Runway Growth Finance Corp. (NASDAQ:RWAY) Q3 2023 Earnings Call Transcript

Greg Greifeld: I do think that there will be some follow-on activity and many of our loans do have milestone-based delayed draws, which we expect these companies to gain accessibility to the capital next year. But I do think that we do expect in the middle of next year to see new deal activity to tick up meaningfully.

Vilas Abraham: Okay. And just one more, on Pivot3, I think you mentioned in your prepared remarks that that’s going to come to a resolution here shortly. Market looks like $11 million — $11.6 million last quarter. Is there any thoughts around how that market is looking heading into a resolution there?

Greg Greifeld: So I think the first point is I would use a clarification on the word resolution. We don’t expect this to be the final resolution. We expect this to be the next step along our process of monetization, which will require us to change the accounting treatment. So you will see a change on the books. In terms of what the impact on the mark will be, ultimately, that will be driven by the facts and circumstances at that time when we do move the position over. And as the quarter unfolds, we should have much greater clarification in terms of the magnitude of that.

Operator: I’m showing no further questions in the queue. At this time, I would now like to turn the call back over to Greg Greifeld, Acting CEO, Deputy CIO and Head of Credit, for closing remarks.

Greg Greifeld: Thank you, operator. Third quarter operating performance demonstrates Runway’s meticulous underwriting practices. Credit quality remains our top priority. We are pleased with the composition of our portfolio and will continue to be selective given the current market landscape. Thank you all for joining us today. We wish you a safe and healthy end of the year, and we look forward to updating you on our fourth quarter and full year 2023 financial results in March 2024.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.