Why did TPVG's earnings fall short of forecasts in Q4 2024?

TriplePoint Venture Growth (TPVG) experienced a revenue shortfall in Q4 2024 compared to forecasts due to several key factors:

1. **Investment Income Decline**: TPVG's total investment income decreased to $26 million in Q4 2024, down from $33 million in the same period the previous year. This reduction was primarily due to a lower weighted average principal amount outstanding, reflecting a slowdown in investment activity.
2. **New Investment Allocation**: The company's new investment allocation decreased, with $41 million in new commitments in Q4 2024, compared to $52 million in the previous quarter. This decline in new investments likely contributed to the lower-than-expected revenue.
3. **Portfolio Yield Pressure**: TPVG faced pressure on its portfolio yield, which decreased to 13.4% on a weighted average annualized basis for new debt investments. This decline in yield could indicate challenges in generating returns on its investments, which may have impacted revenue.
4. **Non-Accruals and Credit Quality**: The company had investments in five portfolio companies on non-accrual, totaling $47.1 million. This deterioration in credit quality could have affected TPVG's ability to generate income from its investments, contributing to the revenue shortfall.

In summary, TPVG's earnings fell short due to a combination of decreased investment income, lower new investment allocations, pressure on portfolio yields, and challenges in maintaining credit quality. These factors collectively contributed to the company's revenue shortfall in Q4 2024.