Runway Growth Finance Corp. (RWAY) is a BDC reporting as of March 31, 2026 with total assets of $904.9M and total liabilities of $466.7M, producing GAAP net assets (equity) of $438.2M at $12.13 NAV/share. Under a liquidation lens, the asset side is dominated by the investment portfolio carried at fair value of $886.3M against an amortized cost of $985.5M — a $99.1M embedded markdown already reflected in book value. Because BDC investments are marked to fair value quarterly under ASC 820 Level 3 methodologies, the liquidation haircut question is not the standard 50-70% PP&E discount but rather whether the reported fair values are achievable in a distressed sale. Level 3 portfolio assets (the overwhelming majority) would face additional liquidity discounts in an orderly wind-down; the filing does not separately XBRL-tag the Level 3 concentration, but the MD&A and fair value footnote confirm virtually all portfolio positions are privately held venture-growth loans valued via unobservable inputs. A realistic liquidation discount of 10-20% on the $886.3M portfolio would reduce recoverable asset value to roughly $709M-$798M. Against liabilities of $466.7M at face value — comprising $430.5M in debt ($180M revolving credit, $250.5M in fixed-rate unsecured notes), $14.9M in accrued incentive fees, $7.2M in accrued interest, and other payables — equity recovery in a liquidation would be materially below stated NAV and may approach zero under stress assumptions. The asset coverage ratio declined from 211% at December 31, 2025 to 202% at March 31, 2026, reflecting portfolio deterioration. The quarterly net loss of $34.8M was driven by $46.7M in net unrealized depreciation, with Blueshift Labs and Marley Spoon placed on non-accrual during the quarter. Unfunded commitments of $179.2M represent a contingent call on liquidity not reflected on the balance sheet. Post-period, the SWK acquisition closed April 6, 2026, adding $33M of assumed 9.00% senior notes (SWK 2027 Notes) and 6.33M new shares issued — a material post-balance-sheet event that increases the leverage stack and dilutes existing equity; these items are not reflected in the March 31 balance sheet presented. The filing discusses non-accrual designation of Blueshift Labs and Marley Spoon in MD&A but does not separately XBRL-tag non-accrual loan balances or the associated fair value markdowns by name.
▼ Community Notes