Runway Growth Finance Corp. Files 2023 Annual Report (10-K)

TL;DR

<b>Runway Growth Finance Corp. has filed its 2023 10-K annual report, detailing its investment portfolio and financial activities.</b>

AI Summary

Runway Growth Finance Corp. (RWAYI) filed a Annual Report (10-K) with the SEC on March 7, 2024. Runway Growth Finance Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company's business address is 205 N. Michigan Ave., Suite 4200, Chicago, IL 60601. The filing details various investments, including debt and equity in companies like VERO Biotech LLC and Gynesonics, Inc. Specific investments mentioned include warrants for Linxup, LLC with a maturity date of 11/3/2033 and equity in Quantum Corporation. The report covers financial activities and investment details for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking Runway Growth Finance Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Runway Growth Finance Corp.'s financial performance, investment strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed breakdown of investments, including specific companies, types of securities, and acquisition dates, offers transparency into the company's asset allocation and potential returns.

Risk Assessment

Risk Level: medium — Runway Growth Finance Corp. shows moderate risk based on this filing. The company's financial health and investment returns are subject to market volatility and the performance of its portfolio companies, as indicated by the various investment types and associated risks detailed in the filing.

Analyst Insight

Investors should review the detailed investment portfolio and financial statements in the 10-K to assess the company's risk exposure and potential for future returns.

Key Numbers

• 20231231 — Fiscal Year End (Period of report)
• 20240307 — Filing Date (Date filed)
• 11/3/2033 — Maturity Date (Linxup, LLC Warrants)
• 10/24/2023 — Initial Acquisition Date (Gynesonics, Inc. Equity)
• 8/13/2021 — Initial Acquisition Date (Quantum Corporation Equity)
• 12/29/2020 — Initial Acquisition Date (VERO Biotech LLC Debt)
• 12/1/2024 — Maturity Date (VERO Biotech LLC Debt)
• SOFR+9.05%, 9.55% floor, 3.00% ETP — Interest Rate (VERO Biotech LLC Debt)

Key Players & Entities

• Runway Growth Finance Corp. (company) — Filer name
• 205 N. Michigan Ave., Suite 4200, Chicago, IL 60601 (company) — Business address
• VERO Biotech LLC (company) — Investment mentioned
• Gynesonics, Inc. (company) — Investment mentioned
• Linxup, LLC (company) — Warrant investment
• Quantum Corporation (company) — Equity investment
• MD (company) — State of incorporation
• 1934 Act (regulator) — SEC Act

FAQ

Risk Factors

• Investment Portfolio Risks [high — financial]: The company's investments in debt and equity securities are subject to various risks, including credit risk, market risk, and the risk of loss on investment.
• Market Volatility [medium — market]: Fluctuations in market conditions can adversely affect the fair value of the company's investments and its overall financial performance.
• Reliance on Key Personnel [medium — operational]: The company's success depends on the expertise and continued service of its management team.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share RWAY Nasdaq Global Select
• $12.35 — lion based upon the last close price of $12.35 reported for such date on the Nasdaq Gl
• $1.235 billion — h we have total annual gross revenue of $1.235 billion or more, (ii) December 31 of the fiscal
• $700.0 m — on stock held by non-affiliates exceeds $700.0 million, measured as of the last business
• $1.0 billion — date on which we have issued more than $1.0 billion in non-convertible debt during the prec
• $2.1 billion — ded 77 portfolio companies and invested $2.1 billion in debt investments. As of December 31,
• $978.5 million — mpanies with an aggregate fair value of $978.5 million while our equity portfolio consisted of
• $46.5 million — ompanies with an aggregate fair value of$46.5 million. As of December 31, 2023, 98.5%, or $96
• $964.1 m — ion. As of December 31, 2023, 98.5%, or $964.1 million, of our debt investment portfolio
• $547.1 m — December 31, 2023, our net assets were $547.1 million, and all of our debt investments
• $6.0 million — a committed principal amount of between $6.0 million and $85.0 million and pay cash interest
• $85.0 million — ipal amount of between $6.0 million and $85.0 million and pay cash interest at annual interes
• $219.3 million — tock for an aggregate purchase price of $219.3 million in our Initial Private Offering and Sec
• $125.0 million — one-third (33%) of OCM Growth's initial $125.0 million capital commitment. Gregory M. Share, M

Filing Documents

• rway-20231231.htm (10-K) — 9579KB
• rway-ex23_1.htm (EX-23.1) — 4KB
• rway-ex31_1.htm (EX-31.1) — 13KB
• rway-ex31_2.htm (EX-31.2) — 13KB
• rway-ex32_1.htm (EX-32.1) — 8KB
• rway-ex32_2.htm (EX-32.2) — 8KB
• img145776718_0.jpg (GRAPHIC) — 129KB
• 0000950170-24-027913.txt (&nbsp;) — 33920KB
• rway-20231231.xsd (EX-101.SCH) — 1916KB
• rway-20231231_htm.xml (XML) — 8241KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 24 Item 1B. Unresolved Staff Comments 58 Item 1C. Cybersecurity 58 Item 2.

Properties

Properties 59 Item 3.

Legal Proceedings

Legal Proceedings 59 Item 4. Mine Safety Disclosures 59 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 60 Item 6. Reserved 62 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 63 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 73 Item 8. Consolidated Financial Statements and Supplementary Data 75 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 125 Item 9A.

Controls and Procedures

Controls and Procedures 125 Item 9B. Other Information 126 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 127 PART III. Item 10. Directors, Executive Officers and Corporate Governance 128 Item 11.

Executive Compensation

Executive Compensation 136 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 138 Item 13. Certain Relationships and Related Transactions, and Director Independence 139 Item 14. Principal Accounting Fees and Services 142 PART IV. Item 15. Exhibits and Financial Statement Schedules 143 Item 16. Form 10-K Summary 147

Signatures

Signatures 148 Table of Contents PAR T I

Business

Item 1. Business Runway Growth Finance Corp. Runway Growth Finance Corp. ("we," "us," "our," or the "Company"), a Maryland corporation formed on August 31, 2015, is structured as an externally managed, non-diversified closed-end management investment company. On August 18, 2021, we changed our name to "Runway Growth Finance Corp." from "Runway Growth Credit Fund Inc." We are a specialty finance company focused on providing senior secured loans to high growth-potential companies in technology, life sciences, healthcare information and services, business services, financial services, select consumer services and products and other high-growth industries. Our goal is to create significant value for our stockholders, and the entrepreneurs we support, by providing high growth-potential companies with hybrid debt and equity financing that is more flexible than traditional credit and less dilutive than equity. Our investment objective is to maximize our total return to our stockholders primarily through current income on our loan portfolio, and secondarily through capital gains on our warrants and other equity positions. Our offices are in Chicago, Illinois; Menlo Park, California; and New York, New York. We have elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the "1940 Act"). We have also elected to be treated as regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). While we currently qualify, and expect to qualify annually, to be treated as a RIC, no assurance can be provided that we will be able to maintain our tax treatment as a RIC. If we fail to qualify for tax treatment as a RIC for any taxable year, we will be subject to U.S. federal income tax at corporate rates on any net taxable income for such year. See "— Certain U.S. Federal Income Tax Considerations" and

View Full Filing

View this 10-K filing on SEC EDGAR