Runway Growth Finance Announces Acquisition of SWK Holdings to Expand Healthcare Portfolio

Runway Growth Finance Corp. has entered into a definitive merger agreement to acquire SWK Holdings Corp., a life science focused specialty finance company. The transaction represents a strategic move to diversify and optimize Runway Growth's investment portfolio while adding significant scale in the healthcare and life sciences sectors. David Spreng, Runway Growth's Founder and CEO, stated that this acquisition meaningfully advances the company's strategy while enhancing earnings power and delivering mid-single-digit net investment income accretion.

The acquisition expands Runway Growth's position in healthcare and life sciences, increasing healthcare investments to approximately 31% of the portfolio from 14% as of June 30, 2025. SWK's focus on healthcare and life sciences will expand Runway Growth's exposure in this large and growing market, with the addition of members from SWK's healthcare and life sciences teams strengthening Runway Growth Capital's investment and deal sourcing capabilities. The transaction will expand Runway Growth's balance sheet to $1.3 billion in total assets pro forma for the SWK acquisition while enhancing the company's already strong portfolio metrics through high quality investments in attractive verticals.

This acquisition offers Runway Growth a repeatable blueprint for future deals in the venture and growth investment ecosystem that is non-dilutive to shareholders. The company is bolstered by the support of the BC Partners Credit platform, which continues to enable and collaborate on both organic and inorganic strategies with the Runway Growth team. The acquisition is expected to generate mid-single-digit run-rate NII accretion during the first full quarter following the transaction close, as well as drive improvements in dividend coverage and return on equity while expanding Runway Growth's pro-forma leverage ratio.

The transaction will be a net asset value-for-NAV merger with an estimated purchase price of approximately $220 million based on SWK's June 30, 2025 reported financials. This includes a fixed stock component expected to total $75.5 million in Runway Growth shares valued at closing NAV per share and approximately $145 million in cash. Runway Growth Capital LLC will be contributing $9 million in cash for distribution as additional consideration to SWK stockholders. SWK's portfolio includes 22 companies with an approximate fair value of $242 million based on Runway Growth's estimates conducted as of August 15, 2025.

SWK's Board of Directors has unanimously approved the transaction, with Carlson Capital L.P. signing a Voting Agreement supporting the deal. The transaction is expected to close in late 2025 or the first quarter of 2026, pending SWK shareholder and regulatory approvals and other customary closing conditions. For more information about Runway Growth, visit https://www.runwaygrowth.com, while details about SWK Holdings can be found at https://www.swkhold.com.