Funding and Strategic Growth - VertexOne secures a $131 million financing commitment from Runway Growth Capital LLC and BC Partners Credit to optimize its platform, expand market presence, and support the acquisition of Accelerated Innovations for $32.5 million [1][2] - The funding will enable VertexOne to refinance existing obligations, invest in platform enhancements, and deliver transformative customer engagement solutions [2] - Greg Greifeld, Managing Director at Runway, will join VertexOne's Board of Directors as part of the financing [3] Market Expansion and Innovation - VertexOne plans to expand its reach in the electric, gas, and water utility markets, as well as the electric and gas retail markets, by integrating Accelerated Innovations' MyMeter technology with its existing solutions [4] - The integration will allow VertexOne to offer a comprehensive platform combining customer information systems, advanced analytics, seamless billing, and real-time customer engagement [4] - VertexOne aims to empower energy and utility clients with innovative tools to improve customer experience, operational efficiency, and sustainability outcomes [4] Company Background and Expertise - VertexOne is a leading provider of cloud-based SaaS solutions for utilities, energy retailers, and energy transition providers, with over 30 years of experience and 400 customers in the cloud [7][8] - The company specializes in digital transformation, revenue optimization, and data-driven efficiency operations, helping clients reduce costs, increase operational efficiency, and improve customer satisfaction [8] - Runway Growth Capital LLC and BC Partners Credit are key investors, with Runway providing growth capital to fast-growing companies and BC Partners Credit focusing on flexible financing solutions for middle-market companies [5][6]

Group 1 - Runway Growth Finance Corp. (NASDAQ: RWAY) is a business development company (BDC) that provides exposure to venture capital and private equity (VC/PE) [1] - The latest quarterly dividend indicates an annual yield of 15.4%, making it an attractive investment option [1] - The investment strategy focuses on long-term ownership rather than short-term price predictions, emphasizing valuations over target prices [1] Group 2 - The author has transitioned from writing many Sell pieces to a simplified approach of "Buy or Don't Buy," with future articles likely to be categorized as Buy or Hold [1] - As of March 2024, no Strong Buy ratings have been issued for any security, indicating a cautious investment stance [1]

Core Insights - Runway Growth Capital LLC announced a $23 million growth capital commitment to Snap! Mobile, a leading fundraising platform for schools and organizations [2][4] - The funding will enable Snap! to expand its digital platform and support more organizations in raising funds for high school athletics and extracurricular activities [2][3] Company Overview - Snap! Mobile has raised over $900 million for more than 125,000 groups and teams, engaging over 12.5 million participants and donors [3][6] - The company offers a suite of software solutions, including Snap! Spend for money management, Snap! Store for spirit wear, and Snap! Manage for scheduling and communication [6] Market Position - Snap! has established itself as a market leader in the digital fundraising space, providing innovative and safe solutions for communities to support students [3][4] - The investment from Runway highlights the potential for Snap! to enhance its platform and broaden its customer base, reinforcing its mission to support youth athletics and activities [4][6]

Financial Data and Key Metrics Changes - Runway Growth Finance reported total investment income of $36.7 million and net investment income of $15.9 million for Q3 2024, compared to $34.2 million and $14.6 million in Q2 2024, respectively [37] - The net asset value (NAV) per share increased to $13.39 at the end of Q3 2024 from $13.14 at the end of Q2 2024 [35] - The total investment portfolio's fair value rose to approximately $1.07 billion, up from $1.06 billion in Q2 2024, marking a 5.5% increase from $1.01 billion year-over-year [34] Business Line Data and Key Metrics Changes - The company completed two investments in new companies and five investments in existing companies, totaling $75.3 million in funded loans during Q3 2024 [31] - The weighted average portfolio risk rating remained stable at 2.48 in Q3 2024, compared to 2.47 in Q2 2024 [25][32] - The dollar weighted loan-to-value ratio increased from 26.7% to 28.6% sequentially [33] Market Data and Key Metrics Changes - The venture equity deal activity in the U.S. saw high deal counts but low deal values, with late-stage deal value being 53% lower than peak levels in 2021 [27] - The Federal Reserve's recent rate cuts are viewed positively for borrowers, particularly those with floating rate loans [19] Company Strategy and Development Direction - The company announced a strategic acquisition by BC Partners Credit, which is expected to enhance origination capabilities and diversify investment offerings [10][12] - The focus remains on reaccelerating portfolio expansion with selectivity and prudence, aiming for long-term returns for shareholders [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current environment, particularly with the potential for further rate cuts and the positive impact on deal flow [54] - The company anticipates that the market for borrowers will gradually improve, benefiting from a strong pipeline [28][29] Other Important Information - The company recorded a net unrealized gain on investments of $9.2 million in Q3 2024, compared to a net unrealized loss of $6.3 million in Q2 2024 [38] - Total available liquidity at the end of Q3 2024 was $251.6 million, reflecting an increase from $249.8 million at the end of Q2 2024 [39] Q&A Session Summary Question: Is BC Partners buying just the Oaktree stake or the whole thing? - BC Partners is acquiring 100% of the adviser, including Oaktree's stake and shares held by other shareholders [48] Question: How will the acquisition impact the earnings profile of the portfolio? - The expansion of the product suite is expected to maintain similar income streams historically, without changing return targets [52] Question: What is the outlook for M&A activity in the current environment? - Management is optimistic about M&A activity, anticipating that lower financing costs will lead to increased opportunities for both existing portfolio companies and new investments [55] Question: Can you provide context on the $30 million of repayments post-quarter end? - The company expected prepayments at the beginning of the quarter and is working to redeploy those assets strategically [58] Question: What is the status of the Snagajob investment? - Snagajob is expected to remain on non-accrual status in the short term, with plans in place to protect the asset's value [60]

分组1 - Runway Growth Finance Corp. reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.45 per share, and down from $0.54 per share a year ago, representing an earnings surprise of -8.89% [1] - The company posted revenues of $36.65 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.87%, and down from $43.78 million year-over-year [2] - The stock has underperformed the market, losing about 16.7% since the beginning of the year compared to the S&P 500's gain of 25.8% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.45 on revenues of $37.59 million, and for the current fiscal year, it is $1.72 on revenues of $149.91 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Core Insights - Runway Growth Finance Corp. reported total investment income of $36.7 million and net investment income of $15.9 million for Q3 2024, reflecting a decrease from the previous year [2][4] - The company declared a regular dividend of $0.40 per share for Q4 2024, indicating a commitment to returning value to shareholders [3][12] - The investment portfolio as of September 30, 2024, had a fair value of approximately $1.07 billion, with a significant portion in senior secured loans [7][9] Financial Performance - Total investment income for Q3 2024 was $36.7 million, down from $43.8 million in Q3 2023 [4] - Net investment income for Q3 2024 was $15.9 million, or $0.41 per share, compared to $22.0 million, or $0.54 per share, in the same quarter of the previous year [4][10] - The dollar-weighted annualized yield on debt investments was 15.9% for Q3 2024 [5] Investment Activity - The company completed seven investments during the quarter, totaling $75.3 million in funded investments [2][3] - The investment portfolio included approximately $1.00 billion in term loans, with 98.6% classified as senior secured loans [7] Net Asset Value and Liquidity - As of September 30, 2024, the net asset value per share was $13.39, down from $14.08 a year earlier [9] - Total net assets decreased to $507.4 million, an 11% decline from $570.5 million as of September 30, 2023 [9] - The company had approximately $251.6 million in available liquidity, including $3.6 million in cash and $248.0 million in borrowing capacity [11] Recent Developments - The company announced a business combination with BC Partners, which is expected to enhance origination opportunities and financing solutions [3][15] - A special meeting of stockholders is planned for December 13, 2024, to seek approval for a new investment advisory agreement following the merger [15]

Dividend and Share Repurchase - The Board of Directors declared a regular distribution of $0.40 per share for stockholders, payable on or before December 2, 2024[207]. - The Company repurchased 528,305 shares under the Third Repurchase Program from October 1, 2024, through November 11, 2024[207]. - The company repurchased 1,961,938 shares for an aggregate purchase price of $23.5 million under the Second Repurchase Program, which expired on November 2, 2024[260]. - The company declared and paid dividends of $17.3 million and $54.9 million for the three and nine months ended September 30, 2024, respectively[263]. Investment Portfolio - As of September 30, 2024, the Company had investments in 57 portfolio companies, an increase from 52 companies at December 31, 2023[216]. - The fair value of total investments as of September 30, 2024, was $1,066.1 million, compared to $1,067.0 million at December 31, 2023[217]. - The ending investment portfolio as of September 30, 2024, was $1,066.1 million, slightly up from $1,010.9 million as of September 30, 2023[220]. - The company funded $151.4 million in five new portfolio companies during the nine months ended September 30, 2024, compared to $19.8 million in one new portfolio company in the same period of 2023[219]. - The company received $144.7 million in sales and prepayments from five portfolio companies during the nine months ended September 30, 2024, compared to $225.7 million from ten portfolio companies in the same period of 2023[219]. - As of September 30, 2024, two senior secured term loans were on non-accrual status, representing 3.7% of the total investment portfolio[224]. - The investment rating system showed that 59.55% of the debt investments were rated as Category 2 as of September 30, 2024, compared to 57.41% as of December 31, 2023[223]. - The total purchases of investments during the nine months ended September 30, 2024, were $174.0 million, compared to $105.5 million in the same period of 2023[220]. - The company recorded a net change in unrealized loss on investments of $3.7 million for the nine months ended September 30, 2024[220]. - The company had a net investment income of $0.3 million related to the senior secured term loans on non-accrual status as of September 30, 2024[224]. Financial Performance - Investment income for the three months ended September 30, 2024, was $36.7 million, down from $43.8 million in the same period of 2023, reflecting a decrease of approximately 15.9%[229]. - For the nine months ended September 30, 2024, investment income totaled $110.9 million, compared to $125.0 million in 2023, representing a decline of about 11.6%[230]. - Net investment income for the three months ended September 30, 2024, was $15.9 million, a decrease of 27.7% from $22.0 million in 2023[238]. - Net investment income for the nine months ended September 30, 2024, was $49.1 million, down from $60.0 million in 2023, indicating a decrease of approximately 18.2%[239]. - Total operating expenses for the three months ended September 30, 2024, were $20.8 million, slightly down from $21.7 million in 2023[232]. - Total operating expenses for the nine months ended September 30, 2024, were $61.7 million, compared to $65.0 million in 2023, reflecting a decrease of about 5.1%[233]. - Management fees for the three months ended September 30, 2024, were $3.9 million, down from $4.3 million in 2023, a decrease of approximately 9.3%[234]. - Incentive fees for the three months ended September 30, 2024, were $4.0 million, compared to $5.5 million in 2023, a decline of about 27.3%[236]. Interest Rate and Financial Risk - The company expects to invest in loans ranging from $10.0 million to $100.0 million, with potential increases as additional capital is raised[227]. - The decrease in investment income is primarily attributed to falling interest rates and a reduction in the average outstanding principal on interest-earning debt investments due to loan repayments[229]. - A hypothetical 200 basis point increase in interest rates could increase the company's investment income by a maximum of $18.8 million annually[271]. - A hypothetical 200 basis point increase in interest rates on variable-rate debt investments could increase investment income by a maximum of $18.8 million annually, while a decrease could reduce it by a maximum of $14.4 million[271]. - Borrowings under the Credit Facility bear interest at a floating rate equal to SOFR plus an applicable margin rate ranging from 2.95% to 3.35% per annum, depending on the leverage ratio[272]. - The company regularly measures exposure to interest rate risk and manages it by comparing interest rate sensitive assets to liabilities[274]. - The company may hedge against interest rate and currency exchange rate fluctuations using standard hedging instruments, which may limit participation in benefits of lower interest rates[274]. - Financial market risks include changes in valuations of the investment portfolio due to interest rate fluctuations and other market changes[267]. - The company's net investment income is dependent on the difference between borrowing rates and investment rates, with rising interest rates potentially increasing costs[273]. - Changes in interest rates can affect the company's ability to acquire and originate loans and securities, impacting the value of the investment portfolio[270]. Liquidity and Capital Structure - As of September 30, 2024, the company had $251.6 million in available liquidity, including $3.6 million in cash and cash equivalents[251]. - The company had $549.3 million in debt outstanding as of September 30, 2024, with none due within the next year[254]. - The company had $260.4 million in unfunded commitments as of September 30, 2024, with $231.0 million allocated for debt financing to portfolio companies[256]. - As of September 30, 2024, the asset coverage ratio was 192%, indicating compliance with borrowing regulations[252]. Management and Structure - The Company is structured as a business development company (BDC) and a regulated investment company (RIC), complying with various regulatory requirements[212]. - The Company aims to maximize total return primarily through current income on its loan portfolio and secondarily through capital gains on warrants and equity positions[211]. - The Company is externally managed by Runway Growth Capital LLC, which provides investment advisory services[214]. - The dollar-weighted average remaining term of debt investments as of September 30, 2024, was approximately 2.8 years[217].

MENLO PARK, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that its Board of Directors has declared a fourth quarter 2024 regular cash distribution of $0.40 per share. The following shows the key dates of the fourth quarter 2024 dividend: Declaration Date: November 5, 2024Record Date: November ...

The market expects Runway Growth Finance Corp. (RWAY) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expect ...

Transaction Overview - BC Partners Credit agreed to acquire a majority stake in Runway Growth Capital LLC, an SEC-registered investment adviser managing approximately $1.4 billion in private credit assets [1] - Mount Logan Capital Inc will purchase the remaining minority stake in Runway through the issuance of $5 million worth of common shares [1][3] - The transaction is expected to close in Q4 2024, subject to customary closing conditions including approval from Runway Growth Finance's stockholders [3] Company Profiles Mount Logan Capital Inc - An alternative asset management and insurance solutions company focused on public and private debt securities in North America [6] - Operates through wholly owned subsidiaries Mount Logan Management LLC and Ability Insurance Company [6] - Ability Insurance Company is a Nebraska-domiciled insurer and reinsurer of long-term care policies and annuity products [7] BC Partners & BC Partners Credit - BC Partners is a leading international investment firm with approximately $40 billion in AUM across private equity, private debt, and real estate strategies [8] - BC Partners Credit, launched in 2017, focuses on identifying attractive credit opportunities in complex market segments with $8 billion in assets [8] Runway Growth Capital LLC - Investment adviser to funds including Runway Growth Finance Corp (Nasdaq: RWAY) and other private funds [9] - Provides senior term loans of $30 to $150 million to fast-growing North American companies [9] - Led by industry veteran David Spreng, founded in 2015 [10] Strategic Benefits - The transaction will expand Runway's origination channels, increase capital availability, and enhance investment solution capabilities [1] - Mount Logan expects to benefit from Runway's expertise in venture and non-venture backed growth company lending, diversifying its private credit capabilities [3] - Runway will continue as investment adviser to its managed funds, including Runway Growth Finance Corp [3] Management Perspectives - Mount Logan's CEO Ted Goldthorpe highlights the opportunity to build on Runway's strong momentum in late- and growth-stage lending [5] - Runway's CEO David Spreng emphasizes the long-term value of combining expertise with BC Partners and Mount Logan platforms [5] - The transaction is expected to broaden Runway's investor base across institutional, retail, and insurance capital sources [5]