Operator: We’ll go next to Casey Alexander with Compass Point.
Casey Alexander: 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. So I’m curious how that splits between secured lending and equipment finance and sort of what’s the typical kind of structure that has you end up in the second lien position and makes you feel comfortable there?
Kyle Brown: Yes. Gerry and I will just ping pong on this one a little bit. So Casey, the way we think about second lien deals, these are going to be some of our stronger transactions. None of those are equivalent financing. So those are all secured loans, term loans. They’re all the tech lending vertical. And typically that’s just partnering with the bank. They may be providing receivable financing and the overall cost of capital is lower. It provides more runway for the company. And we are typically going into those because they’re just very strong deals where a bank is willing and able some of the capital. And so we generally go into those deals with the mindset that we’re willing to do the whole thing. And if it came down to it, we can pay off the bank.
That’s just our that’s how we look at it. But having a bank in there, partnering with the bank and providing a lower cost of capital, it’s 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?
Michael Testa: Generally, we do. And 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 gladly take up, but typically that is included in our docs.
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.
Kyle Brown : Thanks, Jamie. 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. Lastly, our management team will be in New York and Boston later this month and we look forward to meeting with any investors and key stakeholders. Please don’t hesitate to reach out to Ben at this digital meeting. We’d like to thank everybody for joining and participating in our call today. We appreciate your interest and investment in Trinity Capital. Have a great rest of your day. Thanks. Bye.
Operator: Once again, ladies and gentlemen, that does conclude today’s program. Thank you for your participation. You may disconnect at this time.
