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Runway Growth Finance Corp. Provides Fourth Quarter 2025 Portfolio and Transaction Update

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SWKBC PartnersShield Therapeutics
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Completed Seven Investments in New and Existing Portfolio Companies Representing $42.9 Million in Fu...

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AI Summary

RWAY completed $42.9 million in new and existing investments. Anticipated acquisition of SWK Holdings expected to close soon. Portfolio diversification continues, focusing on high-growth sectors. Total liquidity events amount to $77.8 million. Strong operational execution noted in recent quarterly update.

Sentiment Rationale

The $42.9 million investments showcase RWAY's robust growth strategy. Similar moves previously led to uplifts in stock prices.

Trading Thesis

The acquisition of SWK Holdings is imminent, likely to positively influence market perception. Recent trends in acquisition announcements often affect stock valuations quickly.

Market-Moving

  • RWAY completed $42.9 million in new and existing investments.
  • Anticipated acquisition of SWK Holdings expected to close soon.
  • Portfolio diversification continues, focusing on high-growth sectors.

Key Facts

  • RWAY completed $42.9 million in new and existing investments.
  • Anticipated acquisition of SWK Holdings expected to close soon.
  • Portfolio diversification continues, focusing on high-growth sectors.
  • Total liquidity events amount to $77.8 million.
  • Strong operational execution noted in recent quarterly update.

Companies Mentioned

  • SWK (SWK)
  • BC Partners (BC Partners)
  • Shield Therapeutics (Shield Therapeutics)

Corporate Developments

The article outlines critical corporate actions and intended acquisitions that directly impact RWAY's future growth potential.

Runway Growth Finance Corp. (RWAY) Reports Q4 2025 Portfolio Performance and Strategic Developments

Menlo Park, Calif., January 13, 2026 – Runway Growth Finance Corp. (Nasdaq: RWAY), a prominent provider of flexible capital solutions for late- and growth-stage companies, has announced its operational and portfolio update for the fourth quarter ended December 31, 2025. The company also provided insights into its impending acquisition of SWK Holdings Corporation.

Strong Investment Activity in Q4 2025

In the latest quarter, Runway Growth funded seven investments amounting to a total of $42.9 million. This included:

  • A new $20 million investment in a fast-growing mobility company focusing on an all-inclusive car-subscription service.
  • A $10 million investment in a special purpose vehicle (SPV) created by an experienced consumer products investor.
  • A $20 million investment in Shield Therapeutics PLC, aimed at delivering therapies for significant unmet needs in iron deficiency.
  • Follow-on investments totaling $10.9 million to four existing portfolio companies.

Liquidity Events Fueling Growth

Runway Growth also reported notable liquidity events during the fourth quarter, totaling $77.8 million in its investment portfolio:

  • Full principal repayment of $14.7 million from Dejero Labs, Inc.
  • Full repayment of $45 million from Synack, Inc.
  • Partial repayment of $0.9 million from Shepard Intermediate, LLC.
  • Assignment of $15 million of the investment in Kin Insurance, Inc.
  • Scheduled loan principal amortization payments of $2.2 million.

Acquisition of SWK Holdings Corporation

The acquisition of SWK Holdings Corporation is set to conclude late in the first quarter of 2026, subject to regulatory approvals. This transaction aligns with Runway Growth’s strategy to enhance its capabilities in the healthcare and life sciences sectors. David Spreng, Founder and CEO of Runway Growth, emphasized the strategic importance of the acquisition, stating that it will broaden the company’s deal pipeline and deliver attractive returns for shareholders.

Portfolio Management Focus

As of December 31, 2025, the RWAY portfolio comprises 40 debt and 72 equity investments across 31 and 48 portfolio companies, respectively. Runway Growth targets late and growth-stage businesses primarily in technology, healthcare, and consumer services. The company’s rigorous underwriting and monitoring are designed to support optimal growth potential for its portfolio companies.

About Runway Growth Finance Corp.

Runway Growth is a specialty finance company dedicated to providing flexible capital solutions to growth-oriented companies. It operates as a closed-end investment fund regulated under the Investment Company Act of 1940 and is managed by Runway Growth Capital LLC, part of BC Partners Advisors L.P.

Forward-Looking Statements

Statements made in this release may contain forward-looking information as defined by the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, and actual results could materially differ from those projected.

Contact Information

For more details, contact:

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