Trinity Capital stands out in the BDC space for its ~14% dividend yield, niche growth strategy, internal management, growing net investment income and rising book value. However, it faces risks, including relatively low first lien loans, relatively low floating rate debt, interest rate sensitivity and investment style. This report reviews all of the above and then concludes with my strong opinion on investing.
Hercules Capital and Trinity Capital are best positioned among BDCs to sustain base dividends amid possible lower interest rates. Both HTGC and TRIN benefit from strong fundamentals, investment-grade credit ratings, robust liquidity, and internally managed structures, supporting dividend stability. Contractual interest rate floors and NAV premiums provide HTGC and TRIN with defensive advantages over peers facing greater earnings declines from rate cuts.
Trinity Capital has dipped by just over 11% from its near-term peak, expanding its fully covered dividend yield to 14%. The BDC is pushing ahead with portfolio growth, with its total debt investments at cost valued at $2.03 billion at the end of the third quarter, up 8.5% sequentially. NII downside from Fed rate cuts will be limited, due to a majority of loans being embedded with interest rate floors, and with 40.6% of TRIN's outstanding borrowing at a floating rate.
| - Industry | - Sector | Kyle Steven Brown CEO | XMUN Exchange | US8964423086 ISIN |
| US Country | 58 Employees | 30 Sep 2025 Last Dividend | - Last Split | 29 Jan 2021 IPO Date |
Trinity Capital Inc. is a distinguished venture capital firm and business development company that has carved its niche by specializing in providing venture debt solutions. Founded in the year 2019, the firm has its headquarters located in Phoenix, Arizona, and has expanded its reach with additional offices across the United States. Trinity Capital Inc. caters to growth stage companies that are in the market for loans and/or equipment financing, aiding them in their journey towards achieving their business objectives.
At Trinity Capital Inc., our product and service offerings are meticulously designed to support the unique needs of growing businesses. Our portfolio includes: