Runway Growth Finance: We Finally See Some Positive Momentum (Rating Upgrade)

Summary

• Runway Growth Finance's price has fallen over 28% in the past year, with a current dividend yield of 16% despite a recent cut.
• The portfolio focuses on technology debt investments, with 88% in senior secured first lien investments to mitigate risk.
• Improved credit quality, reduced non-accruals, and decreased PIK interest indicate better portfolio health, justifying a hold rating.
• Lower dividend payouts and slight NAV growth could help RWAY retain capital for future growth opportunities, especially if interest rates drop.

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Overview

Runway Growth Finance (NASDAQ:RWAY) operates as a business development company that aims to generate attractive total returns through its portfolio of technology focused debt investments. The recent market turmoil combined with the higher interest rates has

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.