Runway Growth Finance funds four new investments in Q2

Runway Growth Finance provided an operational and portfolio update for the second quarter ended June 30, 2023. In the second quarter of 2023, Runway Growth funded four new investments in existing portfolio companies. These include: Completion of a $15 million follow-on investment to existing portfolio company CloudPay. CloudPay provides a cloud-based proprietary platform for global payroll and treasury services; Completion of a $20 million follow-on investment to existing portfolio company EBR Systems. EBR Systems is a clinical-stage medical device company that has developed the only leadless pacemaker for the left ventricle to assist in cardiac resynchronization therapy; Completion of a $2 million follow-on investment to existing portfolio company Epic IO Technologies. 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 that seek to make customers safer, smarter, and more connected; and Completion of a $13.9 million follow-on investment to Kin Insurance. Kin is a direct-to-consumer homeowner’s insurance business. The company’s end-to-end platform handles all aspects of the business in-house, from lead generation to bind-and-quote/underwriting to claims. Subsequent to June 30, 2023, Runway Growth completed a $20 million investment to Elevate. 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. The company 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. During the second quarter ended June 30, 2023, Runway Growth experienced four prepayments totaling $88.7 million and scheduled principal amortization of $2.8 million. The prepayments include: Full principal repayment of senior secured term loan to INRIX, Inc. of $45 million;; Full principal repayment of senior secured term loan to Mustang Bio of $30 million; Full principal repayment of senior secured term loan to Revelle Aesthetics, Inc. of $12.5 million; and Partial principal repayment of senior secured term loan to Pivot3, Inc. of $1.2 million. Runway Growth’s portfolio continues to be concentrated on first lien senior secured loans with a focus on what it believes to be the latest stage, highest quality companies in the venture debt market. Runway Growth continues to deploy an extremely high bar for evaluating investments, in an increasingly lender friendly environment, with its priority being to deliver consistent shareholder value. As of June 30, 2023, the Runway Growth portfolio included 33 debt investments to 31 portfolio companies and 58 equity investments in 43 portfolio companies, including 25 portfolio companies where Runway Growth holds both a debt and equity investment. Investments were comprised of late and growth-stage businesses in the technology, life sciences and consumer services and products industries. Runway Growth’s normal business operations include frequent communication with portfolio companies. Runway Growth is a credit-first organization, positioned as a preferred lender in the venture debt space given its consistent and close support for its partners. The Company has proven risk mitigation methods that deliver attractive returns for shareholders, and it remains confident in the durability of its portfolio, which has industry-leading low loss rates. The team continues to see strong demand for its creative financing solutions and will maintain a heightened level of selectivity in the second half of 2023.