Popularity of BDCs: Business development companies (BDCs) are gaining attention for their high dividends, often exceeding 12.9%, making them attractive for retirees and middle-market companies, but caution is advised due to potential risks like sector specialization and high management fees.
Risks of Specific BDCs: Examples like TriplePoint Venture Growth BDC Corp. and Goldman Sachs BDC illustrate the pitfalls of BDCs, including poor total returns and unsustainable dividends due to high management fees and losses in their portfolios.
Comparison with CEFs: The Columbia Seligman Premium Technology Growth Fund (STK) is highlighted as a safer investment alternative to BDCs, offering a stable 5% dividend, consistent performance against major indices, and a current discount to net asset value.
Opportunities in CEFs: There are several closed-end funds (CEFs) available that yield an average of 9.5%, presenting a compelling investment opportunity with potential for significant price appreciation, while maintaining lower risk compared to BDCs.
Wall Street analysts forecast TPVG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPVG is 6.06 USD with a low forecast of 5.50 USD and a high forecast of 7.25 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast TPVG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPVG is 6.06 USD with a low forecast of 5.50 USD and a high forecast of 7.25 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
3 Hold
1 Sell
Hold
Current: 6.720
Low
5.50
Averages
6.06
High
7.25
Current: 6.720
Low
5.50
Averages
6.06
High
7.25
UBS
Doug Harter
Neutral
downgrade
Al Analysis
2025-10-14
Reason
UBS
Doug Harter
Price Target
Al Analysis
2025-10-14
downgrade
Neutral
Reason
UBS analyst Doug Harter lowered the firm's price target on TriplePoint Venture to $5.50 from $6.50 and keeps a Neutral rating on the shares.
UBS
Neutral
maintain
$7
2025-07-16
Reason
UBS
Price Target
$7
2025-07-16
maintain
Neutral
Reason
UBS raised the firm's price target on TriplePoint Venture to $7 from $6.50 and keeps a Neutral rating on the shares.
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UBS
Vilas Abraham
Hold
Maintains
$7.5 → $6
2025-04-17
Reason
UBS
Vilas Abraham
Price Target
$7.5 → $6
2025-04-17
Maintains
Hold
Reason
UBS lowered the firm's price target on TriplePoint Venture to $6 from $7.50 and keeps a Neutral rating on the shares as part of a Q1 earnings preview for the business development companies. The focus for investors during earnings will be on the outlook for credit quality given the increased economic uncertainty, the analyst tells investors in a research note. The firm says that while the pullback in the sector has made valuations more attractive, the overhang from credit quality concerns and earnings drag from lower short-term rates will persist. UBS cut price targets to reflect a lower return on equity outlook from slower loan growth and lower target multiples given increased economic uncertainty.
Keefe, Bruyette & Woods
Paul Johnson
Hold
Maintains
$7.5 → $7
2025-04-08
Reason
Keefe, Bruyette & Woods
Paul Johnson
Price Target
$7.5 → $7
2025-04-08
Maintains
Hold
Reason
Keefe Bruyette analyst Paul Johnson lowered the firm's price target on TriplePoint Venture to $7 from $7.50 and keeps a Market Perform rating on the shares.
About TPVG
TriplePoint Venture Growth BDC Corp. is an externally managed, closed-end, non-diversified management investment company that operates as a business development company. It is focused on providing customized debt financing with warrants and direct equity investments to venture growth stage companies in technology and other high-growth industries backed by a select group of venture capital firms. Its investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by lending, typically with warrants, primarily to venture growth stage companies focused on technology and other high-growth industries backed by TriplePoint Capital LLC (TPC) a select group of venture capital investors. TPC is a Sand Hill Road-based global investment platform, which provides customized debt financing, leasing, direct equity investments and other complementary solutions. Its investment adviser is TriplePoint Advisers LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
