Private Credit Portfolio Analysis | Runway Growth Finance Corp Reports Q1 2025 Results
- Editor
- May 12
- 2 min read
Whats New:
Runway Growth Finance Corp reported its Q1 2025 financial results, showing a decrease in total assets and stockholders' equity compared to the previous quarter. The fund's total assets decreased to $1.03 billion as of March 31, 2025, down from $1.09 billion at the end of 2024. Net asset value per share also declined to $13.48 from $13.79 at the end of the previous quarter.
Portfolio Dynamics:
Total assets decreased to $1.03 billion as of March 31, 2025, compared to $1.09 billion at the end of 2024.
Investments owned at fair value decreased to $1.00 billion, down from $1.08 billion at the end of 2024.
Cash and cash equivalents rose to $18.36 million from $5.75 million at the end of 2024.
Investment Activity:
Payments for purchase of investments were $15.32 million in Q1 2025, down from $24.64 million in Q1 2024.
Proceeds from disposition of investments increased to $78.64 million in Q1 2025 from $34.86 million in Q1 2024.
Realized investment gains were $6.06 million in Q1 2025, compared to $0 in Q1 2024.
Capital Structure:
Long-term debt decreased to $492.21 million from $552.33 million at the end of 2024.
Stockholders' equity declined to $503.29 million from $514.87 million at the end of 2024.
Line of credit decreased to $253.00 million from $311.00 million at the end of 2024.
Performance Profile:
Net asset value per share decreased to $13.48 as of March 31, 2025, compared to $13.79 at the end of 2024.
Net income for Q1 2025 was $1.87 million, down from $12.05 million in Q1 2024.
Unrealized loss on investments was $19.79 million in Q1 2025, compared to $6.62 million in Q1 2024.
Risk & Quality:
Incentive fee payable decreased slightly to $14.05 million from $14.11 million at the end of 2024.
Interest payable decreased to $7.66 million from $7.74 million at the end of 2024.
Accrued liabilities and other liabilities decreased to $2.25 million from $2.31 million at the end of 2024.
The Wrap:
Runway Growth Finance Corp experienced a challenging Q1 2025, with decreases in total assets, investments at fair value, and stockholders' equity compared to the previous quarter. The fund's net asset value per share also declined. While cash and cash equivalents increased, the fund saw a significant drop in net income and faced larger unrealized losses on investments. The reduction in long-term debt and line of credit suggests a more conservative approach to leverage in the current market environment.
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