Core Insights - Runway Growth Finance Corp. completed three investments totaling $37.8 million in funded loans during the second quarter of 2025, focusing on portfolio optimization and diversification [1][2][3] Investment Activities - The company funded two new portfolio companies and one existing portfolio company, including a $10 million investment in Federal Hearings and Appeals Services (FHAS) [3][7] - Additional investments included $40 million in Autobooks, $20 million in Swing Education, and $2.8 million in Marley Spoon SE [7] Liquidity Events - Runway Growth received a full principal repayment of $21.1 million from Nalu Medical Inc. and a repayment of $25 million from SetPoint Medical Corporation during the second quarter [4][8] Portfolio Management - As of June 30, 2025, the portfolio consisted of 48 debt investments across 31 companies and 89 equity investments in 49 companies, with a focus on technology, healthcare, and select consumer sectors [6][5] - The company emphasizes a credit-first approach, maintaining rigorous underwriting standards and frequent communication with portfolio companies [5][6] Company Overview - Runway Growth is a specialty finance company providing flexible capital solutions to late- and growth-stage companies, regulated as a business development company under the Investment Company Act of 1940 [9]

Company Overview and Strategy - Runway Growth Finance Corp is focused on venture debt with a fully-scaled platform, emphasizing a disciplined investment process and strong balance sheet [14] - The company aims to deliver comprehensive financing solutions and execute larger deals with the backing of BC Partners [14] - Runway Growth intends to expand origination channels and strengthen sourcing capabilities through BC Partners' investment platform [15] Portfolio Performance and Risk - The company's disciplined investment approach has resulted in a low annualized loss rate of 7 bps [9] - Cumulative net loss rate since inception is 56 bps [9] - As of March 31, 2025, the portfolio at fair value was $1,004 million [24] - 98% of the loan structure is first lien [29] - 96% of the portfolio has a weighted average risk rating of 3 or better [60] Financial Highlights - Total loan commitments amount to $3 billion [29] - The average loan commitment is $34.8 million [29] - As of March 31, 2025, total investment income was $35.398 million [71]

MENLO PARK, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (NASDAQ:RWAY) ("Runway Growth" or the "Company"), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today provided an operational and portfolio update for the first quarter ended March 31, 2025. "In the first quarter of 2025, Runway Growth originated high quality financing solutions to several of our existing portfolio companies within the resilient ...

Financial Data and Key Metrics Changes - For Q4 2024, total investment income was $33.8 million and net investment income was $14.6 million, compared to $36.7 million and $15.9 million in Q3 2024 [10][34] - The weighted average portfolio risk rating decreased to 2.33% in Q4 2024 from 2.48% in Q3 2024 [27] - The dollar-weighted loan-to-value ratio decreased from 29.3% to 26.6% [31] - Net assets increased to $514.9 million from $507.4 million in Q3 2024, with NAV per share rising to $13.79, up 3% from $13.39 [32] - Total operating expenses decreased to $19.2 million from $20.8 million in Q3 2024 [35] Business Line Data and Key Metrics Changes - The company executed two investments in new companies and five in existing companies, totaling $154 million in funded loans [16][27] - The loan portfolio is comprised of 97% floating rate assets, with all loans earning interest at or above agreed-upon interest rate floors [33] Market Data and Key Metrics Changes - Venture debt deal value increased to over $53 billion in 2024, up from approximately $27 billion in 2023, driven by multibillion-dollar deals in the AI sector [23] - The company noted that the venture debt space is experiencing growth, which is expected to continue [22] Company Strategy and Development Direction - The company aims to grow originations in loan sizes of $30 million to $150 million, with an ideal allocation to the BDC remaining at $20 million to $45 million [13] - The acquisition of Runway Growth Capital by BC Partners Credit is expected to enhance deal flow and diversify the portfolio [11][12] - The company maintains a credit-first investment philosophy and focuses on high-growth sectors such as technology, healthcare, and consumer products [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's performance and the ability of borrowers to operate effectively against the macro backdrop [17] - The company anticipates that the focus on high-growth sectors and senior secured loans will provide additional security for the portfolio [22] Other Important Information - The company declared aggregate distributions of $0.36 per share for Q1 2025, including a base dividend of $0.33 and a supplemental dividend of $0.03 [40] - The company extended its credit facility with KeyBank by three years, enhancing availability and lending verticals [38] Q&A Session Summary Question: Expectations for new originations in the first quarter - Management acknowledged that originations are typically back-ended and indicated potential for additional originations before the quarter ends [44] Question: Percentage of loan book trading at interest rate floors - Management stated that the majority of loans are at or above their interest rate floors [46] Question: Impact of Fed cuts on yield - Management noted that a significant portion of the yield decline was due to lower interest rates and fewer prepayment accelerations [50] Question: Discussion on dividend and capital allocation - Management emphasized the importance of a stable dividend and indicated a preference for building NAV while maintaining consistent dividends [56][57] Question: Broader origination opportunities post-BC Partners acquisition - Management expressed excitement about the expanded funnel of opportunities and the ability to underwrite different structures [62][66] Question: Share repurchase plans - Management confirmed discussions on share repurchases but emphasized the need to assess which option creates better returns [78] Question: Current state of the venture market - Management noted slower exit activity and M&A, but anticipated an uptick in new fundings and M&A in the coming quarters [81]