RWAY - Earnings call transcript Q1 2024 | Runway Growth Finance Corp.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Runway Growth Finance First Quarter 2024 Earnings Conference Call. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Quinlan Abel, Assistant Vice President, Investor Relations. Please go ahead.

Quinlan Abel

Thank you, operator. welcome First Runway XXXX. Quarter and Call Finance everyone, the for ended evening, to Growth the Conference Good March XX,

us of and Officer Officer. today David call Chief Chief Investment Greifeld, on Financial Growth Head Deputy Capital; Joining are of and and Finance Raterman, Credit Managing from Director, Operating Spreng. Growth Executive and Chief Runway President Chief Officer Officer; Runway Greg Chairman, the Tom

market close Growth website released today's Runway first just Runway from financial quarter at Relations can were results and Growth Finance's XXXX Investor accessed be after Finance's investors.runwaygrowth.com.

for of Finance We a have Runway the call Growth arranged page. replay the at web

actual are During expressed performance forward-looking market statements, and you a differ that economic factors to on filings not that are future materially factors results this conditions, other forward-looking by and caused statements statements conditions and those remind uncertainties guarantee statements based of from interest including to in current SEC. forward-looking surrounding other I uncertainties call, we expectations. could rates, and with are may that on not our identified purely are rising statements. want changing forward-looking historical These the to make without cause we The subject in call this the limitation,

on Although based and inaccurate as we these are assumptions which assumptions believe are be prove that forward-looking can to be a based the forward-looking reasonable, statements those statements those assumptions incorrect. on the can any of result,

to statements events. Growth copies Finance SEC this please You hereof, Runway the are no related of should website. obtain The obligation made date our forward-looking statements. forward-looking statements not undue call To update contained or on these visit place of reliance forward-looking on and filings, subsequent the assumes as

of of David. over as assumes Officer behalf on welcome and Growth David that, I the are responsibility back company, call Finance. to Spreng turn to will Chief with full as he Executive President Runway And the begin, we Chairman, thrilled we Before

David Spreng

Quinlan, discuss for all you, during over this results Tom macro team navigating to entire and collaboration evening to out to Thank joining their those Further, recovery my thank for the like support for I'd of reached the last quarter us the first and want our Greg, thank Runway months. in who thanks, dynamic process. everyone, I several their environment

To finally start, I'll discuss some highlights, market results then of trends financial provide that and first current overview observing. portfolio the quarter we're our an

completed companies, million During existing quarter, and X the and pipeline $XX first saw in representing Runway loans. funded portfolio heightened new activity investments in

income These income investment in and the of represent on period. the investment year from of an approximately million of million Runway $XX net X% delivered prior $XX.X quarter. total figures both increase

will Our weighted increased average more details QX, shortly. which provide rating slightly in portfolio risk Tom on

our with mitigate of portfolio and focused the working consistent actively and throughout on loans. while of believe entire drives borrowers foundation in quality very closely credit mark yield. all potential preserving lifetime We're companies to us our Consistent enables communication monitoring our is philosophy quality. risk with for belief investments the and maintaining This credit our

our dilutive borrowers' view, known partner a exploring of sophisticated a the equity as debt In solutions alternative for companies market. the are financing as preferred minimally needs. bodes to which now Turning that us for financing, meet increasingly well to use diverse

ample with of take our dry believe As bar. that leverage to meet soft credit high advantage landing, powder the low resilient, we well a position economy opportunities for us proves our expectations and ratio

full to Our reach companies with lender role their high is conviction the a support potential. to growth best as

lender or We last situation. are not during a resort to a troubled provide crisis of funding a

strategic exit M&A a executes last a brought capital transaction or before company the In fact, we are an IPO. like often in

for remains point critical us. that And

nearly Runway environment the experience of in X and investor, years. rigor. capitalist As rate to spent I economic XX X the across underwriting a years was decades venture My ago, sourcing, evaluating dealmaking I've and underscores ecosystem. importance cycles nearly for founding an venture Prior over

In these companies backdrop at the powder, table want and maul counterintuitive of a the they fundraising of and seeking these given functioning sound as cap non-dilutive preserve employees. current last quantum market, it's seek important this remember raised have now we Further, for possibility ever capital We of before. investors dry companies more over and that the to VC difficult to venture-backed but a many are may know down valuations seeing money companies rounds capital. their record than

are strives that These our future challenges That bat factors. loosen is as or we going know that remain on high. changes a analysis standards precisely why have shifts unforeseen loan. so We an to focus underwriting every may credit when to limited is and operating standards. X,XXX in the not selectivity we're to pressured, on ensure our market environment external that in to underwriting opposed conditions include underwriting But

portfolio. impacts just a currently in requires time on the a the that and we're a for on than monitor working nonaccrual portfolio X want earnings to to team more favorable towards have and shareholders ultimately stress power. far one is other loan for be from names a I names structured there. challenge poorly It outcomes portfolio's in clear, put our we lender's ability more A borrower

term. underwriting. portfolio our standards not of to broader credits that shareholders minimizes the value accelerate our we're these the disciplined through aim adjust to we impact and ability to near the deliver in underwriting to for serve said, portfolio Instead, going That our growth preserve

We've us. for been investors ahead a time, and long have of a idea operators we of strong is and what

power we to ability line our the of in our to underwrite We Further, earnings standards are our confident ensure on have expect distributions future. up and ability to and sight year. can foreseeable preserve coming our for a deals are source, the originate shareholders that in consistent

half committed is value a in And our result the portfolio. what Our optimistic are delivering to fund latter of about shareholders, come. strength is We our opportunities that to of which the our the in remain direct dividends evaluating the years expect selectivity to of we're will we the year. future we manifest to

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

Greg Greifeld

the view operating U.S. Runway market. our macro resilience most marking to further we of the David. deal important part, that firsthand U.S. represented XX% quarters. positioning on large story resilience Thanks, seen quarterly of economic view, total and I far strongest portfolio late-stage the current date. to and our recent of have In of is in count, In value companies. by want our environment through we've expand venture figures total equity deal XX% seen strategic the

activity This We well remains clear. suppressed, market venture and minimally capital powder dilutive value billion in amid in in fundraising resulted seeing. $XXX have the to out current runway's to remains overall will opportunities over While bearing continue proposition waiting supplement dry of is years Companies the backdrop be deployed. we're Runway equity. believe strong seek extend to

David historical As than levels. we first mentioned, have quarter more seen activity in pipeline the

compelling this borrowers capital in growth market. Our to business seeking model current remains

We and are fastest-growing select service sectors economy the best, consumer of know industries. the life and we sciences, focused on product technology which include

portfolio are upholding our and second diligence evaluating this team's half While capital parallel. opportunities we lender-friendly the of sizes first proud in quarter, consistent met our check while committed credit-first deploy target our philosophy of terms in remain of market the an standards these confident favorable to as deals a our selectively when becomes we managing the ability We in at in more few high to are in year. our organization, the actively

are have and deals. we Further, more see avenues the increasing we evaluate to

venture our growth-stage As that an platform is a financing Apollo. we One was financing and pleased on joint [ companies. announce credit are Runway on will Cadma Cadman LLC ecosystem sponsored call, partnership discussed Partners], venture the for Cadma last our to in newly with by established between and XXXX and that equal formed private focus late Capital Runway

deal taking this the partnership incremental to to have flow forward that and expect been from discussions encouraged look place. are by we We already the result

source we are evaluate remains investments know pursuing and While the actively in attractive to selectivity forefront, at best. we more deals industries attractive opportunities the

With turn to now over that, I will Tom. it

Thomas Raterman

and good evening, you, everyone. Greg, Thank

we investments heightening first disciplined $XX in first investments We funded and pipeline in representing the the our strategy. executed quarter, saw XXXX, completed quarter During lending X that loans. on demonstrate of million activity

the of fourth Our average to first risk from increased in weighted X.XX% quarter in the quarter portfolio XXXX. rating X.XX%

based X favorable rating. where represents most X, system to the Our is X of rating scale a on

quarters, Ming In end with we calculated be on line were for fourth to from of is X, category ratings change quarter-over-quarter portfolio which investments, previous the ratings the at our X X current the X, end from in our XXXX of respectively. loan in loans internal investment resulted each continues and at of quarter and the risk portfolio of X X to Category X, declined The X that value QX Healthcare, the which quarter. and one to their nonaccrual. category Category The

dollar comparing of improved on we that In found weighted this ratio sequentially. grouping like-to-like XX% slightly XX.X% consistent to from a loan-to-value loans basis, our

value treasury of and $X.XX year the approximately Our total fourth billion, of comparable billion decrease a a quarter investment fair portfolio of of billion excluding the prior for bills, decrease from from XXXX X% in $X.XX $X.XX XX% period. a had

in continues secured senior lien portfolio Our concentrated to first be loans.

XX, of net XXXX. of to quarter at decreasing the of first at the at million quarter fourth compared share $XX.XX from As the the Runway of end end $XXX.X of had the end NAV of XXXX, March fourth per of the assets $XX.XX was million, quarter $XXX.X XXXX.

which with decline NAV presentation NAV of our in for bridge equity quarter. investor impact share Progenity in our $X.XXX in equity investments, holdings arose the detailed our portfolio [ Our sale company the per former investment equity ], Agenity where write-down ]. QX conjunction including XXXX the includes the [ from of was a received largest the warrants of was Approximately

was changes significant our $X.XX of loss Snagajob the of per of $X.XXX share. in the approximately was unrealized of million which or value [ the investments ] to $X.X certain amounting the debt to investments, in markdown debt attributable most Approximately

or floors, of loan rate base comprised are our As reminder, at principal of above time $XX.X million which portfolio is the XXXX. interest in the quarter, we $XX.X signing or first assets. upon agreed at currently repayments, rate decrease the in loans reflect the a received a sheet. All fourth rate earning closing set floating spread credit from term interest plus In quarter the generally XXX% the of million

was This investing level quality sponsored as criteria. and is our expected XX, in [ often stated most nonsponsored fits This credit-first ] our known of intermediate, the repayments acquisition to highest investment within prioritizes or to markets. refinancing EchoXXX also which approach On as turning companies, and full. a that for tech candidates XXXX, our indicates ideal is April loan performing in portfolio repaid our that of are we result

a activity in throughout second the provides half our XXXX in in of opportunities. We and first that As in earlier in and of fully prepayment us quarter uptick investment prepayment reinvest discussed with million $XX we in $XX.X activity an enabled We liquidity to income this investment and the M&A Runway million the building quarter and of quarter million to deploy prepayment additional year of attractive income generated fourth XXXX. expect significantly XXXX. to activity manner activity call $XX.X earnings year, during compared believe is fourth of Increased $XX.X million the accretive. net with total

average as yield XXXX of debt XX.X% dollar Our weighted fourth year. quarter the for generated of annualized last comparable portfolio XX.X% XX.X% period of for for compared XXXX a the and to quarter the fourth

our to Moving expenses.

unrealized for the quarter on quarter. expenses unrealized loss in compared net were We million $X.X Runway $XX.X in the of net $X.X first the to in from X% fourth $XX.X loss first XXXX. no million, $XX.X of realized realized For quarter operating had investments prior million net of million of total fourth a the a a quarter quarter in XXXX. compared to up first loss recorded loss million quarter, the of the

our credit companies healthy remain with We maintaining low process performance. coupled that levels of track confident monitoring highly of and record diligent support our investment nonaccruals selective of portfolio generally

As of loans had on we XXXX, nonaccrual X XX, status. March

fourth fair the outstanding portfolio were coverage million to and Mingle of Health and asset market investment market loans a $XX.X XXXX, of quarter. total X.XX loan fair our represent ratio principal X.XXx at first These loans and value. of the the end $XX.X million at of Snagajob Our our leverage at and represents million. outstanding fair X.X% compared million respectively, value represent $X.X quarter principal the of In of Care to of a value to X.XXx, $X.X X.XX

was liquidity. liquidity our XX, unrestricted our $XXX.X and At to Turning including cash equivalents. available million, March cash total XXXX,

milestones. from $XX loan were have eligible of $XXX $XXX We million, capacity performance the which specific of increase At borrowing XX, respectively, are December an majority $XXX XXXX. reflecting million be companies commitments subject to million, quarter commitments we portfolio of currently end, and had funded. of million to million, $XXX.X to on unfunded these

note and partial repayment loan quarter, scheduled of The ] prepayments secured repayment for totaling included X our secured of $XX.X to a Spoon fiscal [ our million term $X.X we million $XX.X prepayments of amortization senior During principal million. partial a senior loan were experienced $X.X million. the principal to and term Marley

As XXXX, to Directors XXXX. common in mentioned acquire giving program, of on million quarter, expires up stock repurchased repurchase first our call, the $XX on our Board previous approved Runway's earnings stock. of a us X, under November the approximately XXX,XXX shares ability the program, the company In to which

through we prepayment Finally, income, have future. as share supplemental declared the a regular our with share as regular $X.XX Board will the of and that per covering first per difficulty payable quarter April XX, in We're dividend $X.XX well no XXXX, spillover for on fees our our the of confident distribution dividend. a dividend foreseeable

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

Operator

[Operator comes from Melissa JPMorgan. from question first Wedel Instructions] Our

Melissa Wedel

again. if wasn't great it's about first an back. to David, First, increasing during missed hear I the that I quarter. Welcome you seeing this. know you pipeline I sure talked

Did to date? specific I was that of the think part amount XQ give you've you related in activity of seen a Cadma to JV. that

David Spreng

Melissa, much, it and be great thanks is to very back.

is that we little the think sounds pretty way nebulous words a activity. I I because And that more pipeline it were used in concrete. a be to heightened know

but to quality. deals that pretty Our year. think of is actual a pretty is opportunities it number was higher volume last the of it's flat what flat, we

figure such just meet to to of really that in level that disarray been standards. a to we've continue a how many our and lot community Over high XX there's so venture struggling the months, out the they're companies don't of seen last opportunities going operate

we've So harsh in been things pretty cutting early. off

just And deals we think really soon. on encouraging. pretty are quite looks the we'll have I We stuff visibility on along that that close far several other

do with don't year, see bit. to will relative to I to us So high accelerate starting going up I can more say entire for a level the of far know a goal how you're quite it's caught to really going confidence that deals. the get but

Melissa Wedel

of any I understand that nonaccrual, of pathways through lot that any resolution. we you're that time walk avenues on appreciate I this on additional of can you us the line? nature something Could and also one Snagajob be and hoping help could was us share there Okay. thoughts to? context. whenl different a and to you understand details, sort Any able goes

David Spreng

Yes.

course, Of for I'll to over turn Greg it that.

Greg Greifeld

Yes. Melissa.

a So versus engaged, number headwinds Snake seeing a Job in partners is team operating the a company with where fluid one with have have that actively additionally, we we of is private. number their peers very deal where a we're both and we involved us undergoing sponsors. that help the a situation equity them have of And bench of of with public you're It's to the called management situation. with

daily right not and definitely a all So for the if in outcome weekly, to the best and that time involved we but constituents, something frame intimately first are it basis, our working investors on have with is foremost. are

Melissa Wedel

it it Understood. have that's of mean nature of a And because it's sense the situation? to harder on take time and the to that, fluid line one ultimate where pathway? is I

Greg Greifeld

accurately I reflect sponsors, think which to are different order with concert We're and available that evaluate all avenues continuing changing that's in fair. the to in to uncertainty. us, definitely management

we have favorable a do paths number on believe it can have different that outcomes ahead put outcome. it that nonaccrual. still us and is of are We But of one there a

Operator

and Alexander from question comes Point next Casey Research Trading. Compass Our from

Casey Alexander

having JV has quarter, is, David, nice My the -- have the back. company and Runway's only at for been leveraged. X.X I explain leverage is kind the can a has was for now mean been rationale ratio you X.XXx. one and exceeded It when of one even years to public about welcome question and back. in time, you consistently has that company under the

JV? having what's rationale for So the the

David Spreng

your good that voice it's to and it one. well. Casey, turn hear for I'll Tom Thanks, Yes. to over as

Thomas Raterman

Casey, Thanks, the David. for question. Thanks,

just million, remaining is look to It's handful up which to you X deals. our capacity, $XXX of as it's for X.Xx So get $XXX about a at X that about to to deals.

target where later in million our million portfolio we $XX it's target a our the yield, $XX Our think be BDC target, to $XX and that larger would which range. million stage, the we're which about position that is that for hold million as and positioning to deal to market, Yet want tends be to range. slightly $XX in

that desire risk that and while maintaining continue portfolio. overextending us to we not diversification want, So in participate at to hold our same in it the to sector time the allows

Operator

Riley. comes question from Bryce from B. next Rowe Our

Bryce Rowe

hear David, to good have to you Good voice. back. your

Let's maybe try the a prepayment would prepayment year. activity you help that to related of the trying balance kind we'll visibility the be us just here the coming of the of in activity the net up wanted then the to And and prepayment that maybe calibrate I of to see balance or the see, question year? growth size the think to you for kind see whether pipeline relative of

David Spreng

Yes, that it Tom that on run response almost can. side we'll the prepayments. is impossible to voice. the making that faster time And forecast your over first do we comments. is know keep just we in for to they the few But I'll Bryce. when we much And we every that hear to companies to have want turn it's and origination whatever portfolio, come, to Thanks. that after common the Great a just

impossible. Sometimes that's

credit below of cash dollars cost. a JPMorgan and the lead has them where we've at points XXX the underwriter or balance When and a hundreds company goes had portfolio our sheet was situations of public offered line on basis millions of of

welcome redeploy we are the defend environment. just more today's other times against it, attractive repayment where capital so you can't but can the in that we there sometimes So

So to But is best our line positive I will question prepayments of guess ability we my to ones new know to going ensure for don't whatever are year. bottom they your the exactly the answer we're net there be. are, deployments, what significant that

Thomas Raterman

component got know a to that. We add we've to some of little forward Just that amortization. looking scheduled

have then a of in know got are transactions some sort handful We of we of that And that a couple companies that process. mature. we've

quarter. time, will pace back-end and of to At origination happens, when Now see then end building. those the the come be and in same third mid- you that more those as we think about fourth out likely momentum quarter that's where weighted

in quarter be to will but maybe originations that income long flat, the second seeing think those result the X as X, net quarter accelerated closer prepayment power process In we see some term that can flywheel will start X into we'll of OID I and anticipate short be and in we origination up, the amount fair would and so fees greater net replace we'll of earnings prepayments. slightly and quarters from a term, X. building a

Bryce Rowe

to is in the appetite from activity, the quarter. see perspective of Okay. was for second mean you and for terms looks Tom, spillover supplemental. I'm all-inclusive I That's you of price base coverage, couple the just being a Can the of curious was And also what and where at purchases probably quantify kind dividend with the would Tom, average to help kind in talked to question my and the be price point? -- end. it and helpful. comfortable spillover you second quarter nice sorry, me. like Maybe more assume there? dividend where I subsequent this It a quarter for is that the that the NAV you, continued then about with of just kind buyback

Thomas Raterman

the part continue that. to to don't try we Well, first. would the speak the why of to Well, Certainly, dividend. dividend I'll supplemental we like first answer

base the ought what we year. look we anticipate we know current biggest our forward spillover to to maintain in going with be as pool think able we dividend. I the today is priority and what through maintaining at that the Obviously, prepayments,

close want spillover a maturity. to or adequate that get where And maturities are are keep a always of see we going prepayments that to to loan so should we're lot quarter we close

prepayment you income. have don't lot OID a of So or accelerated

want we shape good to and over there. spill Kitty keep So certainly

start With window percent ] at open, I once the [ respect think the obviously, if a to any looking NAV, at and the We and program. the we trading doesn't admirable as time at for that faucet the a the have it's as we of to were is open do the to every below we're established discount is use deeper the wider -- quarter. But NAV. a period of of that's certainly, set it is buyback, it as that we look accomplishment, really XXX% NAV, if make the we're we beginning And rubrick an we really that to -- discount aggressive. XX% sense be repurchase of

million, the to have a NAV market we to accretive, deep continue repurchase can where takes remaining the had see us. million So program. to and we And use it's discount $XX we'll we'll if $XX be in

Operator

Our from UBS. from Vilas next question comes Abraham

Vilas Abraham

question. David, have much that back, How and impact age, for thanks nonaccrual color appreciate interest income? did of QX Welcome an the on the there.

Thomas Raterman

of on end quarter, the put going really so nonaccrual impact forward. at and the They is the

Vilas Abraham

then Got it. and could comment Okay. on just maybe leverage. you -- And

that think You is range have a guys pretty to X.XX%. wide X.X% target I

as that to lumpiness? can the true at And a capture you is would level over that? is are there be that of couple talk next like And of at as all? of about about Is you kind just Just how the you some to wide ideal more of really it thinking years? a maybe

David Spreng

take were post Sure. the range I at and IPO really can We X.XX. we that established window that. at IPO,

wanted we to fairly of and economic wide give want variety So a accommodate we to circumstances. range, a

of good, credit I being issues at the we you ability the leverage But got squeezed think are to end we We'll lower is I standpoint. kind to without and that be leave X robust uncertainty, dry up operate to when I to have manage powder strong. valuation take deal and X.X think range. more want and conditions any to it and When upper end if we between to ideally, want from nonaccruals of between really really X.X and in to range. , times, with the of operate getting flow that opportunistic that think happy into be we're a range. any

Vilas Abraham

Okay. you just I a opportunities On maybe that of one in then sight for year. have into And appreciate more. later that. the line

between you life consumer products than sciences, others? as services Is areas weighted and more of tech, have verticals of some well. towards it the one terms In those

David Spreng

it's the No, category well find a the that we're would by others a to ones on leaning refer Reed are than But stuff. recession, spread little not would example consumer pretty I be out. anything related. is less health the sciences, we one favor consumer into services is say really and to that a and really interesting [ But marked affected products we the would mention ] Madison those great life life there. tech and is use to we care and would sciences that and I continue

is Where continue life will that close next probably enormous the deal. to of amount a see sciences deal flow, deal we

lower loan to a The feels but don't little where the lower higher. if to values. it word, appropriate and in in So we're of more proportion, that about tech in which covenants spread life nature life competition have tech where sciences happy more We tend right the it's side like we're like know with. better sciences, the get and and to is we're tech, the returns market and be disciplined between this to competitive able continues little a a it is be towards the I than weighted little more and right

Operator

Ladenburg. [Operator next Instructions] comes Schleien Our question Mickey from from

Mickey Schleien

the M&A backdrop thesis market economic available, activity on the very And still capital which David, thinking uncertainty, what about pipeline back have we're also -- a Yes, welcome a lot be and idiosyncratic? about think levels, be debt helpful if about and moment. of the could And we relatively there notwithstanding for if discussions muted private been it activity general pipeline, you back. the was and can when comments interest step lot your would I a rates with its uncertainty just but environment, just of

David Spreng

the making next an Yes, be that every again, loans year. that one today we conservatism we'll and grapple err that's the to we side dividend and excellent the question we're because day. tend on And of paying with

So companies. that ], bumpy venture it's we've the said venture-backed really important companies. venture-backed really right really, there's to [ seen is now, loans. and as According something ecosystem And be earlier, like Pittsburg never so these many I XX,XXX good

enough partners institutional people thing don't market folks is this all And that of driving stuff. one a know that lot foundations, the of they and endowments, pay many pace move to need of attention additional most university mode, investors that. a to of are peak during raised limited the many of the so with to stingy could the the we VCs but state are and then that really of the of are that them them the if money a the very being so their or funds, pension kind And that path capital market profitability

money telling that because fund to are The the down partners their folks to they pension VCs have venture the issues at level. give the slow

liberal portfolio go but more and tension They up the with will can. VCs current don't just don't, harsh are of hopefully the pretty their to you you any I they're and on and other basically see taking them changes, set marginal, of companies market. boatload if their on XX got that it. the out free investments will so be And it. say, that best more that getting for investments survive We've until in and world if make So the off really, continue ones really

cash We're choppy we things ultimately, been of a of know on we've of just best had through for couple a working doing course, that nonaccrual, and is terms the to we've process very conservative. on in and dividends. flow focused those. unusual really and And requires And and avoiding the in losses. we're very I have that gone it's us, So of environment, investors really earnings, for our which

fix growth. know of is I avoid this the the the and really nothing, we're that We over deliver. and any words we this course additional have it, back a forward year, at And And about also And this foundation. to think build path hopefully, a that certainly credibility. position not solid we'd discussion that and portfolio losses going wrong into for problems about go then growth in and that's the cost. of of mean saying instead move rather We're to way

just And normally the that might little hopefully, be. slower And will so been than pay run. we long in we've off a

Mickey Schleien

this one David, of generated of for fund maybe to helpful that's somewhat a company? question, for small a see housekeeping due I the but The outlook has follow-up, it Tom. really income? quarter. the exit don't a just dividend, Was Or And what's discussion. dividend consistently sort that

Thomas Raterman

So week $X.XX not and we the Certainly, dividend, while the declared compromising anticipate we objective supplemental that have. is and at dividend supplemental. the maintain spillover we base the our attrition to our base $X.XX don't changes any the to last

Mickey Schleien

Tom, referring statement. was dividend income to on the income I

Thomas Raterman

Okay.

on that's a So on suspended It a a which that the certainly came ultimately CareCloud its a Level CareCloud. November, income met of volatility lot public X sale created -- the name. the of They X adopted of in that dividend company public November, that called in We company. valuation dividend our the and in received equity company that asset. from in And businesses. was

later they resume to this that company so that expect And the indicated year. has dividend

income So we come dividend would resumes the to see their that again. CareCloud when expect from dividend,

Operator

Hovde Our from next question comes from Zwick Erik Group.

Erik Zwick

to again. And the comments previous David, hear I truly back it's you your all to have just of great and echo voice want

curious now David, of because little often friendly market if -- you're you of gives indicators half second kind 'XX. you for both and around or provide lender-friendly a I'm Curious, kind color seeing more optimism? business that you activity today could maybe question So detail that a mentioned for the more in Greg first of me. some any or And

David Spreng

But feel turn few Well, that risk-adjusted structured tech so that best I'll where and believers that's make starting we're we're especially sense. come are. in in always in having thought then think Greg. late-stage is covenants that over really the larger back. that's comments to And the and it seeing especially we And to returns the where loans, we've appropriately and deals make big terms a that side, know little you really on a more I

some fair. companies companies grips was, bit the which to sticker can budget, about maybe in that And there to little of a are think, going the of I and And now increase rate can rate time, to those be interest there shop be rates, they with long very the for are environment needs to a now adjustments coming they understanding is afford, but afford we're it. the that But in environment.

some main side a more the I competitive Greg, bit that's the little to comments. add additional bit say looser. you color? basis know, remains do and So don't sciences life I for little a will want the

Greg Greifeld

definitely what would add of I on sponsors the of to level accept. the structure value of And ability to in setting just echo of amounts businesses expectations in and terms too. own are come data different their Yes, their just a sentiments terms support I'd only and companies to the not debt that has that, of willing quite also bit, but the in

certain been of amount So opportunities capital. that might for XX, maybe ago XX months a looking have

loan-to-value companies types maybe of and well actually sized XX% amount, in a that looking reasonable XX% we other same for what a to to from as the from terms of sponsors back come kind attractive those points. standpoint and much which for. is to us of are structure believe the we're what more of We're us the seeing attachment as companies today seeing meeting looking is just a minds of

Erik Zwick

slide. slide sensitivity And not noticed I commentary then That's one last the helpful. the interest did I for you include me. appreciate deck, in this rate there. just quarter's

I'm questions at quarter, of this lot And wonder One, I whole that? if changed confirm X but that since two, hasn't could there. kind maybe last guessing absent you So a quick it curious of is there, that Or be period? longer of rates this to higher levels for interest your just kind a these belief indicative just around maybe going point? we're of that

Thomas Raterman

a Yes. that going because up to of at are slide We a rates thought it current the see it's level rate points our the utility limited plus of the eliminated and Typically, rates floors variety SOFR we was in I increases prime that levels. the calculated spread. XXX basis think any have loan rate what we from that at was and based the loans because on was closed time or the don't

part this stable no higher of think going settle better to it. this real pretty the probably as into year. be in it's for change longer, we So for We there's

Operator

closing This concludes David turn for remarks. I now our back to would session. it question-and-answer Spreng like to

David Spreng

in We to capital is our XXXX joining to operator. believe quarter you, financial maintain economic strong We future growth deploy will second on and opportunities. August. results our our position look environment. Thank Thank forward you late stage any a you well us you. underwriting to portfolio we today. and terms, for rigor Thank for in while positioned We're evaluating updating at favorable all continue

Operator

today's conference. your Thank you conclude does This the participation program. for in

now may disconnect. You

Runway Growth Finance (RWAY) 7 May 242024 Q1 Earnings call transcript