Runway Growth Finance Q4 NII Falls 26%, Funds $42.9M in Loans
Runway Growth Finance’s net investment income fell from $15.7M in Q3 2025 to $11.6M in Q4 as the firm completed seven loans totaling $42.9M. The company anticipates sub-1.2x leverage post-SWK Holdings deal, with a 13-loan portfolio valued at $235M yielding 14%.
1. Q4 Financial Performance
Runway Growth Finance reported net investment income of $11.6 million in Q4 2025, down from $15.7 million in the prior quarter. The firm closed seven new and add-on loans totaling $42.9 million across technology, healthcare and select consumer companies.
2. SWK Holdings Portfolio and Leverage Guidance
Following the SWK Holdings acquisition, the company holds 13 loans with a fair value of approximately $235 million and an aggregate yield of 14%, with the debt-only segment yielding about 16%. Management expects pro forma leverage to settle just under 1.2x, targeting a run rate between 1.2x and 1.3x.
3. Pipeline Strength and Sector Focus
The loan pipeline has strengthened year-over-year, bolstered by BC Partners deal flow and anticipated quarterly transactions. Deal opportunities are concentrated in software and consumer sectors, with a conservative underwriting approach maintained.
4. CDM Joint Venture Progress
Runway Growth Finance continues to build its CDM joint venture portfolio despite aggregate deal flow challenges and expects the first distribution in Q2. Efforts are underway to enhance earnings power through selective portfolio construction.