Runway Growth Finance Corp (RWAY) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Runway Growth Finance fourth quarter and fiscal year ended 2024 earnings conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Quinlan Abel, Assistant Vice President, Investor Relations. You may begin.

女士們，先生們，感謝大家的支持，歡迎參加 Runway Growth Finance 第四季和 2024 財年財報電話會議。請注意，今天的會議正在錄音。現在，我想將會議交給投資者關係助理副總裁 Quinlan Abel。你可以開始了。

Thank you, operator. Good evening, everyone, and welcome to the Runway Growth Finance conference call for the fourth quarter and fiscal year ended December 31, 2024. Joining us on the call today from Runway Growth Finance are David Spreng, Chairman and Chief Executive Officer; Greg Greifeld, Chief Investment Officer of Runway Growth Capital, LLC, our investment adviser; and Tom Raterman, Chief Financial Officer and Chief Operating Officer.

謝謝您，接線生。大家晚上好，歡迎參加 Runway Growth Finance 2024 年 12 月 31 日止第四季及財政年度電話會議。今天參加 Runway Growth Finance 電話會議的有董事長兼首席執行官 David Spreng；我們的投資顧問 Runway Growth Capital, LLC 首席投資官 Greg Greifeld；以及首席財務官兼首席營運官湯姆·拉特曼 (Tom Raterman)。

Runway Growth Finance's fourth quarter and fiscal year ended 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 的第四季度和截至 2024 年財年的財務業績於今天收盤後發布，可從 Runway Growth Finance 的投資者關係網站 investors.runwaygrowth.com 訪問。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. The statements on this call that are not purely historical are forward-looking statements. 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.

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。本次電話會議中的陳述並非純粹的歷史性陳述，而是前瞻性陳述。這些前瞻性陳述並不能保證未來的業績，並且受不確定因素和其他因素的影響，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引起的市場狀況、不斷變化的經濟狀況以及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。

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 and as a result, the forward-looking statements based on those assumptions can be incorrect. You should not place undue reliance on these forward-looking statements. 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. To obtain copies of SEC related filings, please visit our website.

儘管我們相信這些前瞻性聲明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，因此，基於這些假設的前瞻性陳述可能是不正確的。您不應過度依賴這些前瞻性陳述。本次電話會議中所包含的前瞻性陳述均截至本電話會議之日作出，Runway Growth Finance 不承擔更新前瞻性陳述或後續事件的義務。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. On today's call, we will discuss our fourth quarter and full year 2024 financial results reflect on the recently closed acquisition of our adviser by BC Partners Credit and share our market outlook for the year ahead. We are pleased with the performance of the portfolio and our strategic execution in 2024. For the fourth quarter, Runway delivered total investment income of $33.8 million and net investment income of $14.6 million. Against the evolving rate environment and macro backdrop, we focused on the health of our late and growth stage portfolio and maintain strong credit quality.

謝謝你，Quinlan，也謝謝大家今晚加入我們。在今天的電話會議上，我們將討論我們第四季度和 2024 年全年的財務業績，反映 BC Partners Credit 最近對我們顧問的收購，並分享我們對未來一年的市場展望。我們對 2024 年投資組合的表現和策略執行感到滿意。第四季度，Runway 的總投資收益為 3,380 萬美元，淨投資收益為 1,460 萬美元。在不斷變化的利率環境和宏觀背景下，我們專注於後期和成長期投資組合的健康狀況，並保持強勁的信用品質。

The fourth quarter of 2024 was transformative for Runway. We have enhanced our origination channels, expanded our product set and built infrastructure to accelerate pipeline growth as we seek to optimize our portfolio. As we previously announced, during the fourth quarter, Runway Growth Capital, our investment adviser, entered into a definitive agreement to be acquired by BC Partners Credit as a long-term strategic investment. BC Partners Credit now has more than $10 billion in assets under management and is the credit arm of BC Partners and alternative investment firm with over $40 billion in AUM. In January, we were pleased to announce the close of this transaction following a strong shareholder vote in favor of this path forward.

2024 年第四季對 Runway 來說具有變革意義。我們加強了發起管道，擴大了產品組合，並建立了基礎設施以加速管道成長，同時尋求優化我們的產品組合。正如我們之前宣布的那樣，在第四季度，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 目前管理的資產超過 100 億美元，是 BC Partners 的信貸部門和另類投資公司，管理的資產超過 400 億美元。今年 1 月，在股東們大力支持這條發展路徑後，我們很高興地宣布這筆交易已完成。

To reiterate, Runway Growth Capital continues to operate with its full team intact and remains the investment adviser to Runway Growth Finance. The close of the BC Partners transaction ushers in a new era for our shareholders and borrowers who we believe will benefit our combined scale and expertise. Looking ahead, Runway Growth Capital is seeking to grow originations in the total loan size of $30 million to $150 million. That said, our ideal allocation to the BDC will remain $20 million to $45 million. Greg will cover this in more momentarily.

重申一下，Runway Growth Capital 將繼續以完整的團隊運營，並繼續擔任 Runway Growth Finance 的投資顧問。BC Partners 交易的結束為我們的股東和借款人開啟了一個新時代，我們相信這將使我們的綜合規模和專業知識受益。展望未來，Runway Growth Capital 尋求將貸款總額從 3,000 萬美元增加到 1.5 億美元。也就是說，我們對 BDC 的理想分配金額仍為 2,000 萬至 4,500 萬美元。格雷格稍後會詳細介紹這一點。

But we believe this range of check size is positioned to benefit both Runway and BC in the long term. Additionally, we expect this focus will further diversify our BDC's portfolio. For example, a $50 million investment pays back its loan, we may seek attractive opportunities in the $20 million to $30 million size to deploy that return capital. We view this as a win-win for our investors, taking a scaled platform that offers stronger deal flow and more solutions to attract prospective borrowers as well as the strategic focus that will further diversify our go-forward portfolio and mitigate risk. We are just getting started.

但我們相信，從長遠來看，這種支票規模範圍將使 Runway 和 BC 都受益。此外，我們預計這一重點將進一步豐富我們 BDC 的投資組合。例如，一筆 5000 萬美元的投資償還了貸款，我們可能會尋找 2000 萬至 3000 萬美元規模的有吸引力的機會來部署這筆回報資本。我們認為這對我們的投資者來說是雙贏的，採用規模化的平台可以提供更強大的交易流程和更多的解決方案來吸引潛在的借款人，同時戰略重點將進一步分散我們的未來投資組合併降低風險。我們才剛開始。

And as we embark on this new chapter with the support of BC Partners, we are confident that our platform is well positioned to maximize our portfolio while maintaining disciplined underwriting practices. We remain focused on our long-term vision of providing financing solutions to passionate entrepreneurs who are building innovative businesses.

在 BC Partners 的支持下，我們開啟了新的篇章，我們相信，我們的平台能夠最大限度地擴大我們的投資組合，同時保持嚴格的承保實踐。我們始終專注於我們的長期願景，為充滿熱情、正在創建創新企業的企業家提供融資解決方案。

To that end, in the fourth quarter, we were pleased to execute on two investments with new companies and five investments with existing portfolio companies, representing $154 million in funded loans. Our new positions during the quarter include the completion of a $43 million loan to Piano software, a global leader in digital experience management.

為此，在第四季度，我們很高興與新公司進行了兩項投資，與現有投資組合公司進行了五項投資，相當於 1.54 億美元的貸款。我們在本季的新職位包括向數位體驗管理領域的全球領導者 Piano 軟體公司完成 4,300 萬美元的貸款。

We also completed a $26.7 million investment to Hurricane Clean Coal Ltd. and integrated merchant acquiring and payment processing platform. Our investments made in the quarter are reflective of our focus on the high-growth sectors of technology, health care and consumer products and services. As I wrap up, I want to reiterate our excitement for the path forward. Our portfolio is positioned to perform, and we believe our borrowers will operate effectively against the macro backdrop taking shape in 2025. Looking ahead, Runway will continue to prioritize a credit-first investment philosophy, maintain selectivity as we seek to optimize our portfolio.

我們也向 Hurricane Clean Coal Ltd. 完成了 2,670 萬美元的投資，並整合了商家收單和支付處理平台。我們在本季的投資反映了我們對科技、醫療保健以及消費品和服務等高成長領域的關注。最後，我想重申我們對未來道路的興奮。我們的投資組合有望實現良好表現，我們相信，在 2025 年形成的宏觀背景下，我們的借款人將有效運作。展望未來，Runway 將繼續優先考慮信貸優先的投資理念，在尋求優化投資組合的同時保持選擇性。

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

說完這些，我就把麥克風交給格雷格。

Thanks, David, and good evening, everyone. Today, I will offer a little more detail on our capital deployment philosophy and then wrap with our view on the current venture debt landscape. To echo David's sentiment, with the close of the BC Partners transaction, we are starting 2025 with an expanded product set, and we are already evaluating a growing pipeline of opportunities as a result. To begin, I want to drill down on a point David outlined earlier on our target allocation rate of $20 million to $45 million to the BDC. As a part of the broader BC Partners credit ecosystem, we have the ability to take parts in larger builds and allocate the ideal allotment to Runway Growth Finance.

謝謝，大衛，大家晚上好。今天，我將更詳細地介紹我們的資本配置理念，然後總結我們對當前風險債務狀況的看法。為了呼應 David 的觀點，隨著 BC Partners 交易的結束，我們將在 2025 年開始擴大產品組合，並且我們已經在評估因此而不斷增長的機會管道。首先，我想深入探討 David 之前概述的一點，即我們向 BDC 分配 2000 萬至 4500 萬美元的目標率。作為更廣泛的 BC Partners 信貸生態系統的一部分，我們有能力參與更大規模的建設，並為 Runway Growth Finance 分配理想的配額。

A good example of this is our partnership with Vertex One, which closed in the fourth quarter. This transaction provided Vertex One with $131 million of growth capital and $41 million was allocated to the BBC. This is one of the many tools we have available to us to drive originations and strike deals that are favorable to our investors across the entire platform. We look forward to sharing additional opportunities that present multifaceted wins. Subsequent to the end of the quarter, we saw a new administration take office and potential policies and new regulatory measures become a reality.

一個很好的例子就是我們與 Vertex One 的合作，該合作於第四季結束。這項交易為 Vertex One 提供了 1.31 億美元的成長資本，其中 4,100 萬美元分配給了 BBC。這是我們可用的眾多工具之一，用於推動發起並達成對整個平台的投資者有利的交易。我們期待分享更多能帶來多方面勝利的機會。本季結束後，我們看到新政府上台，潛在的政策和新的監管措施成為現實。

While the economic impact of tariffs and the evolving government efficiency initiatives represent a dynamic situation, we believe our focus on high-growth sectors with loans that are senior in the capital structure provides additional security and allows our portfolio to perform across market backdrops. Further, we believe our pure-play focus on venture debt which experienced explosive growth in 2024 will continue to be a key value driver moving forward.

雖然關稅和不斷發展的政府效率措施對經濟的影響代表著一種動態的情況，但我們相信，我們專注於高成長產業，並在資本結構中擁有優先貸款，這提供了額外的安全性，並使我們的投資組合能夠在各種市場背景下表現良好。此外，我們相信，我們對風險債務的純粹關注（在 2024 年經歷了爆炸性增長）將繼續成為未來發展的關鍵價值驅動力。

According to recent pitch book data, venture debt deal value increased to more than $53 billion in 2024 and a dramatic increase from approximately $27 billion in 2023. This increase can be attributed to several multibillion-dollar deals completed as AI companies raise debt. And while some of these transactions may have been idiosyncratic, we view this growth as a green sheet for the venture debt space writ large.

根據最近的投資手冊數據，風險債務交易價值將在 2024 年增至 530 億美元以上，較 2023 年的約 270 億美元大幅增加。這一增長可以歸因於人工智慧公司舉債完成的數筆數十億美元的交易。儘管其中一些交易可能具有特殊性，但我們認為這種成長對於風險債務領域來說是一個明顯的利好消息。

In our view, Runway is positioned to execute amidst the tailwinds in venture debt and our investors benefit from the following characteristics of the sector. First, our portfolio offers lower loan-to-value relative to middle market lenders, which provides a margin of safety for investors.

我們認為，Runway 有能力在風險債務的順風中發揮作用，我們的投資者將受益於該行業的以下特徵。首先，與中端市場貸款機構相比，我們的投資組合提供的貸款價值比較低，這為投資者提供了安全邊際。

Second, our loans offer predictable cash flows that enable differentiated return profiles for the shorter lifetime. Third, we underwrite our solutions with enhanced control through covenants and milestones outlined in our debt agreements. And lastly, our investors gain attractive exposure to the venture ecosystem through a portfolio of assets at the top of the capital stack.

其次，我們的貸款提供可預測的現金流，從而可以在較短的期限內實現差異化的回報狀況。第三，我們透過債務協議中概述的契約和里程碑來加強控制，從而承保我們的解決方案。最後，我們的投資者透過資本堆疊頂端的資產組合獲得了對創投生態系統的吸引力。

This offers strong risk mitigation compared to other venture investment solutions. In short, Runway has exhibited strong portfolio management with minimal losses since inception and presents prospective investors with ample equity upside as we currently trade at a discount to our venture debt peers. The opportunity in front of us is clear. and we have the backing of a world-class platform to deliver for our shareholders.

與其他創投解決方案相比，這提供了強大的風險緩解能力。簡而言之，Runway 自成立以來就表現出強大的投資組合管理能力，損失極小，並為潛在投資者提供了充足的股權上漲空間，因為我們目前的交易價格低於風險債務同業。我們面前的機會是顯而易見的。我們擁有世界一流平台的支持，可以為股東提供服務。

With that, I will now turn it over to Tom to discuss our financial results.

現在，我將把時間交給湯姆來討論我們的財務表現。

Thank you, Greg, and good evening, everyone. During the fourth quarter of 2024, Runway completed two investments in new companies and five investments in existing companies representing $154 million in funded loans. Our weighted average portfolio risk rating decreased to 2.33 in the fourth quarter of 2024 compared to 2.48 in the third quarter of 2024. Our rating system is based on a scale of 1 to 5, where 1 represents the most favorable credit rating. I think it may be valuable to take a moment to dive deeper into our rating system.

謝謝你，格雷格，大家晚上好。2024 年第四季度，Runway 完成了對兩家新公司的投資和對五家現有公司的投資，共計提供了 1.54 億美元的貸款。我們的加權平均投資組合風險評級從 2024 年第三季的 2.48 下降至 2024 年第四季的 2.33。我們的評級系統基於 1 到 5 的等級，其中 1 代表最有利的信用評級。我認為花點時間深入了解我們的評級系統可能會很有價值。

For reference, all new transactions began as a Category 2. Several performance items as well as technical loan compliant matters could cause a loan to move from Category 2 to Category 3. This might include a borrower deviating from its plan of record. I want to point out that the borrowers plan of record is generally not our underwriting plan and does not necessarily mean that the credit is now in trouble. In our experience, the majority of borrowers that move to Category 3 still pay their loan in full and on time.

作為參考，所有新交易均以第 2 類開始。一些績效項目以及技術貸款合規事項可能會導致貸款從第 2 類轉為第 3 類。這可能包括借款人偏離其記錄計劃。我想指出的是，借款人的記錄計劃通常不是我們的承保計劃，並不一定意味著信貸現在陷入困境。根據我們的經驗，大多數轉入第 3 類的借款人仍然會按時全額償還貸款。

This risk rating helps us monitor our portfolio accurately, but we do want to clarify that companies in Category 3 are not necessarily exhibiting subpar or weak operating performance. Rather, these companies simply have deviated from the company plan that was laid out at the beginning of our agreement. The full details of our rating system are included in our annual report on Form 10-K. As with previous quarters, we calculated the loan-to-value for loans that were in our portfolio at the end of the third quarter and at the end of the fourth quarter. In comparing this consistent grouping of loans, we found that our dollar weighted loan-to-value ratio decreased from 29.3% to 26.6%.

此風險評級有助於我們準確監控我們的投資組合，但我們確實想澄清的是，第 3 類公司並不一定表現出低於標準或疲軟的經營業績。相反，這些公司只是偏離了我們協議開始時制定的公司計劃。我們的評級系統的完整詳細資訊包含在我們的 10-K 表格年度報告中。與前幾季一樣，我們計算了第三季末和第四季末我們投資組合中貸款的貸款價值比。在比較這些一致的貸款分組時，我們發現我們的美元加權貸款價值比從 29.3% 下降到 26.6%。

Our total investment portfolio, excluding US treasury bills, had a fair value of approximately $1.08 billion, an increase from $1.07 billion in the third quarter of 2024 and an increase of 5% from $1.03 billion for the comparable prior year period. Our loan portfolio continues to be comprised almost exclusively of first lien senior secured loans.

我們的總投資組合（不包括美國國庫券）的公允價值約為 10.8 億美元，較 2024 年第三季的 10.7 億美元有所增加，較去年同期的 10.3 億美元成長 5%。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。

At December 31, 2024, Runway had net assets of $514.9 million, increasing from $507.4 million at the end of the third quarter of 2024. NAV per share was $13.79 at the end of the fourth quarter, an increase of 3% compared to $13.39 at the end of the third quarter of 2024.

截至 2024 年 12 月 31 日，Runway 的淨資產為 5.149 億美元，高於 2024 年第三季末的 5.074 億美元。第四季末每股淨資產為 13.79 美元，較 2024 年第三季末的 13.39 美元成長 3%。

Our loan portfolio is comprised of 97% floating rate assets. 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. In the fourth quarter, we received $152.6 million in principal prepayments an increase from $75 million in the third quarter of 2024.

我們的貸款組合由 97% 的浮動利率資產組成。目前，所有貸款的利息均等於或高於商定的利率下限，該利率通常反映基準利率加上在簽訂或簽署條款清單時設定的信用利差。第四季度，我們收到 1.526 億美元的本金預付款，高於 2024 年第三季的 7,500 萬美元。

As previously stated, we believe elevated prepayments are an indicator of the strength in our approach to underwriting and the overall health of the portfolio and the ecosystem. We generated total investment income of $33.8 million and net investment income of $14.6 million in the fourth quarter of 2024 compared to $36.7 million and $15.9 million in the third quarter of 2024.

如前所述，我們認為預付款的增加表明我們的承保方式強勁，並且投資組合和生態系統的整體健康狀況良好。2024 年第四季，我們的總投資收益為 3,380 萬美元，淨投資收益為 1,460 萬美元，而 2024 年第三季分別為 3,670 萬美元和 1,590 萬美元。

Our debt portfolio generated a dollar weighted average annualized yield of 14.7% for the fourth quarter as compared to 15.9% for the third quarter of 2024 and 16.9% for the comparable period last year. Moving to our expenses. Total operating expenses were $19.2 million for the fourth quarter of 2024, a decrease from $20.8 million for the third quarter of 2024. We recorded a net realized loss on investments of $2.9 million in the fourth quarter of 2024 compared to no realized gains or losses in the third quarter of 2024. At December 31, 2024, we continue to have two loans on nonaccrual status, Mingle Healthcare and Snagajob.

我們的債務組合第四季的美元加權平均年化報酬率為 14.7%，而 2024 年第三季為 15.9%，去年同期為 16.9%。轉向我們的開支。2024 年第四季總營運費用為 1,920 萬美元，低於 2024 年第三季的 2,080 萬美元。2024 年第四季度，我們的投資淨實現損失為 290 萬美元，而 2024 年第三季則沒有實現收益或損失。截至 2024 年 12 月 31 日，我們仍有兩筆處於非應計狀態的貸款，分別是 Mingle Healthcare 和 Snagajob。

Our loans to Mingo Healthcare has a cost basis of $5 million and fair market value of $2.1 million or 43% of cost. Our loans of Snagajob has a cost basis of $3.8 million and fair market value of $3.4 million or 91% of cost. Together, these loans represent only 0.5% of the total investment portfolio at fair value as of December 31, 2024.

我們向 Mingo Healthcare 提供的貸款成本基礎為 500 萬美元，公平市價為 210 萬美元，即成本的 43%。我們對 Snagajob 的貸款成本基礎為 380 萬美元，公平市價為 340 萬美元，即成本的 91%。總計而言，這些貸款僅佔截至 2024 年 12 月 31 日公允價值總投資組合的 0.5%。

At the end of the fourth quarter of 2024, our leverage ratio and asset coverage remained at 1.08x and 1.92x, respectively, consistent with the third quarter of 2024. As of December 31, 2024, our total available liquidity was $244.8 million, including unrestricted cash and cash equivalents, and we had borrowing capacity of $239 million.

截至2024年第四季末，我們的槓桿率和資產覆蓋率分別維持在1.08倍和1.92倍，與2024年第三季持平。截至 2024 年 12 月 31 日，我們的可用流動資金總額為 2.448 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 2.39 億美元。

Subsequent to quarter end, we extended our credit facility with KeyBank by three years, subject to the terms and conditions as reflected in the amended credit facility agreement. We believe the amended credit facility provides increased availability and additional lending verticals to support our business growth.

季末之後，我們將與 KeyBank 的信貸安排延長了三年，但須遵守修訂後的信貸安排協議中反映的條款和條件。我們相信，修改後的信貸安排將提供更高的可用性和額外的貸款垂直領域，以支持我們的業務成長。

As of December 31, 2024, we had a total of $176.7 million in unfunded commitments, which was comprised of $147.3 million to provide debt financing to our portfolio companies and $29.4 million to provide equity financing to Runway Cadma 1 LLC. Approximately $24.8 million of available unfunded commitments are eligible to be drawn based on achieved milestones. During the fourth quarter, we experienced five prepayments totaling $152.6 million and scheduled amortization of $2.4 million.

截至 2024 年 12 月 31 日，我們共有 1.767 億美元的未撥付承諾，其中包括向我們的投資組合公司提供債務融資的 1.473 億美元和向 Runway Cadma 1 LLC 提供股權融資的 2,940 萬美元。根據已實現的里程碑，大約有 2,480 萬美元的可用未撥付承諾金可供提取。在第四季度，我們經歷了五筆預付款，總額為 1.526 億美元，計畫攤銷金額為 240 萬美元。

I'll now close with an update on our capital allocation strategy. Earlier today, our Board of Directors declared aggregate distributions of $0.36 per share for the first quarter of 2025 and which is comprised of a $0.33 per share base dividend and a $0.03 per share supplemental dividend. Subject to Board approval, we expect that going forward, the company will continue to pay a quarterly base dividend of $0.33 per share and a targeted supplemental dividend that we expect will be up to 50% of the delta that our NII per share exceeds the base dividend.

現在，我將以我們的資本配置策略的最新進展作為結束。今天早些時候，我們的董事會宣布 2025 年第一季的總分配額為每股 0.36 美元，其中包括每股 0.33 美元的基本股息和每股 0.03 美元的補充股息。經董事會批准，我們預計未來公司將繼續支付每股 0.33 美元的季度基本股息，並預計目標補充股息將達到每股 NII 超過基本股息差額的 50%。

As we focus on near-term capital allocation strategy on building and preserving NAV, we believe our lower base dividend will enable us to deliver consistent yield to our shareholders even if we face rate environment volatility. Our Board will continue to evaluate and improve future distributions, knowing how important consistency is to our fellow shareholders.

由於我們專注於建立和維持資產淨值的近期資本配置策略，我們相信，即使面臨利率環境波動，較低的基本股息也將使我們能夠為股東提供穩定的收益。我們的董事會將繼續評估和改進未來的分配，因為我們深知一致性對我們的股東來說有多重要。

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

接線員，請打開熱線來回答問題。

(Operator Instructions) Casey Alexander, Compass Point Research and Trading.

（操作員指示）Casey Alexander，Compass Point Research and Trading。

First of all, I was a little surprised that there were not more new originations here in the first quarter. You gave some information up to this point in time, $2 million and $13 million coming off revolvers, I think it was. Now I do know that originations are generally very back ended. Would you expect here in the next 10 days before the quarter ends that there would be additional originations?

首先，我對第一季這裡沒有更多新發起感到有點驚訝。到目前為止，您提供了一些信息，我認為是 200 萬美元和 1300 萬美元來自左輪手槍。現在我確實知道起源通常都是後端的。您是否預計在本季結束前的 10 天內還會有更多交易發起？

Yes, I think you're completely correct, Casey, that the originations are typically back-ended. And I wouldn't say that necessarily what we have done to this point is a sign for where the quarter will end up overall. We are working with a number of companies and could very easily have some originations closed this quarter, but they may also, as you pointed out, since there's just 10 days left in the quarter, one might push to the next quarter.

是的，我認為你完全正確，凱西，起源通常都是後端的。我不會說我們到目前為止所做的事情一定預示著本季的整體結果。我們正在與多家公司合作，本季很容易就能完成一些交易，但正如您所指出的，由於本季只剩下 10 天，因此有些交易可能會推遲到下個季度。

Okay. Secondly, do you know what percentage of your loan book is now trading at their interest rate floors as of December 31, of course.

好的。其次，您知道截至 12 月 31 日，您的貸款中有多少百分比是按照最低利率進行交易的嗎？

Casey, I think the majority -- and I'll look up the number specifically, but I think the majority are either at or above the floors, most would still continue to be above the floor. Certainly, the newer deals are at the floors, the older deals that have been on the books are trading above for.

凱西，我認為大多數——我會具體查一下數字，但我認為大多數都處於或高於最低水平，大多數仍會繼續高於最低水平。當然，較新的交易是在底價，而已記錄的較舊交易則在高於底價的價格進行交易。

Finian O'Shea, Wells Fargo.

富國銀行的菲尼安‧奧謝 (Finian O’Shea)。

Sort of extending on that topic. Can you talk about the sort of remaining impact on yield from the Fed cuts, what drove the sort of additional -- there was a point that came off of your book accounting yield this quarter. So maybe some more of that was spread. I know there were low other fees as well. But what we could sort of think of as a first quarter rate given the portfolio movement and the decline in base rates?

稍微延伸一下這個話題。您能否談談聯準會降息對收益率的剩餘影響，是什麼推動了額外的——本季度您的帳面會計收益率有所下降。因此，也許其中還有更多內容被傳播開來。我知道其他費用也很低。但考慮到投資組合變動和基準利率的下降，我們可以將第一季的利率視為什麼呢？

Yes. Thanks, Tim. Certainly, a big chunk of the decline was a result of the decline in interest rates. We think that's pretty stable at least in the short term. The other change in the book accounting yield is a result of just fewer accelerations as a result of prepayments.

是的。謝謝，蒂姆。當然，很大一部分下降是由於利率下降造成的。我們認為至少在短期內這是相當穩定的。帳面會計收益率的另一個變化是由於預付款導致的加速減少。

So as deals take a little longer to prepay, there may be a smaller prepayment fee and there's less end of term payment and the life to accelerate. So as you see the variation in our portfolio yield over time, it typically spikes when we have a significant number of early terminations.

因此，由於交易需要更長的預付款，預付費用可能會減少，期末付款和加速壽命也會減少。因此，正如您所看到的，我們的投資組合收益率隨時間的變化，當我們有大量提前終止時，收益率通常會飆升。

Was there -- is the pref in Snagajob accruing interest? Or will it -- was that to happen somewhere in the quarter?

Snagajob 的優先股是否有利息？或者它會在本季度的某個時候發生嗎？

The Snagajob press is a non-interest-bearing instrument.

Snagajob 壓榨機是一種不生息的工具。

Okay. One more on the dividend. It looks like you guys just sort of thought about that earnings were sort of straddling it, I think you had some announcements, but new or expanded a new Board of Directors roster. Can you talk about sort of what the changes were if it goes beyond the base rates and new spreads, and this was more about -- I think you talked about capital allocation. Does this mean lower leverage as an -- is that sort of in the outlook and then a base dividend cut that's fairly substantial sort of second question is always a time when there's a discussion of a look back credit look back.

好的。再談一下股息。看起來你們只是認為收益有點跨越了它，我想你們有一些公告，但新的或擴大了新的董事會名冊。您能否談談如果超出基準利率和新利差，會發生什麼變化，這更多的是關於——我認為您談到了資本配置。這是否意味著較低的槓桿率 - 這是前景中的一個問題，然後基本股息削減幅度相當大，第二個問題總是在討論回顧信貸回顧的時候。

So seeing your thoughts on that as well.

所以我也了解你對此的想法。

Yes. So as the Board of Directors looked at the dividend and keep in mind, we have a new Board of Directors coming in they certainly recognize the importance of a stable and consistent and predictable dividend. And so as they looked at it, they adopted one or two, adopt a base dividend like many of them like the BDCs on the BC Partners platform that was clearly sustainable and wasn't necessarily going to be interrupted by fluctuations in interest rates, variability of prepayment fees and other income from early terminations and then continue to maintain a payout with that target of 50% of the delta over NII.

是的。因此，當董事會考慮股息時，請記住，我們有一個新的董事會加入，他們當然認識到穩定、一致和可預測的股息的重要性。因此，當他們審視這個問題時，他們採用了一兩種方法，像 BC Partners 平台上的許多 BDC 一樣採用基本股息，這顯然是可持續的，並且不一定會受到利率波動、預付費用變化和提前終止的其他收入的影響，然後繼續保持以 NII 增量 50% 為目標的支出。

There's nothing in terms of a change of outlook with respect to lowering leverage. Our leverage target still remains at 1.2x to 1.3x. And what will drive that is originations. I do think we have -- the Board has a little bit of a preference to build NAV. But that does not trump the desire for consistent and stable and predictable dividend.

在降低槓桿率方面，沒有任何改變的觀點。我們的槓桿目標仍維持在 1.2 倍至 1.3 倍。而推動這進程的正是起源。我確實認為，董事會對建立 NAV 有一點偏好。但這並不比對持續、穩定和可預測的股息的渴望更重要。

Okay. And the look back?

好的。回頭看看？

And the shareholders and the Board just approved the investment management agreement in January with the change in control. So they're confident that the current arrangement is market and no changes.

股東和董事會剛剛在一月批准了控制權變更的投資管理協議。因此他們相信目前的安排是市場化的，不會改變。

Melissa Wedel, JPMorgan.

摩根大通的梅麗莎·韋德爾。

Wanted to start with maybe just a broader understanding of the origination opportunity set now as part of the BC Partners. Can you put some sort of framework around that for us? I know you gave the example of Vertex One as being something that was sourced through that platform. going forward, how much broader do you expect the funnel to be for you? And then what type of asset yield should we be expecting versus your sort of legacy historical origination.

首先，也許只是想更廣泛地了解目前作為 BC Partners 一部分的起源機會。您能為我們提出一些關於此問題的框架嗎？我知道您舉了 Vertex One 的例子，它是透過該平台取得的。展望未來，您期望通路能變得多寬廣？那麼相對於您的傳統歷史起源，我們應該期待什麼類型的資產收益呢？

Yes. No, definitely. I think this is a topic that we're really excited to talk about and to fill folks in on. Vertex One, I think, is one example of us bringing a legacy portfolio company and something from our pipeline and allowing us to access a broader set of products than we previously had the expertise to underwrite where historically, we had been exclusively first-lien senior secured loans. As you'll see, as you port through our SOI, the new $131 million facility, of which we took $41 million, is bifurcated between a first lien deal as well as a second lien PIK instrument with a convertible feature above the certain we will, for the most part, lean in more heavily towards the first lien portion of a deal like that.

是的。不，絕對不是。我認為這是我們非常樂意談論並向大家介紹的一個主題。我認為，Vertex One 就是一個例子，我們將一家傳統投資組合公司和一些來自我們管道的產品結合起來，使我們能夠獲得比以前更廣泛的產品，而我們以前只承保第一留置權優先擔保貸款。正如您所看到的，當您透過我們的 SOI 進行移植時，新的 1.31 億美元貸款（其中我們拿走了 4100 萬美元）分為第一留置權交易和第二留置權 PIK 工具，其中具有可轉換功能，在大多數情況下，我們將更傾向於此類交易的第一留置權部分。

But we think that it allows us to appropriately price risk and potentially participate in some greater upside for other opportunities that we previously had been able to. I would say there's two parts of where the BC combination is really going to change our funnel. The first of which is being part of, as David said, and now greater than $10 billion platform, just has more eyes out there looking at opportunities and brings more things across our desk, which we're greatly appreciative of. But then the second part about it is being part of a large diversified credit firm. It also provides us the expertise to help underwrite some different structures than we previously would have done.

但我們認為，它使我們能夠適當地定價風險，並有可能參與我們以前能夠參與的其他機會的更大上漲。我想說的是，BC 組合在兩個方面確實會改變我們的漏斗。首先，正如大衛所說，我們加入了一個價值超過 100 億美元的平台，這讓更多的人關注機遇，也為我們帶來了更多的東西，我們對此非常感激。但第二部分是成為一家大型多角化信貸公司的一部分。它還為我們提供了專業知識，幫助我們承保一些與以前不同的結構。

So as I said, we will look at some on a selected basis for more junior things. But also, it allows us to look at things like revolvers. We very frequently have gotten the question from folks, are we able to provide a revolver, and that's not something that we've been able to do, which has led those situations to provide other and are able to do both. And we believe that now with this expertise, it's going to help us convert a greater amount of deals. And regarding your questions for returns, we don't expect there to be any material change to our return target. We expect it to be in line with where it has been historically.

正如我所說的，我們將有選擇地研究一些比較初級的事情。而且，它還能讓我們看到左輪手槍之類的東西。我們常常會收到人們這樣的問題：我們是否能夠提供左輪手槍？而這並不是我們能夠做到的事情，因此我們需要提供其他服務，並且能夠同時提供這兩種服務。我們相信，憑藉這些專業知識，它將幫助我們達成更多的交易。關於您對回報的疑問，我們預計回報目標不會有任何重大變化。我們預計它將與歷史水平保持一致。

Okay. And then just on size of the funnel?

好的。然後只是漏斗的大小？

Yes, I do think the funnel will expand as we just are able to leverage a larger network of professionals who are out there in the market, meeting with companies, meeting with sponsors, meeting with brokers.

是的，我確實認為管道會擴大，因為我們能夠利用市場上更大的專業人士網絡，與公司會面，與贊助商會面，與經紀人會面。

Okay. A follow-up question for you. Is the -- I believe it was in the press release, there was a reference to expected sales of some equity and warrant positions in the first quarter. I'm curious if there are any gains or losses associated with that? And are those currently reflected in March.

好的。我還有一個後續問題。是——我相信是在新聞稿中，提到了第一季預計出售一些股票和認股權證頭寸。我很好奇這是否會帶來任何收益或損失？這些目前反映在三月嗎？

Yes. Thanks, Melissa. It's public that the Gynesonics, there was a merger of Gynesonics. It was acquired by another entity. We had a preferred equity position that did have a gain on it. And so there will be a gain. That gain was for the most part reflected in the fair value at 12/31.

是的。謝謝，梅麗莎。眾所周知，婦產科醫院曾與婦產科醫院合併。它已被另一個實體收購。我們擁有優先股頭寸，確實獲得了收益。這樣就會有收穫。該收益大部分反映在 12 月 31 日的公允價值上。

Doug Harter, UBS.

瑞銀的道格·哈特。

This is actually Cory Johnson on for Doug Harter. Just trying to understand, I guess, given the cut in the dividend. Do you expect maybe to give any capital return back in the form of share repurchases. I think you have the current plan might be coming towards the end of it, is there any discussion with regards to possibly starting up a new plan?

這實際上是科里·約翰遜 (Cory Johnson) 代替道格·哈特 (Doug Harter)。我想，只是想了解一下股息削減的情況。您是否希望以股票回購的形式返還資本？我認為您目前的計劃可能即將結束，是否有關於啟動新計劃的討論？

And so we repurchased close to $25 million in shares during 2024. And the current plan is you accurately stated as is nearing its expiration. It's something that the management team and the Board certainly frequently discuss. And it's always a matter of which creates the better return, building the portfolio and increasing the leverage and potentially enhancing the supplemental or the base dividend or using share repurchases. We'll have to see where the equity trades.

因此，我們在 2024 年回購了價值近 2,500 萬美元的股票。正如您所說，當前的計劃即將到期。這是管理團隊和董事會經常討論的事情。這始終是一個創造更好回報的問題：建立投資組合、提高槓桿率、可能提高補充或基本股息或使用股票回購。我們必須觀察股票交易的情況。

Whether we repurchase shares or not, we think we're significantly undervalued at this point. So we'll have to look at our bank availability in the pipeline and make an assessment as to what's best in terms of building long-term value.

無論我們是否回購股票，我們都認為目前的股價被嚴重低估了。因此，我們必須考慮銀行的可用性，並評估在建立長期價值方面的最佳做法。

And as my last question, just in regards to like what you're seeing out there in the venture market in regards to like capital markets activity and such. I guess how -- what are you kind of seeing currently? And maybe how has that -- how is what you're seeing now versus what you expected possibly a quarter ago.

我的最後一個問題是，關於您在創投市場中看到的情況，例如資本市場活動等。我猜——您現在看到了什麼？也許這是怎麼回事——您現在看到的情況與您可能在第一季前預期的情況相比有什麼不同？

Yes. I think we are seeing for selected companies' activity continue. I think that in general, exits have remained slower than folks might have hoped or anticipated, which is seeing, I think, both a slowdown in recycling of capital as firms are not getting back maybe some of the dry powder to deploy that they might have expected. And similarly, that's leading to less M&A, which for some of the larger later-stage companies such as ours, is leading to less upsized opportunities than we might have otherwise seen. There is an expectation that at some point, in the next quarters, that will reverse. And you will see an uptick in not only new fundings, but also M&A volume.

是的。我認為我們看到選定公司的活動仍在繼續。我認為，總體而言，退出速度比人們希望或預期的要慢，我認為這表明資本循環利用的速度有所放緩，因為公司可能沒有收回他們預期可以部署的一些資金。同樣，這也導致併購減少，對於像我們這樣的一些較大的後期公司來說，這導致擴大規模的機會比我們原本可能看到的要少。人們預計，在接下來的幾個季度中，這種情況將會逆轉。你不僅會看到新融資額的上升，還會看到併購額的上升。

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

Most of my questions have been answered, but maybe one or two more I can squeeze in here. The equity portfolio at fair value is now to about 10% of the total portfolio. I assume some of the quarter-over-quarter increase is due to the Snagajob sale. But just curious how you think about the appropriate size for that and kind of maybe building a little bit on the last question, if M&A does pick up that may give you some opportunity to realize some gains or sell some of those, but just curious how you think about the appropriate size and how large you would let that get before you got maybe -- you took a more proactive stance to managing that.

我的大部分問題都已得到解答，但也許我還可以在這裡再補充一兩個問題。以公允價值計算的股票投資組合目前約佔投資組合總額的 10%。我認為季度環比增長的部分原因是 Snagajob 的出售。但我只是好奇您如何看待合適的規模，並且可能在最後一個問題上稍微構建一下，如果併購確實回升，這可能會給您一些機會來實現一些收益或出售其中的一些，但我只是好奇您如何看待合適的規模以及在您獲得之前您會讓它變得多大 - 您可能採取了更積極主動的立場來管理它。

Yes. Thanks, Erik. So we are debt investors. Our job is not to be long-term equity investors in both the cases that have -- we saw the tick-up it was above kind of that normal core of 2%, 3%, 4% that would arise from warrants or success fees that come attached to many of our deals. And it was driven largely by the Gynesonics restructure a number of years ago, we split our loan into two pieces so that the company could raise fresh capital.

是的。謝謝，埃里克。所以我們是債務投資者。我們的工作不是成為長期股權投資者，在這兩種情況下，我們都看到了上漲，它高於 2%、3%、4% 的正常核心水平，這些水平來自於我們許多交易附帶的認股權證或成功費。這在很大程度上受到幾年前 Gynesonics 重組的影響，我們將貸款分成兩部分，以便公司能夠籌集新資本。

It was a very successful approach than we did follow on preferred investment because the company was performing. And then the other area where they will arise is in the event of a troubled situation or suboptimal performance and that's the case of Snagajob where the sale that we were able to help facilitate with the company was executed as an equity sale. And the goal there was for us to protect the value of the asset. We expect that there will be cash return on that at some point, not in the short term. So that's what drives fluctuations over the normal course.

這是一個非常成功的方法，因為公司表現良好，所以我們確實進行了優先投資。然後，它們出現的另一個領域是出現困境或表現不佳的情況，這就是 Snagajob 的案例，我們能夠幫助該公司促成的銷售是以股權銷售的形式進行的。我們的目標是保護資產的價值。我們預期最終會有現金回報，但不是短期內。這就是導致正常波動的原因。

We're always looking at opportunities to realize on that equity portfolio where there's a liquid investment. Last year, we had a warrant position in a portfolio company. We went back to the existing investors, they had just done a new round, and we were able to sell our position out and take a gain. So we're always on the lookout for opportunities like that. But and there may be opportunities going forward with BC Partners to look at some kind of structured equity pieces. But that's not going to move the needle in a significant way on what our core equity portfolio is intended to be.

我們一直在尋找機會實現具有流動性投資的股票投資組合的收益。去年，我們在一家投資組合公司持有認股權證部位。我們回到了現有的投資者那裡，他們剛剛完成了新一輪融資，我們可以賣出我們的部位並獲得收益。所以我們一直在尋找這樣的機會。但是，未來可能有機會與 BC Partners 合作研究某種結構化股權。但這不會對我們的核心股票投資組合的目標產生重大影響。

I appreciate the color there. And in terms of the unrealized gain in the quarter, I think it was $16.5 million, was Gynesonics was the primary driver of that? Or are there other factors as well?

我很欣賞那裡的色彩。就本季未實現收益而言，我認為是 1650 萬美元，Gynesonics 是其主要推動力嗎？或是有其他因素嗎？

There were a mix, but the single largest was definitely Gynesonics.

有各種各樣的選擇，但最大的肯定是 Gynesonics。

And then last one for me. Are you able to update us on the amount of spillover you have now currently just in dollar terms or per share value?

這是我的最後一個。您能否以美元或每股價值向我們更新目前的溢出量？

It's not something we published, but our goal is to maintain at least one quarter of spillover and over the course of this new dividend policy to grow that in the coming quarters.

這不是我們公佈的內容，但我們的目標是保持至少一個季度的溢出效應，並在新的股息政策實施過程中在未來幾季實現成長。

(Operator Instructions) Finian O'Shea, Wells Fargo.

（操作員指示） 富國銀行的 Finian O'Shea。

I was interested in some of the conversation on the BC Partners platform integration. How much is that the global deal flow expected to reshape your portfolio? I think in an earlier question, you talked about a lot -- the ability to do revolvers.

我對 BC Partners 平台整合的一些對話很感興趣。預計全球交易流將在多大程度上重塑您的投資組合？我認為在之前的問題中，您談了很多——製造左輪手槍的能力。

And then the last question less so. So if you could give us guidance there on sort of the run rate or future split between yours and theirs. And then I was also, a second -- a bonus one, interested on the last question on spillover. Were you guiding that you're going to ramp that from one quarter to all the way like three quarters.

最後一個問題就沒那麼重要了。因此，如果您能就您和他們的運行率或未來分成情況給我們指導的話。然後，我還對第二個額外的問題——溢出效應——感興趣。您是否計劃將其從一個季度提升至三個季度？

Yes. So I'll take the first one about the combination. And I definitely don't want to give the impression that this will be any sort of wholesale change or anything like that. If anything, this is more a benefit in terms of it being additive to the pipeline and potential future portfolio rather than us saying, hey, we're going to get a meaningful portion of our flow and of our sourcing from BC going forward.

是的。因此我將討論第一個有關組合的問題。我絕對不想給人留下這將是任何形式的全面改變或類似事情的印象。如果有什麼不同的話，那就是這更多的是一種好處，因為它可以增加管道和潛在的未來投資組合，而不是我們說，嘿，我們將從 BC 獲得很大一部分流量和採購。

I do think that the ability for us to invest in the size loans that we like, the larger loans to later-stage companies while being confident that we can give a more appropriate allocation to the BDC such that we can drive further diversification is one of the key points and takeaways that I hope you get from this rather than saying that we expect this to be just the wholesale change or acceleration of our origination efforts.

我確實認為，我們有能力投資於我們喜歡的規模的貸款，向後期公司提供更大的貸款，同時有信心我們可以為 BDC 提供更適當的分配，從而推動進一步的多樣化，這是我希望您從中得到的關鍵點和收穫之一，而不是說我們期望這只是我們發起工作的全面改變或加速。

And in terms of things like adding in revolvers or second liens or other types of things that differ from the traditional first lien senior secured that we've done. Again, I expect that to be additive and for things to help us win opportunities that we otherwise wouldn't have rather than to go out and say, hey, this is a completely different strategy than what we've had historically.

就增加循環信貸或第二留置權或其他與我們所做的傳統第一留置權優先擔保不同的事項而言。再說一次，我希望這能起到附加作用，幫助我們贏得原本不會擁有的機會，而不是出去說，嘿，這是一個與我們歷史上所擁有的完全不同的策略。

And then on the spillover question, Fin, I didn't intend to signal that we were going to grow to some specific numbers rather than just say, with the math the way the target of up to 50% of the delta between the base dividend and NII works is it's likely to build. But I don't want you to read anything into that negative or positive in terms of our anticipated earnings. It's just a strategy.

然後關於外溢效應問題，Fin，我並不是想暗示我們將增長到某些特定的數字，而只是說，透過數學計算，基本股息和 NII 之間的差額達到 50% 的目標很可能會實現。但我不希望你們對我們的預期收益做出任何消極或積極解讀。這只是一種策略。

Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Tom for closing remarks.

女士們、先生們，隊列中沒有其他問題了。現在我想將電話轉回給湯姆，請他作最後發言。

Thank you, operator. We're proud of the progress we achieved in 2024 that has laid the groundwork for the BDC to execute in 2025. Thank you all for joining us today, and we look forward to speaking with you again in May to review our first quarter performance.

謝謝您，接線生。我們為 2024 年的進展感到自豪，這為 BDC 在 2025 年的實施奠定了基礎。感謝大家今天的參與，我們期待 5 月再次與大家交談，回顧我們第一季的業績。

Ladies and gentlemen, that does conclude today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。