Runway Growth Finance Corp (RWAY) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Runway Growth Finance first quarter 2025 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. Please go ahead.

女士們，先生們，感謝你們的支持，歡迎參加 Runway Growth Finance 2025 年第一季財報電話會議。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。請繼續。

Thank you, operator. Good evening, everyone, and welcome to the Runway Growth Finance conference call for the first quarter ended March 31, 2025.

謝謝您，接線生。大家晚上好，歡迎參加截至 2025 年 3 月 31 日的第一季 Runway Growth Finance 電話會議。

Joining us on the call today from Runway Growth Finance are David Spreng, Chief Executive Officer; Greg Greifeld, Chief Investment Officer of Runway Growth Capital LLC, our investment advisor; and Tom Raterman, Chief Financial Officer and Chief Operating Officer.

今天參加 Runway Growth Finance 電話會議的有首席執行官 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 first quarter 2025 financial results were released just after today's market closed 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 webpage.

Runway Growth Finance 的 2025 年第一季財務業績於今日市場收盤後發布，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. 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 without limitation, market conditions caused by uncertainty surrounding interest rates, changing economic conditions, and other factors we identify 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.

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。

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.

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 to discuss our first quarter 2025 financial results.

謝謝你，Quinlan，也謝謝大家今晚加入我們討論我們的 2025 年第一季財務業績。

Today I'll start by discussing first quarter highlights and how we are optimizing our portfolio in the current environment, then Greg will shed light on the evolving venture landscape. And to conclude, Tom will provide a deeper dive on our financial performance.

今天，我將首先討論第一季的亮點以及我們如何在當前環境中優化我們的投資組合，然後格雷格將闡明不斷變化的創投格局。最後，湯姆將對我們的財務表現進行更深入的分析。

For the first quarter, Runway delivered total investment income of $35.4 million and net investment income of $15.6 million. We touched on this during our fourth quarter earnings call at the end of March. But it's worth reiterating that given the current volatility in the market, our team has been focused on the health of our portfolio, enhancing our origination channels given our recently completed merger with BC Partners Credit and continuing to apply discipline to our underwriting practices.

第一季度，Runway 的總投資收益為 3,540 萬美元，淨投資收益為 1,560 萬美元。我們在三月底的第四季財報電話會議上談到了這一點。但值得重申的是，鑑於當前市場的波動性，我們的團隊一直專注於我們投資組合的健康狀況，鑑於我們最近完成與 BC Partners Credit 的合併，我們加強了發起管道，並繼續嚴格執行我們的承保實踐。

To that end, in the first quarter we executed on three investments in existing portfolio companies representing $50.7 million in funded loans. The first quarter tends to be a seasonally slower period, but we've also been selective in our evaluation practices. This selectivity has been informed by the knowledge that our platform and opportunities set would be expanding in short order with the completion of our merger with BC partners.

為此，我們在第一季對現有投資組合公司進行了三項投資，總計提供了 5,070 萬美元的貸款。第一季往往是季節性的淡季，但我們在評估實務上也有一定的選擇性。我們之所以做出這種選擇，是因為我們知道，隨著與 BC 合作夥伴的合併完成，我們的平台和機會很快就會擴大。

As we've said, since we announced the BC partners transaction, we don't anticipate this expansion to result in portfolio growth overnight. But we believe we have ample liquidity in our position to move opportunistically when the right investments arise.

正如我們所說，自從我們宣布 BC 合作夥伴交易以來，我們並不認為這種擴張會在一夜之間帶來投資組合的成長。但我們相信，當出現合適的投資機會時，我們擁有充足的流動性來抓住機會。

As we look to the balance of the year, Runway Growth Capital is seeking originations in the total loan size of $30 million to $150 million with the ideal allocation to the [BDC] remaining between 20 and $45 million. We believe this range will further diversify our BDC's portfolio over time as we look for new opportunities that meet our high credit standards. Our investors in turn are positioned to benefit from a strategic focus that will further diversify our portfolio and mitigate risk.

展望今年的餘額，Runway Growth Capital 正在尋求總貸款規模在 3000 萬至 1.5 億美元的貸款，其中分配給 [BDC] 的理想貸款規模保持在 2000 萬至 4500 萬美元之間。我們相信，隨著我們不斷尋找符合我們高信用標準的新機會，這個範圍將隨著時間的推移進一步豐富我們 BDC 的投資組合。反過來，我們的投資者將從策略重點中受益，這將進一步分散我們的投資組合併降低風險。

Before I turn the call over to Greg, I want to highlight the current inflection point for the Runway Growth story. We are excited about the opportunities we have in front of us in this next phase at Runway Growth. To both our existing and potential investors, I want you to walk away from our call knowing the following three things.

在我將電話轉給格雷格之前，我想強調一下 Runway Growth 故事的當前轉折點。我們對 Runway Growth 下一階段面臨的機會感到非常興奮。對於我們現有和潛在的投資者，我希望你們在聽完我們的電話會議後能夠了解以下三件事。

First, we believe Runway is well positioned to optimize our portfolio in the quarters ahead. We have expanded origination channels to ensure that our investment mix is built for the quarters and years to come. Second, we intend to remain credit first in our underwriting practices. This may mean more episodic portfolio expansion over a longer time horizon, but we believe this is how we're going to deliver for our shareholder base over the long term.

首先，我們相信 Runway 有能力在未來幾季優化我們的投資組合。我們擴大了發起管道，以確保我們的投資組合能夠適應未來幾季和幾年的需求。其次，我們打算在核保實務中繼續堅持信譽第一。這可能意味著在更長的時間範圍內進行更多階段性的投資組合擴張，但我們相信這是我們長期為股東帶來回報的方式。

Finally, we have a strong decade-long track record, and we have low loss rates compared to our peers and the BDC sector overall. We are seasoned credit professionals who know how to build our portfolio for any economic cycle.

最後，我們擁有長達十年的良好業績記錄，與同業和整個 BDC 行業相比，我們的損失率較低。我們是經驗豐富的信貸專業人士，知道如何根據任何經濟週期建立我們的投資組合。

Today, we believe Runway Growth represents an attractive entry point for investors who are looking for a prudent portfolio manager, exposure to the venture ecosystem, and clear upside opportunity. We are confident in the path ahead and thrilled to officially be a part of the broader BC Partners credit platform.

今天，我們相信 Runway Growth 對於那些尋求審慎的投資組合經理、創投生態系統和明顯的上行機會的投資者來說是一個有吸引力的切入點。我們對未來的道路充滿信心，並很高興正式成為更廣泛的 BC Partners 信用平台的一部分。

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. As David mentioned, I'd like to take a step back and speak to the dynamics we see shaping the venture ecosystem and how we are positioned today as a result.

謝謝，大衛，大家晚上好。正如大衛所提到的，我想退一步談談我們所看到的塑造創投生態系統的動態，以及我們今天的定位。

In 2021, we saw VC funds raise capital at unprecedented levels. At the time, the only hurdle for them to raise the next vintage of a fund was deploying the funds that they had. With that backdrop, we saw investors make a high volume of investments, often at progressively larger sizes, which was additive for many firms in their pursuit to raise their next fund. As a result, we saw venture backed companies operate at higher burn levels and deliver, in our view, artificially enhanced growth rates. In effect, many companies were able to buy revenue that wasn't necessarily the highest quality or beneficial to the long-term health of the business.

2021 年，我們看到創投基金的融資額達到了前所未有的水平。當時，他們籌集下一輪基金的唯一障礙是如何部署現有資金。在這樣的背景下，我們看到投資者進行了大量投資，而且投資規模往往越來越大，這對於許多尋求籌集下一支基金的公司來說具有附加價值。因此，我們看到風險投資支持的公司以更高的燒錢水平運營，並且在我們看來，實現了人為提高的成長率。實際上，許多公司能夠購買的收入不一定是最高品質的，也不一定是對企業長期健康有益的收入。

Then, In 2023 through 2024, venture capital and growth equity firms experienced slower fundraising environments, and this delayed some fund launches. Instead of the next vintage being launched in 6 to 12 months, we saw firms seeking to return to a state of normalcy with deployment taking place over the course of three to four years. As that played out, venture backed companies had to reckon with the new landscape. They had to either raise dilutive equity at a lower valuation than previous rounds or seek non-dilutive financing solutions.

然後，在 2023 年至 2024 年期間，創投和成長型股權公司經歷了較慢的融資環境，這推遲了一些基金的推出。我們看到，各公司並沒有在 6 到 12 個月內推出下一輪產品，而是尋求在三到四年內恢復正常狀態。隨著這種情況的發生，創投支持的公司必須考慮新的情況。他們要么以低於前幾輪的估值籌集稀釋性股權，要么尋求非稀釋性融資解決方案。

Additionally, this pushed companies to place a renewed focus on profitability over top line growth and reduce cash burn, which involved cutting product expansions. As a result, we saw companies avoid the addition of more capital to the balance sheet via larger loans or equity raises. Today, we believe that the sentiment has begun to shift again, and many companies have reached a point where they must begin demonstrating growth again to attract investment or achieve a successful exit.

此外，這促使公司重新將重點放在獲利能力而非營收成長上，並減少現金消耗，這包括削減產品擴張。結果，我們看到公司避免透過更大規模的貸款或股權融資來增加資產負債表的資本。如今，我們認為情緒已開始再次轉變，許多公司已經到了必須再次展現成長才能吸引投資或成功退出的階段。

The management teams we're speaking with now have charted paths for more reasonable growth moving forward, and we believe companies are now prioritizing sustainable growth over the next few years. While we expect new to deal activity in 2025, as companies delay or cancel deals in response to the broader market uncertainty, we believe companies will require non-diluted growth capital to become attractive targets for potential M&A or IPO in the years to come.

我們正在交談的管理團隊已經規劃出未來更合理成長的道路，我們相信公司現在優先考慮未來幾年的永續成長。雖然我們預計 2025 年將出現新的交易活動，但由於公司會因更廣泛的市場不確定性而推遲或取消交易，我們認為公司將需要非稀釋的成長資本才能成為未來幾年潛在併購或 IPO 的有吸引力的目標。

To that end, we recently completed a new $40 million investment to Autobooks, an accounting and bookkeeping solution funding $27 million in close. In line with my earlier commentary, this was a transaction that was scheduled to close in the first quarter and due to various market conditions, it was slightly delayed. We are thrilled to kick off this partnership and our flexibility around timing demonstrates our belief in this investment.

為此，我們最近向 Autobooks 完成了 4,000 萬美元的新投資，Autobooks 是一家會計和簿記解決方案公司，目前融資 2,700 萬美元。與我之前的評論一致，這是一項原定於第一季完成的交易，但由於各種市場情況，交易略有延遲。我們很高興啟動這項合作關係，我們在時間安排上的靈活性表明了我們對這項投資的信心。

In our view, Runway is attractively positioned to further optimize our portfolio for a few reasons. Our ability to source non-sponsored deals, which often face less competition and allow us to originate loans at more favorable terms, sets us apart from peers while adding an additional point of differentiation to our portfolio. We are now part of an expanded platform following the completion of our combination with BC Partners, which will offer a larger funnel of investment opportunities to evaluate and a more comprehensive suite of solutions to offer borrowers.

我們認為，Runway 具有良好的優勢，可以進一步優化我們的投資組合，原因如下。我們能夠獲得非贊助交易，這些交易通常面臨的競爭較少，並使我們能夠以更優惠的條件發放貸款，這使我們在同行中脫穎而出，同時也為我們的投資組合增加了額外的差異點。在與 BC Partners 完成合併後，我們現在成為了擴展平台的一部分，該平台將提供更大的投資機會供評估，並為借款人提供更全面的解決方案。

We look forward to updating you all on how we're executing against our ability to maximize our portfolio in the coming quarters and demonstrate the core earnings power of this next chapter for the BDC.

我們期待向大家通報我們如何在未來幾季實現投資組合最大化，並展示 BDC 下一章的核心獲利能力。

Now, I want to turn the call over to Tom to discuss our financial results.

現在，我想將電話轉給湯姆，討論我們的財務表現。

Thank you, Greg, and good evening everyone. During the first quarter of 2025, Runway completed three investments in existing companies representing $50.7 million in funded loans. Our weighted average portfolio risk rating remained at 2.33% in the first quarter of 2025, consistent. with 2.33% in the fourth quarter of 2024.

謝謝你，格雷格，大家晚上好。2025 年第一季度，Runway 對現有公司完成了三項投資，貸款總額達 5,070 萬美元。2025 年第一季度，我們的加權平均投資組合風險評級維持在 2.33%，保持穩定。 2024年第四季成長率為2.33%。

Our rating system is based on a scale of one to five, where one represents the most favorable credit rating. As with previous quarters, we calculated the loan to value for loans that were in our portfolio at the end of the fourth quarter and at the end of the first quarter. In comparing this consistent grouping of loans, we found that our dollar weighted loan to value ratio increased from 28% to 29.1%.

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。與前幾季一樣，我們計算了第四季末和第一季末我們投資組合中的貸款的貸款價值比。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率從 28% 增加到 29.1%。

Our total investment portfolio had a fair value of 1 billion, a decrease of 6.7% from $1.08 billion in the fourth quarter of 2024, and a decrease of 1.2% from $1.02 billion for the comparable prior year period. Our loan portfolio continues to be comprised almost exclusively of first lien senior secured loans.

我們的總投資組合公允價值為 10 億美元，較 2024 年第四季的 10.8 億美元下降 6.7%，較去年同期的 10.2 億美元下降 1.2%。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 March 31, 2025, Runway had net assets of $503.3 million, decreasing from $514.9 million at the end of the fourth quarter of 2024. NAV per share was $13.48 at the end of the first quarter, a decrease of 2.2% compared to $13.79 at the end of the fourth quarter of 2024. 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.

截至 2025 年 3 月 31 日，Runway 的淨資產為 5.033 億美元，較 2024 年第四季末的 5.149 億美元有所下降。第一季末每股淨資產值為 13.48 美元，較 2024 年第四季末的 13.79 美元下降 2.2%。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。

During the first quarter, we experienced three pre-payments totaling $71.9 million and scheduled amortization of $3.7 million. We generated total investment income of $35.4 million and net investment income of $15.6 million in the first quarter of 2025 compared to $33.8 million and $14.6 million in the fourth quarter of 2024.

在第一季度，我們經歷了三筆預付款，總額為 7,190 萬美元，並計劃攤銷 370 萬美元。2025 年第一季度，我們的總投資收益為 3,540 萬美元，淨投資收益為 1,560 萬美元，而 2024 年第四季分別為 3,380 萬美元和 1,460 萬美元。

Our debt portfolio generated a dollar weighted average annualized yield of 15.4% for the first quarter of 2025 as compared to 14.7% for the fourth quarter of 2024 and 17.4% for the comparable period last year. Moving to our expenses, total operating expenses were $19.8 million for the first quarter of 2025, an increase from $19.2 million for the fourth quarter of 2024.

我們的債務組合在 2025 年第一季產生了 15.4% 的美元加權平均年化收益率，而 2024 年第四季為 14.7%，去年同期為 17.4%。談到我們的支出，2025 年第一季的總營運支出為 1,980 萬美元，高於 2024 年第四季的 1,920 萬美元。

We recorded a net gain on investments of $6.1 million in the first quarter of 2025 compared to a net realized loss on investments of $2.9 million in the fourth quarter of 2024. At March 301, 2025, we continued to have two loans on non-accrual status, Mingle Healthcare and Snagajob.

2025 年第一季度，我們的投資淨收益為 610 萬美元，而 2024 年第四季的投資淨損失為 290 萬美元。截至 2025 年 3 月 30 日，我們繼續擁有兩筆非應計貸款，分別是 Mingle Healthcare 和 Snagajob。

Our loan to Mingle Healthcare has a cost basis of $4.9 million and fair market value of $2.4 million or 49% of cost. Our loan to Snagajob has a cost basis of $3.8 million and fair market value of $2.6 million or 68% of cost. Together these loans represent only 0.5% of the total investment portfolio at fair value as of March 30, 2025.

我們向 Mingle Healthcare 提供的貸款成本基礎為 490 萬美元，公平市價為 240 萬美元，即成本的 49%。我們向 Snagajob 提供的貸款成本基礎為 380 萬美元，公平市價為 260 萬美元，即成本的 68%。截至 2025 年 3 月 30 日，這些貸款僅佔總投資組合公允價值的 0.5%。

At the end of first quarter of 2025, our leverage ratio and asset coverage were 0.99 and 2.01 times respectively compared to 1.08 and 1.92 times at the end of the fourth quarter of 2024. As of March 31, 2025, our total available liquidity was $315.4 million. Including unrestricted cash and cash equivalents, and we had borrowing capacity of $297 million.

截至 2025 年第一季末，我們的槓桿率和資產覆蓋率分別為 0.99 倍和 2.01 倍，而 2024 年第四季末分別為 1.08 倍和 1.92 倍。截至 2025 年 3 月 31 日，我們可用的流動資金總額為 3.154 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 2.97 億美元。

As discussed during our fourth quarter 2024 earnings call, during the first quarter, we extended our credit facility with KeyBanc by three years, subject to the terms and conditions as reflected in the amended credit facility agreement. Subsequent to quarter end, we restructured our privately placed senior unsecured notes as a result of the triggering of the change of control provision applicable to the company's external advisor.

正如我們在 2024 年第四季度收益電話會議上所討論的那樣，在第一季度，我們將與 KeyBanc 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。季度末之後，由於觸發了適用於公司外部顧問的控制權變更條款，我們重組了私募的優先無擔保票據。

This provision required us to make an offer to repurchase our senior unsecured notes, resulting in a pre-payment of the August 2027 notes and an exchange and upside of our December 2026 notes. Total unsecured notes inclusive of our baby bonds increased to $264.3 million from $247.3 million.

該條款要求我們提出回購優先無擔保票據的要約，從而提前支付 2027 年 8 月票據，並交換和上漲 2026 年 12 月票據。包括我們的嬰兒債券在內的無擔保票據總額從 2.473 億美元增加到 2.643 億美元。

As of March 30, 2025, we had a total of $162.2 million in unfunded commitments, which was comprised of $132.8 million to provide debt financing to our portfolio companies and $29.4 million to provide equity financing to our JV with Cadma. Approximately $25 million of our unfunded debt commitments are eligible to be drawn based on achieved milestones. Most of our unfunded commitments are subject to specific performance milestones.

截至 2025 年 3 月 30 日，我們共有 1.622 億美元的未撥付承諾，其中包括 1.328 億美元向我們的投資組合公司提供債務融資，以及 2940 萬美元向我們與 Cadma 的合資企業提供股權融資。根據已實現的里程碑，我們有資格提取約 2500 萬美元的未撥付債務承諾。我們的大部分未撥付資金的承諾都取決於特定的績效里程碑。

Looking ahead. We believe we have sufficient liquidity to fund existing unfunded commitments, selective portfolio growth, and potential share repurchases. On May 7, 2025, our Board of Directors approved a new stock repurchase program of [$25 million] which will expire on May 7, 2026 or earlier if we repurchase the total amount of stock authorized for the repurchase under the program. We believe the program reflects our view that runway growth stock is significantly undervalued and presents an attractive entry point, as well as management's confidence in our 2025 performance.

展望未來。我們相信，我們擁有足夠的流動性來資助現有的未撥付承諾、選擇性投資組合成長和潛在的股票回購。2025 年 5 月 7 日，我們的董事會批准了一項新的股票回購計劃，金額為 [2,500 萬美元]，如果我們回購該計劃授權回購的股票總額，該計劃將於 2026 年 5 月 7 日或更早到期。我們認為該計劃反映了我們的觀點，即跑道成長股被嚴重低估並提供了一個有吸引力的切入點，以及管理層對我們 2025 年業績的信心。

Finally, on May 7, 2025, our board declared a regular distribution for the second quarter of $0.33 per share, as well as a supplemental dividend of $0.02 per share, payable with the regular dividend.

最後，2025 年 5 月 7 日，我們的董事會宣布第二季定期分配為每股 0.33 美元，以及每股 0.02 美元的補充股息，與定期股息一起支付。

With that operator, please open the line for questions.

請與該接線員聯繫，以便我們解答疑問。

(Operator Instructions)

（操作員指示）

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

Hi. good afternoon, guys.

你好。大家下午好。

Good afternoon.

午安.

Wanted to start with a question. Just, one of the comments on slide 7, indicates that the median and late stage deal sizes are down and that healthcare lending is low. And I guess maybe on the second part of that statement, just curious if you could maybe add a little commentary there in terms of if this is a new term development where healthcare lending is slowed or if there's something larger at play, and you know maybe kind of why you elected to include that in that statement in there?

想從一個問題開始。只是，第 7 張投影片上的一條評論表明，中期和後期交易規模有所下降，醫療保健貸款水平較低。我想也許關於該聲明的第二部分，我只是好奇您是否可以添加一些評論，關於這是否是一個新的術語發展，醫療保健貸款是否放緩，或者是否有更大的因素在起作用，您知道也許您選擇將其納入該聲明中的原因是什麼？

Yeah, Eric, those are the numbers from across the industry wide is reported in the pitchbook venture monitor. I think that you know Greg can comment more specifically on healthcare, but I just know listening to the feedback from our folks and from the peers that it it's just been a little bit of a softer, slower, more cautious quarter, and I think that's what's driving those results.

是的，艾瑞克，這些是來自整個行業的數據，已在 Pitchbook Venture Monitor 中報告。我想你知道格雷格可以更具體地評論醫療保健，但我只知道聽取我們的員工和同行的反饋，這只是一個稍微疲軟、緩慢、更謹慎的一個季度，我認為這就是推動這些結果的因素。

Regarding health care, I would say -- sorry, I would say that you know that remains one of the three core pillars of verticals we look at between technology broadly healthcare as well as a very selective amount. I would say looking across our pipeline we've seen some more interesting things come on the technology side recently. And given the announcement today about potential impact to drug prices coming out of a potential executive order, that's going to be something that we will be very focused on seeing those details as they come out.

關於醫療保健，我想說——抱歉，我想說，你知道，這仍然是我們在技術、廣泛的醫療保健以及非常有選擇性的數量之間所關注的垂直行業的三大核心支柱之一。我想說，縱觀我們的整個流程，我們最近在技術方面看到了一些更有趣的事情。鑑於今天宣布的行政命令可能對藥品價格的影響，我們將密切關注這些細節的公佈。

Thanks, I appreciate the additional comments there. And maybe just to follow up on that the pipeline. I noticed Q1 activity, was almost 70% refinances. As you look at the pipeline today, curious how it looks in terms of add on refinance and new opportunities.

謝謝，我很欣賞那裡的補充評論。也許只是為了跟進管道。我注意到第一季的活動幾乎是 70% 的再融資。當您今天查看管道時，您會好奇它在附加再融資和新機會方面看起來如何。

Yeah, and to echo my comments about the deal, we closed Autobooks. That is a term sheet that we had signed and anticipated to occur in Q1. Ultimately, the use of proceeds was to help Abooks fund an M&A deal which given the turbulence, I think that we all experienced in Q1, the negotiations of the final point of that acquisition itself took longer than I think either buyer or seller expected, which caused it to push into Q2. I think those are the types of dynamics that we are seeing in this rapidly evolving market where, there is desire to do deals, but folks are trying to make sure that they have the appropriate structure and pricing.

是的，為了呼應我對這筆交易的評論，我們關閉了 Autobooks。這是我們已經簽署的條款清單，預計將在第一季完成。最終，所得款項將用於幫助 Abooks 資助一項併購交易，考慮到動盪，我認為我們都在第一季度經歷了這一交易，該收購的最終談判所花的時間比買方或賣方預期的要長，這導致交易被推遲到第二季度。我認為這些就是我們在這個快速發展的市場中看到的動態類型，人們有達成交易的願望，但人們正試圖確保他們擁有適當的結構和定價。

Okay, could you provide an update on the JV, there's been any recent investment activity there?

好的，您能否提供一下合資企業的最新情況，那裡最近有什麼投資活動嗎？

Yeah, I would say that the JV investment activity continues to be somewhat muted as the overall environment and our approach toward credit as Greg mentioned has been cautious. So the JV is experiencing that same level of speed if you will, and ramp or lack thereof, just the the general cautiousness of the approach to credit today.

是的，我想說合資投資活動繼續保持低迷，因為正如格雷格所提到的，整體環境和我們對信貸的態度一直很謹慎。因此，如果你願意的話，合資企業正在經歷同樣的速度，並且成長或缺乏成長，這只是當今信貸方法的普遍謹慎。

Thank you for taking my questions today.

感謝您今天回答我的問題。

Melissa Wedel, JP Morgan.

摩根大通的梅麗莎·韋德爾。

Good afternoon. Thanks for taking my question. Wanted to start first with NII trends. I mean, obviously there was a pickup quarter over quarter, but despite that increase, I noted that your declared dividend or the supplemental dividend declared for 2Q is actually a little bit lower than what you paid in the first quarter. Just curious if you can contextualize that and help us frame how you're thinking about the earnings power of the portfolio.

午安.感謝您回答我的問題。想要先了解 NII 趨勢。我的意思是，顯然季度環比有所回升，但儘管如此，我注意到您宣布的股息或第二季度宣布的補充股息實際上比第一季支付的股息略低。我只是好奇您是否可以將其具體化並幫助我們理解您對投資組合盈利能力的看法。

Thanks, Melissa. Thanks for joining the call today and for the question. Just to step back to reiterate the dividend policy. So in March, we announced the revised dividend policy of rebasing the $0.33 a share, and then a supplemental dividend of up to 50% of of NII.

謝謝，梅麗莎。感謝您今天參加電話會議並提出問題。只是退一步重申股利政策。因此，我們在三月宣布了修改後的股息政策，將每股股息重新定為 0.33 美元，然後補充股息最高可達 NII 的 50%。

We clearly today have a bias toward building NII -- and I'm sorry, building nav per share as opposed to building the dividend because we don't seem to be getting credit for the dividend in the market. So we're confident in the core earnings power of the portfolio and the ability to cover the dividend, certainly, the base dividend, and we set that base dividend modeling a number of different portfolio outcomes with respect to looking at potential for declining rates throughout the balance of the year.

我們今天顯然傾向於建立 NII——抱歉，我們傾向於建立每股資產淨值而不是建立股息，因為我們似乎沒有在市場上獲得股息的認可。因此，我們對投資組合的核心盈利能力和支付股息（當然是基本股息）的能力充滿信心，並且我們設定了基本股息，對許多不同的投資組合結果進行了建模，以考慮全年餘額中利率下降的可能性。

A variety of scenarios with respect to non accruals And so we're confident in in the portfolio's ability to cover that dividend going forward. And the supplemental dividend will continue to look up -- look for that target of up to 50%, but not necessarily saying it will be 50% every quarter.

關於非應計項目的各種情景，因此，我們對投資組合未來支付股息的能力充滿信心。補充股息將繼續上升——目標是達到 50%，但不一定每個季度都達到 50%。

Okay, I appreciate that. So just putting a finer point on sort of earnings power of the portfolio, I'm hearing that -- I'm hearing you say that the supplemental dividend declared for the second quarter isn't reflective necessarily of your expectations of the earnings power, but more of a function of a decision to build now versus pay out up to half of the excess earnings above the base and then. That being the case, okay, so that being the case, it assuming stable base rates, do you feel like the earnings -- the NII per share of $0.42 that you saw in the first quarter is fully reflective of the ongoing dynamics again, given stability in the base rates or were there some special one-time things we should be thinking about?

好的，我很感激。因此，如果更詳細地說明投資組合的盈利能力，我聽說——我聽到您說，第二季度宣布的補充股息不一定反映您對盈利能力的預期，而更多地取決於現在進行建設的決定，而不是先支付超過基數一半的超額收益，然後再支付。既然如此，好吧，既然如此，假設基準利率穩定，您是否覺得收益 - 您在第一季度看到的每股 0.42 美元的 NII 是否完全反映了持續的動態，考慮到基準利率的穩定性，或者是否有一些特殊的一次性事情我們應該考慮？

No -- again, I think, we feel good about the earnings power of the portfolio, the ability to cover the base dividend. And the NII will vary quarter to quarter based on, the growth of the portfolio or on the acceleration of income related to prepayments.

不——我再次認為，我們對投資組合的盈利能力和支付基本股息的能力感到滿意。並且，NII 將根據投資組合的成長或與預付款相關的收入的加速而逐季度變化。

Thank you.

謝謝。

Mickey Schleien, Ladenberg.

米奇‧施萊恩，拉登伯格。

Yes, good afternoon, everyone. Wanted to start by asking about the terms that clearly in the conventional, private credit arena, we -- it's been very borrower friendly and spreads have generally been tight with the market imbalance. But as you mentioned in your prepared remarks, the demand for private debt capital is better, and I'm curious how that's impacting the trends that you're seeing in your pipeline versus perhaps a year ago?

是的，大家下午好。首先想問在傳統的私人信貸領域中，我們的條款非常有利於借款人，並且由於市場不平衡，利差通常較小。但正如您在準備好的演講中提到的那樣，對私人債務資本的需求更好，我很好奇這與一年前相比如何影響您在通路中看到的趨勢？

Yes, I'll take a first crack at that, this is Greg. I do think that we are seeing an improvement in terms of the structure of the pipeline and the opportunities that we're seeing. There's the things that get reported in the schedule of investments, as you said, in terms of spread, floor rate, and other things like that. But I would say most encouraging encouraging as well, we're seeing lower asks in terms of leverage from a loan to value perspective. We're seeing a maintenance of amount of and quality of covenants. So I think we feel that we're in a good place in terms of the economics, but as importantly, if not more importantly, also the structural protections of the underlying documents.

是的，我會先嘗試一下，我是格雷格。我確實認為，我們看到了管道結構和機會的改善。正如您所說，投資計劃中會報告利差、最低利率和其他類似事項。但我想說，最令人鼓舞的是，從貸款價值的角度來看，我們看到槓桿率的要求較低。我們看到契約的數量和品質得到了維持。因此，我認為就經濟而言我們處於良好狀態，但同樣重要的是，如果不是更重要的話，基礎文件的結構保護也是如此。

That really good to hear within the the pipeline or just thinking broadly, what kind of companies within the AI landscape are you attracted to for investment, if any?

很高興聽到這樣的消息，或者只是廣泛思考一下，如果有的話，人工智慧領域的哪些類型的公司會吸引您進行投資？

So what I would say in general is, as I'm sure many folks in the market have seen, there's a large race for everyone to try to find a way to reinvent themselves as an AI company. In general, where we play in the market, we're looking for more mature, larger businesses that are generating a meaningful amount of revenue without a too high of a burn amount.

所以我想說的是，總的來說，我相信市場上的許多人都已經看到，每個人都在競相尋找將自己重塑為人工智慧公司的方法。總的來說，我們在市場中尋找的是更成熟、規模更大、能夠產生可觀收入且燒錢數額不會太高的企業。

So a lot of the really early stage companies are still too nascent and immature for us to make loans to. But it is something that we do look for larger businesses, example in our portfolio is a company interactions, which has been in for a few years, but we're definitely folk are interested in AI. But again, we're not necessarily willing to go earlier stage than we typically look across the portfolio.

因此，許多真正處於早期階段的公司仍處於起步階段且不夠成熟，我們無法向其提供貸款。但我們確實在尋找更大的企業，例如我們投資組合中的一家公司互動，它已經存在了幾年，但我們肯定對人工智慧感興趣。但同樣，我們不一定願意比我們通常審查投資組合的更早的階段進行。

I imagine for those larger, more mature AI companies you're referencing there must be, enormous demand to get those deals. Are the terms and are the risk adjusted returns you can get in that space interesting at all?

我想，對於您所提到的那些規模更大、更成熟的人工智慧公司來說，達成這些交易的需求一定非常巨大。您在該領域可以獲得的條款和風險調整回報是否有趣？

I would say that, as with everything there's a need to be opportunistic, but that being said, you're completely right that any time there's a really hot sector out there, you're going to see folks, chase those deals in terms of either economics or structure. And that's why as we look to stick to our knittings, you don't necessarily see the most current hot sector come into the portfolio.

我想說的是，就像所有事情一樣，我們需要抓住機會，但話雖如此，你完全正確，任何時候出現一個真正熱門的行業，你都會看到人們在經濟或結構方面追逐這些交易。這就是為什麼當我們堅持自己的業務時，您不一定會看到最新的熱門行業進入投資組合。

Yeah, makes sense. I'm just following up on the healthcare question. It is, if I'm not mistaken, your second largest, allocation, to what extent are the cuts at the NIH and the FDA, impacting the sentiment and the deal flow, that underlies the sort of slow pace that you referenced before?

是的，有道理。我只是在跟進醫療保健問題。如果我沒記錯的話，這是你們第二大撥款，那麼 NIH 和 FDA 的削減在多大程度上影響了情緒和交易流程，從而導致了你們之前提到的緩慢發展？

Yeah, I would say that by nature it is an industry with a tremendous amount of regulatory risk, not only in terms of achieving or not achieving approval, but also in terms of you know how long things might take. As a result, if you look at the majority of our health care book. And we've had a good amount of success, particularly a number of the names in the portfolio today, it's post-approval businesses that are generating, more meaningful types of revenue which don't necessarily have that same regulatory slowdown risk that you might see for an early stage pre-approval biotech or something like that.

是的，我想說，從本質上來說，這是一個具有巨大監管風險的行業，不僅在獲得或不獲得批准方面，而且在事情可能需要多長時間方面。因此，如果你看一下我們的大部分醫療保健書籍。我們取得了相當大的成功，特別是今天投資組合中的許多公司，它們的上市後業務正在產生更有意義的收入，而這些收入不一定會像早期上市前生物技術或類似產品那樣面臨監管放緩的風險。

Okay, that's interesting. Lastly, just sort of a housekeeping question maybe for Tom, if you could give us some highlights of what drove this quarter's realized gain and the unrealized portfolio depreciation?

好的，這很有趣。最後，也許這只是針對湯姆的一個常規問題，您能否向我們介紹本季實現的收益和未實現的投資組合貶值的一些主要原因？

Sure, two parts of the -- what what really drove the realized gain was the previous announced closing of the sale of Gynasonics, and if you're calling Gynasonics we had. Two pieces we had our loan, so there was the acceleration of some income associated with the with the loan. But the gain was really driven by the the sale of the preferred stock interest.

當然，真正推動實現收益的因素有兩個，一是之前宣布的 Gynasonics 出售結束，如果你打電話給 Gynasonics，我們已經有了。我們有兩筆貸款，因此與貸款相關的一些收入增加。但收益實際上是由優先股權益的出售所推動的。

In terms of the the depreciation in the balance of the portfolio that's a function of the ongoing valuation process. And I would say as you look at that about 50% of that is, influenced by performance and 50% is influenced by by market multiples. So I think there were a couple of big movers that accounted for the majority of that change.

就投資組合餘額的貶值而言，這是正在進行的估值過程的函數。我想說的是，其中約 50% 受到業績的影響，50% 受到市場倍數的影響。所以我認為有幾個重大的推動因素導致了這一變化的大部分。

And and Tom, did you just say some of the Gynasonic's proceeds were recognized or recruited into income as a --

還有湯姆，你剛才說 Gynasonic 的部分收益被確認為或被納入收入作為--

Well, there is gain. But the gain on the the sale of the equity is what what drove that almost $7 million gain.

嗯，有收穫。但出售股權的收益才是推動這近 700 萬美元收益的關鍵。

I understand. Okay, thanks for your time this afternoon that that those are all my questions.

我明白。好的，感謝您今天下午抽出時間回答我的問題。

(Operator Instructions)

（操作員指示）

Doug Harter, UBS.

瑞銀的道格·哈特。

Thanks. You're (inaudible) loan yield has had kind of quite a variance over the past couple quarters. Can you just talk about how you're thinking about what is a normalized level that you would think you would kind of achieve as you kind of spread out some of pre-payment activity and as you think about that over kind of the next several quarters?

謝謝。您的（聽不清楚）貸款收益率在過去幾季中出現了相當大的差異。您能否談談，當您分散一些預付款活動時，您認為您會達到什麼樣的正常化水平，以及您如何考慮在接下來的幾個季度中實現這一目標？

Sure, I think. If you look at the variability in yields, there's been spikes at at times when we have accelerated or above above normal kind of level of prepayments. Going forward, we see fewer prepayments, the transactions are staying in the the portfolio longer which mitigates that that spike, if you will, but it also reduces the amount of acceleration from accreted income whether it's the end of term payment or the OID, so you have a little bit of a less of an impact from that perspective.

當然，我認為。如果你觀察收益率的變化，你會發現當我們加速或超過正常預付款水準時，收益率就會出現高峰。展望未來，我們會看到預付款減少，交易在投資組合中停留的時間更長，這可以緩解峰值，但也會減少累積收入的加速量，無論是期末付款還是 OID，所以從這個角度來看，你受到的影響會小一些。

So if you normalize that yield, I think you're going to -- you're in the right neighborhood in terms of of what we would expect. Our SOFR spreads and our our prime spreads are are pretty stable and you you throw on the end of term payments and OID, and that generates the core yield.

因此，如果你將該收益率標準化，我認為你將會——就我們預期而言，你處於正確的範圍內。我們的 SOFR 利差和我們的主要利差非常穩定，您可以加上期末付款和 OID，從而產生核心收益率。

Okay, I appreciate it. Thank you.

好的，我很感激。謝謝。

I show no further questions at this time. I would now like to turn the call back over to David Spreng, CEO for closing remarks.

我目前沒有其他問題。現在，我想將電話轉回給執行長 David Spreng 做最後一次發言。

Thank you, operator, and thank you everybody for joining today. In conclusion, we believe that our high-quality portfolio is positioned to perform amidst ongoing market volatility, and we look forward to updating you on our progress during our second quarter earnings call in August.

謝謝接線員，也謝謝大家今天的參與。總而言之，我們相信，我們的高品質投資組合能夠在持續的市場波動中表現出色，我們期待在 8 月的第二季財報電話會議上向您通報我們的進展。

This does conclude today's conference call. Thank you for participating and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。