런웨이 그로스 파이낸스(RWAY) 2026년 3분기 실적 발표 콘퍼런스콜: NII 0.38달러 및 자사주 매입 확대

핵심 요약

• 런웨이 그로스 파이낸스(Runway Growth Finance)의 2026년 3분기 총투자수익은 4,060만 달러로 2분기의 3,700만 달러에서 증가했으나, 순투자수익(NII)은 1,820만 달러에서 1,590만 달러로 감소했다.
• 주당 순투자수익은 0.38달러로 분기 배당금 0.33달러를 상회했다. 경영진은 3분기 순투자수익에 주당 약 0.06달러의 일회성 순이익이 포함되었다고 밝혔다.
• 주당 순자산가치(NAV)는 자사주 매입과 대출 상환에 힘입어 11.91달러에서 11.94달러로 상승했으나, 말리 스푼(Marley Spoon)에 대한 1,080만 달러 규모의 상각으로 일부 상쇄되었다.
• 유동화 회수액은 대출 상환 1억 3,940만 달러를 포함해 총 1억 4,000만 달러에 달한 반면, 후속 투자 집행은 850만 달러에 그쳤다. 이에 따라 포트폴리오 공정가치는 12억 달러에서 11억 달러로 감소했다.
• 부채비율(부채 대 자기자본 비율)은 1.36배에서 1.10배로 하락하며 경영진 목표 범위로 복귀했다. 분기 말 기준 총 가용 유동성은 2억 1,660만 달러였다.
• 이사회는 RWAY의 자사주 매입 승인 한도를 2027년 9월 30일까지 3,000만 달러로 확대했다. 실적 발표 컨퍼런스 콜 기준 회사의 잔여 매입 한도는 2,210만 달러였다.

주요 재무 데이터

회사는 2분기의 4,530만 달러 실현손실과 대조적으로 1만 달러의 순실현이익을 기록했다. 순미실현손실은 520만 달러로, 전 분기의 순미실현이익 5,430만 달러와 대비되었다.

사업 및 운용 실적

런웨이는 상환, 다변화 및 대차대조표 관리를 중시하면서 신규 대출 실행을 의도적으로 조절했다. 3분기 자금 집행은 기존 포트폴리오 기업 4곳에 대한 후속 투자 850만 달러로 구성되었다.

회사는 유동화 이벤트를 통해 1억 4,000만 달러를 회수했다. 여기에는 4건의 완전 상환 총 1억 3,070만 달러, 예정된 원금 분할 상환 870만 달러, 주식 매각 대금 60만 달러가 포함되었다.

가장 큰 상환 건은 데카르트(Descartes)의 피인수에 따른 3PL(익스텐시브(Extensiv)로도 알려짐)에 대한 7,230만 달러 규모의 대출 상환이었다. 경영진은 이번 상환으로 포트폴리오 집중도가 완화되고 가중평균 위험 등급 개선에 기여했다고 밝혔다. 분기 말 기준 공정가치 기준 포트폴리오의 94%가 위험 등급 3등급 이상의 양호한 수준을 유지했다.

SWK 인수를 통해 런웨이는 소프트웨어 집중도와 평균 대출 규모를 줄이는 한편 헬스케어 및 생명과학 익스포저를 지속적으로 확대했다. 평균 원금 대출 규모는 2025년 초 이후 21% 감소했다. 인수 완료 이후 런웨이는 3개 SWK 차입자에 대한 약정액을 총 3,400만 달러 증액했으며, 이튼(Eton) 워런트에서 회수한 1,000만 달러 중 340만 달러의 차익을 실현했다.

분기 말 이후 2,500만 달러 규모의 메드마인더(MedMinder) 선순위 담보 1순위 대출이 전액 상환되어 36.7%의 내부수익률(IRR)을 기록했다.

런웨이는 3분기 중 480만 달러 상당의 자사주를 매입했다. 분기 말 이후에는 약 4,370만 달러의 순조달액으로 7.75% 베이비본드(소액 채권)를 발행했다. 조달된 자금은 주로 2027년 1월 만기인 3,300만 달러 규모의 9% SWK 채권을 상환하는 데 사용되었다.

경영진 가이던스

경영진은 일부 거래가 후속 기간으로 지연될 수 있으나 높은 수준의 조기 상환이 2026년 4분기까지 이어질 것으로 예상하고 있다. 대출 상환 규모를 감안할 때 파이프라인이 확대되더라도 포트폴리오 순성장에는 시간이 걸릴 수 있다고 밝혔다.

회사는 4분기 및 2026년 연간 기준으로 주당 0.33달러의 기본 배당금을 충당할 수 있을 것으로 전망했다. 경영진은 2027년 배당의 지속 가능성은 상환 시점, 신규 대출 집행 속도, 자사주 매입 수준에 따라 달라질 것이라고 언급했다.

경영진은 현재 SWK 포트폴리오가 분기당 주당 약 0.05달러의 순투자수익(NII)에 기여할 것으로 보고 있다. 이러한 기여도는 SWK 대출이 만기 도래하거나 조기 상환됨에 따라 점차 축소될 수 있다.

회사는 또한 최근 연방준비제도(Fed)의 금리 인상이 4분기 포트폴리오 수익률을 뒷받침할 것으로 예상했다. 경영진은 런웨이 차입금의 50% 이상이 고정금리라는 점을 강조했다.

리스크 및 주목할 부문

말리 스푼(Marley Spoon)은 공시된 포트폴리오 이슈 중 가장 중요한 사안으로 남아 있다. 런웨이는 3분기 중 약 2,890만 달러의 미집행 약정액을 취소하고 약 960만 달러 규모의 브릿지론을 제공했다. 분기 말 이후 해당 브릿지 한도는 약 410만 달러 증액되었다. 회사는 1,080만 달러의 상각을 기록했으며, 비용 절감과 재무적 지속 가능성을 추진 중인 말리 스푼과 협력하고 있다.

신규 투자 집행이 보조를 맞추지 못할 경우 상환 규모 증가는 경상 투자수익 감소로 이어질 수 있다. 3분기에 보고된 15.8%의 수익률에는 비경상적 수익이 포함되어 있으며, 핵심 포트폴리오 수익률은 14.0%였다.

경영진은 또한 벤처 대출 시장 일각에서 대출 심사 기준이 다소 완화되고 있다고 지적했다. 런웨이는 선별적 기조를 유지할 방침이며, 이는 단기적인 신규 대출 실행을 제약할 수 있다. 금리 상승 역시 딜 플로우를 위축시킬 수 있으나 경영진은 파이프라인과 기회의 다변화가 개선되고 있다고 밝혔다.

자사주 매입은 일일 매수 한도와 거래량 제약의 영향을 받는다. 경영진은 RWAY의 거래량이 때때로 얇을 수 있음을 인정했다.

애널리스트 질의응답(Q&A) 요약

• 수익률의 질: 경영진은 3분기 순투자수익(NII)에 주당 0.08달러의 조기 상환 수수료와 0.02달러의 기타 수수료가 포함되었다고 밝혔다. 약 0.02달러의 일회성 부채 비용을 반영하면 추정 일회성 순이익은 주당 약 0.06달러였다.
• 포트폴리오 성장: 경영진은 4분기 상환 규모가 3분기 수준에 도달하거나 이를 넘어설 수 있을 것으로 예상한다. 상환 회수금은 런웨이의 여신 기준에 따라 신규 대출과 자사주 매입 사이에 균형 있게 배분될 예정이다.
• 배당 전망: 런웨이는 4분기 및 2026년 연간 배당 충당이 가능할 것으로 전망했으나, 경영진은 상환, 신규 대출 실행 및 자사주 매입을 둘러싼 불확실성으로 인해 2027년에 대해서는 확정적인 전망을 제시하지 않았다.
• 관계사 매수: 경영진은 관계사 매수가 투자 자산의 이전이 아니라 BC 파트너스(BC Partners) 계열 법인이 RWAY 주식을 매수할 가능성을 의미한다고 명확히 밝혔다.
• 추가 자본 환원 방안: 경영진은 이사회와 경영진이 검토 중인 대안 가운데 주식 공개매수가 논의되었으나, 확정된 방침은 발표되지 않았다고 밝혔다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

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. Good evening, everyone, and welcome to the Runway Growth Finance Conference Call for the third quarter ended September 30, 2026. Joining us on the call today are David Spreng and Mike Rovner, Co-Chief Executive Officers of Runway Growth Finance and Co-Chief Investment Officers of Runway Growth Capital LLC, our Investment Advisor, and Carmela Thomson, Chief Financial Officer. Our Investment Advisor's Chief Credit Officer, Avisha Khubani, will join us for Q&A.

Runway Growth Finance's third quarter 2026 financial results were released just after market close today and can be accessed from Runway Growth Finance's investor relations website at investors.runwaygrowth.com. We have arranged for a replay of the call to be available on the Runway Growth Finance webpage.

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

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions can prove to be inaccurate. And as a result, the forward-looking statements based on those assumptions can be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained on this call are made as of the date hereof, and Runway Growth Finance assumes no obligation to update the forward-looking statements or subsequent events. To obtain copies of SEC-related filings, please visit our website. With that, I will turn the call over to David.

David Spreng

Thank you, Quinlan, and thank you, everyone, for joining us this evening to discuss our third quarter 2026 results. Today I will discuss our strategy and notable developments for the quarter. Mike will reflect on our portfolio activity, and Carmela will unpack our financial results.

Before I dive into the quarter, I want to provide additional color on our recent leadership appointments and how we structure our team. Earlier this year, we were thrilled to promote 2 longstanding members of our leadership team, Carmela Thomson and Avisha Khubani, to Chief Financial Officer and Chief Credit Officer, respectively. Carmela has been with Runway since before our IPO and has overseen the company's financial operations for several years. Avisha has played an integral role in our investment advisor's portfolio and credit monitoring team for the past 8 years.

In August, we also welcomed Mike Rovner as co-CEO of the BDC and co-CEO and co-CIO of our advisor. Mike brings with him an expansive network and unique perspective shaped by his career as a founder, investor, and venture lender, as well as his time as a managing director at BC Partners.

These appointments represent a meaningful expansion and strengthening of the leadership team at the BDC and our investment advisor. As we've grown the company and continue to promote from within, our evolution reflects the stability and continuity of our organization, the depth of our existing talent, and our commitment to maintaining strong underwriting and high credit standards. I look forward to working alongside this team in the months ahead as we continue to execute upon the disciplined investment strategy that has guided Runway since its founding.

Turning now to the quarter. In the third quarter, we continued to make progress on our objectives related to optimizing the portfolio, increasing diversification, lowering our risk profile, and maintaining the competitive positioning of our business. As we previously discussed, our acquisition of SWK, which closed in Q2 of this year, was an important step in advancing these objectives, increasing our exposure to the healthcare and life sciences sector, lowering our software concentration, and reducing our average loan size.

Beyond the positive impacts of the acquisition, we also had multiple levers available to us as we continue to optimize our portfolio, including sourcing new and attractive loans, refinancing loans, and selectively syndicating portions of new originations. We posted a strong earnings quarter delivering NII of 38 cents per share and an improved net asset value of $11.94 per share. Carmela will discuss our results in greater detail shortly, but we believe our performance reflects strong execution and a commitment to active portfolio management.

Let's turn to our capital allocation strategy. During the third quarter, we operated against a continuation of the market dynamics we observed in the first half of the year, including an evolving macroeconomic backdrop that has put pressure on the BDC sector as a whole. As a result, we continue to believe current trading levels of our shares do not accurately reflect the fundamentals of our business and significantly misprice our credit profile. In addition to portfolio optimization, we are continuing to take a thoughtful approach to capital allocation.

This includes a measured approach to new origination and a greater focus on capital return, including affiliate purchases and stock buybacks. Last quarter, BC Partners and its affiliates made a commitment to potentially purchase up to 10% of the company's outstanding common stock over the next 2 years. In line with that approach, today we've announced that our board has expanded our share repurchase program to $30 million. This expanded program is authorized through September 30, 2027.

The management team also continues to purchase shares independently of these initiatives, underscoring our deep confidence in the Runway platform and its ability to deliver results over time. While originations were intentionally moderated during the quarter, our deal pipeline remains active. That said, we remain highly selective with a continued focus on credit quality and prudent balance sheet management.

We believe patience is a virtue, particularly in the current venture lending environment, where we are seeing some loosening of underwriting standards in certain parts of the market. Looking ahead, I remain highly confident in our team, our strategy, the strength of our portfolio, and our ability to deliver strong, consistent results. Now I will turn it over to Mike for more detail on portfolio activity during the quarter.

Unknown Speaker

Thank you, David. It's a pleasure to participate in my first official earnings call as co-CEO and co-CIO. One of the most important lessons I've learned from leading organizations over the years is that setting the right goals is important, but execution is what ultimately matters. Under David's leadership, Runway established a clear set of priorities to strengthen the portfolio, position the business for sustainable earnings power, and create value for our shareholders. Through the commitment and hard work of the broader Runway team, we've made notable progress this year on each of those priorities.

We have broadened and diversified our portfolio over the last several quarters with a key catalyst being our acquisition of SWK earlier this year. As a result, our concentration metrics have shown marked improvement, with our average principal loan size decreasing by 21% since the beginning of 2025. Our efforts as active managers have also led to the improvement of the average risk rating of our portfolio.

As we committed to earlier in the year, we have reduced the leverage level in our portfolio. We ended Q3 at approximately 1.1x debt-to-equity after running it nearly 1.4x during Q2 after using debt to help fund the SWK acquisition. We believe this deleveraging, funded largely by repayments from our borrowers, demonstrates the overall quality of our portfolio. Although there may be quarterly variances, we are actively managing our balance sheet to ensure we operate within our target range over time to maintain optionality as we ramp origination activities. Finally, we have initiated and expanded our share repurchase program, which further aligns our capital allocation strategy with shareholders and takes advantage of a very attractive valuation in our shares.

We know there is more work ahead, but the progress we have made reinforces my confidence in the foundation we are building and in our ability to execute on the priorities that matter most to our shareholders. While we cannot control every market outcome, we can control how we allocate capital, underwrite risk, and manage the business. The areas we can control will continue to be our focus.

Now turning to portfolio activity for the quarter, as David touched on, we deliberately paced new originations and focused on portfolio optimization. Our deployments in Q3 were comprised of follow-on investments in an aggregate amount of $8.5 million to 4 existing portfolio companies. We also generated liquidity events totaling $140 million, including 4 full repayments totaling $130.7 million, $8.7 million in other scheduled loan principal amortization payments, and $600,000 in equity proceeds.

Notably, this quarter we experienced the full repayment of our loan to 3PL, also known as Extensiv, after the company was acquired by Descartes. This was the largest loan in our portfolio, totaling $72.3 million. This full repayment marked an important step forward in our ongoing efforts to reduce concentration, contributing to a lower average principal loan size and a lower proportion of the top 10 loans in our portfolio.

The repayment also contributed to a lower weighted average risk rating of 2.26 compared to 2.33 last quarter. 3PL is just 1 example of how our active portfolio management and close engagement with borrowers help support positive outcomes for both our portfolio companies and our investors. We believe a healthy level of repayment actively demonstrates the underlying strengths of our portfolio.

I would also like to provide an update on our loan to Marley Spoon. During the quarter, we amended our facility to eliminate approximately $28.9 million of unfunded commitments, reducing our exposure. As of quarter end, we had also provided access to approximately $9.6 million bridge loan, and subsequent to quarter end, we increased the bridge facility by approximately $4.1 million. The bridge is intended to preserve value and protect our position while the company executes a revised operating plan focused on cost reduction and financial sustainability. We remain actively engaged with the management team as the restructuring process evolves and we continue to evaluate multiple paths to maximizing our recovery.

Looking more closely at SWK's contributions since the acquisition closed, the portfolio continues to create value through both liquidity events and the opportunity to upsize existing commitments. For example, since the deal closed, we upsized loans to 3 strong SWK borrowers, with a total upsized value of $34 million and had a realized gain of $3.4 million on $10 million in proceeds from our Eton warrants. Subsequent to quarter end, we also experienced the full repayment of a $25 million senior secured first lien loan, MedMinder, generating a 36.7% IRR.

In our view, there is sustained long-term demand for venture debt, and Runway is well positioned to capitalize on that opportunity. While we moderated originations during the quarter, we remain in active dialogue with sponsors and founders across the ecosystem. Over the next 12 months, we believe our expanded sourcing channels can support continued pipeline growth. While the pace of new investment may not always match the timing of portfolio repayments, we believe that the continued performance of our portfolio combined with disciplined loan origination and our commitment to repurchase shares while they remain undervalued collectively represent the most balanced approach to creating long-term, sustainable shareholder value while narrowing the discount to NAV. Now I'll turn it over to Carmela to provide a deeper dive into our financial results and portfolio performance.

Carmela Thomson

Thank you, Mike, and thank you everyone for joining us today. Turning to the third quarter's financial performance, we generated total investment income of $40.6 million and net investment income of $15.9 million, compared to $37 million and $18.2 million, respectively, in the second quarter of 2026. Our total investment portfolio had a fair value of $1.1 billion compared to $1.2 billion in the second quarter. The change primarily reflects the impact of repayments. As of September 30, 2026, Runway had net assets of $494.7 million, down 2% from $502.6 million in the second quarter of 2026. NAV per share was $11.94 compared to $11.91 as of June 30, 2026. The quarter's NAV per share growth was driven by share repurchases and repayments, but was offset by an additional write-down on Marley Spoon.

We delivered 38 cents per share of net investment income and a base dividend of 33 cents per share. At quarter end, we had spillover income of approximately 76 cents per share. NII during the quarter was positively impacted by prepayment fees and accelerated end-of-term payments related to prepayments. This quarter, our debt portfolio generated a dollar-weighted average annualized yield of 15.8%, up from 14.2% in the second quarter of 2026. We expect the recent Fed rate hike to benefit portfolio yields in Q4, with further hikes as currently priced by the market providing additional upside. With more than 50% of our borrowings at fixed rates, we expect higher base rates will also support our earnings power.

Looking at our weighted average risk rating, our system is based on a scale of 1 to 5, where 1 represents the most favorable credit rating. Within our scale, a Category 3 loan represents a situation where we have identified early indicators that warrant enhanced oversight, such as performance trending below plan, increased monitoring requirements, or higher loan-to-value levels while the collateral remains intact. Importantly, a Category 3 designation reflects a proactive monitoring framework rather than an impaired credit.

Our weighted average risk rating during the quarter improved to 2.26 compared to 2.33 in the second quarter and 2.66 in the first quarter, as 3PL paid off and we saw improvements in risk ratings across other names in the portfolio. As of September 30, 2026, 94% of the portfolio at fair value had a risk rating of 3 or better, underscoring the quality of the names in our portfolio and our confidence in their performance.

The consistent improvement in our weighted average risk rating, which is the lowest it has been since September 30, 2023, is a testament to the quality of the names in our portfolio, the strength of our monitoring framework, and the hard work our team has done to create a more balanced portfolio. We believe our disciplined risk and valuation process provides a clear, consistent framework for evaluating our portfolio, which reinforces our confidence in its underlying credit quality and long-term performance.

Looking at expenses, total operating expenses were $24.7 million, compared to $18.8 million for the second quarter of 2026. The sequential increase in our operating expenses primarily reflected the absence of a 1-time incentive fee reversal that benefited the second quarter of 2026, as well as a higher management fee base in the third quarter that now includes the acquired SWK assets.

We recorded a net realized gain of $10,000 during the third quarter of 2026 compared to a net realized loss of $45.3 million during the second quarter of 2026. We recorded a net change in unrealized losses of $5.2 million compared to a net change in unrealized gains of $54.3 million in the second quarter of 2026. The change in net unrealized losses was driven by a $10.8 million write-down on our investment in Marley Spoon, which offset net unrealized gains of $5.6 million across the rest of the portfolio primarily related to the repayment of our loan to 3PL.

During the third quarter, we experienced total liquidity events of $140 million, including $139.4 million in repayments. As Mike mentioned, the most significant component of this figure was 3PL. We currently expect elevated prepayments to continue through the fourth quarter, although some could be pushed into subsequent periods.

As of September 30, 2026, our leverage ratio and asset coverage were 1.10x and 1.91x, respectively, compared to 1.36x and 1.74x at the end of the second quarter. Our leverage is now back within its target range after running at elevated levels during the second quarter. Our total available liquidity was $216.6 million, including unrestricted cash and cash equivalents, and we had borrowing capacity of $213 million under our KeyBank credit facility.

To further strengthen our balance sheet and lower our cost of capital, subsequent to quarter end, we issued 7.75% baby bonds, generating net proceeds of approximately $43.7 million. We are pleased with the pricing on the baby bonds, which reflects a narrower spread than the baby bonds we issued earlier in the year. We primarily used the proceeds to repay our $33 million 9% SWK notes due January 2027, which we redeemed in full on November 3, 2026.

In line with our capital allocation strategy and increased emphasis on share repurchases, we repurchased $4.8 million of shares during the quarter. In addition, as previously noted, today we announced that our board has authorized an expanded share repurchase program of $30 million, which will run through September 30, 2027. We have $22.1 million in share repurchases remaining as of today. We believe the Expanded Share Repurchase Program presents an attractive option to reallocate capital towards repurchasing shares while they trade at a significant discount to NAV. Finally, on November 4, 2026, our Board declared a regular distribution for the fourth quarter of 2026 of 33 cents per share. With that, operator, we can open the line for Q&A.

Operator

[Operator Instructions] Our first question comes from Mickey Schleien with Clear Street.

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Mickey Schleien

The weighted average debt investment yield increased nicely from 14.2% to 15.8%, despite the significant repayments, which I assume would be repayments on higher-yielding investments. So how much of the improvement reflected that accelerated OID and end-of-term payment income from those repayments versus higher recurring portfolio yields?

Carmela Thomson

Hi, Mickey. So, our yield does incorporate some non-recurring income, so our 38 cents of NII per share incorporates 10 cents per share of non-recurring, and this is comprised of prepayment fees of 8 cents, and then another 2 cents related to other fees, such as amendment fees, commitment fees, and such. And while that's non-recurring in nature, we do tend to have 1 to 2 cents per share each quarter in other fees. So not as unique as the prepayment fees that tend to be more one-off each quarter.

And so with that, that brings us down to a net 10 cents, and then this is partially offset by a 1-time 2-cent expense related to debt costs. And so the net 1-time impact would likely be around 6 cents per share, comprised of the 8 cents of prepayment and the 2 cents of 1-time debt costs. In terms of the yield, so that's what you'll see with the yield of the 15.8%, so that incorporates those non-recurring fees that I just mentioned. Core yield, which I also believe is in our presentation, is 14%. So that's more of the core portfolio yield, not including the non-recurring fees to get a better comparison quarter-over-quarter.

Mickey Schleien

I understand that. I appreciate your explanation. And if I could, just 1 follow-up. You received approximately $140 million of proceeds in the quarter. You funded only $9 million, and I think you received another $55 million of prepayments this quarter. How much of this runoff was anticipated? What does the pipeline look like? And when do you think the portfolio might resume growth on a net basis?

Unknown Speaker

Sure, Mickey, I'll go ahead and handle that question. Well, obviously we've had a very strong repayment quarter in Q3 and as you noted Q4 is also off to a strong start. It's a little early to be able to predict where we would end up in Q4. Obviously we have 2 months left, but we are certainly on pace to achieve or even outpace what we saw in Q3. The pipeline is building and we remain actively engaged with sponsors and founders. We're working on our sourcing. And though I think it may be a little while before we see that growth in the portfolio, given the size of the repayments. Carmela, I don't know if you wanted to add anything.

Carmela Thomson

No, I think that's right. I think as repayments come in in the coming quarter, and in our prepared remarks, we noted elevated prepayments. We will use that also to balance repurchases of shares as well as new loans, but obviously keeping in mind our credit strategy and in making sure that we're bringing on loans that still continue to meet that high credit mark.

Mickey Schleien

I understand. I appreciate your time this evening and thank you for taking my questions.

Operator

Thank you. Our next question comes from Richard Shane with J.P. Morgan.

Unknown Speaker

Yes, hey, this is Tong on for Rick. I guess just thinking about the SWK accretion, you talked about how it was $0.05 accretive quarterly NII. Going forward, do you expect any incremental benefits to the run rate?

Carmela Thomson

I think the 5 cents is pretty much what you should expect. I think the difference that you may see as loans mature, that could taper off or prepayments on any SWK loans. But 0.05 is still currently what we're projecting and what we see in the portfolio today.

Unknown Speaker

Got it. Thank you.

Operator

Our next question comes from Erik Zwick with Lucid Capital Markets.

Erik Zwick

Good afternoon, everyone. I guess maybe starting with a bit of a follow-up to 1 of Mickey's questions and he mentioned it maybe a little bit before we start to see net portfolio growth again just given the pace of prepayments as well as the balance between new investments and share buyback. I know you said you'll take a measured approach to new investments. If I understood Carmela's math correctly, it sounds like there was a 6-cent kind of net benefit to the results this quarter. So without those, you'd be at about a 32-cent run rate. So a penny below the current dividend level. So obviously the opportunity to repurchase shares at a massive discount with a stock trading today is very compelling and the math there is strong and with measured investments, kind of a measured approach to investments.

And I realize it's a long-winded question. So I guess the crux of it is, how do you feel about the sustainability of the dividend at this level as you approach 2027, given the fact that the portfolio may shrink again and you're devoting repayment dollars toward the buyback as well?

Carmela Thomson

Sure. So, we do expect to cover our base dividend in the following quarter and full year. Beyond that for 2027, it's hard to predict at this point in time because it does depend on a few variables. And you noted that as well. So, how much and how quickly our loans repay, and then also how fast we deploy that capital into high-quality new loans, and then also the level of share repurchases. So, we're anticipating picking up the pace of our share repurchases as well as our loans prepay. Then we'll use those funds towards that as well. So it really depends on that mix and where we'll land towards that end of the year, going into '27.

Erik Zwick

Thanks, Carmela. And then just my other question, Mike, I think you used the language sustained long-term demand referring to the venture lending market. I'm just curious, do higher rates now in the prospect for rates potentially even going higher, how does that impact kind of the opportunity there? Do certain borrowers tend to back away or but just kind of curious and maybe a question for David as well, just in his experience, how do higher rates impact the venture lending opportunities?

Unknown Speaker

I was pausing to see if David wanted to take that one, but my view is that it's obviously going to be difficult to predict what we see in the coming 12 months. I'd say that higher rates can dampen deal flow, but as things stand right now, we're feeling pretty good about the growth in our pipeline and the number and diversification of opportunities that we're seeing.

Erik Zwick

Thanks Mike, that's all for me.

Operator

[Operator Instructions] Our next question comes from Merrill Ross with Compass Point Research and Trading.

Unknown Speaker

Thank you and good evening. Just thinking about how you hold your pipeline together when you're funding so few loans. It seems like that's part of your franchise value is that you continue to meet the needs of your borrowers and with your activity so subdued, I'm wondering when you feel concerned that you're not funding enough loans to stay in the mix.

Unknown Speaker

That's a great question. Obviously it's a bit of a balancing act. As we've said in prior quarters, we want to take a measured approach to new loan origination while we focus on seeing repayment in our current portfolio, looking to add diversification while supporting our existing borrowers. And I think we've at least done a good job so far of that balancing act. We were active in a smaller way this quarter, looking more to focus on liquidity generation and also support for our existing borrowers. But I do think that it is important for us to continue to be active in the market and to continue to build our pipeline, a good question to watch as we execute in Q4 and beyond.

Operator

Thank you. Our next question comes from Christopher Nolan with Ladenburg Thalmann.

Christopher Nolan

Hi, David mentioned affiliate purchases in his comments. What does that mean?

David Spreng

It means affiliates of Runway and BDC, so management team, other funds within the BDC family, that kind of stuff. So think of it as BDC broadly defined.

Christopher Nolan

Okay, so you might be buying assets from BC affiliated entities?

David Spreng

No, the other way around. Like, BC affiliated entities may be buying shares of Runway.

Christopher Nolan

Okay, so this is related to the share repurchase commitment that BC, okay, it's not a transfer of investment assets. And for your share repurchase program, what sort of window do you have quarterly to do that?

Carmela Thomson

Yes, we can set up the 10b5-1 program to occur through the quarter as long as we're setting it up prior to the blackout period, which is around a week prior to quarter end. And so we can set that up to be active during that process.

Christopher Nolan

And does the stock really have enough liquidity to really help you guys really move the needle on an ongoing basis like this?

Carmela Thomson

We have limitations in terms of how much we can buy in a day. We think it helps bring the stock price up marginally on a daily basis that we've seen. But yes, volume certain times can be thin.

Christopher Nolan

All right. And you know, you sit in an interesting spot here where you're guiding for slower portfolio growth for various reasons. Leverage ratios are way down, your stock price is way down, and you're making really good headway on the buybacks. Have you considered doing a share tender?

Unknown Speaker

It's certainly something that has been discussed as our board and management team consider all the options that are available to us.

Christopher Nolan

Okay. That's it for me. Thank you.

Operator

That concludes today's question-and-answer session. I'd like to turn the call back to David Spreng for closing remarks.

David Spreng

Thank you, Operator, and thank you all for joining us today. We wish you a happy and healthy end to 2026 and look forward to discussing our year-end results in 2027.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.

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