In This Article:
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Total Investment Income: $36.7 million for Q3 2024.
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Net Investment Income: $15.9 million or $0.41 per share for Q3 2024.
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Funded Loans: $75.3 million in Q3 2024.
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Fair Value of Investment Portfolio: Approximately $1.07 billion as of September 30, 2024.
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Net Assets: $507.4 million as of September 30, 2024.
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NAV per Share: $13.39 at the end of Q3 2024.
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Weighted Average Portfolio Risk Rating: 2.48 in Q3 2024.
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Loan-to-Value Ratio: Increased from 26.7% to 28.6% sequentially.
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Debt Portfolio Yield: 15.9% annualized for Q3 2024.
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Total Operating Expenses: $20.8 million for Q3 2024.
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Net Unrealized Gain on Investments: $9.2 million in Q3 2024.
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Leverage Ratio: 1.08 times as of September 30, 2024.
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Total Available Liquidity: $251.6 million as of September 30, 2024.
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Regular Distribution Declared: $0.40 per share for Q4 2024.
Release Date: November 12, 2024
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) reported total investment income of $36.7 million and net investment income of $15.9 million, covering the base dividend for the quarter.
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The company completed $75.3 million in funded loans, including investments in high-growth potential software and business processing technology companies.
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Runway Growth Finance Corp (NASDAQ:RWAY) entered into a definitive agreement to be acquired by BC Partners Credit, which is expected to enhance origination capabilities and expand investment solutions.
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The company's loan portfolio is comprised of 100% floating rate assets, which are currently earning interest at or above agreed-upon interest rate floors.
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Runway Growth Finance Corp (NASDAQ:RWAY) reported a stable weighted average portfolio risk rating of 2.48, indicating consistent credit quality management.
Negative Points
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The company has two loans on nonaccrual status, including a significant loan to Snagajob with a fair market value of $37.3 million, which is 87% of its cost.
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Total operating expenses increased by 6% to $20.8 million in the third quarter compared to the previous quarter.
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The loan-to-value ratio increased from 26.7% to 28.6% sequentially, indicating a rise in leverage.
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The Board of Directors has paused the supplemental dividend program to focus on preserving and building NAV.
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Despite positive developments, the venture equity market continues to face challenges with high down rounds and liquidity constraints.
Q & A Highlights
Q: Is BC Partners buying just the Oaktree stake or the whole thing? And what does this mean for the future of the company? A: BC Partners is buying the entire adviser, including Oaktree's stake and the shares owned by the current leadership. This acquisition is intended to be a long-term strategic investment, enhancing our origination capabilities and market position, ultimately benefiting shareholders with increased share value and returns. - R. David Spreng, CEO