Runway Growth Credit Fund logged $80.7 million in funded loans in Q2/21. Since inception in 2016, the firm has achieved $1.1 billion in total loan and investment originations and $903.5 million in funded investments.
“Investment activity continued to increase in the second quarter. We completed $80.7 million in loans and advances to new and existing portfolio companies. We are seeing strong interest in our life sciences vertical and rising demand for growth loans in the technology sector,” David Spreng, CEO of Runway Growth, said. “Our portfolio continued to expand with $548.5 million in loan principal outstanding to 23 companies across a well-diversified group of high-growth industries, primarily in North America.”
Originations
- Runway Growth funded eight loans during Q2/21, including four investments in new portfolio companies, two new investments in existing portfolio companies and two follow-on investments in existing portfolio companies, as follows:_x000D_
- A $38 million senior secured term loan commitment to Marley Spoon, of which $17.6 million was funded at close. Marley Spoon was founded in 2014 and provides subscription-based meal kits under two brands: Marley Spoon and Dinnerly.
- A $35 million senior secured term loan commitment to SetPoint Medical, $10 million of which was funded at close. Founded in 2006 and based in Valencia, CA, SetPoint is a medical device company that is developing implantable neuromodulation devices to treat chronic inflammatory diseases, including rheumatoid arthritis, Crohn’s disease and multiple sclerosis.
- A $25 million senior secured term loan commitment to Dtex Systems, of which $10 million was funded at close. This facility was a refinance of the company’s previous $4.2 million outstanding senior secured term loan with Runway Growth.
- A $20 million senior secured term loan to Echo 360 Holdings, which was a refinance of the company’s previous $17 million senior secured term loan with Runway Growth.
- A $15 million senior secured term loan commitment to CrossRoads Extremity Systems, $7.5 million of which was funded at close. Founded in 2014 and based in Memphis, TN, CrossRoads is a medical device company focused on developing and commercializing foot and ankle implant systems and instruments.
- A $13.6 million new senior secured term loan commitment to Fidelis Cybersecurity, $12.6 million of which was funded at close. Founded in 2002, Fidelis is a cybersecurity company focused on threat detection, hunting and targeted response of advanced threats and data breaches.
- $3 million in additional funding to two existing portfolio companies.
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Liquidity Events
During Q2/21, Runway Growth experienced the following liquidity events totaling $83.5 million:
- In April, Longtail Ad Solutions dba JW Player prepaid its outstanding principal balance of $31.9 million, including interest and associated fees.
- In April, Drop Inc. prepaid its outstanding principal balance of $21.7 million, including interest and associated fees.
- In May, in conjunction with its sale to Fidelis Cybersecurity, CloudPassage prepaid its outstanding principal balance of $7.7 million, including interest and associated fees.
- In June, Dtex Systems prepaid its outstanding principal balance of $4.7 million, including interest and associated fees.
- In June, Echo360 prepaid its outstanding principal balance of $17.5 million, including interest and associated fees.
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“We are seeing robust activity in our markets served and expect loan demand to continue to grow throughout the year,” Spreng said. “We are effectively competing with attractive equity markets and aggressive private credit providers. Additionally, we are especially pleased to report that during the second quarter, our total originated commitments surpassed the $1 billion milestone in loan commitments originated since beginning operations in December 2016. We are actively seeking new investment opportunities and are engaging with entrepreneurs and sponsors to deliver new capital to support growth and help them achieve their goals.”
