Investment Portfolio - As of September 30, 2025, the total fair value of investments was $945.964 million, a decrease from $1,076.840 million on December 31, 2024[240] - Senior secured loans comprised 90.66% of the total portfolio as of September 30, 2025, valued at $857.636 million[240] - The company held investments in 54 companies as of September 30, 2025, down from 57 companies at the end of 2024[239] - The fair value of preferred stock/units decreased to $37.386 million as of September 30, 2025, from $82.641 million at the end of 2024[240] - The ending investment portfolio as of September 30, 2025, was $945.964 million, down from $1,066.100 million as of September 30, 2024[243] - As of September 30, 2025, 64.35% of the debt investment portfolio was rated 2, indicating acceptable business prospects and compliance with covenants[244] - The investment portfolio's beginning value was $1,076.840 million as of September 30, 2025, compared to $1,067.009 million as of September 30, 2024[243] Financial Performance - For the three months ended September 30, 2025, the dollar-weighted annualized yield on debt investments was 16.83%, compared to 15.92% for the same period in 2024[241] - Total investment income for the three months ended September 30, 2025, was $36.7 million, unchanged from the same period in 2024, while for the nine months, it decreased to $107.3 million from $110.9 million[251][252] - Net investment income for the three months ended September 30, 2025, was $15.7 million, a slight decrease from $15.9 million in 2024, with per share figures of $0.43 and $0.41 respectively[260] - The net realized loss on investments for the three months ended September 30, 2025, was $1.3 million, attributed to losses on specific investments, while there were no realized gains or losses in the same period of 2024[262] - The net realized gain on investments for the nine months ended September 30, 2025, was $3.2 million, with gains from Gynesonics, Inc. offset by losses on other investments, while there were no realized gains or losses in 2024[263] - Total operating expenses for the nine months ended September 30, 2025, were $62.0 million, slightly up from $61.7 million in 2024, with per share expenses increasing to $1.67 from $1.57[255] Regulatory and Management - The company has elected to be treated as a regulated investment company (RIC) and a business development company (BDC) under relevant regulations[233] - The company is externally managed by Runway Growth Capital LLC, which provides investment advisory services[236] - The company is subject to various regulatory requirements, including the need to invest at least 70% of its assets in qualifying assets[233] Mergers and Acquisitions - The company is in the process of merging with SWK Holdings Corporation, with potential impacts on business operations and shareholder interests[234] - On October 9, 2025, the company entered into a Merger Agreement with SWK Holdings Corporation, involving multiple merger steps to consolidate operations[292] - The consummation of the Mergers is subject to customary closing conditions, including the effectiveness of the Registration Statement and approval by SWK's stockholders[299] - The Key Stockholder owns approximately 69.9% of the outstanding shares of SWK Common Stock and has agreed to vote in favor of the Merger Agreement[300] Liquidity and Debt - As of September 30, 2025, the company had $371.9 million in available liquidity, including $7.9 million in cash and cash equivalents, and $364.0 million available under its Credit Facility[273] - The company had a total of $1,162 thousand in forgone interest income from loans on non-accrual status as of September 30, 2025[246] - As of September 30, 2025, the company had $450.3 million in debt outstanding, with $25.0 million due within the next year[276] - The company completed $12.0 million of additional debt commitments from October 1, 2025, through November 6, 2025[291] Risk Factors - The company anticipates potential risks related to economic downturns, interest rate volatility, and competition for investment opportunities[229] - A hypothetical 200 basis point increase in interest rates could increase investment income by a maximum of $15.5 million, while a decrease could reduce it by a maximum of $8.8 million[304] - Investments denominated in foreign currencies are subject to risks associated with currency exchange rate fluctuations, which may be exacerbated by current economic conditions[308] Shareholder Returns - The company declared dividends of $13.0 million and $39.5 million for the three and nine months ended September 30, 2025, respectively, with the majority distributed in cash[286] - The company repurchased 1,213,391 shares for an aggregate purchase price of $12.5 million under the Fourth Repurchase Program as of September 30, 2025[284]

Investment Income - Total investment income for Q3 2025 was $36.7 million, unchanged from Q3 2024[4] - Net investment income for Q3 2025 was $15.7 million, or $0.43 per share, compared to $15.9 million, or $0.41 per share in Q3 2024[6] - For the three months ended September 30, 2025, total investment income was $36,747,000, slightly up from $36,651,000 in the same period of 2024[33] - Net investment income for the three months ended September 30, 2025, was $15,736,000, compared to $15,875,000 for the same period in 2024[33] Investment Portfolio - The investment portfolio had an aggregate fair value of $0.9 billion, comprising $878.8 million in loans and $67.2 million in equity-related investments[10] - The dollar-weighted annualized yield on average debt investments for Q3 2025 was 16.8%[5] - Total investments at fair value were $945,964,000, down from $1,076,840,000, with non-control/non-affiliate investments valued at $931,915,000[31] Financial Position - As of September 30, 2025, total assets amounted to $963,346,000, a decrease from $1,091,355,000 as of December 31, 2024[31] - Net asset value per share decreased by 0.8% to $13.55 as of September 30, 2025[13] - The net asset value per share as of September 30, 2025, was $13.55, down from $13.79 as of December 31, 2024[31] - Total liabilities decreased to $473,820,000 from $576,486,000 as of December 31, 2024[31] - The company’s credit facility debt was $186,000,000, reduced from $311,000,000[31] Investment Activity - The company completed 11 investments totaling $128.3 million during the quarter[7] - Net realized loss on investments was $1.3 million for Q3 2025, compared to no net realized gains or losses in Q3 2024[8] - The company reported a net increase in net assets resulting from operations of $8,019,000 for the three months ended September 30, 2025[33] Liquidity and Dividends - As of September 30, 2025, the company had approximately $371.9 million in available liquidity[14] - The company declared a fourth quarter 2025 dividend of $0.33 per share[3] Future Plans - The proposed acquisition of SWK Holdings is expected to enhance the company's healthcare and life sciences exposure[3] - The company plans to hold a conference call on November 6, 2025, to discuss its third quarter financial results[25]

Core Insights - Runway Growth Finance Corp. reported total investment income of $36.7 million and net investment income of $15.7 million for Q3 2025, maintaining similar levels compared to Q3 2024 [4][6][7] - The company declared a fourth quarter dividend of $0.33 per share, reflecting its ongoing commitment to return value to shareholders [3][13] - The investment portfolio as of September 30, 2025, had a fair value of $0.9 billion, with a focus on senior secured loans [9][11] Financial Performance - Total investment income for Q3 2025 was $36.7 million, unchanged from Q3 2024 [4] - Net investment income for Q3 2025 was $15.7 million, or $0.43 per share, compared to $15.9 million, or $0.41 per share, in Q3 2024 [6][8] - Operating expenses increased slightly to $21.0 million in Q3 2025 from $20.8 million in Q3 2024 [6] Investment Activity - The company completed 11 investments totaling $128.3 million during the third quarter, net of refinances [7][10] - The investment portfolio included $878.8 million in loans, with 97.6% being senior secured loans [9] - The company experienced a net realized loss on investments of $1.3 million in Q3 2025, compared to no realized gains or losses in Q3 2024 [7] Net Asset Value - As of September 30, 2025, the net asset value per share was $13.55, a decrease of 0.8% from $13.66 as of June 30, 2025 [11] - Total net assets at the end of Q3 2025 were $489.5 million [11] Liquidity and Capital Resources - The company had approximately $371.9 million in available liquidity, including $7.9 million in cash and $364.0 million in borrowing capacity [12] - The core leverage ratio improved to approximately 92% from 105% in the previous quarter [12] Recent Developments - The company announced a proposed acquisition of SWK Holdings, which is expected to enhance its healthcare and life sciences exposure [3] - The merger agreement with SWK Holdings includes provisions for share conversions and cash considerations for SWK shareholders [16][17]

Core Points - Runway Growth Finance Corp. has declared a fourth quarter 2025 cash distribution of $0.33 per share [1] - The declaration date for the dividend is November 5, 2025, with a record date of November 17, 2025, and a payment date of December 3, 2025 [1] - The company intends to distribute substantially all of its available earnings on a quarterly basis, subject to the discretion of its Board of Directors [1] Company Overview - Runway Growth is a specialty finance company that provides flexible capital solutions to late- and growth-stage companies as an alternative to raising equity [2] - The company is a closed-end investment fund regulated as a business development company under the Investment Company Act of 1940 [2] - Runway Growth is externally managed by Runway Growth Capital LLC, an affiliate of BC Partners Advisors L.P., and led by industry veteran David Spreng [2]

Core Viewpoint - Runway Growth Finance Corp. will release its third quarter 2025 financial results on November 6, 2025, and will hold a conference call to discuss these results [1] Company Overview - Runway Growth is a specialty finance company that provides flexible capital solutions to late- and growth-stage companies as an alternative to raising equity [3] - The company is a closed-end investment fund regulated as a business development company under the Investment Company Act of 1940 [3] - Runway Growth is externally managed by Runway Growth Capital LLC, an affiliate of BC Partners Advisors L.P., and is led by industry veteran David Spreng [3] Conference Call Details - Participants can register for the conference call online at the Runway Growth Investor Relations website, with a recommendation to register a day in advance or at least 15 minutes before the call [2] - The earnings call will take place at 3:00 p.m. PT (6:00 p.m. ET) on the same day as the financial results release [1] - A replay of the webcast will be available two hours after the call and archived for 90 days [2]

Core Viewpoint - The proposed sale of SWK Holdings Corporation to Runway Growth Finance Corp. is under investigation to assess its fairness and adequacy for shareholders, with a total estimated purchase price of approximately $220 million [1]. Group 1: Transaction Details - The transaction is structured as a net asset value (NAV)-for-NAV merger [1]. - The estimated purchase price includes a fixed stock component of approximately $75.5 million in Runway Growth shares and about $145 million in cash [1]. - The valuation is based on SWK's financials reported as of June 30, 2025, including estimated transaction expenses [1]. Group 2: Legal Investigation - Kahn Swick & Foti, LLC is investigating the transaction to determine if the process leading to the sale is fair to SWK's shareholders [1]. - Shareholders who believe the transaction undervalues the company are encouraged to discuss their legal rights with KSF [2].

Runway Growth Finance Corp. Overview of Proposed Acquisition of SWK Holdings NASDAQ Listed I RWAY I RWAYL I RWAYZ October 2025 © Runway Growth Capital LLC 2025 Forward-looking Statements This presentation dated October 2025 is being provided by Runway Growth Finance Corp. ("Runway Growth" or the "Company") for discussion purposes only and is neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company. It is solely intended to describe the general business, investment obj ...

Core Viewpoint - Runway Growth Finance Corp. has announced a definitive merger agreement to acquire SWK Holdings Corporation, enhancing its portfolio in healthcare and life sciences while optimizing its financial profile and expected net investment income accretion [1][2]. Transaction Overview - The estimated purchase price for the acquisition is approximately $220 million, consisting of $75.5 million in Runway Growth shares and about $145 million in cash [4]. - The transaction is structured as a net asset value-for-net asset value merger, with cash payments based on SWK's final NAV prior to closing [4]. Strategic Implications - The acquisition will increase Runway Growth's healthcare investments from 14% to approximately 31% of its portfolio, expanding its exposure in a growing market [5]. - The total assets of Runway Growth are expected to reach $1.3 billion pro forma following the merger, enhancing its balance sheet and portfolio metrics [5]. Financial Impact - The merger is anticipated to generate mid-single-digit run-rate net investment income accretion in the first full quarter post-transaction [5]. - Improvements in dividend coverage and return on equity (ROE) are expected, along with an expansion of Runway Growth's pro forma leverage ratio [5]. Governance and Approval - SWK's Board of Directors has unanimously approved the transaction, which is expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals [7].

Core Insights - Runway Growth Finance Corp. completed 11 investments totaling $128.3 million in the third quarter of 2025, focusing on both new and existing portfolio companies [1][3] - The company emphasizes a disciplined underwriting approach and aims to optimize a diversified portfolio across technology, healthcare, and select consumer sectors [2][4] Investment Activities - The investments included two new portfolio companies, eight existing portfolio companies, and one investment in Runway-Cadma I LLC [3] - Notable liquidity events in the third quarter totaled $201.2 million, including significant investments in companies like Kin Insurance, Madison Reed, and Skillshare [3] Portfolio Overview - As of September 30, 2025, the portfolio comprised 47 debt investments across 30 companies and 89 equity investments in 47 companies, with 23 companies receiving both debt and equity support [5] - The focus remains on late and growth-stage businesses in high-growth sectors such as technology and healthcare [4][5] Company Structure and Management - Runway Growth operates as a credit-first organization, prioritizing high-quality late-stage companies in the venture debt market [4] - The company is externally managed by Runway Growth Capital LLC, an affiliate of BC Partners Advisors L.P., and led by industry veteran David Spreng [6]

Core Insights - Runway Growth Finance (NASDAQ: RWAY) has experienced a 7% decline year-to-date, which has increased its discount to its net asset value (NAV) per share while still offering a double-digit base cash dividend along with supplemental distributions [1] Group 1: Company Performance - The company is externally managed and is currently facing a significant discount to its NAV per share [1] - Despite the decline in share price, the company continues to provide attractive cash dividends, indicating a commitment to returning value to shareholders [1] Group 2: Market Strategy - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and firms in the green energy sector [1]