Trinity Capital Inc. has recently released its 10-Q report, providing a detailed look at its business operations. Trinity Capital Inc. is a business development company that specializes in term loans, equipment financing, and private equity-related investments. The firm offers tech lending, equipment financing, life sciences, warehouse lending, and sponsor finance sources, aiming to provide stable and consistent returns through access to the private credit market. Trinity Capital Inc. was founded in 2019 and is based in Phoenix, Arizona, with additional offices in San Diego, California.
In its 10-Q report, Trinity Capital Inc. discusses its management’s discussion and analysis of financial condition and results of operations. The company provides insights into its investment objective, which is to generate current income and, to a lesser extent, capital appreciation through its investments across five distinct vertical markets. It primarily makes investments consisting of term loans, equipment financings, and asset-based lending, and to a lesser extent, working capital loans, equity, and equity-related investments. The report also discusses the company's target investments in growth-oriented companies, which are typically private companies with expected annual revenues of up to $100 million.
Additionally, the 10-Q report provides a detailed overview of Trinity Capital Inc.'s history, including its incorporation under the general corporation laws of the State of Maryland on August 12, 2019, and its commencement of operations on January 16, 2020. The report also highlights significant transactions, such as the completion of its initial public offering in February 2021 and the formation of an unconsolidated wholly-owned subsidiary in March 2023.
Furthermore, the report delves into the critical accounting estimates and policies of Trinity Capital Inc., particularly focusing on the valuation of investments. The company's investments are carried at fair value in accordance with the 1940 Act and Accounting Standards Codification, with investments categorized based on the inputs to the valuation techniques as Level 1, Level 2, or Level 3. Given the nature of lending to venture capital-backed growth-oriented companies, substantially all of the company’s investments in these portfolio companies are considered Level 3 assets under ASC 820 because there is no known or accessible market.
The market has reacted to these announcements by moving the company's shares 1.14% to a price of $15.12. If you want to know more, read the company's complete 10-Q report here.
