Runway Growth Finance Corp (RWAY) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Runway Growth Finance third quarter 2024 earnings conference call.

女士們、先生們，感謝大家的支持，歡迎參加 Runway Growth Finance 2024 年第三季財報電話會議。

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄音。

I would now like to hand the conference over to Quinlan Abel, Assistant Vice President, Investor Relations.

現在，我想將會議交給投資者關係助理副總裁 Quinlan Abel。

Please go ahead.

請繼續。

Thank you, operator.

謝謝您，接線生。

Good evening, everyone, and welcome to the Runway Growth Finance conference call for the third quarter ended September 30, 2024.

大家晚上好，歡迎參加截至 2024 年 9 月 30 日第三季的 Runway Growth Finance 電話會議。

Joining us on the call today from Runway Growth Finance are David Spreng, Chairman, President and Chief Executive Officer; Greg Greifeld, Managing Director, Deputy Chief Investment Officer and Head of Credit of Runway Growth Capital; and Tom Raterman, Chief Financial Officer and Chief Operating Officer.

今天參加 Runway Growth Finance 電話會議的有董事長、總裁兼執行長 David Spreng； Greg Greifeld，Runway Growth Capital 董事總經理、副首席投資長兼信貸主管；以及財務長兼營運長湯姆·拉特曼（Tom Raterman）。

Runway Growth Finance's third quarter 2024 financial results were released just after today's market close and can be accessed from Runway Growth Finance's Investor Relations website at investors.runwaygrowth.com. We have arranged for a replay of the call to be available on the Runway Growth Finance web page.

Runway Growth Finance 的 2024 年第三季財務業績於今日收盤後發布，可從 Runway Growth Finance 的投資者關係網站 investors.runwaygrowth.com 存取。我們已安排在 Runway Growth Finance 網頁上重播此通話。

During this call, I want to remind you that we may make forward-looking statements based on current expectations.

在這次電話會議中，我想提醒您，我們可能會根據當前的預期做出前瞻性的陳述。

The statements on this call that are not purely historical are forward-looking statements.

本次電話會議中非純歷史性的陳述均為前瞻性陳述。

These forward-looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements, including and without limitation, market conditions caused by uncertainties surrounding interest rates, changing economic conditions and other factors we identified in our filings with the SEC.

這些前瞻性陳述並不能保證未來的業績，並且受不確定性和其他因素的影響，這些因素可能導致實際結果與前瞻性陳述中表達的結果存在重大差異，包括但不限於由利率不確定性、經濟狀況變化和我們向美國證券交易委員會提交的文件中確定的其他因素所導致的市場條件。

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions can prove to be inaccurate.

儘管我們相信這些前瞻性陳述所依據的假設是合理的，但任何假設都可能被證明是不準確的。

And as a result, the forward-looking statements based on those assumptions can be incorrect.

因此，基於這些假設的前瞻性陳述可能是不正確的。

You should not place undue reliance on these forward-looking statements.

您不應過度依賴這些前瞻性陳述。

The forward-looking statements contained on this call are made as of the date hereof, and Runway Growth Finance assumes no obligation to update the forward-looking statements or subsequent events.

本次電話會議中包含的前瞻性陳述均截至本電話會議之日做出，Runway Growth Finance 不承擔更新前瞻性陳述或後續事件的義務。

To obtain copies of SEC-related filings, please visit our website.

若要取得 SEC 相關文件的副本，請造訪我們的網站。

With that, I will turn the call over to David.

說完這些，我會把電話轉給大衛。

Thank you, Quinlan, and thanks, everyone, for joining us this evening.

謝謝你，Quinlan，也謝謝大家今晚加入我們。

Tonight, we want to detail our third quarter financial results and share more about the recently announced combination between Runway Growth Capital, the investment adviser to Runway Growth Finance and BC Partners.

今晚，我們想詳細介紹我們的第三季財務業績，並分享更多有關 Runway Growth Capital（Runway Growth Finance 的投資顧問）和 BC Partners 之間最近宣布的合併的資訊。

We believe this transaction is set to position Runway Growth Finance to deliver consistent, steady returns to stockholders.

我們相信，此交易將使 Runway Growth Finance 能夠為股東帶來持續、穩定的回報。

Additionally, on tonight's call, we plan to offer an overview of the investment environment and discuss our outlook heading into 2025.

此外，在今晚的電話會議上，我們計劃概述投資環境並討論我們對 2025 年的展望。

We are pleased with our steady execution in Q3, which demonstrates the underlying strength of our BDC.

我們對第三季的穩定執行感到滿意，這證明了我們 BDC 的潛在實力。

We executed on attractive investments with new and existing portfolio companies.

我們與新的和現有的投資組合公司進行了有吸引力的投資。

We completed two investments with new companies, four investments with existing companies and one investment with the joint venture, representing $75.3 million in funded loans.

我們完成了兩項新公司的投資、對四項現有公司的投資以及與合資企業的一項投資，總計貸款金額達 7,530 萬美元。

Additionally, Runway delivered total investment income of $36.7 million and net investment income of $15.9 million or $0.41 per share, which covered our base dividend for the quarter.

此外，Runway 的總投資收益為 3,670 萬美元，淨投資收益為 1,590 萬美元或每股 0.41 美元，涵蓋了本季的基本股息。

Subsequent to quarter end, Runway Growth Capital, our investment adviser, entered into a definitive agreement to be acquired by BC Partners Credit as a long-term strategic investment.

季度末之後，我們的投資顧問 Runway Growth Capital 簽署了最終協議，將被 BC Partners Credit 收購，作為長期策略投資。

BC Partners Credit is the $8 billion credit arm of BC Partners, an alternative investment firm with over $40 billion in assets under management.

BC Partners Credit 是 BC Partners 旗下 80 億美元的信貸部門，BC Partners 是一家另類投資公司，管理的資產超過 400 億美元。

Following the transaction, Runway Growth Capital will continue to operate independently and remain the investment adviser to Runway Growth Finance.

交易完成後，Runway Growth Capital 將繼續獨立運營，並繼續擔任 Runway Growth Finance 的投資顧問。

The current leadership and investment teams will remain in place.

現有的領導層和投資團隊將繼續保留。

We believe our investors and borrowers alike will benefit from Runway Growth Capital's joining BC Partners' industry-leading platform due to our combined scale, resources, expertise and network.

我們相信，憑藉我們綜合的規模、資源、專業知識和網絡，我們的投資者和借款人都將受益於 Runway Growth Capital 加入 BC Partners 行業領先的平台。

Further, we anticipate this will enable us to accelerate originations in our ideal transaction size.

此外，我們預計這將使我們能夠加速理想交易規模的發起。

We believe that the combination will enhance our capabilities by introducing structured equity preferred investment, asset-based lending and the ability to operate in new strategies such as equipment leasing.

我們相信，透過引入結構化股權優先投資、資產抵押貸款以及設備租賃等新戰略營運的能力，此次合併將增強我們的能力。

It is also set to strengthen our sponsor relationships through fund finance and other fund-level offerings.

它還將透過基金融資和其他基金級產品加強我們的贊助商關係。

We expect both the wider funnel and additional solutions to help our team further diversify our portfolio across both financing products and size of investments.

我們希望更廣泛的管道和額外的解決方案能夠幫助我們的團隊在融資產品和投資規模方面進一步實現投資組合多樣化。

For our shareholders, this translates to more access and exposure to a broader range of investment opportunities designed to enhance value and the potential for attractive risk-adjusted returns.

對我們的股東而言，這意味著有更多的機會獲得和接觸更廣泛的投資機會，旨在提高價值和獲得有吸引力的風險調整回報的潛力。

To reiterate, this transaction positions the current leadership of Runway Growth Capital and Runway Growth Finance to execute its long-term vision.

需要重申的是，此次交易將使 Runway Growth Capital 和 Runway Growth Finance 的現任領導層能夠執行其長期願景。

We believe it will enable us to strengthen our existing strategy of lending to high-quality late and growth stage companies.

我們相信這將使我們能夠加強向優質後期和成長期公司提供貸款的現有策略。

For the last several quarters, we've made it clear that we are focused on reaccelerating our portfolio expansion with selectivity and prudence, and this focus manifested in several ways throughout the year.

在過去幾個季度中，我們已經明確表示，我們正致力於選擇性和審慎地重新加速我們的投資組合擴張，並且這一重點在全年以多種方式得到體現。

Namely, we have established an operational infrastructure that positions Runway for the opportunities that we believe to be ahead.

也就是說，我們已經建立了一個營運基礎設施，使 Runway 能夠抓住我們認為未來的機會。

Through both our joint venture and our proposed transaction with BC Partners, we have meaningfully expanded origination channels, investment solutions and potential growth strategies for both the adviser and the BDC.

透過與 BC Partners 的合資企業和擬議交易，我們為顧問和 BDC 大幅擴展了發起通路、投資解決方案和潛在成長策略。

This has all been done while consistently driving originations and executing attractive investments that augment our portfolio.

這一切都是在我們不斷推動發起和執行有吸引力的投資以擴大我們的投資組合的同時實現的。

As we have said before, these efforts will not necessarily result in linear portfolio expansion quarter-to-quarter, but we are confident that we are positioning our portfolio and stockholders for long-term returns.

正如我們之前所說，這些努力不一定會導致投資組合逐季度線性擴張，但我們相信我們正在為投資組合和股東帶來長期回報。

With that, I'll turn it over to Greg.

說完這些，我會把話題交給格雷格。

Thanks, David.

謝謝，大衛。

I will offer a market overview, discuss the performance of our portfolio and then hone in on the venture ecosystem.

我將提供市場概況，討論我們投資組合的表現，然後專注於創投生態系統。

While still in the early innings of its taper, we believe the Federal Reserve's recent rate cuts are an encouraging sign to borrowers across the BDC landscape who are often subject to floating rate loans.

儘管仍處於縮減購債計畫的初期，我們認為聯準會最近的降息對 BDC 領域經常受浮動利率貸款影響的借款人來說是一個令人鼓舞的信號。

This does not change our approach to investments, and we believe potential rate cuts over the quarters to come will only benefit our pipeline and ability to execute on loans to high-quality companies with sound fundamentals.

這不會改變我們的投資方式，我們相信未來幾季的潛在降息只會有利於我們的貸款管道和向基本面良好的優質公司發放貸款的能力。

As we enter this dynamic rate environment, we will continue to maintain our disciplined underwriting standards.

當我們進入這個動態利率環境時，我們將繼續保持嚴格的承保標準。

That said, as borrowers experience improved conditions, we will follow through on our strategy to be opportunistic with deployment as we focus on diversifying our portfolio.

儘管如此，隨著借款人狀況的改善，我們將繼續執行我們的策略，在專注於投資組合多元化的同時，抓住機會進行部署。

As some of our large share deals refinance, we will replace them with smaller loans.

隨著我們的一些大型股票交易進行再融資，我們將用小額貸款來代替它們。

We are confident in our ability to execute on that objective.

我們有信心實現這個目標。

And in the third quarter, we were pleased to fund seven investments in high-growth potential software and business processing technology companies, which included investments to two new companies.

第三季度，我們很高興為七家具有高成長潛力的軟體和業務處理技術公司提供投資，其中包括對兩家新公司的投資。

Our new investments during the quarter included the completion of a $23 million senior secured term loan to Snap!

我們本季的新投資包括向 Snap 提供 2,300 萬美元的優先擔保定期貸款！

Mobile, and we partnered with Vista Credit on a senior secured term loan to Zinnia.

移動，我們與 Vista Credit 合作，為 Zinnia 提供優先擔保定期貸款。

Our portion of the financing was $45.3 million.

我們的融資份額為 4530 萬美元。

Snap!

折斷！

provides a software platform designed to help schools and organizations fundraise, manage their rosters and sell merchandise, while Zinnia provides business processing and technology solutions to the life insurance and annuity industry.

提供旨在幫助學校和組織籌集資金、管理名冊和銷售商品的軟體平台，而 Zinnia 則為壽險和年金行業提供業務處理和技術解決方案。

These companies exemplify the high-performing technology industries within our late-stage senior weighted loan portfolio.

這些公司是我們後期高階加權貸款組合中高績效技術產業的典範。

Our joint venture purchased a portion of our Airship loan, resulting in a $5 million equity investment in the JV subsidiary.

我們的合資企業購買了部分 Airship 貸款，從而對合資子公司進行了 500 萬美元的股權投資。

We believe we are making steady progress on expanding and diversifying our portfolio, and we expect to meaningfully add new investments to the portfolio over the coming months and quarters as our loans mature.

我們相信，我們在擴大和多樣化投資組合方面正在取得穩步進展，並且我們預計在未來幾個月和幾個季度，隨著貸款到期，我們將在投資組合中大幅增加新的投資。

Lastly, I want to touch on credit quality.

最後，我想談談信用品質。

Our weighted average portfolio risk rating remained stable at 2.48 in the third quarter compared to 2.47 in the second quarter of 2024.

我們的加權平均投資組合風險評級在第三季保持穩定，為 2.48，而 2024 年第二季為 2.47。

We continue to proactively monitor our portfolio for potential issues that may arise regardless of market conditions, and we uphold our commitment to supporting borrowers throughout the entire lifetime of a loan.

無論市場狀況如何，我們都會繼續主動監控我們的投資組合，以防出現潛在問題，並堅持在整個貸款期間為借款人提供支持的承諾。

Further, we believe that our focus on originating investments at the top of the capital stack while avoiding situations with significant downstream financing risk and junior capital at play reduces our risk of exposure to the volatility often associated with investing in earlier-stage companies.

此外，我們認為，我們專注於在資本堆疊頂端發起投資，同時避免出現重大下游融資風險和初級資本發揮作用的情況，從而降低我們面臨投資早期公司時經常出現的波動風險。

Now I'd like to take a moment to focus on US venture equity deal activity during the third quarter, which continued to experience high deal counts contrasted with low deal value to ongoing liquidity constraints.

現在，我想花點時間關註一下第三季美國風險股權交易活動，由於持續的流動性限制，交易數量繼續保持高位，而交易價值則保持低位。

According to recent PitchBook data, late-stage deal value is 53% lower than it was at the peak levels in 2021.

根據 PitchBook 的最新數據，後期交易價值比 2021 年的峰值低了 53%。

As noted previously, companies at the later stages of venture have been the most apt to lengthen Runway and the most cautious to stay out of the markets to stem further dilution.

如前所述，處於創投後期的公司最傾向於延長跑道，並且最謹慎地遠離市場，以阻止進一步稀釋。

Despite the Fed's recent rate cuts, many late and growth stage companies continue to face fundraising pressure and liquidity constraints in the third quarter as the economy grappled with some uncertainty associated with the US election cycle.

儘管聯準會最近降息，但由於經濟面臨與美國大選週期相關的一些不確定性，許多後期和成長期公司在第三季度仍面臨籌資壓力和流動性限制。

We anticipate the market for borrowers would gradually improve over the coming quarters and will benefit our strong pipeline.

我們預計，未來幾季借款人市場將逐步改善，並將有利於我們強大的管道。

Further, our ability to capitalize on attractive new opportunities in the dynamic environment that shaped 2024 is a testament to our deep sector relationships, along with our targeted outreach and marketing efforts.

此外，我們能夠在塑造 2024 年的動態環境中利用有吸引力的新機遇，證明了我們深厚的產業關係以及我們有針對性的外展和行銷努力。

We expect that continued rate cuts, combined with Runway Growth Capital's pending transaction with BC Partners will serve as tailwinds for the company as we focus on amplifying our reach and the breadth of our investments moving forward.

我們預計，持續的降息加上 Runway Growth Capital 與 BC Partners 即將完成的交易將成為公司的順風，因為我們將專注於擴大我們未來的投資範圍和廣度。

With that, I will now turn it over to Tom to dive deeper into our financials.

說完這些，我現在將把話題交給湯姆，讓他更深入地探討我們的財務狀況。

Thank you, Greg, and good evening, everyone.

謝謝你，格雷格，大家晚上好。

During the third quarter of 2024, Runway continued to expand deal flow, completing two investments in new companies and five investments in existing companies, representing $75.3 million in funded loans.

2024 年第三季度，Runway 繼續擴大交易流程，完成了對兩家新公司的投資和對五家現有公司的投資，相當於 7,530 萬美元的貸款。

As Greg mentioned, our weighted average portfolio risk rating remained stable at 2.48 in the third quarter compared to 2.47 in the second quarter of 2024.

正如 Greg 所說，我們的加權平均投資組合風險評級在第三季保持穩定，為 2.48，而 2024 年第二季為 2.47。

Our rating system is based on a scale of one to five, where one represents the most favorable credit rating.

我們的評級系統是基於一到五的等級，其中一代表最有利的信用評級。

As with previous quarters, we calculated the loan-to-value for loans that were in our portfolio at the end of the second quarter and at the end of the third quarter.

與前幾季一樣，我們計算了第二季末和第三季末我們投資組合中的貸款的貸款價值比。

In comparing this consistent grouping of loans based on investments held in the prior quarter, we found that our dollar weighted loan-to-value ratio increased from 26.7% to 28.6% sequentially.

透過比較上一季持有的投資對貸款進行一致的分組，我們發現美元加權貸款價值比率從上一季的 26.7％ 上升至 28.6％。

Our total investment portfolio had a fair value of approximately $1.07 billion, an increase from $1.06 billion in the second quarter of 2024 and an increase of 5.5% from $1.01 billion for the comparable prior year period.

我們總投資組合的公允價值約為 10.7 億美元，較 2024 年第二季的 10.6 億美元有所增加，較去年同期的 10.1 億美元增加了 5.5%。

Our loan portfolio continues to be comprised almost exclusively of first lien senior secured loans.

我們的貸款組合幾乎仍然由第一留置權優先擔保貸款組成。

As of September 30, 2024, Runway had net assets of $507.4 million, increasing from $506.4 million at the end of the second quarter of 2024.

截至 2024 年 9 月 30 日，Runway 淨資產為 5.074 億美元，較 2024 年第二季末的 5.064 億美元有所成長。

NAV per share was $13.39 at the end of the third quarter compared to $13.14 at the end of the second quarter of 2024.

第三季末每股淨資產值為 13.39 美元，而 2024 年第二季末每股淨資產值為 13.14 美元。

Our loan portfolio is comprised of 100% floating rate assets.

我們的貸款組合由 100% 浮動利率資產組成。

All loans are currently earning interest at or above agreed-upon interest rate floors, which generally reflect the base rate plus the credit spread set at the time of closing or signing of the term sheet.

目前，所有貸款的利息均等於或高於商定的利率下限，該利率下限通常反映基準利率加上在結算或簽署條款清單時設定的信用利差。

In the third quarter, we received $75 million in principal repayments, an increase from $25.3 million in the second quarter of 2024.

第三季度，我們收到了 7,500 萬美元的本金償還，高於 2024 年第二季的 2,530 萬美元。

We generated total investment income of $36.7 million and net investment income of $15.9 million in the third quarter of 2024 compared to $34.2 million and $14.6 million in the second quarter of 2024.

2024 年第三季度，我們的總投資收益為 3,670 萬美元，淨投資收益為 1,590 萬美元，而 2024 年第二季的總投資收益為 3,420 萬美元，淨投資收益為 1,460 萬美元。

Our debt portfolio generated a dollar weighted average annualized yield of 15.9% for the third quarter of 2024 as compared to 15.1% for the second quarter of 2024 and 18.3% for the comparable period last year.

我們的債務組合在 2024 年第三季的美元加權平均年化報酬率為 15.9%，而 2024 年第二季為 15.1%，去年同期為 18.3%。

Moving to our expenses.

轉向我們的開支。

Total operating expenses were $20.8 million for the third quarter, up 6% from $19.6 million for the second quarter of 2024.

第三季總營運費用為 2,080 萬美元，較 2024 年第二季的 1,960 萬美元成長 6%。

We recorded a net unrealized gain on investments of $9.2 million in the third quarter compared to a net unrealized loss of $6.3 million in the second quarter of 2024.

我們第三季的投資淨未實現收益為 920 萬美元，而 2024 年第二季的淨未實現虧損為 630 萬美元。

The net change in unrealized gain on investments was primarily due to an increase in the fair value of our investments in Gynesonics and Snagajob.

投資未實現收益的淨變動主要是由於我們對 Gynesonics 和 Snagajob 的投資公允價值增加所致。

As of September 30, 2024, we had two loans on nonaccrual status, Mingle Healthcare and Snagajob.

截至 2024 年 9 月 30 日，我們有兩筆未計息貸款，分別是 Mingle Healthcare 和 Snagajob。

Our loan to Mingle Healthcare has a cost basis of $5 million and a fair market value of $2.6 million or 53% of cost, while our loan to Snagajob has a cost basis of $42.7 million and fair market value of $37.3 million or 87% of cost.

我們向 Mingle Healthcare 提供的貸款成本基礎為 500 萬美元，公平市價為 260 萬美元，即成本的 53%，而我們向 Snagajob 提供的貸款成本基礎為 4,270 萬美元，公平市場價值為 3,730 萬美元，即成本的 87%。

At the end of the third quarter of 2024, our leverage ratio and asset coverage were 1.08 times and 1.92 times, respectively, compared to 1.1times and 1.91times at the end of the second quarter of 2024.

截至2024年第三季末，我們的槓桿率和資產覆蓋率分別為1.08倍和1.92倍，而2024年第二季末分別為1.1倍和1.91倍。

As of September 30, 2024, our total available liquidity was $251.6 million, including unrestricted cash and cash equivalents, and we had borrowing capacity of $248 million.

截至 2024 年 9 月 30 日，我們的總可用流動資金為 2.516 億美元，包括不受限制的現金和現金等價物，我們的借貸能力為 2.48 億美元。

This reflects an increase from $249.8 million and $241 million, respectively, on June 30, 2024.

這比 2024 年 6 月 30 日的 2.498 億美元和 2.41 億美元有所增加。

At quarter end, we had unfunded financing commitments to portfolio companies of $260.4 million, the majority of which were subject to specific performance milestones.

截至季末，我們向投資組合公司提供的未撥付融資承諾為 2.604 億美元，其中大部分取決於特定的業績里程碑。

During the third quarter, we experienced prepayment totaling $75 million and scheduled amortization of $0.6 million.

第三季度，我們的預付款總額為 7,500 萬美元，預計攤銷金額為 60 萬美元。

The prepayment included full principal repayment of our senior secured term loan to CloudPay.

預付款包括我們向 CloudPay 償還優先擔保定期貸款的全部本金。

In October, we continued to monitor and manage our portfolio to yield long-term benefits for our stockholders.

十月份，我們持續監控和管理我們的投資組合，為股東帶來長期利益。

Subsequent to quarter end, on October 16, 2024, the company sold its outstanding warrants in Dtex Systems for proceeds of $1.9 million.

季度結束後，即 2024 年 10 月 16 日，該公司出售了其在 Dtex Systems 的未償還認股權證，收益為 190 萬美元。

And on October 9, 2024, Betterment Holdings prepaid its outstanding principal balance of $8 million on the company's senior secured loan.

2024 年 10 月 9 日，Betterment Holdings 預付了公司優先擔保貸款的 800 萬美元未償還本金餘額。

Additionally, at the end of October, we received a partial prepayment of $2.1 million from FiscalNote Holdings and Predactiv, formerly known as Sharethis, repaid its outstanding principal balance of $18.5 million on its senior secured loans.

此外，10 月底，我們收到了 FiscalNote Holdings 的 210 萬美元部分預付款，而 Predactiv（原名為 Sharethis）則償還了其優先擔保貸款的 1,850 萬美元未償還本金餘額。

As discussed last quarter, prepayments enabled the Runway to deploy capital across our pipeline to drive portfolio replenishment and expansion.

正如上個季度所討論的那樣，預付款使 Runway 能夠在我們的管道中部署資本，以推動投資組合的補充和擴張。

We believe our level of prepayments in the latter half of 2024 demonstrates the health and strong performance of our borrowers.

我們相信，2024 年下半年的預付款水準證明了我們的借款人健康狀況和強勁表現。

As mentioned on our previous earnings call, on July 30, 2024, our Board of Directors approved a new stock repurchase program of $15 million, which will expire on July 30, 2025, or earlier if we repurchased the total amount of stock authorized for repurchase under the program.

正如我們上次財報電話會議上提到的，2024 年 7 月 30 日，我們的董事會批准了一項 1500 萬美元的新股票回購計劃，該計劃將於 2025 年 7 月 30 日到期，如果我們回購了該計劃授權回購的股票總額，則到期時間會更早。

During the quarter, Runway repurchased 644,763 shares of the company's stock.

本季度，Runway 回購了 644,763 股公司股票。

As David touched on earlier, subsequent to quarter end, Runway Growth Capital entered into a definitive agreement to be acquired by BC Partners Credit.

正如 David 之前提到的，在季度結束後，Runway Growth Capital 與 BC Partners Credit 簽署了最終協議並被其收購。

We have filed a preliminary proxy statement seeking our stockholders' approval of the new investment advisory agreement that the BDC will enter into in connection with the transaction.

我們已提交初步代理聲明，尋求股東批准 BDC 將就此次交易達成的新投資諮詢協議。

More information is available on the proxy materials we have and will file with the SEC.

您可以在我們擁有並將向美國證券交易委員會提交的代理材料中找到更多資訊。

Finally, on November 5, 2024, our Board of Directors declared a regular distribution for the fourth quarter of $0.40 per share.

最後，在 2024 年 11 月 5 日，我們的董事會宣布第四季的定期分配為每股 0.40 美元。

Additionally, the Board has paused our supplemental dividend program.

此外，董事會已暫停我們的補充股利計劃。

Management and the Board believe it is prudent to focus our near-term capital allocation strategy on preserving and building NAV as we seek to accelerate growth and create value for our shareholders.

管理階層和董事會認為，在我們尋求加速成長並為股東創造價值的過程中，將近期資本配置策略重點放在維護和建立資產淨值上是明智之舉。

With that, operator, please open the line for questions.

接線員，請打開熱線來回答問題。

(Operator Instructions) Finian O'Shea with WFS.

(操作員指示) Finian O'Shea 與 WFS。

Hey, everyone.

嘿，大家好。

Good afternoon.

午安.

A couple of questions on the adviser merger to start.

首先問幾個關於顧問合併的問題。

Is BC Partners buying just the Oaktree stake or the whole thing?

BC Partners 只購買 Oaktree 股份還是全部股份？

And then also, can you -- it looks like it's being bought from a fund again.

而且，你還能——它看起來又像是從基金中購買的。

So maybe is it less strategic than another sort of fund investment?

那麼，它是否比其他類型的基金投資更不具策略性呢？

And if you could kind of opine on what that means for the future of the company.

如果您能就這對公司的未來意味著什麼發表看法。

Sure, Fin.

當然，芬。

Thanks for the question.

謝謝你的提問。

They are buying the whole thing, Oaktree's stake in the adviser as well as all of the other shareholders.

他們正在收購全部資產，包括橡樹資本在該顧問公司的股份以及所有其他股東的股份。

There aren't many.

不多。

Most of the remainder of the adviser is owned by myself and Tom and Greg.

該顧問的剩餘大部分股份由我和湯姆以及格雷格擁有。

And so they will be buying 100% of the adviser.

因此他們將購買該顧問的 100% 股份。

And it is being acquired by a fund, but I believe that the intention is for it to be a long-term holding and a strategic part of their growth plan, and we're very much looking forward to working with Ted Goldthorpe and his team.

它目前正在被一家基金收購，但我相信其意圖是長期持有它並使其成為其增長計劃的戰略組成部分，我們非常期待與 Ted Goldthorpe 和他的團隊合作。

It's really important to us, and it's a part of our plan.

這對我們來說確實很重要，這是我們計劃的一部分。

It expands our origination capability.

它擴展了我們的發起能力。

It extends our leadership team.

它擴大了我們的領導團隊。

It fortifies our position in the market and allows us to participate in other types of financing that we don't currently do and lets us tap into their originations, which has already been quite active in showing us deals.

它鞏固了我們在市場中的地位，使我們能夠參與目前尚未參與的其他類型的融資，並讓我們利用他們的發起管道，這些管道已經非常積極地向我們展示交易。

We'll be announcing some very soon.

我們很快就會公佈一些消息。

But most importantly, it positions us to be able to deliver for shareholders in terms of increased share value and increased return on their investment.

但最重要的是，它使我們能夠為股東帶來更高的股價和更高的投資回報。

Melissa Wedel with JPMorgan.

摩根大通的梅麗莎‧韋德爾 (Melissa Wedel)。

Good afternoon.

午安.

Thanks for taking my questions.

感謝您回答我的問題。

I wanted to follow up on the question about the acquisition by BC Partners.

我想跟進有關 BC Partners 收購的問題。

I think one of the things that you indicated in the press release and then in the earlier announcement was that it expands the offerings and the types of solutions.

我認為您在新聞稿和先前的公告中提到的一件事是，它擴大了產品範圍和解決方案的類型。

I'm curious, there's -- I think there's a lot to understand about just sort of the earnings profile going forward of the portfolio as you diversify into other solutions and other products, how will that -- how do you expect that to impact sort of the asset yield on the portfolio?

我很好奇，我認為隨著你向其他解決方案和其他產品進行多元化發展，有很多關於投資組合未來盈利狀況需要了解，你預計這會對投資組合的資產收益率產生什麼影響？

Thanks, Melissa.

謝謝，梅麗莎。

And I do think it's key for us to say that this wall is expanding the product suite that we are able to offer potential borrowers, does not change our return target in terms of the asset level on both the levered and unlevered basis, and we expect it to provide a similar stream of income to what we've seen historically.

我確實認為，對我們來說，關鍵的是，這堵牆擴大了我們能夠為潛在藉款人提供的產品套件，不會改變我們在槓桿和無槓桿基礎上的資產水平的回報目標，我們預計它將提供與我們歷史上看到的類似的收入來源。

Okay.

好的。

As we look at sort of the environment going forward, I think we've heard a range of outlooks in terms of what the M&A environment could be.

當我們展望未來的環境時，我認為我們聽到了關於併購環境的一系列觀點。

As you start to look forward to additional rate cuts or just a new administration coming in that may be pro-growth, are you thinking that this is an environment where you could see additional churn in terms of exits from your portfolio as companies get acquired?

當您開始期待進一步的降息或可能有利於成長的新政府上台時，您是否認為在這種環境下，隨著公司被收購，您可能會看到投資組合退出方面的進一步流失？

Or is there still quite an overhang on valuation in the space where you operate?

或者，在您經營的領域，估值是否仍存在相當大的懸而未決的問題？

Thanks, Melissa.

謝謝，梅麗莎。

So we are really optimistic about the current environment.

因此，我們對當前環境非常樂觀。

I think getting the election behind us and having some certainty there is important.

我認為，贏得選舉並獲得一定的確定性是很重要的。

The view that interest rates are most likely on a downward trajectory has brought a lot of positivity and optimism to the market.

利率很可能呈下降趨勢的觀點給市場帶來了很多積極和樂觀的情緒。

And when we combine that with the deal flow that we're seeing from BC, we feel really good about what's happening, and we're hearing that from the entrepreneurs in the market.

當我們將其與從 BC 看到的交易流程結合時，我們對正在發生的事情感到非常高興，我們也從市場上的企業家那裡聽到了這一點。

Now on the other hand, you contrast that with some of the difficulties that are taking place in the venture equity market where there is money being invested, but quite often, it's at a down round.

另一方面，你可以將其與風險股權市場中出現的一些困難進行對比，風險股權市場中雖然有資金被投資，但往往處於下跌階段。

I think we're at an all-time high for down rounds in terms of percentage of all rounds.

我認為，從所有融資輪次所佔百分比來看，我們的降價融資輪次處於歷史最高水準。

And one way to avoid a down round is to use debt.

避免融資成本降低的一種方法是使用債務。

So more and more people are coming to us.

因此，越來越多的人來到我們這裡。

Greg, do you want to add some more color?

格雷格，你想添加一些顏色嗎？

Yeah.

是的。

The one thing I would add in terms of M&A is since we play in the latest stage of venture and growth companies, for the most part, not only our borrowers potential targets from much bigger companies, but they're also acquirers.

關於併購，我想補充的一點是，由於我們處於風險投資和成長型公司的最新階段，因此在大多數情況下，我們的借款人不僅是來自更大公司的潛在目標，而且也是收購者。

And as we see potential financing becoming cheaper in terms of rates potentially coming down, seeing greater certainty in terms of antitrust and other things like that, we do believe that there's not only going to be a significant use case for us to potentially upsize our loans to existing portfolio companies as they look to do M&A, but also have opportunities to finance new companies who are out there looking to go back and find additional M&A opportunities.

而且，我們看到潛在融資成本在利率可能下降方面變得更便宜，看到反壟斷等方面的更大確定性，我們確實相信，這不僅對我們在現有投資組合公司尋求併購時增加貸款規模具有重要意義，而且也有機會為那些希望回頭尋找更多併購機會的新公司提供融資。

Okay.

好的。

Understood.

明白了。

One final question, if I could.

如果可以的話，我還有最後一個問題。

In the press release today, I think you identified maybe about $30 million of repayments and I guess, post quarter end.

在今天的新聞稿中，我認為您確定了大約 3000 萬美元的還款，我想是在季度末之後。

Can you help contextualize that for us?

您能幫我們解釋一下這一情況嗎？

Fourth quarter can be a seasonally busy one.

第四季可能是一個季節性繁忙的季度。

Are you surprised, not surprised to see $30 million rotate out in the first month of fourth quarter?

您是否對第四季度第一個月流出 3,000 萬美元感到驚訝或不驚訝？

Earlier -- thanks, Melissa.

早些時候——謝謝，梅麗莎。

Earlier in the year, we talked about a level of -- our expectations for the level of prepayments during the third and fourth quarter.

今年早些時候，我們談到了對第三季和第四季預付款水準的預期。

And as always, what happens is you tend to get a lot of prepayments at the beginning of the quarter and you replace the assets at the end of the quarter.

像往常一樣，情況是這樣的，你往往會在季度初收到大量預付款，並在季度末更換資產。

So these were transactions that made good strategic sense.

因此這些交易具有良好的戰略意義。

One was refinancing of us out and the other was a sale of one of the company's business units.

一個是對我們的再融資，另一個是出售公司的一個業務部門。

So we're not -- we weren't surprised.

所以我們並不感到驚訝。

We expected them, and there are other M&A transactions that are announced that could yet close this quarter and add to that prepayment.

我們預料到了這些，並且還有其他已宣布的併購交易可能在本季度完成並增加預付款。

So no surprise, and we're working to redeploy those assets.

所以這並不奇怪，我們正在努力重新部署這些資產。

Mickey Schleien with Ladenburg Thalmann.

米奇‧施萊恩 (Mickey Schleien) 與拉登堡‧塔爾曼 (Ladenburg Thalmann)。

Most of my questions have been asked, but I just wanted to quickly get your insight on Snagajob, which is now valued much closer to par.

我的大部分問題都已經被問過了，但我只是想快速了解一下您對 Snagajob 的看法，它現在的估值已經更接近平價了。

Can we expect that investment to go back on accrual soon or some other expected outcome in the near future?

我們是否可以預期投資很快就會回到應計水準或在不久的將來實現其他預期結果？

Thanks, Mickey.

謝謝，米奇。

Our strategy with Snagajob is to really preserve and restore NAV.

我們與 Snagajob 合作的策略是真正保存和恢復 NAV。

And so there is a plan in place that will lead to protecting the NAV.

因此，我們制定了一項計劃來保護淨值。

I don't expect that in the short term, it will be back on an accrual basis.

我預計短期內它不會回到權責發生製。

We would expect over the long term that it does return to accrual status.

我們預計，從長遠來看，它將恢復到應計狀態。

But in the short term, it will stay on nonaccrual, but there is a plan in place that really protects the value of the asset for us.

但在短期內，它將保持不計息狀態，但我們有一個計劃可以真正保護資產的價值。

I understand those are all my questions this afternoon.

我知道這些就是我今天下午的所有問題。

Thank you for your time.

感謝您的時間。

Finian O'Shea with WFS.

Finian O’Shea 與 WFS 合作。

Just a follow-up on just a housekeeping question on the merger.

我只是想問一下關於合併的一些基本問題。

Should we expect any like deal-related expenses when it closed and what that might look like?

當該交易完成時，我們是否應該預期任何類似的交易相關費用以及這些費用會是什麼樣的？

Thanks, Fin.

謝謝，Fin。

So under the '40 Act, all of the transaction expenses, cost of the proxy, cost of legal around that, anything related to the transaction from a deal cost perspective is borne by the adviser.

因此，根據 40 年法案，所有交易費用、代理費用、相關法律費用以及從交易成本角度來看與交易相關的任何費用均由顧問承擔。

Thank you.

謝謝。

I'm showing no further questions at this time.

我目前沒有其他問題。

And I would now like to turn it back to David Spreng for closing remarks.

現在我想請戴維·斯普倫 (David Spreng) 作最後發言。

Thank you, operator.

謝謝您，接線生。

We are pleased with the momentum achieved during the third quarter and believe Runway is advantageously positioned to meaningfully accelerate originations.

我們對第三季的進展感到滿意，並相信 Runway 處於有利地位，可以顯著加速業務的開展。

With the partnership of BC Partners, we look forward to executing on attractive investments that diversify our portfolio and drive long-term returns for our stockholders.

透過與 BC Partners 合作，我們期待執行有吸引力的投資，以實現投資組合多元化，並為股東帶來長期回報。

Thank you all for joining us today.

感謝大家今天的參與。

We look forward to updating you on our fourth quarter and full year 2024 financial results in March.

我們期待在三月向您更新我們 2024 年第四季和全年的財務表現。

This does conclude the program, and you may now disconnect.

這確實結束了程序，您現在可以斷開連接了。