Runway Growth Finance Corp (RWAY) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Runway Growth Finance third-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，感謝各位的耐心等待，歡迎參加 Runway Growth Finance 2025 年第三季財報電話會議。請注意，今天的會議正在錄影。現在我將把會議交給投資者關係助理副總裁昆蘭·阿貝爾。請繼續。

Thank you, operator. Good evening, everyone, and welcome to the Runway Growth Finance Conference Call for the quarter ended September 30, 2025. 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 adviser; and Tom Raterman, Chief Financial Officer and Chief Operating Officer. Runway Growth Finance's third-quarter 2025 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.

謝謝接線生。各位晚上好，歡迎參加 Runway Growth Finance 截至 2025 年 9 月 30 日的季度電話會議。今天參加電話會議的 Runway Growth Finance 的有：首席執行官 David Spreng；我們的投資顧問 Runway Growth Capital LLC 的首席投資官 Greg Greifeld；以及首席財務官兼首席營運官 Tom Raterman。Runway Growth Finance 2025 年第三季財務業績已於今日股市收盤後發布，投資者可造訪 Runway Growth Finance 的投資者關係網站 investors.runwaygrowth.com 查看。我們已安排在 Runway Growth Finance 網頁上提供電話會議錄音重播。

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 uncertainties surrounding interest rates, changing economic conditions and other factors we identify in our filings with the SEC.

在本次通話中，我想提醒各位，我們可能會根據目前的預期做出前瞻性陳述。本次電話會議中除純粹歷史事實外的所有陳述均為前瞻性陳述。這些前瞻性陳述並非對未來業績的保證，並且受到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，包括但不限於利率不確定性導致的市場狀況、不斷變化的經濟狀況以及我們在提交給美國證券交易委員會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.

儘管我們認為這些前瞻性陳述所依據的假設是合理的，但任何一個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。

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.

本次電話會議中所包含的前瞻性陳述僅代表截至本次會議發布之日的信息，Runway Growth Finance 不承擔更新前瞻性陳述或後續事件的義務。如需與美國證券交易委員會相關的備案文件副本，請造訪我們的網站。

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

接下來，我將把電話交給大衛。

Thank you, Quinlan, and thanks, everyone, for joining us this evening to discuss our third-quarter 2025 financial results. Today, I'll discuss our third-quarter financial highlights, provide an update on our strategy and growth levers and recap our recently announced definitive merger agreement to acquire SWK Holdings. Then Greg will discuss our portfolio optimization initiatives and activity. And to conclude, Tom will dive deeper into our financial performance. As I step back and look at what we have accomplished here at Runway Growth since our IPO back in 2021, I'm incredibly proud.

謝謝昆蘭，也謝謝各位今晚蒞臨，與我們共同探討我們2025年第三季的財務表現。今天，我將討論我們第三季的財務亮點，介紹我們的策略和成長槓桿的最新情況，並回顧我們最近宣布的收購 SWK Holdings 的最終合併協議。然後 Greg 將討論我們的投資組合優化計劃和活動。最後，湯姆將深入分析我們的財務表現。當我回顧 Runway Growth 自 2021 年上市以來的成就時，我感到無比自豪。

Despite a challenging deal environment and significant changes to the venture ecosystem, we've always been proactive in positioning the platform to compete with the best in the business. We have demonstrated our acumen as a strong investor and operator that is dedicated to building an optimal portfolio for our shareholders while remaining disciplined. This has taken the form of both organic and inorganic deal execution to date, and we will continue to evaluate all options that will enhance the platform. For the third quarter, Runway delivered total investment income of $36.7 million and net investment income of $15.7 million. Additionally, we completed 11 investments in new and existing portfolio companies across the high-growth verticals of technology, healthcare and select consumer sectors, representing $128.3 million in funded loans.

儘管交易環境充滿挑戰，創投生態系統也發生了重大變化，但我們始終積極主動地調整平台定位，使其能夠與業界最優秀的平台競爭。我們已證明自己是優秀的投資者和營運商，致力於為股東建立最佳投資組合，同時保持嚴謹的經營理念。迄今為止，我們已透過有機成長和非有機成長兩種方式實現了這一目標，並將繼續評估所有能夠增強平台功能的選項。第三季度，Runway 的總投資收益為 3,670 萬美元，淨投資收益為 1,570 萬美元。此外，我們在科技、醫療保健和特定消費領域的高成長垂直行業中，對新的和現有的投資組合公司完成了 11 項投資，涉及 1.283 億美元的貸款。

We believe our third quarter investment activity is only beginning to show the benefits of our integration within the BC Partners Credit ecosystem, which allows us to source from a broader set of origination channels and strengthen our ability to execute against our portfolio optimization initiatives. As a reminder, these initiatives include further enhancing the risk profile of our portfolio through diversification and smaller position sizes, expanding our suite of financing solutions and maximizing our existing commitments through robust monitoring and diligent risk mitigation. Inorganic growth is also a key lever available to us as a part of the BC Partners Credit platform, which we believe sets us apart from our peers. For context, BC Partners Credit has been one of the most active players in BDC consolidation to date. Their experience and our combined network give us an edge in identifying and evaluating attractive portfolios that may be a fit in driving Runway's growth.

我們相信，第三季的投資活動才剛開始展現我們融入 BC Partners Credit 生態系統的好處，這使我們能夠從更廣泛的貸款管道獲取資金，並增強我們執行投資組合優化計劃的能力。再次提醒大家，這些措施包括透過多元化和縮小持倉規模來進一步改善我們投資組合的風險狀況，擴大我們的融資解決方案組合，並透過強有力的監控和認真的風險緩解來最大限度地發揮我們現有承諾的作用。無機成長也是 BC Partners Credit 平台為我們提供的關鍵槓桿，我們相信這使我們與同行區分開來。作為背景，BC Partners Credit 一直是迄今為止 BDC 整合領域最活躍的參與者之一。他們的經驗和我們共同的人脈網絡使我們在識別和評估可能適合推動 Runway 成長的有吸引力的投資組合方面具有優勢。

To that end, in early October, we were excited to announce Runway entered into a definitive merger agreement to acquire SWK Holdings, a specialty finance company with a focus on healthcare and life sciences. SWK provides minimally dilutive financing to small and midsized commercial stage healthcare companies. To reiterate, we think this deal makes both strategic and financial sense for Runway. We believe the acquisition of SWK will immediately scale our portfolio by an estimated $242 million, accelerating growth and diversification, expand our position and investment capabilities in healthcare and life sciences sector and enhance both our earnings power and overall financial profile, as Tom will discuss in more detail.

為此，10 月初，我們很高興地宣布 Runway 已達成最終合併協議，收購 SWK Holdings，這是一家專注於醫療保健和生命科學的專業金融公司。SWK 為小型和中型商業化階段的醫療保健公司提供稀釋性最小的融資。重申一下，我們認為這筆交易對 Runway 來說無論從戰略上還是財務上都是有意義的。我們相信，收購 SWK 將立即使我們的投資組合規模擴大約 2.42 億美元，加速成長和多元化，擴大我們在醫療保健和生命科學領域的地位和投資能力，並增強我們的盈利能力和整體財務狀況，湯姆將對此進行更詳細的討論。

With ever-increasing competition across private markets, we believe this transaction positions us to grow and diversify our asset base and continue delivering value for our shareholders and borrowers. While SWK is a prime example of a complementary investment strategy, we will continue to evaluate all opportunities that align with our disciplined approach to inorganic growth.

隨著私募市場競爭日益激烈，我們相信此次交易將使我們能夠發展壯大並多元化我們的資產基礎，並繼續為我們的股東和借款人創造價值。雖然SWK是互補型投資策略的典型例子，但我們將繼續評估所有符合我們嚴謹的非內生成長策略的機會。

With that, I'll turn it over to Greg to provide a deeper look at our portfolio activity and outlook on venture debt.

接下來，我將把發言權交給 Greg，讓他更深入分析我們的投資組合活動和風險債務前景。

Thanks, David, and good evening, everyone. I'll expand a bit on our portfolio activity and how the SWK transaction progresses our objective to diversify our investments by size and industry. As David mentioned, our team is consistently assessing our portfolio and the venture landscape to ensure we are finding the best avenues to deliver attractive risk-adjusted returns for our shareholders. This includes maximizing our existing investments, completing new investments and adding to the portfolio through inorganic channels.

謝謝你，大衛，大家晚上好。我將詳細介紹我們的投資組合活動，以及SWK交易如何推動我們按規模和產業實現投資多元化的目標。正如大衛所提到的，我們的團隊一直在評估我們的投資組合和創投環境，以確保我們找到最佳途徑，為我們的股東帶來具有吸引力的風險調整後回報。這包括最大限度地利用我們現有的投資，完成新的投資，並透過非有機管道增加投資組合。

As David mentioned, during the third quarter of 2025, Runway completed 11 investments in new and existing portfolio companies, representing $128.3 million in funded loans. These investments include the completion of a new $10 million investment to federal hearings and appeals services, funding $7.5 million at close and the completion of a new $10 million investment to DigiCert Inc., funding $9.3 million at close. We also completed investments totaling $97.9 million to existing portfolio companies, King Insurance, Madison Reed and SkillShare and completed follow-on investments with an aggregate amount of $6.9 million to five existing portfolio companies.

正如大衛所提到的，在 2025 年第三季度，Runway 完成了對新舊投資組合公司的 11 項投資，涉及 1.283 億美元的貸款。這些投資包括向聯邦聽證和上訴服務機構完成一項新的 1000 萬美元投資，其中 750 萬美元在交易完成時到位；以及向 DigiCert 公司完成一項新的 1000 萬美元投資，其中 930 萬美元在交易完成時到位。我們也向現有投資組合公司 King Insurance、Madison Reed 和 SkillShare 完成了總計 9,790 萬美元的投資，並向五家現有投資組合公司完成了總計 690 萬美元的後續投資。

We'd like to call out that we have reduced our positions in King Insurance and SkillShare, which aligns with our strategy to decrease our average hold size. Lastly, we completed a $6.7 million equity investment to Runway-Cadma 1, our joint venture with Cadma Capital Partners. Turning to our acquisition of SWK.

我們想指出，我們已經減少了在 King Insurance 和 SkillShare 的持倉，這符合我們降低平均持股規模的策略。最後，我們完成了對 Runway-Cadma 1（我們與 Cadma Capital Partners 的合資企業）的 670 萬美元股權投資。接下來談談我們對SWK的收購。

We are immediately scaling our position in the highly attractive healthcare and life sciences sector. The transaction will increase Runway's exposure in the sector to approximately 31% of the overall portfolio at fair value from 14% as of September 30, 2025. As a reminder, we are focused on the following three key industries: healthcare and life sciences; technology; and select consumer sectors. This transaction expands our commitment to the healthcare and life sciences industries, which we believe is defensive by nature of high barriers to entry given the time and investment needed for FDA approvals as well as limited downside risk and excellent risk-adjusted returns.

我們正在迅速擴大在極具吸引力的醫療保健和生命科學領域的地位。此交易將使 Runway 在該行業的投資比例從 2025 年 9 月 30 日的 14% 增加到整體投資組合的約 31%（以公允價值計算）。再次提醒，我們專注於以下三個關鍵產業：醫療保健與生命科學；科技；以及部分消費品產業。這項交易擴大了我們對醫療保健和生命科學行業的投入，我們認為這些行業具有防禦性，因為獲得 FDA 批准需要時間和投資，因此進入壁壘很高，而且下行風險有限，風險調整後的回報也十分優異。

To give you a sense of SWK's complementary portfolio, I'd like to highlight two standout investments SKNV, and Journey Medical. SKNV is a highly integrated prescription system dedicated to delivering customized medications for dermatology patients. SWK's $16 million financing has helped the company expand its product offerings, increase its manufacturing capacity and rapidly grow sales.

為了讓您了解 SWK 的互補投資組合，我想重點介紹兩項突出的投資：SKNV 和 Journey Medical。SKNV是一個高度整合的處方系統，致力於為皮膚科患者提供客製化藥物。SWK 獲得的 1,600 萬美元融資幫助該公司擴大了產品範圍，提高了生產能力，並迅速成長了銷售額。

Journey Medical is a publicly traded company focused on identifying, acquiring and strategically commercializing innovative, differentiated dermatology products through its efficient sales and marketing model. SWK's $25 million financing helped the company launch Emrosi in innovative rosacea treatment. These companies are exemplary of the high-quality additions to our portfolio as we solidify our standing as a destination of choice for growth investment.

Journey Medical 是一家上市公司，專注於透過其高效的銷售和行銷模式，識別、收購和策略性地商業化創新、差異化的皮膚病學產品。SWK 提供的 2500 萬美元融資幫助該公司推出了創新玫瑰痤瘡治療藥物 Emrosi。這些公司是我們高品質投資組合的典範，鞏固了我們作為成長型投資首選目的地的地位。

Looking ahead, we believe our transaction with SWK is timely and further positions Runway as a serious participant in the consolidation of the venture and growth lending markets. We believe this deal demonstrates our ability to structure, win and complete transactions, utilizing both cash and equity to drive scale and enhance our market position. Further, it provides a repeatable yet flexible blueprint that is nondilutive to shareholders.

展望未來，我們相信與SWK的交易是及時的，這將進一步鞏固Runway在創投和成長型貸款市場整合中的重要地位。我們相信，這筆交易證明了我們有能力建構、贏得和完成交易，利用現金和股權來擴大規模並提升我們的市場地位。此外，它提供了一個可重複使用且靈活的藍圖，並且不會稀釋股東權益。

Now I want to turn the call over to Tom to share more on our financial results.

現在我想把電話交給湯姆，讓他詳細介紹我們的財務表現。

Thank you, Greg, and good evening, everyone. Turning now to the third quarter results. We generated total investment income of $36.7 million and net investment income of $15.7 million in the third quarter of 2025, an increase compared to $35.1 million and $13.9 million in the second quarter of 2025. Our weighted average portfolio risk rating increased to 2.42 in the third quarter of 2025 compared to 2.33 in the second quarter of 2025. Our rating system is based on a scale of 1 to 5, where one represents the most favorable credit rating.

謝謝你，格雷格，大家晚上好。現在來看第三季業績。2025 年第三季度，我們實現了 3,670 萬美元的總投資收益和 1,570 萬美元的淨投資收益，與 2025 年第二季度的 3,510 萬美元和 1,390 萬美元相比有所增長。2025 年第三季度，我們的加權平均投資組合風險評級升至 2.42，而 2025 年第二季度為 2.33。我們的評級系統基於 1 到 5 的等級，其中 1 代表最佳信用評級。

As with previous quarters, we calculated the loan-to-value ratio for our loans in our portfolio at the end of the second quarter and at the end of the third quarter. Our dollar-weighted loan-to-value ratio increased from 29.6% to 31.4%. Our total investment portfolio had a fair value of $946 million, a decrease of 7.7% from $1.02 billion in the second quarter of 2025. Our loan portfolio is comprised of 97% floating rate assets. To reiterate, we've structured our portfolio to be comprised almost exclusively of first lien senior secured loans, reflecting our focus on risk mitigation and diligent portfolio management.

與前幾季一樣，我們在第二季末和第三季末計算了我們投資組合中貸款的貸款價值比率。我們的美元加權貸款成數從 29.6% 上升至 31.4%。我們的總投資組合公允價值為 9.46 億美元，比 2025 年第二季的 10.2 億美元減少了 7.7%。在我們的貸款組合中，97%為浮動利率資產。再次重申，我們的投資組合幾乎完全由第一順位優先擔保貸款組成，這反映了我們對風險緩解和認真投資組合管理的重視。

We continue to cover our base dividend of $0.33 per share, delivering $0.43 of net investment income in the third quarter. Earnings for the quarter benefited from elevated prepayment income. At the end of the third quarter, we had spillover income of approximately $0.53 per share. Our debt portfolio generated a dollar weighted average annualized yield of 16.8% for the third quarter of 2025, increasing from 15.4% quarter-over-quarter and increasing from 15.9% for the comparable period last year.

我們繼續支付每股 0.33 美元的基本股息，第三季實現淨投資收益 0.43 美元。本季收益受益於預付款收入的增加。第三季末，我們的溢出收益約為每股 0.53 美元。2025 年第三季度，我們的債務組合產生了 16.8% 的美元加權平均年化收益率，較上一季的 15.4% 有所增長，也較去年同期的 15.9% 有所增長。

Moving to our expenses. Total operating expenses were $21 million for the third quarter of 2025, a decrease from $21.2 million for the second quarter of 2025. We recorded a net realized loss on investments of $1.3 million in the third quarter of 2025 compared to a net realized loss on investments of $1.5 million in the second quarter of 2025. During the third quarter, we experienced 7 repayments totaling $199.7 million and scheduled amortization of $1.5 million.

轉移到我們的開支。2025 年第三季總營運支出為 2,100 萬美元，低於 2025 年第二季的 2,120 萬美元。2025 年第三季度，我們的投資淨已實現虧損為 130 萬美元，而 2025 年第二季的投資淨已實現虧損為 150 萬美元。第三季度，我們進行了 7 次還款，總額達 1.997 億美元，並計劃攤提 150 萬美元。

As of September 30, 2025, we had only one loan on nonaccrual status to Mingle Healthcare. This loan has a cost basis of $4.8 million and fair market value of $2.4 million or 50% of cost, representing just 0.2% of the total investment portfolio at fair value as of September 30, 2025.

截至 2025 年 9 月 30 日，我們只有一筆非應計貸款給 Mingle Healthcare。這筆貸款的成本基礎為 480 萬美元，公允市價為 240 萬美元，即成本的 50%，僅佔截至 2025 年 9 月 30 日公允價值總投資組合的 0.2%。

As of September 30, 2025, Runway had net assets of $489.5 million, decreasing from $498.9 million at the end of the second quarter of 2025. NAV per share was $13.55 at the end of the third quarter, a decrease of 1.9% compared to $13.66 at the end of the second quarter of 2025. At the end of the third quarter of 2025, our leverage ratio and asset coverage were 0.92x and 2.09x, respectively, compared to 1.05x and 1.95x, respectively, at the end of the second quarter of 2025.

截至 2025 年 9 月 30 日，Runway 的淨資產為 4.895 億美元，低於 2025 年第二季末的 4.989 億美元。第三季末每股淨資產值為 13.55 美元，較 2025 年第二季末的 13.66 美元下降了 1.9%。截至 2025 年第三季末，我們的槓桿率和資產覆蓋率分別為 0.92 倍和 2.09 倍，而截至 2025 年第二季末，這兩個數字分別為 1.05 倍和 1.95 倍。

As of September 30, 2025, our total available liquidity was $371.9 million, including unrestricted cash and cash equivalents, and we had borrowing capacity of $364 million. As of September 30, 2025, we had a total of $143.7 million in unfunded commitments, which was comprised of $120.9 million to provide debt financing to our portfolio companies and $22.7 million to provide equity financing to our JV with Cadma. Approximately $30.3 million of our unfunded debt commitments are eligible to be drawn based on achieved milestones.

截至 2025 年 9 月 30 日，我們的可用流動資金總額為 3.719 億美元，其中包括不受限制的現金和現金等價物，我們的借款能力為 3.64 億美元。截至 2025 年 9 月 30 日，我們共有 1.437 億美元的未籌集資金承諾，其中包括 1.209 億美元用於向我們的投資組合公司提供債務融資，以及 2270 萬美元用於向我們與 Cadma 的合資企業提供股權融資。根據已實現的里程碑，我們約有 3,030 萬美元的未償債務承諾可以提取。

Additionally, as of September 30, 2025, Runway had total assets of $963.3 million, which would have adjusted the fourth quarter 2025 base management fee paid to our external adviser to 1.6% per annum. However, the adviser has agreed to maintain the base management fee at 1.5%. I'd like to expand on David and Greg's commentary and reiterate how we believe our proposed acquisition of SWK enhances our financial profile and grows our shareholder base.

此外，截至 2025 年 9 月 30 日，Runway 的總資產為 9.633 億美元，這將使我們支付給外部顧問的 2025 年第四季基本管理費調整為每年 1.6%。然而，顧問已同意將基本管理費維持在 1.5%。我想補充 David 和 Greg 的評論，並重申我們認為我們擬議收購 SWK 將提升我們的財務狀況並擴大我們的股東基礎。

As a reminder, we anticipate enhanced earnings power supported by the following key drivers: first, by scaling up our portfolio to $1.2 billion on a September 30 pro forma basis; second, by optimizing our leverage profile at approximately 1.1x or the middle of our target range; third, by benefiting from an attractive target portfolio that offers incremental yield relative to Runway's existing portfolio; fourth, through greater expense efficiency as a result of our increased scale.

再次提醒，我們預計以下關鍵因素將增強盈利能力：首先，截至 9 月 30 日，我們的投資組合規模將擴大至 12 億美元（按備考基準計算）；其次，我們將槓桿率優化至約 1.1 倍，即目標範圍的中值；第三，我們將受益於一個有吸引力的目標投資組合，該投資組合相對於 Runway 的收益；

We anticipate this transaction will generate mid-single-digit run rate net investment income accretion during the first full quarter following the close and support modest ROE expansion as well as improved dividend coverage. Notably, upon close, this transaction will more than offset the repayment impact our portfolio experienced last quarter. This will contribute to preserving earnings power, maintaining our dividend and ensuring we are on the right trajectory even as shifting rates and a changing venture debt landscape impact the sector.

我們預計，此交易將在交易完成後的第一個完整季度內產生中等個位數的淨投資收益成長，並支持適度的 ROE 擴張以及股息覆蓋率的提高。值得注意的是，交易完成後，這筆交易將足以抵消我們投資組合上季所受到的償還影響。這將有助於保持獲利能力，維持我們的股息，並確保我們走在正確的道路上，即使利率變化和風險債務環境的變化會影響該行業。

As previously disclosed, the transaction will be a NAV for NAV merger structured as a tax-free reorganization with an estimated purchase price of approximately $220 million. Consideration includes $75.5 million in Runway shares valued at closing NAV per share and approximately $145 million in cash. In support of the transaction and our shareholders, our external investment adviser is also contributing $9 million in cash as part of the consideration.

如先前披露，該交易將以淨資產對淨資產的方式進行合併，結構為免稅重組，預計收購價格約為 2.2 億美元。對價包括價值 7,550 萬美元的 Runway 股票（以交割時每股淨值計算）和約 1.45 億美元現金。為了支持本次交易和我們的股東，我們的外部投資顧問也出資 900 萬美元現金作為交易對價的一部分。

To provide perspective, this significant contribution from the adviser equates to a fee waiver of nearly three full quarters when calculated on a pretax basis. As a result of our expanded shareholder base and trading liquidity, Oaktree's percentage ownership position will be reduced. Oaktree has been an exceptional partner to Runway on our path to becoming a public BDC, and we believe this transaction will drive liquidity in our shares, and we hope to begin to lift trading levels.

為了讓大家更直觀地了解情況，顧問的這項重大貢獻相當於稅前減免了近三個季度的費用。由於股東基礎擴大和交易流動性增強，橡樹資本的持股比例將會降低。在 Runway 成為上市 BDC 的過程中，Oaktree 一直是我們傑出的合作夥伴，我們相信這筆交易將提高我們股票的流動性，並希望能夠開始提升交易水平。

Lastly, in tandem with enhancing earnings power, we are lowering our risk profile demonstrated by sector diversification and what we expect to be smaller average loan size of 2%. Improved diversification and scale should enhance our access to new debt financing markets, including ABS and other secured lending markets. Taking into consideration the ongoing government shutdown, we expect delays in the SEC regulatory approval process and anticipate the close to take place in early 2026.

最後，在提高獲利能力的同時，我們正在降低風險狀況，這體現在產業多元化以及我們預計平均貸款規模將縮小至 2%。提高多元化和規模化程度，應該能夠增強我們進入新的債務融資市場（包括資產支持證券和其他擔保貸款市場）的管道。考慮到政府持續停擺，我們預計美國證券交易委員會的監管審批流程將會延遲，預計交易將在 2026 年初完成。

As previously disclosed 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 repurchase under the program. During the third quarter, we repurchased 397,983 shares. We'd like to note that our use of the share repurchase program during the quarter was limited as a result of the blackout period associated with the SWK transaction. Finally, on November 6, 2025, our Board declared a regular distribution for the fourth quarter of $0.33 per share.

正如先前在 2025 年 5 月 7 日披露的那樣，我們的董事會批准了一項新的股票回購計劃，金額為 2500 萬美元，該計劃將於 2026 年 5 月 7 日到期，或者如果我們回購了根據該計劃授權回購的全部股票，則該計劃將提前到期。第三季度，我們回購了 397,983 股股票。我們想指出，由於與SWK交易相關的禁售期，我們本季對股票回購計畫的使用受到限制。最後，在 2025 年 11 月 6 日，我們的董事會宣布第四季每股派發 0.33 美元的常規股息。

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

接線員，請開啟提問頻道。

(Operator Instructions) Melissa Wedel, JPMorgan.

（操作說明）梅麗莎·韋德爾，摩根大通。

First, I appreciate the update on the expected closing date of the SWK merger. Given that, that's now likely to be in 2026 close date, how should we be thinking about origination activity and repayment activity in 4Q? Should we be thinking about that as sort of a net exit quarter ahead of the onboarding of the other portfolio?

首先，感謝您提供的SWK合併預計完成日期的最新消息。有鑑於此，該專案很可能在 2026 年完成，我們應該如何看待第四季的貸款發放活動和還款活動？我們是否應該將其視為在其他投資組合引入之前的一種淨退出季度？

Yeah. So I would say in terms of repayments, I do think it will be a relatively muted relative to Q3 quarter. We definitely did see an elevated amount, and I would expect some of those -- we had expected some of those repayments in Q4, but it ultimately came in Q3. But in terms of origination, we're utilizing the pipeline we have as well as the broader BC Partners Credit platform and seeing many interesting opportunities out there in the market.

是的。所以就還款而言，我認為與第三季相比，本季會相對溫和。我們確實看到了金額的增加，我預料到其中一些還款會在第四季度到賬，但最終在第三季度到賬了。但在貸款發放方面，我們正在利用我們現有的管道以及更廣泛的 BC Partners Credit 平台，並且看到了市場上許多有趣的機會。

Okay. Appreciate that. And then as a follow-up, when we think about the integration of the two portfolios, obviously, the existing portfolio is multiples larger than the one that you'll be onboarding and integrating. But can you give us a sense of like the yield profile between the two and where you expect that to sort of shake out once the two are combined?

好的。謝謝。然後，作為後續考慮，當我們考慮整合這兩個投資組合時，顯然，現有投資組合的規模是您將要引入和整合的投資組合的數倍。但是，您能否大致描述一下這兩種產品的產量分佈情況，以及您預期這兩種產品結合後最終的產量會是多少？

The yield profile will be slightly greater than the SWK portfolio has a slightly higher yield than our portfolio. And we'll have complete pro formas in the N14 when filed shortly.

殖利率曲線將略高於SWK投資組合，SWK投資組合的殖利率略高於我們的投資組合。我們將在不久後提交的 N14 表格中提供完整的預測財務報表。

I think one other thing to highlight, too, about the SWK portfolio, as you said, it is dollar-wise smaller than ours. And there's a degree to which they were limited with capital constraints in terms of some of the positions. So I think you should expect once we do move closer to closing, us reexploring where there's opportunities to upsize the best loans in their portfolio in order to get some organic growth out of this deal as well.

關於SWK投資組合，我認為還有一點需要強調，正如你所說，它的美元規模比我們的要小。在某種程度上，由於資金限制，他們在某些職位上的發展受到了限制。所以我認為，一旦我們接近交易完成，你們應該會期待我們重新探索在他們投資組合中哪些方面有機會擴大最佳貸款規模，以便從這筆交易中獲得一些自然增長。

Mickey Schleien, Clear Street.

米奇‧施萊恩，《清晰的街道》。

I want to start off by asking about which were the portfolio companies that were the main drivers of the realized loss and the unrealized portfolio depreciation. And do these reflect problems at specific sectors? Or was it more idiosyncratic?

首先我想問一下，哪些投資組合公司是造成已實現虧損和未實現投資組合貶值的主要驅動因素。這些是否反映了特定產業的問題？或者，這只是它的獨特之處？

Those losses were mainly in the equity portfolio.

這些損失主要集中在股票投資組合中。

And were they -- are the -- is there some theme across the equity portfolio that drove those losses?

股票投資組合中是否存在某種主題導致了這些損失？

There were some expirations of warrants. There was a liquidation of some IPO shares at less than the carrying cost. There really wasn't any specific theme. Most of them were completely idiosyncratic.

有些逮捕令已經過期。部分IPO股票以低於持有成本的價格被計算。其實沒有什麼特定的主題。他們中的大多數人都非常特立獨行。

Fair enough. You discussed the prepayment activity in your remarks. But could you provide us some color on what's driving that activity? And do you expect that to continue next year?

很公平。您在發言中談到了預付款活動。您能否為我們詳細介紹一下推動這項行為的因素？你預計明年這種情況還會持續嗎？

Yes. In terms of the activity, I would say that -- there's a degree to which we're seeing M&A remain active across our portfolio companies. There's a degree that to which some of our companies have outgrown our cost of capital and found refinancing options with younger or rather with cheaper options. But I would say, in general, repayments are a double-edged sword where at some point, you do need to get paid back while you do also want to keep the best names on your book. But I would say we do expect a normal course of prepayments to occur from here on out as well.

是的。就交易活動而言，我認為——我們看到投資組合公司中的併購活動在某種程度上仍然活躍。在某種程度上，我們的一些公司已經發展壯大到超過了我們的資本成本，並找到了更年輕或更便宜的再融資方案。但總的來說，我認為還款是一把雙面刃，一方面，你需要收回欠款，另一方面，你也希望留住最優秀的客戶。但我認為，我們預計從現在開始，預付款也會正常進行。

Okay. And on the flip side, obviously, you're very active in terms of investments with increased sourcing from BC Partners. Could you share with us perhaps some idea of what share of the recent deals came from that ecosystem? And how do those opportunities differ from your legacy pipeline?

好的。另一方面，很顯然，你們在投資方面非常活躍，並且增加了從 BC Partners 的投資。您能否透露一下，近期達成的交易中，有多少份額來自該生態系統？這些機會與您原有的銷售管道有何不同？

Yes. I'd say that there's definitely a good split between the two. I'd say we're still very actively focused in terms of our legacy pipeline and focus, and that's what we hear spend all day, every day doing. I would say where we'll look to share opportunities with them will be a circumstance where the check is something larger than we would want to write in terms of the BDC's optimal hold size. And then in terms of things that they'll share with us, we're not looking for any type of style drift or anything like that.

是的。我認為兩者之間肯定存在著相當大的比例。我想說，我們仍然非常積極地專注於我們的傳統產品線和重點領域，這也是我們每天都在做的事情。我認為，我們會考慮與他們分享機會的情況是，支票金額超過了 BDC 的最佳持有規模。至於他們會和我們分享什麼，我們不希望看到任何風格的轉變或類似的事情。

Things that they show us are firmly within the three sectors that we deal with: healthcare, technology and as well as select consumer. And they have to meet our ethos of being growth stage businesses, while generally larger than we'll deal with.

他們向我們展示的內容都牢牢地屬於我們所關注的三大領域：醫療保健、科技以及部分消費品。而且它們必須符合我們成長階段企業的理念，同時規模通常比我們願意合作的企業大。

And also, they have to meet the structural and return profile that matches our portfolio. So I would say we're definitely showing them things. And in terms of what we're choosing to put in our book that they're showing us, it's the deals that firmly look, smell and feel like runway deals.

此外，它們還必須符合我們投資組合的結構和回報特徵。所以我覺得我們一定是在給他們看一些東西。就我們選擇收錄到書中的內容而言，他們向我們展示的都是那些看起來、聞起來、感覺起來都像是T台交易的交易。

That's really helpful. And to follow-up, we've seen very intense competition in the liquid markets and to some extent in the more conventional direct lending markets. Could you describe the competitive dynamics and the pricing pressures in the venture debt space currently?

這真的很有幫助。此外，我們看到流動性市場競爭非常激烈，而且在某種程度上，更傳統的直接貸款市場也出現了激烈的競爭。您能否描述一下目前風險債務領域的競爭格局和定價壓力？

Yes. I would say that we have seen a degree of spread compression, but definitely nowhere near what I think has been seen in the broader middle market as well as broadly syndicated markets. I think that as rates do drop as well, we have seen less pressure on spreads, and it's something I think will continue in this new rate environment.

是的。我認為我們已經看到價差有所收窄，但肯定遠不及我認為在更廣泛的中端市場以及廣泛的聯合保險市場中所看到的價差收窄程度。我認為隨著利率下降，利差壓力也隨之減小，而且我認為在新的利率環境下，這種情況還會持續下去。

That's interesting. And just a couple of questions on the merger. Could you give us a sense of how you plan to integrate the SWK team into your platform? And let's leave it at that. How do you expect to integrate the SWK team?

那很有意思。關於合併事宜，我還有幾個問題。您能否簡單介紹一下您計劃如何將SWK團隊整合到您的平台中？就此打住吧。您打算如何整合SWK團隊？

The SWK team, Mickey, will join us for transition services to help us move that portfolio onto the BDC's platform. They'll help with the BDC and origination during this time period. And then we'll see how things move after that. But initially, it will be assisting with the transition, assisting with the portfolio relationships and assisting with new originations in the space for the BDC, assisting the BDC with that.

SWK 團隊的 Mickey 將加入我們，提供過渡服務，幫助我們將該投資組合轉移到 BDC 的平台上。在此期間，他們將協助 BDC 和貸款發放。接下來我們再來看看事態如何發展。但最初，它將協助過渡，協助處理投資組合關係，並協助 BDC 在該領域開展新的業務，協助 BDC 完成這些工作。

Okay. And my last question, I'm not sure whether it's been discussed, but are the SWK shareholders locked up post-merger? And if they are, what is the schedule of the lockups?

好的。最後一個問題，我不確定之前是否有人討論過，但SWK的股東在合併後是否被鎖定？如果屬實，那麼封鎖的具體時間安排是什麼？

There's no lockup per se. We do have a key shareholder agreement, and we've outlined the key elements of that shareholder agreement in our SEC filings, but there is no specific lockup.

嚴格來說，並沒有實施封鎖。我們確實有一份關鍵股東協議，並且我們在提交給美國證券交易委員會的文件中概述了該股東協議的關鍵要素，但沒有特定的鎖定期。

Casey Alexander, Compass Point Research.

Casey Alexander，指南針研究公司。

First off, earlier today, you declared a dividend of $0.33 a share and yet net investment income per share was $0.43 a share. Usually, there's some relative attachment between the earnings power and the dividend. I'm a little curious how to take that, that you didn't add on any special distribution. Should we be thinking of that dividend as looking forward to your earnings power in the fourth quarter because of the substantial paydowns? Or how did the Board go about making that decision?

首先，今天早些時候，您宣布每股發放 0.33 美元的股息，然而每股淨投資收益為 0.43 美元。通常情況下，獲利能力和股利之間存在一定的相對關係。我有點好奇該如何理解這一點，你沒有添加任何特殊分佈。由於大額派息，我們是否應該將該股利視為對貴公司第四季獲利能力的預期？或者說，董事會是如何做出這項決定的？

Well, thank you, Casey, for that question. And as you remember, when we rebased and reset the dividend earlier this year, we looked at the earnings power of the portfolio with the anticipation of several things. One was we knew we were going to have a heavy year of prepayments weighted toward the back end of the year. And second, that we were likely to see several decreases in interest rates. And so as we said it, we said that we would pay up to 50% of the delta between NII per share and the base dividend.

謝謝你，凱西，問了這個問題。如您所知，今年稍早我們重新調整股利基礎時，我們考慮到以下幾個因素，檢視了投資組合的獲利能力。其中一個原因是我們知道今年的預付款會很多，而且大多集中在年底。其次，我們很可能會看到利率多次下調。正如我們所說，我們將支付每股淨利息收入與基本股息之間差額的 50%。

So as we look forward, we had $0.10 per share in prepayment-related income during Q4. So as you look forward into Q4, as we rebuild the portfolio, which doesn't happen overnight, deals tend to close at the end of the quarter, so you don't get the benefit of the earnings from the new asset. We're looking at covering the dividend, the base dividend with Q4 earnings.

展望未來，我們在第四季度獲得了每股 0.10 美元的預付款相關收入。展望第四季度，隨著我們重建投資組合（這並非一朝一夕就能完成），交易往往在季度末完成，因此您無法從新資產中獲得收益。我們正在考慮用第四季的收益來支付股息，也就是基本股息。

Okay. And secondly, the SWK team, do they currently have the ability to make new loans? And if they do, or do you guys have any say on any new loans that they would make?

好的。其次，SWK團隊目前是否有能力發放新的貸款？如果他們真的這麼做，你們對他們發放的任何新貸款有什麼發言權嗎？

Well, as you might expect, as part of the merger agreement, there are interim operating covenants. And so while they're still an independent company, any modifications to loans are worked through with Greg and his team and our investment committee. And in all likelihood, we would look at doing any upsizes or new opportunities either jointly or as part of the runway portfolio going forward.

正如你所預料的那樣，作為合併協議的一部分，其中包含臨時營運契約。因此，雖然他們仍然是一家獨立公司，但任何貸款修改都需要與 Greg 和他的團隊以及我們的投資委員會協商解決。而且很有可能，我們會考慮以聯合或作為現有投資組合的一部分來進行任何規模擴大或新的投資機會。

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

Just curious if you could provide any characteristics of the loan that you added to the Cadma JV and why it was a good fit for that vehicle as opposed to your primary portfolio.

我只是好奇您能否提供您添加到 Cadma 合資企業中的貸款的具體特點，以及為什麼它更適合該合資企業而不是您的主要投資組合。

Yes. It was a loan that definitely is firmly a growth loan. I don't believe that we have explicitly named the portfolio within it. But in general, you're going to see either some partial allocations of loans that we've done in the BDC, but you'll also see some other deals that are very similar to Runway loans, but for one reason or another, are better suited to come into there.

是的。這筆貸款無疑是一筆促進經濟成長的貸款。我不認為我們已經在其中明確命名了投資組合。但總的來說，你會看到我們在 BDC 中完成的一些貸款的部分分配，但你也會看到一些與 Runway 貸款非常相似的其他交易，但由於某種原因，這些交易更適合進入 BDC。

And then switching gears just a little bit. The PIK income is, I guess, in the quarter comprised about 11.5% of total investment income. Can you provide just a breakdown between what is a kind of split between structured PIK versus credit-related PIK and just kind of any thoughts on the overall level of the contribution?

然後稍微轉換一下話題。我估計，本季PIK收入約佔總投資收入的11.5%。能否詳細說明結構化實體支付與信貸相關實物支付之間的比例，以及您對整體貢獻水準有何看法？

Well, as you know, there's good PIK and there's bad PIK. I don't have the number at my fingertips. But in this quarter, there are a number of transactions that had structured PIK is a part of it. There were two deals in the fourth quarter of 2024 that had structured PIK going forward that is not the entirety of the loan, but is a portion of the loan.

如你所知，PIK 有好有壞。我一時想不起那個號碼。但本季有許多交易都採用了結構化實體支付方式。2024 年第四季有兩筆交易對 PIK 的結構進行了調整，但 PIK 並非貸款的全部，而是貸款的一部分。

That's helpful. And how long is that -- if it's at the beginning, structured, how long is that usually provided for that they pay PIK? I assume it kind of rolls off after a certain period of time. Is that correct?

那很有幫助。如果是在初期階段，而且是有組織的，那麼通常情況下，他們支付 PIK 的時間有多長？我猜過一段時間後，這種感覺就會慢慢消失。是這樣嗎？

That's correct. And Greg can give a little more insight because it's really varied on a deal-by-deal basis. It's quite bespoke based on the cash flow characteristics of the borrower.

沒錯。格雷格可以提供更多見解，因為具體情況因交易而異。它是根據借款人的現金流特徵量身定制的。

Yes. I'd say, in general, as you highlighted, there's a portion of the loans where we will structure it that they can have a partial PIK toggle for one or two years. As you can imagine, the company is typically, if not always opt for the PIK while it's offered. And then depending on either the competitive nature of the deal or the cash flow dynamics of the business, we might allow for 1% or 1.5% of the overall interest rate to be paid for PIK for the life of the loan.

是的。總的來說，正如您所強調的，我們會對部分貸款進行結構化安排，允許他們在一年或兩年內部分採用 PIK 付款方式。可以想像，如果提供 PIK，公司通常（如果不是總是）會選擇它。然後，根據交易的競爭性質或企業的現金流量動態，我們可能會允許在貸款期間以實物支付方式支付總利率的 1% 或 1.5%。

And I can see the attractiveness, especially for a growth company to have that PIK toggle at the beginning to have more cash to help supplement growth. I guess from your perspective, when you structure that in, do you underwrite any differently versus a loan that does not have PIK in it?

我能理解這種吸引力，特別是對於一家成長型公司而言，在初期擁有 PIK 開關可以獲得更多現金來幫助補充成長。我想從你的角度來看，當你把實物支付（PIK）納入貸款結構時，你的承銷方式是否會與不包含實物支付的貸款有所不同？

Yes. So we're incredibly focused on loan-to-value. And to that point, as you accrue the PIK, you've obviously increased the size of the loan. So we'll do an incremental analysis to make sure that we're comfortable with the loan-to-value once the total PIK has accrued over the life of the loan so that we don't create any issues with ourselves in terms of getting out over our skis with loan-to-value through accrued PIK.

是的。因此，我們非常關注貸款價值比。因此，隨著 PIK 的累積，貸款金額顯然也隨之增加。因此，我們將進行增量分析，以確保在貸款期限內累積所有 PIK 後，我們對貸款價值比感到滿意，這樣我們就不會因為累積 PIK 而導致貸款價值比過高，從而給自己造成任何問題。

(Operator Instructions) Christopher Nolan, Ladenburg Thalmann.

（操作說明）克里斯多福諾蘭，拉登堡塔爾曼。

Do you expect the deal to be accretive in 2026?

你預計這筆交易在 2026 年會帶來收益成長嗎？

We do. It will be -- it should be accretive in the first full quarter after closing. We're hopeful that we'll get this closed as early in Q1 as possible. And some of that's really out of our control at this point with the government shutdown and the number of days that they have to review our filings.

是的。將會－在交易完成後的第一個完整季度應該會帶來收益成長。我們希望能夠在第一季儘早完成這項工作。由於政府停擺以及他們需要花費數天時間審查我們的文件，目前其中一些事情確實超出了我們的控制範圍。

And for a merger like this, correct me if I'm wrong, but all the investment assets of the acquired company are marked at fair value. Did you guys reevaluate that fair value? And if so, is there the possibility of some OID accretion or discount accretion following the deal close?

對於像這樣的合併，如果我理解有誤請指正，被收購公司的所有投資資產都會以公允價值計價。你們有重新評估過那個公允價值嗎？若屬實，交易完成後是否有可能出現 OID 增加或折扣增加？

You have been sitting in the meetings, you must have our offices bugged because those are things that we're looking at right now, Chris. Yes, there is the possibility. So we will set NAV the way the price is determined at closing.

克里斯，你一直在旁邊聽會議，你肯定在我們辦公室裝了竊聽器，因為這些正是我們現在正在調查的事情。是的，有這種可能性。因此，我們將按照收盤價決定的方式來設定淨資產值。

The value is determined at closing is there's a fair value mark prepared by SWK. We will adopt that fair value mark, and that's then compared to effectively the look-through price. So there is the prospect for some OID accretion over time.

交割時確定價值，前提是SWK已編製公允價值標記。我們將採用該公允價值標記，然後將其與實際的穿透價格進行比較。因此，隨著時間的推移，OID 可能會逐漸累積。

Great. Two more questions. One, is the shares going to be issued based on NAV per share runway NAV or on the current runaway share price?

偉大的。還有兩個問題。第一，這些股票將根據每股淨資產值（NAV）還是根據當前股價（NAV）發行？

No, it will be a NAV for NAV merger. So it will be issued at our current NAV determined 48 hours before closing.

不，這將是按淨資產值進行的合併。因此，它將按照我們在交易結束前 48 小時確定的當前淨值發行。

Final question. What part -- what stage development is the typical companies that SWK invests in, please?

最後一個問題。請問SWK通常投資的公司處於哪個發展階段？

Yes. I would say SWK targets pretty much the same space that we're in. When you look at the scale of the businesses, most of them are generating meaningful revenue, still in growth phase, so still prep profit for the most part. But I would say there really is a tremendous amount of strategic overlap.

是的。我認為SWK的目標市場和我們所處的市場幾乎相同。從這些企業的規模來看，它們中的大多數都在產生可觀的收入，仍處於成長階段，因此大部分企業仍有望獲利。但我認為，兩者之間確實存在大量的策略重疊。

And as we've looked at their book and really gotten to know it, it does have a lot of the same structural elements and just underwriting ethos that we see in our existing healthcare and life sciences book. So these companies will be right at home in our portfolio.

當我們仔細研究他們的保險產品並真正了解之後，發現它與我們現有的醫療保健和生命科學保險產品有很多相同的結構要素和承保理念。因此，這些公司非常適合加入我們的投資組合。

That is all the time we have for question and answers. I would now like to turn the call over to Mr. David Spreng for any closing remarks.

問答環節時間到此結束。現在我謹將電話交給大衛‧史普倫先生，請他作總結發言。

Thank you, operator. We look forward to making continued strides on the objectives we outlined upon joining the BC Partners Credit platform. Thank you all for joining us today, and we will see you in the new year to discuss our fourth-quarter 2025 financial results.

謝謝接線生。我們期待在加入 BC Partners Credit 平台時制定的目標方面繼續取得進展。感謝各位今天蒞臨，我們期待在新的一年與大家再次相聚，共同探討我們2025年第四季的財務表現。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線了。