Navigating the Risks and Rewards of Trinity Capital's 14% Yield

Trinity Capital offers a 14% forward yield through venture lending to early-stage companies, but effective yields compressed to 15.2% in Q4 2025 from 16.4% a year earlier due to Fed rate cuts. The company's venture credit exposure creates real risks, including net realized losses of $64.3M in 2025, watch-list investments at 5.3% of the portfolio, and 50% share price volatility over 52 weeks. Despite rising total NII, per-share income growth has been flattened by share dilution from 59.4M to 77.0M shares year-over-year.