Trinity Capital Inc., a provider of financial solutions to growth-stage companies, announced highlights for the quarter and year ended Dec. 31, 2022. Trinity finished 2022 with $239 million in new commitments in the fourth quarter, bringing total new commitments for the year to a record $975 million.
Trinity generated record origination activity during 2022. The Company pursued accretive growth opportunities to expand the portfolio and created value for shareholders through its regular and supplemental dividends. In the fourth quarter, the Company entered into an agreement for a newly formed joint venture; received exemptive relief from the SEC to form a registered investment adviser (RIA); and adopted a stock repurchase program.
"We grew our originations modestly in 2022 despite a difficult broader market and increased the size of our portfolio throughout the year putting us in a position to continue strong future earnings and dividend coverage," said Kyle Brown, President and Chief Investment Officer of Trinity Capital. "We are excited by the opportunities we are seeing in the marketplace and have established a platform that will be able to scale with our new JV and RIA off-balance-sheet activities. These entities serve to complement the BDC and generate incremental revenue for our shareholders."
"Trinity has established itself as a destination for top talent, a differentiated financial solutions platform and a trusted partner in the venture debt industry," said Steven Brown, Chairman and Chief Executive Officer of Trinity Capital. "Our team generated record origination activity in 2022 and we are poised to continue stable profitable growth in the new year including our recently announced JV and RIA."
2022 Portfolio Update
Originations and Repayments
During the quarter, the cCompany originated approximately $239.5 million of total new commitments, which was comprised of $194.0 million in secured loans and $45.5 million in equipment financings. Fourth quarter investments funded totaled approximately $121.4 million, which was comprised of $90.2 million in secured loans, $29.0 million in equipment financings and $2.2 million in warrant and equity investments. During the fourth quarter, the company funded $71.0 million to eight new portfolio companies and $50.4 million to 12 existing portfolio companies. Proceeds received from repayments of the company's debt investments during the fourth quarter totaled approximately $52.8 million, which included $14.6 million from early debt repayments. Net portfolio growth from investment activity for the quarter was approximately $66.4 million.
During the year, Trinity originated approximately $975.5 million of total new commitments, of which secured loans totaled $718.7 million, equipment financing totaled $251.5 million and equity investments totaled $5.3 million. Annual investments funded totaled approximately $631.8 million, which was comprised of $442.9 million in secured loans, $173.4 million in equipment financings and $15.5 million in warrant and equity investments. The Company funded $381.8 million to 36 new portfolio companies and $250.0 million to 31 existing portfolio companies. Proceeds received from repayments of the Company's debt investments during the year totaled approximately $273.6 million, which included $149.6 million from early debt repayments. Net debt portfolio growth from investment activity for the year was approximately $342.7 million.