Stockholders of Runway Growth Finance Corp. (NASDAQ:RWAY), a $425 million market cap company with a strong financial health rating according to InvestingPro, have given the green light to a new investment management agreement during a special meeting held on Thursday. The newly approved agreement is between the company and Runway Growth Capital LLC, the current adviser, which is set to be acquired by RGC Group Acquisition, LLC, an affiliate of BC Partners Advisors L.P. The company stands out with an impressive 26.25% dividend yield and has maintained profitability over the last twelve months, trading at a P/E ratio of 9.99.
The approval comes ahead of a significant transition for the adviser, with the acquisition leading to the assignment and subsequent termination of the existing management agreement under the Investment Company Act of 1940. The new advisory agreement will take effect immediately upon completion of the transaction.
The voting outcome was clear, with 22,286,582 votes for, 517,807 against, and 327,658 withheld. There were no broker non-votes recorded for this proposal.
Additionally, the stockholders elected Catherine Frey to the Board of Directors to serve the remainder of the Class III director term, which expires at the 2025 annual meeting of stockholders. Frey's election saw 22,590,924 votes in favor and 541,123 withheld.
The special meeting results, filed with the Securities and Exchange Commission on January 27, 2025, reflect the stockholders' support for the company's direction and management as it prepares for the upcoming changes in its advisory structure. This information is based on a press release statement. For deeper insights into RWAY's financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports, available as part of their coverage of 1,400+ US equities.
In other recent news, Runway Growth Finance Corp. has seen significant developments. Wells Fargo (NYSE:WFC) recently upgraded the company's stock from Equal Weight to Overweight, indicating increased confidence in the firm's financial health. Analysts from Wells Fargo and Lucid (NASDAQ:LCID) Capital Markets have set a price target of $11.00 for the company's stock.
The company's third-quarter financial results revealed a total investment income of $36.7 million and a net investment income of $15.9 million, comfortably covering its quarterly dividend. Runway Growth Finance's fair value investment portfolio was valued at approximately $1.07 billion, with net assets increasing to $507.4 million and net asset value per share rising to $13.39.
In addition to these financial highlights, the company announced a definitive agreement to be acquired by BC Partners Credit, aiming to enhance capabilities while maintaining independence. In other company news, the resignation of director Gregory M. Share was announced, with the vacancy to be filled by a nominee from OCM Growth Holdings, LLC.
These recent developments highlight the ongoing progress and strategic decisions made by Runway Growth Finance Corp. As the company continues to navigate the financial landscape, these updates provide valuable insights for investors.
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