RWAY - Runway Growth Finance: Solid BDC But Stagnant NAV Due To Decreased Venture Deals
2024-05-18 01:21:14 ET
Summary
- Runway Growth Finance is a business development company that focuses on late-stage growth companies and venture capital.
- RWAY has a high dividend yield of 13.6%, making it appealing for investors prioritizing current income generation.
- RWAY's portfolio consists of diverse investments, with a focus on healthcare technology, application software, and information software and services.
- The credit quality of investments have weakened due to the higher interest rate environment. There are 2 portfolio companies in non-accrual status.
Overview
Runway Growth Finance ( RWAY ) is a bit of a different type of business development company than I usually cover. I've covered a ton of BDC that invest in early to mid-stage companies that are looking to raise capital to fuel growth but RWAY takes a different approach by focusing on late-stage growth companies and venture capital. These companies are a bit more matured and as a result, allows RWAY to lend growth capital with minimal dilution. RWAY is externally managed by Runway Growth Capital. RWAY has provided negative price growth over the last 5 year period but total return remains positive due to the high distribution level....
Runway Growth Finance: Solid BDC But Stagnant NAV Due To Decreased Venture Deals