20th November 2023
Not Your Typical Venture Debt Investors: 3 Insights into how Trinity is positioning its Debt Portfolio in 2023.
Trinity is not your typical venture debt lender. Nearly 40% of its portfolio is made of lending to Manufacturing & Infrastructure. Trinity provides these businesses equipment financing as well as secured loans. Equipment loans are nearly always fixed rate loans with interest rates between 9-12% per year.
Trinity’s lending to software businesses is significantly smaller than its venture debt peers. This has further reduced over the last year with Hut8 and Reciprocity refinancing $40m of loans.
Trinity rarely lends more than $40 million to a single company. This accounts for ~4% of its loan book.
In comparison trinity’s competitors are willing to have greater company concentration and lend up to ~8% of their loan book per company.
Whilst Trinity may be concentrated on businesses with assets, hardware and infrastructure, its concentration on any particular business is comparatively low.
| Company | Sector | Maturity Date | Interest | Principal | Value | Exit Fee | |
|---|---|---|---|---|---|---|---|
| 1 | Whoop, Inc. | Consumer Produc... | Jun 28 | Prime + 5.30% | 35,000 | 33,943 | 2.5% |
| 2 | Nomad Health, Inc. | Life Sciences a... | Oct 26 | Prime + 5.50% | 30,000 | 30,604 | 4% |
| 3 | Axiom Space, Inc. | Infrastructure | Jun 26 | Prime + 6.00% | 30,000 | 30,417 | 2.5% |
| 4 | Mainspring Energy, Inc. | Manufacturing | Oct 26 | 11.00% | 30,000 | 29,361 | 3.8% |
| 5 | Petal Card, Inc. | Financial Servi... | Jan 24 | Prime + 9.00% | 26,582 | 26,582 | - |
| 6 | Bestow, Inc. | Financial Servi... | May 27 | Prime + 6.50% | 25,000 | 24,856 | 1.5% |
| 7 | Exer Holdings, LLC | Life Sciences a... | Dec 26 | Prime + 7.00% | 22,500 | 23,175 | 3% |
| 8 | Athletic Brewing Company, LLC | Manufacturing | Sep 26 | 11.10% | 19,900 | 20,126 | 7% |
| 9 | Footprint International Holding, Inc. | Manufacturing | Mar 27 | Prime + 7.30% | 20,000 | 19,985 | 3.5% |
| 10 | Footprint International Holding, Inc. | Manufacturing | Mar 27 | Prime + 7.30% | 20,000 | 19,895 | 3.5% |
| Company | Sector | Principal | Value | |
|---|---|---|---|---|
| 1 | Petal Card, Inc. | Financial Servi... | 26,582 | 41,532 |
| 2 | Bestow, Inc. | Financial Servi... | 25,000 | 39,894 |
| 3 | Footprint International Holding, Inc. | Manufacturing | 20,000 | 39,880 |
| 4 | Whoop, Inc. | Consumer Produc... | 35,000 | 33,943 |
| 5 | Exer Holdings, LLC | Life Sciences a... | 22,500 | 30,900 |
| 6 | Nomad Health, Inc. | Life Sciences a... | 30,000 | 30,604 |
| 7 | Axiom Space, Inc. | Infrastructure | 30,000 | 30,417 |
| 8 | Orchard Technologies, Inc. | Consumer Produc... | 12,500 | 30,182 |
| 9 | Mainspring Energy, Inc. | Manufacturing | 30,000 | 29,361 |
| 10 | Rigetti & Co, Inc. | Infrastructure | 9,220 | 28,090 |
| Company | Sector | Maturity Date | Interest | Principal | Value | Exit Fee |
|---|
Trinity’s floating loan book has seen modest interest rate tightening over the last 12 months.
One thing to note is that ~30% of Trinity’s loans are fixed rate equipment financing loans.
Trinity
Prime