Runway Growth Credit Fund, a lender of growth capital to both venture and non-venture backed companies seeking an alternative to raising equity, provided an operational and portfolio update for Q2/20.

“During the second quarter we originated $60.4 million in new loan commitments, of which, along with advances to existing portfolio companies, $41.2 million was funded. In a challenging environment we were able to successfully close two new investments, including the first transaction in our dedicated life sciences vertical,” David Spreng, CEO of Runway Growth, said. “We are especially pleased to support the growth of these outstanding new portfolio companies, proving that we can originate, negotiate, diligence and close transactions in the current COVID-19 environment. In our first quarter 2020 portfolio update we stated we were open for business, with substantial dry powder that we intend to deploy judiciously. We continue to actively review new investment opportunities and provide capital solutions to high quality, growing companies.”

Runway Growth reported that total new loan commitments for Q2/20 equaled $60.4 million, bringing the total loan and other investment originations for the fund to $645.3 million since launch.

The company’s available liquidity and capital resources exceeded $175 million, consisting of cash, $75 million in undrawn availability under its $100 million revolving credit facility with KeyBank and CIBC Bank USA, and approximately $100 million in undrawn equity capital commitments from investors in its second private offering.

Runway Growth reported that its portfolio included 22 portfolio company debt investments and 27 equity investments (which includes warrants received in conjunction with its debt financings) to a group of technology companies; life sciences, healthcare information and services companies; consumer and business services companies; and internet retailers.

The company noted that while the pace of new investment activity has moderated, it continues to evaluate new transactions, albeit with more restrictive credit standards given continued economic uncertainty.

Runway Growth funded four loans and other investments during Q2/20, including two investments in new portfolio companies and two follow-on investments in existing portfolio companies. These investments included:

• A $30 million senior secured term loan commitment to new portfolio company, Intact Vascular, of which $15 million was funded during Q2/20. Founded in 2011, Intact Vascular is a developer of products for patients with vascular disease and the physicians who treat them, including unique dissection repair devices for above- and below-the-knee therapeutic interventions.
• A $30 million senior secured term loan commitment to new portfolio company, CloudPay Holdings, of which $25 million was funded during Q2/20. Founded in 1996 and based in the UK, CloudPay provides cloud-based single proprietary platform global payroll and treasury services.
• $1.2 million advances in total to two existing portfolio companies.

Runway Growth did not experience any significant liquidity events during Q2/20.

“Our goal is to support passionate entrepreneurs in growing their businesses,” Spreng said. “We will continue to make prudent growth and venture debt investments as companies seek our financing solutions. We believe that we have a conservative balance sheet with substantial liquidity in the form of cash, unutilized revolving credit capacity and undrawn equity capital commitments from our investors. Our strategic and business relationships with our partners remain very strong, including with our largest investor and strategic partner Oaktree Capital Management.”

Runway Growth Capital is the investment advisor to Runway Growth Credit Fund, a lender of growth capital to companies seeking an alternative to raising equity.