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Runway Growth Finance Corp. Reports First Quarter 2022 Financial Results

May 5, 2022

Achieves Record Total and Net Investment Income of $19.3 and $12.5 Million, Respectively

Increases Core Leverage Ratio of Portfolio to 26.1%

Grows Investment Portfolio to Record $754.3 Million

Conference Call Today, Thursday, May 5 at 6:00 p.m. ET

WOODSIDE, Calif., May 05, 2022 (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 announced its financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Highlights

  • Total investment income of $19.3 million
  • Net investment income of $12.5 million, or $0.30 per share
  • Total investment portfolio of $754.3 million at fair value as of March 31, 2022
  • Net asset value of $14.45 per share as of March 31, 2022
  • Dollar-weighted annualized yield on debt investments of 12.2% for the quarter
  • Seven investments completed totaling $135.0 million in new commitments including $83.5 million in funded loans
  • Aggregate proceeds of $8.4 million received from principal repayments inclusive of interest, fees and proceeds from the exercise and sale of warrants
  • Declared second quarter dividend of $0.30 per share, up 11% quarter over quarter
  • Subsequent to quarter end, amended, extended and upsized KeyBank facility borrowing capacity to $225 million

“Runway Growth had a record start to 2022, marked by continued strategic execution and robust portfolio growth,” said David Spreng, Founder and CEO of Runway Growth. “We made significant progress increasing leverage, which is fundamental to increasing return on equity for shareholders. Our credit quality continues to be very strong and improved for a third consecutive quarter, which we believe differentiates our portfolio as the lowest risk portfolio in the venture debt space while providing a stable and attractive return for our shareholders.”

Spreng continued, “The recent volatility in the equity capital markets combined with other macroeconomic headwinds has created a unique opportunity for the venture lending industry, and we will continue our credit-first approach as we pursue these opportunities. We have substantial availability under our revolving credit facility and intend to further increase its size to enhance our available capital, positioning Runway Growth to meet the increasing demand from late- and growth-stage companies for non-dilutive expansion capital.”

First Quarter 2022 Operating Results

Total investment income for the quarter ended March 31, 2022, was $19.3 million, compared to $16.4 million for the quarter ended March 31, 2021. The year-over-year improvement is primarily due to an increase in interest income on investments resulting from the new loans originated.

Net investment income for the quarter ended March 31, 2022 was $12.5 million, or $0.30 per share, compared to $11.5 million, or $0.36 per share, for the quarter ended March 31, 2021.

The Company's dollar-weighted annualized yield on average debt investments for the quarter ended March 31, 2022 and 2021 was 12.2% and 13.5%, respectively. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments outstanding during the period.

Total operating expenses for the quarter ended March 31, 2022 were $6.8 million, compared to $4.9 million for the quarter ended March 31, 2021. The increase was driven by an increase in debt financing fees due to the Company’s increased leverage and fees incurred pertaining to amendments to the KeyBank credit facility that have resulted in more favorable terms.

Net realized loss on investments for the quarter ended March 31, 2022, was $0.4 million, compared to $0.2 million for the quarter ended March 31, 2021.

For the quarter ended March 31, 2022, net change in unrealized depreciation on investments was $9.2 million, compared to a net change in unrealized depreciation on investments of $1.9 million for the prior year period, due to the decline in value of our equity portfolio.

Portfolio and Investment Activity

As of March 31, 2022, Runway Growth’s investment portfolio had an aggregate fair value of approximately $754.3 million and was comprised of approximately $711.6 million in term loans, of which 98% were senior secured loans, and $42.7 million in warrants and equity-related investments in 40 portfolio companies.

During the first quarter of 2022, Runway Growth originated seven investments totaling $135.0 million in commitments and $83.5 million in funded loans, including two investments in new portfolio companies and five new investments in existing portfolio companies.

Total portfolio investment activity for the three months ended March 31, 2022 and 2021 was as follows:

 Three Months Ended March 31,
 2022  2021 
 (unaudited) (unaudited)
Beginning Investment Portfolio$729,516,274  $621,826,650 
Purchases of Investments(1) 86,856,674   54,844,031 
Purchases of U.S. Treasury Bills    24,999,969 
Amortization of Fixed Income Premiums or Accretion of Discounts 2,824,612   2,171,173 
Sales or Repayments of Investments (9,878,071)  (14,500,000)
Scheduled Principal Payments of Investments (423,570)  (2,066,442)
Sales and Maturities of U.S. Treasury Bills (44,999,747)  (69,999,183)
Realized Gain (Loss) on Investments (371,262)  (217,427)
Net Change in Unrealized Appreciation (Depreciation) on Investments (9,235,540)  (1,911,181)
Ending Investment Portfolio$754,289,370  $615,147,590 
1. Includes PIK interest.     

Net Asset Value

As of March 31, 2022, NAV per share was $14.45, compared to $14.65 as of December 31, 2021. Total net assets at the end of the first quarter of 2022 were $597.5 million, compared to $606.2 million at the end of the prior period.

For the quarter ended March 31, 2022, net increase in net assets resulting from operations was $2.9 million, or $0.07 per share, compared to $9.4 million, or $0.30 per share, for the quarter ended March 31, 2021.

Liquidity and Capital Resources

As of March 31, 2022, the Company had approximately $132.5 million in available liquidity, including $3.5 million in unrestricted cash and cash equivalents and $129.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements, excluding the deferred closing of the 4.25% unsecured notes.

The Company ended the quarter with a core leverage ratio of approximately 26.1%, compared to 13.4% for the quarter ended December 31, 2021.

Recent Developments

On April 20, 2022, the Company amended its revolving credit facility with KeyBank to, among other things, extend the reinvestment period to April 20, 2025, extend the maturity date to April 20, 2026, calculate the interest rate based on SOFR, increase the maximum borrowing capacity from $215 million to $225 million, and increase the accordion amount from a $350 million to a $500 million maximum aggregate commitment.

On April 29, 2022, the Company’s board of directors declared a regular quarterly distribution of $0.30 per share for the second quarter of 2022, payable on May 24, 2022 to stockholders of record as of May 10, 2022. This dividend represents an increase of 11.0% over the dividend declared in the prior quarter.

Conference Call

Runway Growth will hold a conference call to discuss its first quarter 2022 financial results at 3:00 p.m. PT (6:00 p.m. ET) on Thursday, May 5, 2022.

To participate in the conference call, please dial (844) 467-7753 and reference conference ID 5457314. A live webcast will be available in the investor section of the Company’s website at, and will be archived for 90 days following the call.

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, as amended. 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

Forward-Looking Statements

Statements 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, as well as market volatility resulting from the conflict between Russia and Ukraine and the sanctions and other restrictive actions taken by the U.S. and other countries against Russia. 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:

Alex Straus, Prosek Partners,

Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer,

Runway Growth Finance Corp.
Statements of Assets and Liabilities
 March 31, 2022 December 31, 2021
Investments at fair value:     
Non-control/non-affiliate investments at fair value (cost of $717,860,031 and $647,448,895, respectively)$720,631,899  $655,384,403 
Affiliate investments at fair value (cost of $5,051,235 and $0, respectively) 2,894,693    
Control investments at fair value (cost of $38,421,361 and $34,873,847, respectively) 30,762,778   29,130,371 
Investment in U.S. Treasury Bills at fair value (cost of $0 and $45,001,250, respectively)    45,001,500 
Total investments at fair value (cost of $761,332,627 and $727,323,992, respectively) 754,289,370   729,516,274 
Cash and cash equivalents 3,510,311   4,696,693 
Accrued interest receivable 3,153,903   2,368,680 
Other accounts receivable 466,588   816,065 
Prepaid and deferred expenses 677,472   949,768 
Total assets 762,097,644   738,347,480 
Credit facilities 86,000,000   61,000,000 
2026 Senior Notes 70,000,000   20,000,000 
Deferred debt costs (net of accumulated amortization of $1,006,847 and $855,295, respectively) (1,878,658)  (1,511,540)
Total debt, less unamortized deferred debt costs 154,121,342   79,488,460 
Deferred revenue 3,184,932    
Reverse repurchase agreement    44,774,963 
Accrued incentive fees 4,860,738   6,010,250 
Due to affiliate 194,748   221,243 
Interest payable 923,875   249,247 
Accrued expenses and other liabilities 1,346,317   1,408,826 
Total liabilities 164,631,952   132,152,989 
Commitments and contingencies (Note 3)     
Net assets     
Common stock, $0.01 par value; 100,000,000 shares authorized; 41,348,832 and 41,380,614 shares issued and outstanding, respectively 413,488   413,806 
Additional paid-in capital 605,638,766   606,047,671 
Distributable (losses) (8,586,562)  (266,986)
Total net assets$597,465,692  $606,194,491 
Net asset value per share$14.45  $14.65 

Runway Growth Finance Corp.
Statements of Operations
 Three Months Ended March 31,
 2022  2021 
Investment income     
From non-control/non-affiliate investments:     
Interest income$16,762,673  $15,020,565 
Payment in-kind interest income 1,006,233   944,031 
Other income 189,984   114,292 
Interest income from U.S. Treasury Bills    10 
Dividend income 385,418   343,755 
From affiliate investments:     
Payment in-kind interest income 89,602    
From control investments:     
Interest income 494,322    
Payment in-kind interest income 330,411    
Other income from non-investment sources 255   120 
Total investment income 19,258,898   16,422,773 
Operating expenses     
Management fees 2,559,936   2,069,209 
Incentive fees 1,343,996   975,704 
Interest expense 873,486   727,915 
Professional fees 359,806   321,592 
Overhead allocation expense 236,972   197,384 
Insurance expense 268,618   23,275 
Administration fee 168,573   148,100 
Debt financing fees 705,965   289,985 
Directors’ fees 88,500   64,750 
Tax expense 250    
Other expenses 192,903   123,127 
Total operating expenses 6,799,005   4,941,041 
Net investment income 12,459,893   11,481,732 
Realized and unrealized gain (loss) on investments     
Realized gain (loss) on non-control/non-affiliate investments, including U.S. Treasury Bills (371,262)  (199,223)
Net change in unrealized appreciation (depreciation) on non-control/non-affiliate investments, including U.S. Treasury Bills (4,154,673)  (2,438,265)
Net change in unrealized appreciation (depreciation) on affiliate investments (3,165,759)   
Net change in unrealized appreciation (depreciation) on control investments (1,915,108)  527,084 
Net realized and unrealized gain (loss) on investments (9,606,802)  (2,110,404)
Net increase in net assets resulting from operations$2,853,091  $9,371,328 
Net increase in net assets resulting from operations per common share$0.07  $0.30 
Net investment income per common share$0.30  $0.36 
Weighted-average shares outstanding 41,375,187   31,505,254