Runway Growth Finance Corp. Provides Third Quarter 2024 Portfolio Update
08 Octubre 2024 - 7:30AM
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
third quarter ended September 30, 2024.
“Runway Growth added attractive investments with new and
existing portfolio companies in the third quarter as we seek to
drive measured and strategic growth,” said David Spreng, Founder
and CEO of Runway Growth. “We are pleased to announce two new
investments during the quarter, which we believe embody our focus
on high-quality, late and growth-stage companies in the fastest
growing sectors of the economy. Runway Growth is positioned to
execute disciplined investments, support our existing borrowers and
generate solid risk-adjusted returns for our shareholders in the
long term.”
OriginationsIn the third quarter of 2024,
Runway Growth funded seven investments: two investments in new
portfolio companies and five investments in existing portfolio
companies. These include:
- Completion of a new $23.0 million investment to Snap! Mobile,
Inc. (“Snap”), funding $18.0 million at close. Snap offers a
software platform designed to help schools, clubs, and teams
fundraise, manage their rosters, communicate with parents and fans,
and sell merchandise;
- Completion of a new $45.3 million investment to Zinnia
Corporate Holdings, LLC (“Zinnia”), funding $40.0 million at close.
Zinnia provides business processing and technology solutions to the
life insurance and annuity industry. Zinnia’s range of solutions
includes distribution services and new business issuance,
administration processing and call center operations, as well as
compliance, fulfillment, and quality assurance services;
- Completion of a new $20 million investment to existing
portfolio company Elevate Services, Inc. (“Elevate”), funding $6.0
million during the quarter, which upsized Elevate’s previous $20
million senior secured term loan. Elevate is a global alternative
legal services provider and legal process outsourcer that serves
members of the Fortune 500 and 60+ global law firms with outsourced
consultancy, technology, and managed services. Elevate has a suite
of products and services across several different operating
business units including contracts, contract lifetime management
and insights, ElevateNext, med legal, ElevateFlex, consulting, and
software;
- Completion of follow-on investments with an aggregate amount of
$6.3 million to two existing portfolio companies; and
- During the quarter Runway-Cadma I LLC (the “JV”), our joint
venture with Cadma Capital Partners LLC, purchased a portion of our
Airship Group, Inc. loan, amounting to a $5.0 million equity
investment in the JV subsidiary.
Liquidity EventsDuring the third quarter
ended September 30, 2024, Runway Growth experienced the
following liquidity events:
- Full principal repayment of the Company’s senior secured term
loan to CloudPay, Inc. of $75.0 million;
- An assignment of $10.0 million of the Company’s investment in
Airship Group, Inc. to the JV; and
- Other scheduled principal amortization of $0.6 million.
Portfolio Construction and
ManagementRunway Growth is a credit-first organization,
carefully structured to focus on what it believes to be the highest
quality, late-stage companies in the venture debt market. The
Company is committed to upholding what it believes to be
industry-leading investment standards combined with disciplined
underwriting and diligent monitoring of its portfolio. Runway
Growth is positioned as a preferred lender in the venture debt
space, supporting and working closely with companies to help them
reach their full growth potential. Since inception, the Company has
focused on the fastest growing sectors of the economy, including
healthcare, technology and select consumer services and products
industries.
As of September 30, 2024, the Runway Growth portfolio
included 49 debt investments to 32 portfolio companies and 86
equity investments in 53 portfolio companies, including 28
portfolio companies where Runway Growth holds both a debt and
equity investment. Investments were comprised of late and
growth-stage businesses in the technology, healthcare and consumer
services and products industries. Runway Growth’s normal business
operations include frequent communication with portfolio
companies.
About Runway Growth Finance Corp.Runway Growth
is a growing specialty finance company focused on providing
flexible capital solutions to late- and growth-stage companies
seeking an alternative to raising equity. Runway Growth is a
closed-end investment fund that has elected to be regulated as a
business development company under the Investment Company Act of
1940. Runway Growth is externally managed by Runway Growth Capital
LLC, an established registered investment advisor that was formed
in 2015 and led by industry veteran David Spreng. For more
information, please visit www.runwaygrowth.com.
Forward-Looking StatementsStatements included
herein may constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements other than statements of historical facts included in
this press release may constitute forward-looking statements and
are not guarantees of future performance, condition or results and
involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described from time
to time in Runway Growth’s filings with the Securities and Exchange
Commission. Runway Growth undertakes no duty to update any
forward-looking statement made herein. All forward-looking
statements speak only as of the date of this press release.
Important DisclosuresStrategies described
involve special risks that should be evaluated carefully before a
decision is made to invest. Not all of the risks and other
significant aspects of these strategies are discussed herein.
Please see a more detailed discussion of these risk factors and
other related risks in the Company’s most recent annual report on
Form 10-K in the section entitled “Risk Factors”, which may be
obtained on the Company’s website, www.runwaygrowth.com, or the
SEC’s website, www.sec.gov.
IR Contacts:Stefan Norbom, Prosek Partners,
snorbom@prosek.com Thomas B. Raterman, Chief Financial Officer and
Chief Operating Officer, tr@runwaygrowth.com
Runway Growth Finance (NASDAQ:RWAY)
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