Private Credit Portfolio Analysis | Runway Growth Finance Reports Q3 2024 Results

What's New: Runway Growth Finance Corp. reported its Q3 2024 financial results, showing a net income of $25.049 million for the quarter ended September 30, 2024, compared to $14.822 million in Q3 2023. The fund's net asset value per share decreased slightly to $13.39 as of September 30, 2024, from $13.50 at the end of 2023.

Portfolio Dynamics:

• The fund's total assets decreased marginally to $1.076 billion as of September 30, 2024, from $1.079 billion at the end of 2023.

• Investment owned at fair value slightly decreased to $1.066 billion as of September 30, 2024, from $1.067 billion at the end of 2023.

• Cash and cash equivalents increased to $3.617 million as of September 30, 2024, from $2.970 million at the end of 2023.

Investment Activity :

• The fund made payments for purchases of investments totaling $174.029 million during the first nine months of 2024.

• Proceeds from disposition of investments amounted to $147.041 million during the same period.

• The fund realized no investment gains or losses during the first nine months of 2024, compared to a $1.178 million loss in the same period of 2023.

Capital Structure:

• Total liabilities increased to $568.220 million as of September 30, 2024, from $532.082 million at the end of 2023.

• The fund's line of credit balance increased to $302 million as of September 30, 2024, from $272 million at the end of 2023.

• Long-term debt increased to $542.512 million as of September 30, 2024, from $510.078 million at the end of 2023.

Performance Profile:

• Net investment income for Q3 2024 was $25.049 million, up from $14.822 million in Q3 2023.

• The fund reported an unrealized gain on investments of $9.174 million for Q3 2024, compared to an unrealized loss of $7.214 million in Q3 2023.

• Net asset value per share decreased to $13.39 as of September 30, 2024, from $13.50 at the end of 2023.

Risk & Quality:

• The fund's total stockholders' equity decreased to $507.358 million as of September 30, 2024, from $547.071 million at the end of 2023.

• Treasury stock value increased to $40.994 million as of September 30, 2024, from $10.816 million at the end of 2023, indicating share repurchases.

• The fund's retained earnings deficit increased to $57.169 million as of September 30, 2024, from $47.637 million at the end of 2023.

The Wrap: Runway Growth Finance Corp. demonstrated mixed financial results in Q3 2024, with increased net income and cash position, but a slight decrease in total assets and net asset value per share. The fund's investment activity remained robust, while its capital structure saw increases in both liabilities and long-term debt. Despite the challenges, the fund maintained a substantial investment portfolio and continued to generate income from its operations.

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