Trinity Capital Q1 2023 Financial Results Show Strong Growth

Trinity Capital Inc., a prominent provider of diversified financial solutions to growth-stage companies, has announced its financial results for Q1 2023, ending March 31. The company has experienced significant growth over the past year, with total investment income reaching $41.5 million, a 30.5% increase year-over-year. Net investment income (NII) was $19.3 million, or $0.55 per basic share, a 23.7% increase from the previous year. Additionally, the company saw a net increase in net assets resulting from operations of $22.5 million, or $0.64 per basic share.

Steven Brown, Chairman and CEO of Trinity Capital, expressed satisfaction with the company’s performance, stating, “Our performance in the first quarter generated record NII results, providing 117% coverage on our regular dividend.” He added that Trinity Capital’s “differentiated platform” is well-positioned to take advantage of investment opportunities in a dynamic market, as businesses seek partners to support them throughout various growth stages.

Kyle Brown, President and CIO of Trinity Capital, also commented on the company’s strong position amid recent volatility in the banking industry. He said that businesses are seeking more stable, non-bank financing solutions, and Trinity Capital plans to capitalize on this opportunity with a combination of on- and off-balance sheet solutions. He emphasized that the company’s core priorities of portfolio management and credit quality remain firmly rooted in their operating process.

Q1 2023 operating results showed total investment income at $41.5 million compared to $31.8 million in Q1 2022. The effective yield on average debt investments decreased slightly to 15.2% from 16.3% the previous year, due to lower fees and income acceleration as a result of lower early repayments. Total operating expenses and excise taxes, excluding interest expense, increased to $11.1 million in Q1 2023, compared to $9.4 million in Q1 2022, primarily due to higher compensation and professional fees.

Interest expense also increased to $11.1 million in Q1 2023, up from $6.8 million in Q1 2022, primarily due to increased borrowings under the 2025 Notes and KeyBank Credit Facility, as well as higher interest rates under the credit facility.

Overall, Trinity Capital’s Q1 2023 financial results demonstrate strong growth and a promising outlook for the company as it continues to provide diversified financial solutions to growth-stage businesses in a rapidly changing market.