Q4 2023 Trinity Capital Inc Earnings Call

Participants

Ben Malcolmson; Director, Investor Relations; Trinity Capital Inc

Kyle Brown; Chief Executive Officer; Trinity Capital Inc

Michael Testa; Chief Financial Officer, Treasurer; Trinity Capital Inc

Gerry Harder; Chief Operating Officer; Trinity Capital Inc

Vilas Abraham; Analyst; UBS Securities LLC

Christopher Nolan; Analyst; Ladenburg Thalmann & Co. Inc.

Paul Johnson; Analyst; Keefe, Bruyette & Woods North America

Bryce Rowe; Analyst; B. Riley Securities

Casey Alexander; Analyst; Compass Point Research & Trading LLC

Presentation

Operator

Good afternoon. My name is Jamie, and I will be your conference operator today. At this time, I would like to welcome everyone to Trinity Capital's Fourth Quarter and Full Year 2023 earnings conference call. Our host for today are Kyle Brown, Chief Executive Officer, Michael Testa, Chief Financial Officer, Gerry harder, Chief Operating Officer, and Ben Malcolmson, Head of Investor Relations.
Ron K&H, Chief Credit Officer, and Serostim Chief Compliance Officer and General Counsel, are also present. This call is being recorded and will be available for replay beginning at approximately 3 P.M. Eastern and the replay dial-in number is 808 three nine seven four one four and know conference ID is required for access at this time, all participants we're in a listen only mode and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. We ask that when posing your question, please pick up your handset to allow optimal sound quality. Lastly, if you should require operator assistance, please press star zero. It is now my pleasure to turn the call over to Trinity Capital's Head of Investor Relations, Ben Malcolmson. Please go ahead.

Ben Malcolmson

Thank you, Jamie, and welcome to Trinity Capital's earnings conference call for the fourth quarter and full year 2023 Trinity's financial results were released today prior to the open of the financial markets and can be accessed from our Investor Relations website at ir dot Trinity cap.com. A replay of the call will be available on our website or by using the telephone number provided in today's earnings release.
Before we begin, I would like to remind everyone that certain statements that are not based on historical facts made during this call, including any statements relating to financial guidance may be deemed forward-looking statements under federal securities laws. Because these forward-looking statements involve known and unknown risks and uncertainties. There are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. We encourage you to refer to our most recent SEC filings for information on some of these risk factors. Trinity Capital assumes no obligation or responsibility to update any forward-looking statements. Please note that the information reported on this call speaks only as of today, March sixth, 2024. Therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay listening or transcript reading Now, please allow me to turn the call over to Trinity Capital CEO., Kyle Brown.

Kyle Brown

Thanks, Ben, and thank you, everyone, for joining us today. Trinity's all delivered record fourth quarter results to round out a tremendous year for our platform in 2023, we advanced our strategy significantly grew the platform, strengthened our balance sheet, diversified our portfolio and enhance multiple revenue streams. Also the long-term benefit of our shareholders, modest Most notably, we outperformed across multiple operating metrics, setting several financial and performance records throughout the efforts of our incredibly talented team headline accomplishments include record quarterly fundings of $267 million in Q4, contributing to a record year with $642 million of total fundings in 2023. Platform AUM growth of 29% year over year, pushing our assets under management to approximately $1.5 billion and a record $90 million of net investment income up 26% year over year. This exceptional performance allowed us to increase our quarterly dividend to $0.5o per share in the fourth quarter, making this the 12th consecutive quarter, we increased our regular dividend.
In the face of industry-wide pressure from disruption in the banking industry in 2023, we emphasized our proactive portfolio management strategies and partnered with borrowers to navigate a challenging operating environment while continuing to grow our assets under management.
Additionally, we continued to invest in our platform by growing our team, scaling the strategy, which we believe widens our funnel as we pursue attractive investment opportunities across the ecosystem of growth oriented companies. We've organized our business around distinct vertical market opportunities, tech lending, Life Sciences equipment financing and warehouse lending each with its own dedicated originations, credit and portfolio management teams. Performance of our life sciences vertical provides an excellent example of Trinity's commitment to scale and asset diversification. We launched this business vertical in 2022. And since that time, we've opened a satellite office in the location, San Diego and hired best in class talent to expand our deal teams. As of December 31st, 2023, our life sciences portfolio sits at approximately $183 million on a cost basis and represents nearly 14% of our total portfolio. With our tech lending vertical, we continue to grow our footprint by adding proven experienced talent to our deal teams. In 2023, we expanded our East Coast presence with the appointments of three new originators in New York and Boston, giving us a regional footprint in several major tech markets. We also began to realize the benefits of our direct lending joint venture in 2023.
As we've mentioned in prior earnings calls, this off-balance sheet vehicle provides incremental capital for growth and accretive returns to our shareholders. In Q4 2023, the joint venture provided approximately $1.1 million of interest, dividend and fee income to the BDC and had $153.4 million of assets at fair value as of December 31st, 2023. We ended 2023 with a strong investment pipeline, including $358 million in unfunded commitments. But as a reminder, many of our unfunded commitments are subject to performance milestones and all of Trinity's unfunded term loan and equipment financing commitments are subject to ongoing diligence and approval by our investment committee. We will remain very selective and committed to adhering to our disciplined deal selection and credit underwriting process. And as a result, we're seeing larger and more mature businesses enter the pipeline. This is great momentum as we head into 2024. As we said before, our team is the cornerstone of Trinity's success and will be the key to our growth moving forward. We are committed to creating a unique culture of excellence that is built around our six pillars of humility, integrity trust, uncommon care continuous learning and entrepreneurialism, all of which create the differentiated lending platform that we built here at Trinity, we strive to provide value above and beyond expectations to every part of the Trinity platform, whether that's employees, clients or investors. And as an internally-managed BDC, our structure allows us to maintain 100% alignment with our shareholders' best interests and other key factors that as a direct lender, we continue to own our pipeline with originators strategically located around the country to bring in opportunities through deep relationships with sponsors, banks and operators for Trinity the commitment to our portfolio companies and the relationships we've developed. This result allows us to invest in a wide array of opportunities supported by quality sponsors.
In 2023, an aggregate of nearly $3 billion was raised by 45 of our portfolio companies. Our high quality portfolio companies continue to secure the funding they seek, and Trinity continues to be a less dilutive source of growth capital for them. We focus on doing three things exceptionally well here at Trinity, exhibiting uncommon care for our employees and partners being more than just money for our clients and providing outsized returns for our investors. We expect 2024 to be a strong infrastructure for sponsor-backed growth oriented companies, providing us with the opportunity to continue to expand this platform. We look forward to continuing this trajectory into 2024 and in the years to come.
And with that, I'll turn the call over to Michael Testa, our CFO. Mike?

Michael Testa

Thank you, Kyle, and welcome to everybody joining us today. As Kyle mentioned, we set records in several key areas in 2023. In Q4, we achieved record total investment income of $48 million, a 15% increase over the same period in 2022. Total investment income for 2023 was $182 million, a 25% increase over 2022.
Our core yield on the portfolio for Q4 was once again strong at 16.7%. Our core yield which excludes non-reoccurring fee income was 15.2%, down slightly from 15.5% core yield in the prior quarter. Net investment income for the quarter was a record $25.1 million or $0.57 per basic share, an increase of 16% compared to $21.6 million or $0.62 per basic share in the same period of the prior year.
Our net investment income represents 114% coverage of our quarterly distribution. Having outlined our regular and supplement supplemental distributions throughout 2023, we ended the year with more than $64 million of undistributed income or approximately $1.39 per share. Our platform continues to generate strong returns for our shareholders with ROAE based on net investment income over average equity of 16.9% and ROAA based on NII over average total assets of 8.3%, all while operating with leverage at the low end of our target range.
As of December 31, 2023, net asset value increased 7% to $611 million and NAV per share increased by $13.19 per share, up $0.02 from Q3. Year over year, NAV per share increased $0.04 from $13.15 per share. This increase in NAV was primarily the result of record net investment income, exceeding the Company's declared dividends and accretive equity offering.
Moving to liquidity, as of December 31st, 2023, we had total liquidity of $$137 million of undrawn capacity under our credit facility and approximately $5 million in unrestricted cash and cash equivalents. Additionally, we have continued to co-invest with our joint venture with provides additional investment liquidity and as of December 31st had approximately $100 million of uncalled capital and availability on the JV's credit facility.
Our net leverage ratio, which represents principal debt outstanding, but cash on hand was 1.05 times as of December 31st, 2023. Our strong liquidity position and the fact that we're currently at the lower end of our targeted leverage range provides Trinity with the flexibility to manage a strong pipeline and be opportunistic in the marketplace.
During the quarter, we expanded our ATM program and added another facilities. In Q4, we raised approximately $46 million in proceeds at a premium to now further supporting the long-term growth of Trinity.
I'll now turn the call over to our COO, Gerry Harder, to discuss our portfolio performance and platform in more detail.
Gerry?

Gerry Harder

Thank you, Michael. Community Capital experienced tremendous growth in 2023 as we continued to scale and diversify our platform in 2024 and beyond. We're hyper-focused on maintaining our disciplined and systematic investment approach as well as the culture and core values that have been the driving forces for our success and which differentiate Trinity from its peers. Composition of our portfolio remained consistent with prior quarters and shows diversification across investment type, transaction, size, industry and geography. We've intentionally constructed a portfolio with varied segmentation across 21 industries with our largest interest industry exposure Space Technology, representing 14.1% of the portfolio at cost. As mentioned earlier, our life sciences portfolio represented a total of 14% of our portfolio at cost and was further comprised of a mix of medical devices, healthcare technology and biotechnology with minimal regulatory exposure. Equipment Financing represented 25.5% of our year-end portfolio on a cost basis.
I'd like to address one investment in our equipment finance vertical. We recently announced the commitment of $120 million in aggregate equipment financing to rocket lab, the leading provider of Space Launch Services and advanced satellite technology. This deal closed just prior to year end and shows on our year end scheduled investments for the cost and fair value of $108.4 million for the equipment financing. However, subsequent to year end, in addition to three scheduled amortization payments. The Company repaid approximately $40 million of principal. Additionally, we syndicated a portion of the remaining principal to our joint venture, bringing our investment in Rocket lab to approximately 4.5% of our debt portfolio on a cost basis. During Q4, early debt repayments were in line with our historical average totaling $43 million including an early payoff of our digital asset equipment financing to five eight following the completion of their merger. We also received $41 million in scheduled repayments and $25 million of proceeds from sales to our joint venture.
Shifting gears to credit, the credit quality of our portfolio companies remained stable with approximately 96.5% of our portfolio performing on a comp on a fair value basis. Our average internal credit rating for the fourth quarter stood at 2.7 based on our one to five rating system with five indicating very strong performance. This rating is in line with our average credit rating in each of the last four quarters and reinforces Trinity's track record of low loss, rates, at year end, we had five portfolio companies on nonaccrual with a total fair value of approximately $43.2 million, representing 3.5% of the total debt portfolio. However, this figure includes our investment in core scientific at a cost and fair value of $23.2 million and $25.4 million, respectively.
Subsequent to year end we removed our investment in core scientific from nonaccrual status after its January 2024, exit from Chapter 11 bankruptcy and our election to receive shares of its common stock in lieu of our debt investments. As we have communicated in the past in general, we are not equity investors and would anticipate making an orderly sale of our equity position for the benefit of our shareholder outside of core scientific. Our other four nonaccrual assets represented only 1.5% of our debt portfolio on a fair value basis, we have a dedicated team of investment professionals who are solely focused on portfolio management and asset quality. And they continue to take a vigilant approach to the quality and overall health of our portfolio companies we remain confident in their ability to find resolutions that benefit both the portfolio company and our shareholders.
At this time, we'd like to open the line for questions. Operator?

Question and Answer Session

Operator

(Operator Instructions) Vilas Abraham, UBS.

Vilas Abraham

Hey, everyone. Thanks for taking the question on For my first one, I just wanted to ask about capital management. You relever the balance sheet in Q4, but also tapped the ATM for equity issuance. So as you think about supporting growth in 24, which clearly looks like there's an opportunity to do how do you expect to balance the two? And is that leverage target range still on the [1.1 to 1.3] that you've talked about before?

Kyle Brown

Maybe let's This is Kyle. So we expect that leverage ratio to be between 1 and 1.3. I think some of the benefits that we are beginning to experience and will experience further in the future as managing capital off balance sheet, generating new income gives us the ability to really keep that leverage maybe even lower than some of the expectations or some of our history giving us really ample liquidity and to be opportunistic with what the market presents. And so I think that, you know, we're going to continue to build balance sheet. We're going to continue to add in equity and leverage appropriately. As you've seen, though, we make sure we do that to the benefit of shareholders so that we can continue to increase that dividend and alternate it. So that certainly plays into every discussion or thought around building the balance sheet.

Michael Testa

The only thing I'd add to that is also we don't have any immediate maturities on our borrowings, but we will look to refinance opportunistically throughout 2024 on the debt side.

Vilas Abraham

Okay. Got it. That's helpful. And just on the JV portfolio, though, so it sum up about $25 million to $30 million or so per quarter. The last couple of quarters I'm around $150 million now I believe is that the pace that we should continue to expect as we tried to get to some, I think, closer to that $500 million in capacity for that portfolio.

Kyle Brown

Yes, I think I think you'll continue to see that be consistent adding new assets. And I think the general theme of having assets off balance sheet and co-investing alongside of the BDC, that will just be a regular same on an ongoing basis, whether the JV or a separate entity or separate entities.

Vilas Abraham

Okay. Thank you.

Operator

Christopher Nolan, Ladenburg Thalmann.

Christopher Nolan

Hey, guys. What was the driver for the higher fee income in the quarter?

Michael Testa

Yes, it's a combination, it's Mike Testa here. It's a combination of some of the fees from early repayments that came in the quarter, we noted arm had eight and we had another nice repayment on a physician that was funded one or two years ago. So we got a nice repayment on that. But also with our equipment financing in the quarter, we get the benefit of some of the upfront structuring fees that come in at that quarter. So you could see in our on fundings this quarter skew to the equipment financing vertical and that those fees being recognized in Q4.

Christopher Nolan

Great. And then I guess turning to rocket labs on is it space is tends to be a very expensive business? And should we see more activity on the space front end for also big funding commitments?

Gerry Harder

Yes, I think, Chris, I'd start that discussion with just our equipment finance vertical in general right now, as we've discussed in the past and in other prepared remarks, we're looking for mission critical equipment for growth-stage businesses with strong investor capitalization support and unique technology, et cetera. So I think space definitely it fits within that equipment vertical targets. And so to that extent, it's an exciting space for us. But and we're we're really focused more on the equipment than any one industry, if that makes sense.

Christopher Nolan

And I guess a final question on some of your BDC technology BDC peers are seeing slower deal flow just from the slowdown in the venture sector on you guys don't seem to be experiencing that. Is it fair to say, Ed, who would you consider your biggest competitors are in the equipment financing area.

Kyle Brown

And Chris, this is Kyle. So I think one of the benefits we have is having these multiple verticals, which really are not all influenced by nature, right? And so equipment financing, that is a very different and differentiated business. There's similarities there, but those were not all venture-backed. They could be piggybacked. They can be small market, public companies, et cetera. Our life science and healthcare business with us focusing primarily on commercialized products, scaling rapidly kind of post-FDA approval primarily. So it's a different market altogether. And then. So I think we're just we're playing in different boxes than many of our peers. The nature of that business, I would say last year was a little bit more challenging and we have seen a lot of tailwinds really over the last couple of quarters there, though.
And then on the financing angle, there's really not notable groups to mention there. It's pretty I've discombobulated just smaller, smaller peers, not nonpublic type peers. And so I would there's not even a single group. I would point out that I say we compete directly with I think we're one of the best in class for VC. and PD. backed growth stage companies on the equipment side or that's a non-answer. There's just there's not there's not notable groups I'd mention that.

Operator

Any more go next to Paul Johnson with KBW prepared.

Paul Johnson

Yes, good afternoon, guys. Just one more on Rocket labs, just to make sure I heard correctly, it sounded like there was pretty big pay down $48 million or so post quarter. I'm just curious why that the sudden repayment on the loan, was that expected? And is there any sort of fee income associated with that prepayment?

Kyle Brown

So yes, I mean, subsequent to the funding, the company raised a significant amount of capital over $300 million of new equity, our convertible note and subsequently paid us down a bit. Was the other part of that question?

Gerry Harder

Yes, and do we recognize it in Canada Austria, right? So this was, you know, somewhat scripted fault in that, you know, there was a timing issue of the Company's need to refinance their prior facility and the timing of the Trinity facility and the timing of their additional capital. So we satisfy that need as of year end, and they repaid us $40 million shortly after the 1st of the year as we expected.

Paul Johnson

Got it. Thanks. That makes sense. And then you Chris asked a little bit, but I'll ask again maybe in a different way, but 15% or so of the portfolio is in space technology that may be a little bit lower post quarter with that Rocket labs paydown. But obviously, it's a meaningful exposure within the portfolio. Just kind of maybe curious to get your thoughts on, I guess, the opportunity that you think that you see there and that's all.

Kyle Brown

Sure. So the exposure itself, you could it could we could really break it down and show you how granular really even within that one industry our exposure is. So we're financing equipment, right? So we're really focused on companies that are raising significant amount of capital and equity capital. We trail those equity investors and we find mission critical pieces of equipment. That's typically these are non specialized pieces of equipment. They have a use case outside of the Company outside of the industry. And we're financing that mission critical equipment and providing an advance against it. That's lower than the value of that equipment generally. So even within I know the space industry, that's going to be a lot of different pieces of off-the-shelf type equipment, manufacturing equipment, et cetera, and pretty diversified even there and so the exposure to that one industry is really just because there's a significant amount of equity flowing to that particular industry. That particular industry has significant CapEx needs and requirements which we are able to go in and finance seeing that with infrastructure type companies as well. And so you'll probably continue to see that that market and industry expanding for us because there's a lot of equipment needs there as well. So we don't really think about it. We know we showed as the industry and exposure to that industry. But within it you're talking about a lot of different pieces of mission critical equipment that have real value, whether or not it was with the company or not.

Paul Johnson

Got it. Thanks for that. And last one for me. At the core scientific shares, do you guys are you guys subject to any kind of lockup or restriction period with those shares?

Kyle Brown

And this is kind of again, we ended Q4 with $5.64 million shares. We are not subject to any old and we're going to liquidate those shares in a timely manner. That makes sense to maximize shareholder value.
Got it.

Paul Johnson

Thank you very much. Thanks for taking my question.

Operator

(Operator Instructions) Bryce Rowe, B. Riley.

Bryce Rowe

Thanks. I'm good. I guess good afternoon from the East Coast, but just wanted to maybe start on it on a comment, you may call you said you you're putting larger more mature companies or they're entering your your investment pipeline. And I think we've seen obviously the space, steel equipment finance deal, and then another deal here recently that was a little bit larger than now than what we might see from you all typically, can you talk a little bit about that, that process of larger, more mature companies entering the pipeline and know what it what it might mean from a, I guess, from a growth perspective. But on balance sheet and off balance sheet?

Kyle Brown

Yes. So I think we really started to see last year, Q1, Q2 a pretty significant increase to top of funnel. We also in that same vein, we also really tightened up the bottom of the funnel and the requirements for deals to get across the finish line for funding. So the percentage of deals that come in the top. And then we fund has actually decreased across the board. But what we've seen are more mature companies that are and probably were capable of getting all of their needs satisfied from a bank are now looking for alternative solutions. And we really are are positioned well there with permit source of capital, the ability to make commitments follow through on those commitments. And so we're just we're positioned really well to provide capital to those companies. And so top of the funnel significantly increased quality of deals. Now certainly there's there's some quality of deals that's less attractive that we're filtering out as well. But we are also seeing a lot of really mature companies further down the road. Average deal size increased 20% last year for us. So it just kind of reflects We also saw significantly more first lien and majority of our portfolio is first lien, but we are seeing a less less kind of on second lien type opportunities, which just shows you companies are looking for a different type of solution, an alternative type solution to the banks. So we feel good about where we're positioned there. Pipeline is robust and we're being, you know, from being proactive and we're being opportunistic on what we fund.

Gerry Harder

Yeah, I would add that we do remain committed to our portfolio granularity. It's something you'd hear us talk a lot about quarter on quarter, right? And that we want to be very granular across industry and across financing size among other things. And so that's why we felt it was important to clarify the position on Rocket lab, right, and to really reassure our investors that we are committed to that level of granularity there?

Kyle Brown

Yeah, the off-balance sheet vehicles will continue to give us the ability to, yes, grow check size, of course. But a lot of that's just making sure we're the incumbent lender, what our companies do really well want to keep I want to lose them to somebody else who want the ability to fund them and keep funding them into the future and continue to help the companies grow. And so I think you'll see our off-balance sheet vehicles give us the ability to do that.
And then also entered like this enter into new transactions at a higher price point while not while not risking in putting too much capital into any one, any one deal a trend.

Bryce Rowe

That's helpful. And maybe maybe a related question I would imagine with the the funding profile, you record record fundings here in 23. Sounds like your your pipeline is really strong, um, there was some question about kind of liquidity and you hire how you think about your liquidity at this point. But but but maybe give us give us an idea of how you're how you're thinking about funding. And I mean, obviously, you have the ATM that's up and running and available with that with a premium price to Nav. But just kind of curious how you think about the debt side of the equation, whether it be the secured facility, expanding that or trying to get more active with the with the unsecured notes market thinks?

Kyle Brown

Yes. I mean, listen, it's going to be a combination of all those things right. On the debt side, we're making sure that we've got unsecured secured financing. We're making sure it's turned out. We are making sure that we raise equity most efficiently and we have really ample liquidity right now on and off balance sheet, as we've indicated, we are raising additional capital off balance sheet to even bolster that liquidity further. And we're charging management fees and incentive fees on that capital, which will 100% of that is owned by our shareholders, some trend. So we have and we're creating as many options as possible to give ourselves liquidity to put ourselves in a position to be opportunistic and grow this platform in a way that's beneficial for our shareholders. We're really focused on that.

Bryce Rowe

That's great, all for me. Thanks for your time.

Operator

Vilas Abraham, UBS.

Vilas Abraham

Thanks for the follow-up. I'm just wanted to ask if there were any updates on timing specifically on the RIA., what are the things that you're able to share?

Kyle Brown

We can't give you timing on exactly how the capital is going to be rolled out, how much of it. And when our expectation and guidance has been that we'll start deploying in Q2, that hasn't changed.

Vilas Abraham

Okay. And then just maybe one last kind of bigger-picture question mentioned life sciences, 14% of the of the book as of as of 1231. Just how are you thinking about that particular vertical, but longer term, I guess, the attractiveness of deploying there now and just longer term on the concentration that that that could get to. And yes, just any color there would be helpful.

Kyle Brown

Great. We are really excited about our life science and health care business. We see incredible opportunities to grow there, seeing significant equity dollars flow back into that industry.
If you think about big picture, what we're doing here and I mentioned different verticals, we really want to see these very, very complementary verticals continue to grow from it from an asset management standpoint, we're really able to diversify our assets so that we're not that we have a bank goes out of business or there's volatility in one sector it's not going to have a massive impact on our overall business. And so we're really focused on diversifying into these different verticals and growing each of them respectively. And so you continue seeing life science build. You'll see some of that exposure overall percentage probably grow as we build that business. And you'll see further diversification across the platform into these complementary verticals.

Vilas Abraham

Okay. Thank you.

Operator

Casey Alexander, Compass Point.

Casey Alexander

Hi, good afternoon. You mentioned that second lien is a shrinking part of your portfolio, but still 23% of your portfolio, if I read the release right, which is still one of the higher amounts in the venture debt space. I'm curious how that, that that splits between secured lending and equipment finance and sort of what's the typical kind of structure that has you, you know, end up in a second lien position and makes you feel comfortable there?

Kyle Brown

Yes. Jerry, and I will just ping-pong on this one off that. And so Casey, the way we think about second lien deals, leisure and B, some of our stronger transactions, none of those are equipment financings. Those are all secured loans. Our term loans narrow there on the tech lending vertical. And typically that's just partnering with the bank there. They may be providing receivable financing and the overall cost of capital, it's lower. It provides more runway for the Company and we are typically going into those because they're just very strong deals where bank is willing and able to have some of the capital. And so we generally go into those deals, the mindset that we're willing to do the whole thing. And if it came down to it.
We've been paid up pay off the bank.
That's just our that's how we look at it, Tom, but having a bank in there, partnering with the bank and providing a lower cost to capital is just overall better for the company. And so it's a way that we partner and do business with the banks. And it's also a way to benefit the company by extending the runway further.

Casey Alexander

Do you have the right to buy the bank out of their position?

Gerry Harder

Generally? We do you know what I would say our working relationships with the bank is such that even if that was not explicitly in the docs, I would expect that to be an option that they would that would gladly take up, but typically that is included in our data.

Kyle Brown

Okay. Thank you. That's my only question.

Operator

And that will conclude today's question and answer session. At this time, I'd like to turn the call back over to Kyle Brown, Chief Executive Officer, for any closing or additional remarks brings, Jamie.

Kyle Brown

We're proud of our 2023 results and feel like we've laid the groundwork over the last 18 months to scale this business in a unique and profitable way for investors. And lastly, our management team will be in New York and Boston later this month, and we look forward to meeting with investors and key stakeholders. Please don't hesitate to reach out beyond digital meeting. I'd like we'd like to thank everybody for joining and participating in our call today. We appreciate your interest and investment in Trinity to capital. Have a great rest of your day. Thanks.

Operator

Once again, ladies and gentlemen, that does conclude today's program. Thank you for your participation. You may disconnect at this time.