Runway Growth Finance Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decline in total investment income and net investment income compared to the same periods in 2023. Total investment income for Q3 2024 was $36.7 million, down from $43.8 million in Q3 2023, while for the nine months, it decreased to $110.9 million from $125.0 million. The decline is attributed to falling interest rates and a decrease in the average outstanding principal on interest-earning debt investments.
Net investment income for Q3 2024 was $15.9 million, compared to $22.0 million in Q3 2023, and for the nine months, it fell to $49.1 million from $60.0 million. The net increase in net assets resulting from operations for Q3 2024 was $25.0 million, a significant increase from $14.8 million in Q3 2023. However, for the nine months, this figure decreased to $45.4 million from $49.1 million.
As of September 30, 2024, the company’s total investments at fair value were $1,066.1 million, slightly down from $1,067.0 million at the end of 2023. The fair value of non-control/non-affiliate investments increased to $1,000.4 million from $972.6 million. The company’s cash and cash equivalents rose to $3.6 million from $2.97 million, while total debt increased to $542.5 million from $510.1 million.
The net asset value per share decreased to $13.39 from $13.50 at the end of 2023. The company’s asset coverage ratio also declined to 192% from 205%. The company had two senior secured term loans on non-accrual status, representing 3.7% of the total investment portfolio.
Strategically, Runway Growth Finance Corp. entered a joint venture with Cadma Capital Partners LLC in March 2024, committing $35 million each, and has made equity contributions to this venture. The company also repurchased shares under its third repurchase program, acquiring 644,763 shares for $6.7 million as of September 30, 2024.
The company’s investment portfolio remains focused on high-growth sectors, with a significant portion in technology and healthcare. The dollar-weighted annualized yield on debt investments decreased to 15.9% for Q3 2024 from 18.3% in Q3 2023. The company continues to manage its exposure to interest rate risk, with all performing debt portfolio investments bearing interest at variable rates.
About Runway Growth Finance Corp.
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