Runway Growth Finance Corp. Provides First Quarter 2023 Portfolio Update
April 06 2023 - 8:30AM
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
first quarter ended March 31, 2023.
“Runway Growth is well positioned to execute its patient and
disciplined lending strategy to late-stage growth companies,” said
David Spreng, Founder and CEO of Runway Growth. “We believe our
focus on providing minimally dilutive growth capital to
high-quality companies in the sectors we know best will demonstrate
near-term resilience. Management quickly responded to the recent
disruptions in the operating environment to preserve our
conservative lending standards and fortify our portfolio, which is
nearly 100% senior secured, first lien loans. As economic
uncertainty heightens, we have redoubled our efforts to stay close
to our portfolio companies and will continue to prioritize active
communication with our borrowers. Runway Growth is open for
business. We will selectively deploy capital to grow our portfolio
and support the venture debt ecosystem.”
Runway Growth’s net originations totaled $2.8
million in the first quarter of 2023.
Originations
In the first quarter of 2023, Runway Growth funded seven new
investments in existing portfolio companies. These include:
- Completion of a $4
million follow-on investment to existing portfolio company Brivo
Systems, LLC (“Brivo”). Brivo is an access control company that
provides a comprehensive, cloud-based digital platform, which
improves security, tenant experience, owner economics and data
insights for large enterprise, commercial and multifamily
properties;
- Completion of $4
million follow-on investments through three additional advances to
existing portfolio company Epic IO Technologies, Inc. (“Epic IO”).
Epic IO is the global technology holding company for IntelliSite
and Broad Sky Networks. Epic IO is focused on wireless connectivity
and solutions powered by AI and Internet of Things (IoT) that seek
to make customers safer, smarter, and more connected;
- Completion of a $3
million follow-on investment to existing portfolio company Extensiv
(formerly known as “3PL Central”). Extensiv is a cloud-based
software company providing warehouse, inventory, and order
management solutions to third-party logistics firms and
brands;
- Completion of a $.4
million follow-on investment to Route 92 Medical, Inc. (“Route
92”). Route 92 is a medical device company that develops
neuro-interventional devices with a focus on treating acute
ischemic stroke and hemorrhagic stroke; and
- Completion of a
$1.5 million follow-on investment to Synack, Inc. (“Synack”).
Synack is a developer of a crowdsourced security testing platform
designed to deliver smart penetration testing to security
teams.
Liquidity Events
During the first quarter ended March 31, 2023, Runway
Growth experienced two liquidity events totaling $10.2 million and
scheduled principal amortization of $4 million:
- Principal repayment
of senior secured term loan to TRACON Pharmaceuticals, Inc.
(NASDAQ: TCON) of $10 million; and
- Partial principal
repayment of senior secured term loan to Marley Spoon AG (ASX: MMM)
of $.2 million.
Portfolio Construction and Management
Runway Growth’s stable portfolio enforces the power of the
Company’s concentration in first lien senior secured loans with a
focus on the latest stage companies in the venture debt market. As
a trusted partner, Runway Growth is leveraging its proprietary risk
analytics to diligently support its portfolio companies while
positioning them to successfully navigate the challenging market
conditions. Runway Growth’s efforts to support its portfolio
companies include frequent and ongoing discussions around methods
to reduce expenses while driving cash flow in the short-term.
As of March 31, 2023, the Runway Growth portfolio included
59 debt investments and 55 equity investments (which includes
warrants received in conjunction with debt investments) in 49
portfolio companies. This consisted of late and growth-stage
businesses in the technology, life sciences, healthcare,
information services, and select consumer services and products
industries. Runway Growth’s normal business operations include
ongoing communication with portfolio companies, which have
increased in frequency amid recent market events.
Runway Growth remains a credit-first organization and is focused
on driving long-term shareholder value. Given macroeconomic
uncertainty, there has been a shift in the industry and Runway
Growth has experienced increased demand from the highest quality
companies to explore the use of debt as a non-dilutive growth
capital. The team remains confident in its ability to weather any
operating environment and will support its portfolio companies with
frequent strategic touchpoints and guidance.
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, including the impact
of COVID-19 and related changes in base interest rates and
significant market volatility on our business, our portfolio
companies, our industry and the global economy. 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.
IR Contacts:Stefan Norbom, Prosek Partners,
snorbom@prosek.com Thomas B. Raterman, Chief Financial Officer and
Chief Operating Officer, tr@runwaygrowth.com
TRACON Pharmaceuticals (NASDAQ:TCON)
Historical Stock Chart
From May 2024 to Jun 2024
TRACON Pharmaceuticals (NASDAQ:TCON)
Historical Stock Chart
From Jun 2023 to Jun 2024