Runway Growth Finance Corp. Reports Q2 2025 Portfolio Update: Three Investments, $37.8 Million Funded Loans, and Liquidity Events

Runway Growth Finance Corp. has completed three investments in Q2 2025, totaling $37.8 million in funded loans. The investments include new loans to Autobooks, Swing Education, and Marley Spoon SE, as well as a loan to existing portfolio company FHAS. The company also experienced liquidity events, including full principal repayment of a senior secured term loan to SetPoint Medical Corporation and Nalu Medical Inc.

Runway Growth Finance Corp. (Nasdaq: RWAY) has released its second quarter 2025 portfolio update, highlighting significant activity in the company's investment and liquidity management. During the quarter, Runway Growth completed three investments totaling $37.8 million in funded loans. These investments included new loans to Autobooks, Swing Education, and Marley Spoon SE, as well as a loan to existing portfolio company Federal Hearings and Appeals Services (FHAS). Additionally, the company experienced notable liquidity events, with full principal repayment of a senior secured term loan to SetPoint Medical Corporation and Nalu Medical Inc. [2]

The investments in Q2 2025 demonstrate a strategic shift towards smaller, more diversified loans, following the company's integration with BC Partners. This approach allows Runway Growth to maintain a balanced capital deployment strategy while accessing a broader opportunity set. The company funded two new portfolio companies: Autobooks ($27 million) in fintech and Swing Education ($8 million) in education technology. An additional $2.8 million was allocated to existing portfolio company Marley Spoon SE. Post-quarter, Runway Growth deployed $7.5 million to FHAS from a $10 million commitment. [2]

Liquidity events were also significant in Q2 2025. The company received full repayment of a $25 million senior secured term loan from SetPoint Medical Corporation, along with $4.1 million in scheduled amortization payments. Additionally, Runway Growth received full repayment of a $21.1 million loan from Nalu Medical Inc. after the quarter-end. These repayments indicate a robust liquidity position, allowing the company to maintain its selective lending approach while optimizing its portfolio. [2]

As of June 30, 2025, Runway Growth's portfolio comprised 48 debt investments across 31 companies and 89 equity investments in 49 companies, focusing on technology, healthcare, and select consumer sectors. This sector diversification, combined with a credit-first approach, appears to be yielding predictable repayments and new deployment opportunities. [2]

Runway Growth's Q2 2025 portfolio update reveals a strategic focus on portfolio optimization through smaller, more diverse loans, which may indicate a potential shift from their historical larger-ticket lending strategy. Management's commentary suggests that the BC Partners platform is enhancing origination capabilities, allowing the company to maintain its selective lending approach while accessing a broader opportunity set. [2]

References:
[1] https://www.nasdaq.com/articles/runway-growth-finance-corp-announce-second-quarter-2025-financial-results-august-7-2025
[2] https://www.stocktitan.net/news/RWAY/runway-growth-finance-corp-provides-second-quarter-2025-portfolio-j5lxcsz7ldko.html