Trinity Capital: A Dividend and a Departure

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Right. So, GraniteShares Advisors has completely exited its position in Trinity Capital (TRIN 0.69%). All 212,465 shares gone. Worth approximately $3.29 million, apparently. It’s funny, isn’t it? You spend ages researching a company, thinking you’ve found a little gem, and then someone just… sells. It’s like dating. All that effort for… nothing.

What Happened (or, “The Exit Strategy”)

According to a filing on January 20th, GraniteShares just… let it go. A $3.29 million decrease in their position. Zero stake remaining. It’s a bit dramatic, really. One minute you’re in, the next… poof. Makes you wonder if there was a fight. A financial fight, obviously.

What Else to Know (or, “The Portfolio Audit”)

Just doing a quick check of what they are still holding onto. It’s like looking through someone’s handbag – a surprisingly revealing exercise.

  • NASDAQ:MSFT: $5.59 million (3.4% of AUM) – Solid. Predictable. A bit… boring, perhaps?
  • NASDAQ:GOOGL: $4.25 million (2.6% of AUM) – Still Google. Can’t really go wrong.
  • NASDAQ:META: $3.80 million (2.3% of AUM) – A bit risky, isn’t it? All that metaverse stuff.
  • NYSE:LLY: $3.08 million (1.9% of AUM) – Everyone’s chasing the longevity dream, apparently.
  • NYSE:UAN: $2.88 million (1.7% of AUM) – Fertilizer. Seriously?

As of Friday, Trinity Capital shares were at $16.10, up 13% over the year. The S&P 500 is up 14%. So, roughly in line. Not exactly setting the world on fire, is it?

Company Snapshot (or, “The Numbers Game”)

Metric Value
Revenue (TTM) $284.52 million
Net Income (TTM) $142.00 million
Dividend Yield 15%

Company Overview (or, “The Pitch”)

  • Trinity Capital lends venture debt and equipment financing to growth-stage companies, mostly in tech. Sounds exciting. Probably isn’t.
  • They’re a business development company, which basically means they make money from interest, fees, and equity. The usual.
  • Their customers are venture-backed businesses needing capital. Desperate, probably.

They position themselves as a flexible debt provider for emerging growth companies. Sounds… important. And complicated. I need a spreadsheet.

What This Means (or, “The Big Question”)

A 15% dividend yield. It should be enough to keep investors interested, right? Like a really good chocolate cake. But the price hasn’t exactly soared. It’s like a perfectly frosted cake that tastes faintly of cardboard. Disappointing.

Trinity has been performing well, generating strong net investment income and paying out a hefty dividend. In the last quarter, total investment income was $75.6 million (up 22% year-over-year), and net investment income rose nearly 26% to $37.0 million. The CEO, Kyle Brown, talked about “disciplined execution and rigid underwriting.” Sounds… responsible. And slightly terrifying.

But venture debt is cyclical. It goes up, it goes down. GraniteShares’ exit suggests the dividend had already done its job. After a decent year, the upside was tied to credit conditions staying friendly. A narrow bet. Especially when safer options are offering competitive yields without the venture debt risk. It’s like choosing between a sensible cardigan and a sequined jumpsuit. One is practical, the other is… a risk.

And frankly, this portfolio leans toward large-cap growth and liquid names. Trinity’s double-digit yield looks less like stability and more like concentration risk. It’s a bit like putting all your eggs in a very small, slightly wobbly basket. And I really need a coffee.

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2026-01-23 18:32