TPVG - TriplePoint Venture Growth: Not Worth Chasing Yield Here
2024-02-18 06:24:49 ET
Summary
- VC-focused BDCs offer slightly higher yields but come with higher risk profiles due to the speculative nature of VC businesses.
- TriplePoint Venture Growth currently yields ~15% but carries several red flags (both structural and idiosyncratic), making it a risky investment.
- In this article I elaborate on the key reasons why I consider TPVG a subpar investment, where its distribution yield of 15% is not high enough to justify the underlying risk.
As many of my followers already know, I am bullish on the overall BDC space, but when it comes to VC-focused BDC names my stance is different....
TriplePoint Venture Growth: Not Worth Chasing Yield Here