Investing Experts Trinity Capital: An asset manager in BDC clothing
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Nov 26, 2024 Kyle Brown, CEO of Trinity Capital, shares insights on their unique approach as an asset manager within the Business Development Company structure. He discusses the importance of dividend stability and growth, alongside critical financial metrics like NAV, EPS, and ROE. Kyle highlights the recent stock buyback strategy and emphasizes the significant role of private credit and liquidity in the current market. He also delves into Trinity's focus on maintaining attractive valuations amidst economic shifts, making it a compelling choice for investors.
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Internally Managed BDC
- Trinity Capital is structured as an internally managed BDC, aligning incentives with shareholders.
- This eliminates management fees, focusing on return on equity and dividend growth.
Internally vs. Externally Managed BDCs
- Internally managed BDCs outperform externally managed ones, showing higher ROE and trading at premiums.
- Trinity chose this structure for long-term growth and alignment with shareholder interests.
Dividend Stability
- Trinity Capital has consistently increased or maintained its dividend for 19 quarters, overearning it each time.
- As a BDC, they distribute 90+% of income, making the high dividend a reflection of high earnings.