (affiliates) up 79% to $5.029 million. Dividends from affiliate asset managers up 85% to $1.200 million. In June, dividend up 33% to $0.24.

March '12: Per share net investment income $0.15 vs. $0.21. Per share net asset value $7.78. Investment income from debt securities up 30% to $2.502 million. Dividends received from CLO Fund investments (affiliates) up 27% to $3.614 million. Dividends from affiliate asset managers up 85% to $0.825 million vs. zero. Completed acquisition of CLO fund manager Trimaran Advisors.

Main Street Capital

2/1/19: We're selling Main Street Capital and replacing it with Hercules Capital (HTGC). Main Street has been underperforming for some time. Hercules Capital (HTGC) offers senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Hercules pays quarterly dividends equating to a 9.4% yield vs. 7.9% for Main Street.

Main Street expects to report December quarter net investment income (excluding non-recurring) around $0.655 per share, up 2% vs. year-ago, and distributable net income about even with year ago at $0.685 per share. It expects to report net asset value up 2% to around $24.09 per share. All around disappointing numbers.

Main Street pays regular monthly $0.195 per share dividends plus two special dividends per year, in January and in June. For December 2018, Main Street declared $0.275 per share, the same that it has paid since June 2014.

Forecast FY 2018 EPS Growth: 9% FY 2018 P/E: 12

Background
Considered by many analysts to be the best managed BDC, Main makes loans in the $5 million to $20 million range to small, privately-held firms with $10 million to $150 million annual revenues. Main may also take equity positions in its clients. Main pays regular monthly dividends plus two special dividends per year, in January and in June.

Quarterly Reports

September '18: net investment EPS $0.63, up 5% vs. year-ago. Distributable net investment EPS up 3% to $0.66. Total investments up 12% to $2.427 billion. Net asset value (NAV) up 7% vs. year-ago to $24.69 per share. In July, regular monthly dividends up 2.6% to $0.195.

June '18: net investment EPS $0.66, up 21%. Distributable net investment EPS up 18% to $0.70. Total investments up 15% to $2.368 billion. Net asset value (NAV) up 5% to $23.96 per share.

March '18: net investment EPS $0.63, up 11% vs. year-ago. Distributable net investment EPS up 10% to $0.67. Total investments up 10% to $39.32 per share. Net asset value (NAV) up 5% vs. year-ago to $23.67 per share.

December '17: net investment EPS $0.64, up 23%. Distributable net investment EPS up 22% to $0.69. Total investments up 9% to $2.171 billion. Net asset value (NAV) up 6% to $23.53 per share.

September '17: net investment EPS $0.60, up 3%. Distributable net investment EPS up 3% to $0.64. Total investments up 9% to $2.170 billion. Net asset value (NAV) up 6% to $23.02 per share. Negotiated a $25 million increase in borrowing capacity to $585 million. In July, monthly dividend up 3% to $0.19, starting with October '17 payout.

June '17: net investment EPS $0.58, up 18%. Distributable net investment EPS up 19% to $0.63. Total investments up 9% to $2.077 billion. Net asset value (NAV) up 4% to $22.62 per share.

March '17: net investment EPS $0.57, up 15%. Distributable net investment EPS up 16% to $0.61. Total investments up 9% to $1.979 billion. Net asset value (NAV) up 6% to $22.44 per share.

December '16: net investment EPS $0.57, up 7%. Distributable net investment EPS up 9% to $0.61. Total investments up 11% to $1.997 billion. Net asset value (NAV) up 4% to $22.10 per share.

September '16: Net investment income $0.58, up 10%. Distributable net investment EPS up 11% to $0.62. Total investments up 7% to $1.920 billion. Net asset value (NAV) $21.62 per share vs. $21.79. In July, regular monthly dividend up 3% to $0.185.

June '16: net investment income $0.54, down $0.01. Distributable net investment EPS up 4% to $0.58. Total investments up 5% to $1.889 billion. NAV $21.11 per share vs. $21.84.

March '16: Net investment income 0.54, up 16%. Distributable net investment EPS up 16% to $0.57. Total investments up 1% to $1.819 billion. NAV $21.18 vs. $21.87.

December '15: Net investment income $0.57, down 3%. Distributable net investment EPS down $0.01 to $0.60. Total investments up 15% to $1.804 billion. NAV $21.24, up 2%.

September '15: net investment income $0.56, up 12%. Distributable net investment EPS up 2% to $0.59. Total investments up 20% to $1.872 billion. Net asset value $21.79, up 3%.

June '15: net investment earnings $0.55, up 15%. Distributable net investment EPS up 18% to $0.58. Total investments up 14% to $1.799 billion. NAV \ $21.84, up 10%.

March '15: Net Investment EPS (adjusted) $0.51, down $0.01. Distributable net investment EPS up 15% to $0.54. Total investments up 11% to $1.747 billion. NAV $21.87, up 9%. Netted $128 million after selling 4.37 million new shares at undisclosed price. In February, monthly dividend up 3% to $0.175.

December '14: Net Investment EPS $0.59, up 4%. Distributable net investment EPS up 16% to $0.61. Total investments up 21% to $1.563 billion. NAV $20.85, up 5%. In October, declared $0.275 per share semi-annual special dividend that was paid in December.

September '14: Net investment EPS $0.55, up 42%. Distributable net investment EPS $0.58, up 33%. NAV $21.08, up 5%. In August, dividend up 3% to $0.17.

June '14: net investment EPS $0.53, up 32%. Distributable net investment EPS $0.56, up 6%. Net asset value at June 30 $21.03 per share, up 12%. Sold 4.6 million new shares at $31.50. In April, $0.275 special dividend, payable in June, up 37.5% vs. year-ago.

March '14: Net investment EPS $0.52, up 20%. Distributable net investment income $0.54 per share, up 21%. Net asset value at March 31 was $20.14 per share vs. $19.89 at 12/31/13.

December '13: Net investment EPS $0.57, up 26%. Distributable net investment EPS $0.60, up 26%. Net asset value at December 31 $19.89/share vs. $18.59. In November, $0.25 special dividend vs. year-ago $0.35.

September '13: Net investment EPS $0.51, up 21%. Distributable net investment income $0.53 per share, up 21%. Net asset value at September 30 $20.01 per share vs. $18.59 at 12/31/12.

March '13: Per-share distributable net income $0.52, up 33% vs. year-ago. Net asset (book) value $18.55/share vs. year-ago $15.72. Fair value of investments $985.5 million ($28.40/share) vs. year-ago $664.3 million ($23.00/share). In March, monthly dividend up 3% to $0.155, up 11% vs. year-ago.

December '12: Per share distributable net income $0.58, up 51%. Net asset (book) value $18.59/share, up 22%. Fair value investments $953.0 million ($29.51/share) vs. $684.3 million ($26.42/share). Sold 2.9 million new shares at $28.00. In October, declared special $0.35 dividend payable in January in addition to regular monthly payout.

September '12: Distributable net investment EPS $0.51, up 48%. Net asset (book) value $17.49/share, up 5% vs. Fair value of investments $834.6 million ($29.19/share) vs. $497.0 million ($26.43/share). In July, monthly dividend up 3% to $0.15.

June '12: Distributable net investment EPS $0.49, up 33%. Net realized EPS $0.35 vs. $0.42. Net asset (book) value $15.19/share, up 7% vs. year-ago $14.24, but down from $15.72 at March 31. Fair value of investments $798.9 million ($29.19/share) vs. $592.0 million ($25.72/share). Earnings call transcript. Raised $93 million selling 4.3 million new shares at $22.50 per share. In May, dividend up 4% to $0.145.

March '12: Net investment income $0.48, up 26%. Net realized income $0.78 per share, up 105%. Net asset value $15.72/share, up 13%. Fair value investments $664.3 million ($23.00/share) vs. $392.5 million ($20.42). In March, dividend up 4% to $0.140.

December '11: Net investment income/share $0.45, up 32%. Net realized income $0.49 per share, up 44%. Net asset value $15.72/share vs. $13.06/share. Fair value investments $563.9 million ($21.78/share) vs. $348.8 million ($18.62).

September '11: Net investment income/share $0.44, up 57%. Net realized income $0.50 per share, up 163%. Net asset value $14.49/share vs. $13.06. Fair value of investments $497.0 million ($21.42/share) vs. year-ago $303.9 million ($18.00).

Newtek Business Services

/1/21: Newtek announced plans to evolve from a BDC to a bank holding company. Thus, it now longer fits in this portfolio.

Newtek agreed to acquire National Bank of New York City, a nationally chartered bank with approximately $204 million in total assets and $36.5 million in tier 1 capital. The acquisition is part of a plan to reposition Newtek as a bank holding company, and is subject to the approval of federal banking regulators and the U.S. Small Business Administration. Newtek shareholders must also approve the withdrawal of Newtek’s election as a Business Development Company (BDC).

Newtek reports June quarter results after the bell on August 10. Analysts expect earnings of $0.77 per share vs. year-ago $1.42. The conference call is set for 8:30 am Eastern on August 11.

In May, Newtek raised its quarterly dividend by 40% to $0.70 per share, which was 25% over its year-ago payout.

In November, Newtek cut its quarterly dividend by 19% to $0.47 per share, which was 34% below its year-ago payout. Newtek forecast dividends $2.00 to $2.50 per share dividends in 2021. We're using the midpoint, $2.25/share, to forecast dividend yield.

Background
Newtek, an internally managed BDC, offers SBA insured loans to small business, as do many BDCs. However, Newtek also owns a portfolio of companies that offer electronic payment processing, business software, web hosting, and other technology services to small businesses. Newtek targets paying 90% to 100% of annual income to shareholders.

Quarterly Reports

March '21: Net investment EPS (adjusted) $1.05, up 400% vs. year-ago $0.21. Total investment income up 120% to $34.7 million. Total Investment Portfolio up 10% vs. year-ago to $726.1 million. Net asset value (NAV) up 9% to $16.28 per share. Increased 2021 dividend forecast to $3.00-$3.30 from $2.40-$2.90. In February, dividend up 6% to $0.50.

December '20: Full year 2021 net investment EPS (adjusted) $2.05 vs. year-ago $2.33. Total Investment Portfolio up 2% vs. year-ago to $671.2 million. Net asset value (NAV) down 2% to $15.45 per share. Total annual investment income down 56% to $92.2 million.

September '20: Net investment EPS (adjusted) $0.04 vs. $0.63. Net asset value (NAV) down 2% to $15.13 per share. Total Investment Portfolio up 4% to $637.6 million. Total investment income down 7% to $14.9 million.

June '20: Net investment EPS (adjusted) $1.37, up 140%. NAV up 2% to $15.66 per share. Total investment portfolio up 13% to $648.4 million. Total investment income up 230% to $46.7 million. In May, dividend up 27% to $0.56.

March '20: Net investment EPS (adjusted) $0.21, down 52%. NAV down 2% to $15.00 per share. Total investment portfolio up 19% to $662.4 million. Total investment income up 15% to $15.8 million.

December '19: Net investment EPS $0.69, up 21%. NAV up 3% to $15.70 per share. Total investment portfolio up 22% to $659.0 million. Total investment income up 7% to $15.7 million. In October, dividend up 23% to $0.71. Entered into 50/50 joint venture with BlackRock TCP Capital (TCPC) to form Newtek Conventional Lending, LLC, which would originate commercial loans to middle-market companies and small businesses.

September '19: Net investment EPS (adjusted) $0.63, up 26%. NAV up 1% to $15.41 per share. Total investment portfolio up 19% to $610.9 million. Total investment income up 29% to $16.0 million. In August, dividend up 26% to $0.58. Raised 2019 total dividend payout forecast to $2.15 per share, up 19% from 2018.

June '19: Net investment EPS (adjusted) $0.57, up 30%. NAV up 2% to $15.33 per share. Total investment portfolio up 18% to $573.5 million. Total investment income up 24% to $14.1 million. Dividend up 15% to $0.46.

March '19: Net investment EPS (adjusted) $0.44, even. NAV up 2% to $15.31 per share. Total investment portfolio up 19% to $557.7 million. Total investment income up 24% to $13.8 million.

December '18: net investment EPS (adjusted) $0.57, up 12%. NAV up 1% to $15.19 per share. Total investment portfolio up 18% to $541.1 million. Total investment income up 40% to $14.658 million. In October, declared $0.50 per share dividend, up 14% vs. year-ago.

September '18: net investment EPS (adjusted) $0.50, up 10%. NAV up 6% to $15.28 per share. Total investment portfolio up 23% to $513.5 million. Total investment income up 29% to $12.4 million.

June '18: net investment EPS (adjusted) $0.44, up 7%. NAV up 4.9% to $15.06 per share. Total investment portfolio up 24% to $487.7 million. Total investment income up 15% to $11.4 million. In May, dividend up 5% to $0.42.

March ’18: net investment EPS (adjusted) $0.44, up 10%. NAV up 5.2% to $15.05 per share. Total investment portfolio up 31% to $470.2 million. Total investment income up 23% to $11.1 million. Forecast that 2018 dividends would total $1.70 per share, up $0.01 from its December forecast. Paid dividends totaling $1.64 per share in 2017.

December ’17: net investment EPS (adjusted) $0.50, up 9%. NAV up 6% to $15.08 per share. Total investment portfolio up 32% to $456.7 million. Sold $60 million of 6.25% notes due 2023. In January, declared $0.40 March quarter dividend, up 11% vs. year-ago.

September ’17: net investment EPS (adjusted) down $0.01 to $0.45. NAV $14.40 per share. Total investment portfolio $418.2 million. In August, declared September quarter dividend of $0.44 per share.

June ’17: net investment EPS (adjusted) up 45% to $0.34. NAV $14.36 per share. Total investment portfolio $392.3 million. In May, declared June quarter dividend of $0.40 per share.

March ’17: net investment EPS (adjusted) up 33% to $0.40. NAV $14.31 per share. Total investment portfolio $359.0 million. Sold 2.59 million shares at $15.25. In March, declared March quarter dividend of $0.36.

TPG Specialty Lending

We're replacing TPG Specialty Lending with Newtek Business Services, which has stronger growth prospects.

Forecast FY 2018 EPS Growth: -9% NAV Growth: 1%

Background
A March 2014 IPO, TPG Specialty Lending typically loans $15 million to $360 million to firms with $50 million to $1 billion market capitalization.

Quarterly Reports

March '18: net investment EPS $0.51, up 6% vs. year-ago. Total investments (fair value) up 21% vs. year-ago to $1.909 billion. Net asset value up 1% to $16.27 per share. Investment income up 14% to $57.8 million.

December '17: net investment EPS $0.45, down $0.02. cc In November, declared $0.06 per share special dividend, bringing its total of specials paid in 2017 up to $0.19 per share.

September '17: net investment income $0.51, even. Total investments (fair value) down 6% vs. year-ago to $1.550 billion. Net asset value up 2% to $16.09 per share. Investment income down 3% to $52.3 million. New loan originations up 85% to $359.0 million. 100% of debt is at floating interest rates vs. year-ago 98%.

June '17: net investment EPS $0.57, up 33%. Net asset value up 4% to $16.15 per share. Investment income up 28% to $58.8 million. New loan originations up 99% vs. to $397.7 million. 100% of debt is at floating interest rates vs. year-ago 96%. Declared $0.09 per share special dividend.

March '17: net investment EPS $0.48, up 18%. Total investments up 9% to $1.580 billion. Net asset value (NAV) up 6% to $16.04 per share. Declared $0.04 per share special dividend.

Triangle Capital Resources

Quarterly Reports

9/15: Analysts are forecasting a dividend cut for Triangle Capital in 2016. We're selling.

Triangle reported June quarter net investment earnings of $0.49 per share, $0.01 below analyst forecasts, and down from $0.53 in the year-ago quarter. Revenues (total investment income) up 11% to $27.8 million. Net asset value (book value) $15.47/share vs. year-ago $15.95/share. Fair value investments $884.9 million ($26.65/share) vs. year-ago $736.3 million ($26.38/share). Investment income rose 10% vs. year-ago, but shares outstanding grew 19%. Therein lies the problem.

Triangle declared a $0.59 ($0.54 regular plus $0.05 special) dividend, the same as its year-ago payout, the first year since 2009 that TCAP hasn't raised its payout.

In August 2014, Triangle declared its regular $0.54 per share quarterly dividend plus an "extra" $0.05 per share to be paid concurrently. Triangle said it expects to pay the extra $0.05 "for at least the next three years."

Forecast FY 2015 EPS Growth: 2% Book Value Growth: -4%

Background
Triangle makes loans in the $5 million to $15 million range to lower middle market, privately-held U.S. firms with $20 million to $75 million annual revenues, and with EBITDA between $3.0 and $20.0 million. Triangle may also take equity positions in its clients. Triangle is a U.S. Small Business Administration approved lender enabling it to raise cash by selling debentures that are insured by the SBA.

Quarterly Reports

March '15: Net Investment EPS $0.54, up 8% vs. year-ago. Revenues (total investment income) up 28% to $30.8 million. Net asset value (book value) $15.64/share vs. year-ago $15.72/share. Fair value investments $877.4 million ($26.51/share) vs. year-ago $690.0 million ($24.82/share). Sold $75 million of 6.375% notes due 2022.

December '14: Net Investment EPS $0.55, up 15%. Revenues (total investment income) up 39% to $30.7 million. Net asset value (book value) $16.11/share vs. $16.10. Fair value of investments $887.2 million ($29.80/share) vs. $664.4 million ($24.09/share).

September '14: Net investment EPS $0.51 vs. $0.61. Revenues (total investment income) down 9% to $24.8754 million. Net asset value (book value) $16.64/share vs. $15.94. Fair value of investments $841.6 million ($27.67/share) vs. $664.4 million ($24.06/share). Sold 4.95 million new shares at $26.85 per share.

June '14: Net investment EPS 0.53 vs. $0.59. Revenues (total investment income) down 8% vs. to $24.94 million. Net asset value (book value) $15.95/share vs. $15.62. Fair value of investments $736.3 million ($26.38/share) vs. $650.1 million ($23.58/share). Paid two $0.15 per share special dividends, one in March and the second in June, to distribute realized long-term gains.

March '14: Net investment EPS $0.50 vs. $0.56. Revenues (total investment income) down 2% to $24.0 million. Net asset value (book value) $15.72/share vs. $15.32. Fair value of investments $690.0 million ($24.82/share) vs. $664.4 million ($24.22/share).

December '13: net investment EPS $0.48 vs. $0.57. Revenues (total investment income) down 12% to $22.0 million. Net asset value (book value) $16.10/share vs. $15.33. Fair value of investments $664.4 million ($24.09/share) vs. $794.5 million ($29.71/share).

September '13: Net investment EPS $0.61, up 5%. NAV $15.94/share vs. $15.33. Fair value investments $630.5 million ($22.83/share) vs. $631.3 million ($23.13/share).

June '13: Net investment earnings $0.59, up 13%. NAV $15.62/share vs. $15.21. Fair value investments $650.1 million ($23.58/share) vs. $594.4 million ($21.80/share).

March '13: Net investment EPS $0.56, up 14%. NAV $15.32/share vs. $15.12. Fair value investments $715.5 million ($26.08/share) vs. $706.8 million ($28.19/share). In February, dividend up 2% to $0.54.

December '12: Net investment EPS $0.57, up 8%. NAV $15.30/share vs. $14.68. Fair value investments $706.8 million ($26.42/share) vs. $507.1 million ($25.90/share). Raised $80.5 million selling 6.375% notes maturing 12/2022. In November, dividend up 2% to $0.53.

September '12: Net investment EPS of $0.58, up 12%. NAV $15.33/share, up 20%. Fair value investments $631.3 million ($23.13/share) vs. $464.4 million ($23.20/share). In August, dividend up 4% to $0.52. S

June '12: net investment EPS $0.52, up 20% (excluding non-recurring. Including one-time fees, year-ago NII $0.55/share. Net asset value $15.21/share, up 10%. Fair value investments $598.4 million ($21.95/share) vs. $310.8 million ($16.74/share). Earnings call transcript. In May, dividend up 6% to $0.50.

March '12: Net investment income $0.49, up 7%. Net asset value $15.12/share, up 13%. Fair value of investments $544.4 million ($21.71/share) vs. $290.7 million ($17.58). Netted $77 million by selling 4.25 million new shares at $19.00. Netted $66.6 million selling 7.00% senior notes maturing in 2019.

December '11: Net investment EPS $0.53, up 26%. Net asset value $14.68/share, up 21%. Fair value investments $507.1 million ($22.27/share) vs. $325,991 ($21.84).

September '11: net investment EPS $0.52, up 13%. Net asset value $14.59/share, up 22%. Fair value of investments $464.4 million ($17.85/share). Book value $12.74/share. Netted $65.6 million selling 4.025 million new shares at $17.15. Prior to sale, had 18.57 million shares out. In October, dividend up 7% to $0.47.

June '11: EPS (net investment income) $0.55, up 45%. Excluding fees from sale of two portfolio companies, net investment EPS $0.46. Net asset value $13.79/share, up 24%. Fair value of investments $310.8 million. Arranged new credit facility for up to $90 million at Libor plus 2.95%. In May, dividend up 5% to $0.44.

March '11: EPS (net investment income) $0.46, up 44%. Net asset value at 3/31 $13.42/share, up 23%. Fair value of investments $290.7 million, up 18%. Raised $54.8 million by selling three million shares at $19.25.

December '10: EPS (net investment income) $0.42, up 8%. Net asset value (12/31) $12.09/share, up 10%. Fair value of investments $226.0 million, up 62%. Moved listing from Nasdaq to NYSE. In November, dividend up 2% to $0.42.

September '10: EPS (net investment income) $0.46, up 12%. Net asset value (9/30) $11.99/share vs. $10.60. Fair value investments $240.6 million vs. $201.3 million at December 31. Year-to-date operating cash flow -$22.2 million vs. year-ago -$11.3 million. YTD purchases of new investments exceeded repayments and/or sales of existing investments by $60.3 million, driving cash flow negative. Netted $35.9 million by selling 2.4 million new shares at $15.80/share.

June '10: EPS (net investment income) $0.38 vs. $0.41. Net asset value (6/30) $11.08/share vs. $10.87 on 3/31 and $11.03 on 12/31. At June 30, investments $241.3 million vs. $201 million at December 31.

March '10: EPS (net investment income) $0.32 vs. $0.43. Net asset value at 3/31 $10.87 per share vs. $11.03 at 12/31.

December '09: net investment EPS $0.39 vs. $0.43. Net assets up $0.80 per share vs. $0.22 increase. Net asset value at 12/31 was $11.03 per share vs. year-ago $13.22. At 12/31, fair value of investments $201.3 million. In December, raised $20.2 million by selling 1.7 million shares at $12.00.

September '09: net investment EPS $0.41 vs. $0.46. Net assets resulting from operations $0.09 per share vs. $0.36. At 9/30 net asset value $10.60 per share.

Back to Business Development Corps.

Trinity Capital

10/22: Despite relatively strong earnings growth numbers, Trinity has consistently underpeformed since added to the portfolio in May of 2021.

Trinity reported September quarter Net investment EPS $0.56, up 68% vs. year-ago. Investment portfolio up 54% vs. year-ago to $1.04 billion. Net asset value $13.74 vs. year-ago $14.70.

In September, Trinity raised its quarterly dividend by 7% to $0.45 per share, which was 36% above its year-ago payout and also declared $0.15 per share special payout.

Background
Although only a January 28, 2021 IPO, Trinity Capital, with $560 million of assets under management, has been operating since 2008. It specializes in providing debt including loans and equipment financing as well as management assistance to startups with revenues up to $100 million. Trinity intends to distribute 90% to 100% of taxable income to shareholders. In its January IPO, Trinity sold 8.5 million new shares at $14.00 per share.

Quarterly Reports

June '22: Net investment EPS $0.51, up 55% vs. year-ago. Investment portfolio up 76% vs. year-ago to $1.05 billion. Net asset value $14.62 vs. year-ago $14.33. In June, dividend up 5% to $0.42, up 45% vs. year-ago. Also declared previously announced $0.15 per share special dividend.

March '22: Net investment EPS $0.57, up 115% vs. year-ago. Investment portfolio down 5% vs. December quarter to $919.3 million. Net asset value down 8% vs. December quarter to $15.15 per share. In March, dividend up 11% to $0.40. Also declared special $0.15 per share payout.

December '21: Net investment EPS $0.39, up 100% vs. year-ago. Investment portfolio up 29% vs. September quarter to $873.5 million. Net asset value up 4% vs. September quarter to $16.40 per share. In December, dividend up 9% to $0.36.

September '21: Net investment EPS $0.42, up 98%. Investment portfolio up 13% vs. June quarter to $677.2 million. Net asset value up 3% vs. June quarter to $14.70 per share. In September, dividend up 14% to $0.33.

June '21: Net investment EPS $0.38, up $0.01. Investment portfolio up 12% vs. March quarter to $597.7 million. Net asset value up 5% vs. March quarter to $14.33 per share. In June, dividend up $0.01 (3.5%) to $0.29.

March '21: Net investment EPS $0.31, down $0.01. Investment portfolio up 9% vs. December quarter at $535.7 million. Net asset value up 5% vs. 12/31/20 to $13.03 per share. In March, Trinity declared a $0.28 per share quarterly dividend.

December '20: Trinity, still privately held, reported $0.29 per share net investment EPS. Investment portfolio valued at $493.7 million. Net asset value was $13.03 per share.

December '21: Net investment EPS $0.39, up 100% vs. year-ago. Investment portfolio up 29% vs. September quarter to $873.5 million. Net asset value up 12% vs. September quarter to $16.40 per share.

TriplePoint Venture Growth

8/1/22: We're replacing TriplePoint which lost 4% over the past 12-months with OFS Capital which returned 30% over the same period.

Background
A March 2014 IPO, TriplePoint specializes in lending to, and taking ownership (equity) positions in companies in the start-up (venture capital) stage, mostly in the high-tech and life sciences industries. TriplePoint is externally managed by TriplePoint Capital LLC, a Palo Alto firm that has provided financing for the likes of Facebook, YouTube, etc.

Quarterly Reports

March '22: Net investment EPS $0.44, up 52% vs. year-ago. Total income up 37% to $27.35 million. Net asset value up 6% vs. year-ago to $13.84 per share. Investment portfolio up 27% vs. year-ago to $806.5 million.

December '21: Net investment EPS $0.42, up 8%. Total income up 10% to $25.87 million. Net asset value up 8% to $14.01 per share. Investment portfolio up 37% to $865.3 million.

September '21: Net investment EPS down 20% to $0.32. Total income down 8% to $21.2 million. Net asset value up 5% to $13.92 per share. Investment portfolio up 19% to $767.0 million.

June '21: Net investment EPS $0.30 vs. $0.38. Total income down 15% to $20.3 million. Net asset value even at $13.03 per share. Investment portfolio down 6% to $647.7 million.

March '21: Net investment EPS 0.29, down 29%. Total income down 4% to $20.0 million. Net asset value even with year-ago at $13.00 per share. Investment portfolio down 11% to $633.70 million.

December '20: Net investment EPS $0.39, down 13%. Total income up 10% to $23.4 million. Net asset value down 3% vs. year-ago to $12.97 per share. Investment portfolio down 3% to $633.88 million. Paid $0.10 per share (0.9% yield) special dividend with a 12/30/20 ex-date.

Sept '20: Net investment EPS $0.40, up 38%. Total income up 47% to $23.1 million. Net asset value down 1% to $13.28 per share. Investment portfolio up 23% to $646.8 million.

June '20: Net investment EPS $0.38, down 7%. Total income up 26% to $23.8 million. Net asset value down 7% to $13.17 per share. Investment portfolio up 40% to $692.9 million.

March '20: Net investment EPS 0.41, up $0.01. Total income up 19% to $20.84 million. Net asset value down 5% to $12.85 per share. Investment portfolio up 61% to $737.77 million. In March, closed a $70.0 million 4.50% notes offering, which was TPVG's first note sale after receiving an investment grade credit rating.

December '19: Earned investment EPS $0.45, up 10%. Total income up 21% to $21.27 million. Net asset value down 1.2% vs. year-ago to $13.34 per share. Investment portfolio up 45% to $660.7 million.

September '19: Earned investment EPS $0.29, down 37%. Total income down 11% to $15.69 million. Net asset value down 0.5% from 12/31/18 to $13.47 per share. Investment portfolio up 50% to $526.0 million.

June '19: Earned investment EPS 0.41, down 18%. Total income up 14% to $18.94 million. Net asset value up 5% from 12/31/18 to $14.19 per share. Investment portfolio up 24% to $496.0 million.

March '19: Earned investment EPS $0.40, up 18%. Total income up 39% to $17.49 million. Net asset value up 1% from 12/31/18 to $13.59 per share. Investment portfolio up 14% to $457.7 million.