In This Article:
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Total Investment Income: $33.8 million for Q4 2024.
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Net Investment Income: $14.6 million for Q4 2024.
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Funded Loans: $154 million in Q4 2024.
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Net Assets: $514.9 million as of December 31, 2024.
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NAV per Share: $13.79 at the end of Q4 2024.
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Principal Prepayments: $152.6 million in Q4 2024.
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Operating Expenses: $19.2 million for Q4 2024.
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Net Realized Loss on Investments: $2.9 million in Q4 2024.
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Debt Portfolio Yield: 14.7% annualized for Q4 2024.
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Leverage Ratio: 1.08x as of December 31, 2024.
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Total Available Liquidity: $244.8 million as of December 31, 2024.
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Unfunded Commitments: $176.7 million as of December 31, 2024.
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Base Dividend Declared: $0.33 per share for Q1 2025.
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Supplemental Dividend Declared: $0.03 per share for Q1 2025.
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Runway Growth Finance Corp (NASDAQ:RWAY) delivered total investment income of $33.8 million and net investment income of $14.6 million for the fourth quarter of 2024.
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The acquisition of Runway Growth Capital by BC Partners Credit is expected to enhance origination channels and expand product offerings.
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RWAY completed $154 million in funded loans during the fourth quarter, including significant investments in high-growth sectors like technology and healthcare.
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The company's portfolio is primarily composed of first lien senior secured loans, providing a strong margin of safety.
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RWAY's NAV per share increased by 3% to $13.79 at the end of the fourth quarter, reflecting strong portfolio management.
Negative Points
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RWAY's debt portfolio yield decreased from 15.9% in the third quarter to 14.7% in the fourth quarter of 2024.
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The company recorded a net realized loss on investments of $2.9 million in the fourth quarter.
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Two loans, Mingle Healthcare and Snagajob, remain on nonaccrual status, representing 0.5% of the total investment portfolio.
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The dividend was reduced, with a new base dividend of $0.33 per share, reflecting a more conservative capital allocation strategy.
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RWAY's leverage ratio remained at 1.08x, indicating limited room for increasing leverage to drive growth.
Q & A Highlights
Q: Were there any new originations expected before the quarter ends? A: Thomas Raterman, CFO, COO, Treasurer, Company Secretary, stated that originations are typically back-ended, and while there are only 10 days left in the quarter, there could still be some originations closed, though some might push to the next quarter.