Runway Growth Finance Corp. · NASDAQ:RWAY
Runway Growth Finance — Q1 2025 Earnings Presentation
25 slides from Runway Growth Finance's earnings presentation, May 13, 2025
Slide 1: Runway Growth Finance Corp. First Quarter 2025 Investor Presentation
Runway Growth Finance Corp. First Quarter 2025 Investor Presentation NASDAQ Listed I RWAY I RWAYL I RWAYZ May 2025 © Runway Growth Capital LLC 2025
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation dated May 2025 is being provided by Runway Growth Finance Corp. (“Runway Growth” or the “Company”) for discussion purposes only and is neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company. It is solely intended
Slide 3: Investment Thesis
Investment Thesis Our Investment Opportunity The Runway Difference Scaled Credit Robust Established Credit-first Strong, Stable Low Loss Platform Solution Set Track Record Underwriting Returns Rate Representing a Compelling Entry Point for Investors: Attractive Yield with Industry Leading Strong & D
Slide 4: Part of a Scaled & Diversified Credit Platform
Investment Thesis Part of a Scaled & Diversified Credit Platform Our investment adviser’s transaction with the BC Partners platform enables us to capture a larger portion of the venture growth ecosystem by providing a full-service credit platform of best-in-class financing solutions with the capabil
Slide 5: Runway Growth Overview
Runway Growth Overview RUNWAY GROWTH FINANCE CORP. 5
Slide 6: Runway is Providing Access to Venture Debt with a Fully-Scaled Platform
Runway Growth Overview Runway is Providing Access to Venture Debt with a Fully-Scaled Platform Leading Growth Capital Capabilities Near-term Growth Levers Underpinned by a Full-Service Credit Post-BC Partners Combination: Platform Enhanced financing solutions: 1 Our investment adviser, Runway Growth
Slide 7: Venture Debt is Leading Growth in Direct Lending
Runway Growth Overview Venture Debt is Leading Growth in Direct Lending Venture Debt growth accelerated in 2024, showing that Runway is positioned in the fastest growth subsector, of the fastest growing asset class in Private Credit. $70 .0 Venture Debt Deal Volume Trends1 2,5 00 Deal value ($B) Dea
Slide 8: Runway Has an Edge in Pricing Risk and Ascribing Company Value
Runway Growth Overview Runway Has an Edge in Pricing Risk and Ascribing Company Value APPROACH TO UNDERWRITING Low Loan-to-Value Structured amortization schedule “Core vs. Growth” – Understanding of cash burn of the borrower Covenants that allow us to act before problems become critical Active portf
Slide 9: Portfolio Overview
Runway Growth Overview Portfolio Overview Portfolio at Fair Value: $1,004 million Current Investments by Security Type (by FMV)1 Current Investments by Origination Channel (by FMV) 1% 1% 2% 4% Common Stock 18% Preferred Stock Second Lien Term Loan Non-Sponsored Senior Secured First Lien Term Loan Sp
Slide 10: Highly Diversified Portfolio
Runway Growth Overview Highly Diversified Portfolio Portfolio at Fair Value by Industry Portfolio Fair Value by Geography 1 2 Canada 2% % 0 5 7% 5 % % 15% 24% 38% 7 % U.K. 0% 16% 3% 4% 2% 54% 3% Netherlands Germany Data Processing & 2% 3% Healthcare Technology, Outsourced Services, 15% 13% Breakout
Slide 11: Strong Balance Sheet Provides For Flexibility & Growth
Runway Growth Overview Strong Balance Sheet Provides For Flexibility & Growth Historical ROE1 and Leverage 15.4% 13.8% 13.9% 13.1% 12.7% 12.5% 12.3% 11.3% 11.4% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 1.04x 0.97x 0.79x 0.95x 0.91x 1.10x 1.08x 1.08x 0.99x Relatively low leverage ratio p
Slide 12: Experienced Management Team with Solid Track Record
Runway Growth Overview Experienced Management Team with Solid Track Record Our investment adviser’s highly experienced leadership team with strong venture-related backgrounds is equipped to deliver Runway’s vision and execute across multiple economic cycles. Runway’s Leadership. David Spreng Tom Rat
Slide 13: Runway's Story – Company History
Runway Growth Overview Runway’s Story – Company History Demonstrated track record of growth and ability to attract top tier institutional partners Initial Fundraise & First Continued Growth Launch of LP Fund Platform Investment Runway Today Close on the BDC Runway Growth Capital, Runway Funded $328M
Slide 14: Portfolio & Financial Highlights
FIRST QUARTER 2025 Portfolio & Financial Highlights RUNWAY GROWTH FINANCE CORP. 14
Slide 15: Key Portfolio Metrics
Portfolio & Financial Highlights Key Portfolio Metrics Portfolio at FV & Investment Yield Sources of Investment Income 18.27% 16.88% 17.39% 16.68% 15.92% 15.44% 15.24% 15.05% 14.69% 2% 1% 1% 1% 2% 1% 1% 2% 4% 3% 1% 1% 1% 2% 7% 7% 4% 3% 5% 3% 4% $1,125 7% 5% $1,095 $1,077 4% 8% 10% 6% 5% $1,063 $1,06
Slide 16: Key Portfolio Metrics
Portfolio & Financial Highlights Key Portfolio Metrics Committed Capital ($M) Inception-to-Date: Cumulative Commitments Avg. New Deal Commitment • 30% Portfolio Companies Upsized (22 $2,970 $3,028 Portfolio Companies, 34 Upsize Transactions) $2,731 $2,819 $2,546 $2,582 $2,332 $2,332 $2,354 • 13 Refi
Slide 17: Portfolio Risk Ratings
Portfolio & Financial Highlights Portfolio Risk Ratings Investments at Fair Value by Weighted Average Risk Rating1 Risk Rating Category1 3% 1% 21% 2.44 2.47 2.48 2.39 2.33 2.33 2.21 2.24 2.15 Category 2 Category 3 Category 4 * Category 5 * 75% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 96
Slide 18: Warrants & Equity Portfolio
Portfolio & Financial Highlights Warrants & Equity Portfolio Warrants and Other Equity ($M) Warrant and Other Equity Holdings $106.5 • 23 Companies with both loan and warrant investments • 13 Companies with warrant investments only • 6 Companies with shares of common or preferred stock only or a com
Slide 19: Leverage & Liquidity
Portfolio & Financial Highlights Leverage & Liquidity Liquidity 2022 2023 2024 2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Cash & $3.5 $6.8 $5.8 $5.8 $3.3 $37.7 $15.0 $3.0 $6.9 $8.8 $3.6 $5.8 $18.4 Equivalents Credit Facility $129.0 $117.7 $250.0 $88.0 $128.0 $190.0 $297.0 $278.0 $313.0 $241.0 $248.
Slide 20: Portfolio Highlights
Portfolio & Financial Highlights Portfolio Highlights Average Accounting Yield1 Annualized Dividend Yield2 Dividend Yield to Mkt Price 14.7% 14.6% 14.6% 14.5% 14.4% 14.3% 14.4% 14.1% 13.3% 16.5% 16.4% 16.5% 16.2% 15.7% 15.8% 15.4% 15.1% 13.8% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'
Slide 21: Financial Highlights
Portfolio & Financial Highlights Financial Highlights STATEMENT OF ASSETS & LIABILITIES 1 As of March 31, 2025 As of December 31, 2024 Total investments at fair value 1,004,233 1,076,840 Cash and cash equivalents 18,356 5,751 Total assets 1,032,896 1,091,355 Debt2 492,207 552,332 Total liabilities 5
Slide 22: Q1-2025 NAV/Share Bridge
Portfolio & Financial Highlights Q1-2025 NAV/Share Bridge Per Share Impact: - $0.31 No Realized Credit Losses QTD in 2025 RUNWAY GROWTH FINANCE CORP. 1. NAV/share calculated using weighted average share outstanding during Q1 2025 of 37,347,428. © Runway Growth Capital LLC 2025 | 22
Slide 23: Supplemental Information
Supplemental Information RUNWAY GROWTH FINANCE CORP. 23
Slide 24: Regulation and Structure
Regulation and Structure Runway Growth is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a BDC and treated as a RIC for tax purposes. Business Development Company (BDC) Regulated Investment Company (RIC) • Regulated by the SEC unde
Slide 25: Contact us with any questions or comments.
Contact us with any questions or comments. investors@runwaygrowth.com
Runway Growth Finance — Q1 2025 Earnings Presentation on 6ix