Runway Growth Finance Corp 10-Q, filed Aug 13, 2020

Runway Growth Finance Corp. (RWAY)

10-Q 2020-08-13 For: 2020-06-30

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Added on April 11, 2026

About this 10-Q

Runway Growth Finance Corp filed this 10-Q on August 13, 2020, covering the quarter ended June 30, 2020.

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Maryland	47-5049745
(State of incorporation)	(I.R.S. Employer Identification No.)

205 N. Michigan Ave., Suite 4200
Chicago, IL	60601
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☐

Emerging growth company ☒

	INDEX	PAGE NO.

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and December 31, 2019	1

	Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)	2

	Statements of Changes in Net Assets for the three and six months ended June 30, 2020 and 2019 (unaudited)	3

	Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)	4

	Schedule of Investments as of June 30, 2020 (unaudited)	5

	Schedule of Investments as of December 31, 2019	11

	Notes to Financial Statements (unaudited)	17

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61

Item 4.	Controls and Procedures	63

PART II.	OTHER INFORMATION	63

Item 1.	Legal Proceedings	63

Item 1A.	Risk Factors	63

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70

Item 3.	Defaults Upon Senior Securities	70

Item 4.	Mine Safety Disclosures	70

Item 5.	Other Information	70

Item 6.	Exhibits	71

SIGNATURES		72

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	June 30, 2020		December 31, 2019
	(Unaudited)
Assets
Investments at fair value:
Non-control/non-affiliate investments at fair value (cost of $415,190,917 and $377,018,900, respectively)	$	410,489,211	$	368,016,276
Investment in U.S. Treasury Bills at fair value (cost of $44,999,250 and $99,982,765, respectively)		44,998,500		99,965,423
Total investments at fair value (cost of $460,190,167 and $477,001,665, respectively)		455,487,711		467,981,699
Cash and cash equivalents		3,005,639		45,799,672
Accrued interest receivable		1,816,032		1,941,502
Other accounts receivable		439,593		403,566
Prepaid expenses		68,211		165,901
Total assets		460,817,186		516,292,340

Liabilities
Debt:
Credit facilities		25,000,000		61,000,000
Deferred credit facility fees (net of accumulated amortization of $241,151 and $129,290, respectively)		(892,045)		(978,907)
Total debt, less unamortized deferred financing costs		24,107,955		60,021,093
Deferred revenue		54,004		—
Reverse repurchase agreement		44,773,302		74,593,802
Accrued incentive fees		2,780,124		3,582,987
Due to affiliate		84,432		81,537
Interest payable		6,498		500,056
Accrued expenses and other liabilities		756,813		1,199,644
Total liabilities		72,563,128		139,979,119

Commitments and contingencies (Note 3)

Net assets
Common stock, $0.01 par value; 100,000,000 shares authorized; 26,936,387 and 25,811,214 shares issued and outstanding, respectively		269,364		258,112
Additional paid-in capital		400,544,970		384,369,854
Distributable (losses) earnings		(12,560,276)		(8,314,745)
Total net assets	$	388,254,058	$	376,313,221

Net asset value per share	$	14.41	$	14.58


	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Investment income
From non-control/non-affiliate:
Interest income	$	10,944,773	$	15,711,234	$	24,572,149	$	27,585,195
Payment in-kind interest income		249,917		388,046		767,847		562,347
Other income		160,293		196,267		564,843		247,729
Interest income from U.S. Treasury Bills		527		57,628		17,096		97,700
Dividend income		438,034		—		667,204		—
Other income from non-investment sources		7,510		42,815		32,773		53,348
Total investment income		11,801,054		16,395,990		26,621,912		28,546,319

Operating expenses
Management fees		1,758,729		1,203,125		3,295,678		2,406,250
Incentive fees		905,858		2,734,626		3,220,976		4,615,995
Interest expense		23,082		92,905		187,494		248,483
Professional fees		383,360		274,255		721,174		484,503
Overhead allocation expense		161,665		217,922		345,983		417,661
Administration fee		121,369		103,291		245,680		284,865
Facility fees		199,993		—		378,722		—
Directors’ fees		60,250		51,000		128,000		103,000
Consulting fees		13,301		19,775		30,301		47,195
Tax expense		—		—		1,319		—
Insurance expense		26,438		25,072		52,875		50,143
General and administrative expenses		4,530		9,723		28,250		11,732
Other expenses		268,638		294,287		468,033		432,457
Total operating expenses		3,927,213		5,025,981		9,104,485		9,102,284
Net investment income		7,873,841		11,370,009		17,517,427		19,444,035

Realized and unrealized gain (loss) on investments
Realized gain (loss) on non-control/non-affiliate investments, including U.S. Treasury Bills		203,854		493,308		(6,513,405)		493,308
Net change in unrealized appreciation (depreciation) on non-control/non-affiliate investments, including U.S. Treasury Bills		5,496,594		(3,247,119)		4,317,510		(5,487,631)
Net realized and unrealized gain (loss) on investments		5,700,448		(2,753,811)		(2,195,895)		(4,994,323)

Net increase in net assets resulting from operations	$	13,574,289	$	8,616,198	$	15,321,532	$	14,449,712

Net increase in net assets resulting from operations per common share	$	0.51	$	0.55	$	0.58	$	0.89
Net investment income per common share	$	0.30	$	0.72	$	0.67	$	1.19
Weighted-average shares outstanding		26,645,717		15,727,990		26,266,501		16,280,773


										% of
Portfolio			Acquisition	Principal/						Net
Companies	Sub-Industry	Investment Description^{(1),(5),(6),(11)}	Date	Shares		Cost		Fair Value^(2),(9)		Assets
Non-control/non-affiliate investments
Common Stock
Hercules Capital, Inc.	Specialty Finance	Common Stock⁽³⁾	3/19/2020	$	284,627	$	1,978,455	$	2,980,045	0.77	%
Corporate Bond
TriplePoint Venture Growth BDC Corp.	Specialty Finance	Bonds, 5.75% Interest rate, due 7/15/2022 ⁽³⁾	3/23/2020		13,227		253,095		318,374	0.08
Senior Secured Term Loans⁽¹⁴⁾
Aria Systems, Inc.	Application Software	Tranche I: LIBOR+9.00%, 11.35% floor, 4.50% ETP, due 12/15/2021	6/29/2018		25,000,000		25,309,091		25,285,607	6.51
		Tranche II: LIBOR+9.00%, 11.35% floor, 4.50% ETP, due 12/15/2021	3/31/2020		2,500,000		2,514,959		2,528,561	0.65
Brilliant Earth, LLC	Internet Retail	LIBOR+8.25%, 10.40% floor, 4.50% ETP, due 4/15/2023	9/30/2019		35,000,000		34,245,748		34,029,441	8.76
Circadence Corporation	Application Software	LIBOR+9.50%, 12.00% floor, 6.50% ETP, due 12/15/2022	12/20/2018		18,000,000		15,984,353		15,645,479	4.03
CloudPay Solutions Ltd.	Human Resource & Employment Services	LIBOR+9.50%, 1.25% PIK, 11.25% floor, 3.00% ETP, due 12/15/2023 ^(4),(13)	6/30/2020		25,000,000		24,433,513		24,433,513	6.29
CloudPassage, Inc.	Data Processing & Outsourced Services	LIBOR+7.50%, 1.00% PIK, 10.00% floor, 2.75% ETP, due 6/13/2023⁽⁴⁾	6/13/2019		7,577,027		7,406,865		7,334,042	1.89
Credit Sesame, Inc.	Specialized Consumer Services	Tranche I: LIBOR+8.35%, 10.25% floor, 2.50% ETP, due 12/15/2023	1/7/2020		35,000,000		34,368,192		33,877,426	8.73
		Tranche II: LIBOR+8.35% , 2.00% PIK on overadvance, 10.25% floor, due 5/15/2023 ⁽⁴⁾	1/7/2020		9,427,751		9,427,751		9,125,370	2.35
Dejero Labs Inc.	System Software	LIBOR+9.25%, 11.75% floor, 4.50% ETP, due 5/31/2023	5/31/2019		11,000,000		10,925,114		10,939,451	2.82
Dtex Systems, Inc.	Application Software	LIBOR+9.15%, 11.50% floor, 5.00% ETP, due 11/15/2021	6/1/2018		7,473,782		7,679,478		7,620,375	1.96
Echo 360 Holdings, Inc.	Education Services	Tranche I: LIBOR+9.25%, 12.05% floor, 4.00% ETP, due 5/3/2023	5/3/2019		14,000,000		13,923,733		13,935,777	3.59
		Tranche II: LIBOR+9.25%, 12.05% floor, 4.00% ETP, due 5/3/2023	5/3/2019		3,000,000		3,000,839		2,986,238	0.77
INRIX, Inc.	Internet Software and Services	Tranche I: LIBOR+8.00%, 10.50% floor, 2.50% ETP, due 7/15/2023	7/26/2019		20,000,000		19,745,008		19,286,783	4.97
		Tranche II: LIBOR+8.00%, 10.50% floor, 2.50% ETP, due 7/15/2023	7/26/2019		10,000,000		9,756,212		9,643,392	2.48
Intact Vascular, Inc.	Health Care Supplies	LIBOR+9.50%, 9.97% floor, 1.75% ETP, due 6/25/2024	6/25/2020		15,000,000		14,829,522		14,829,522	3.82
Longtail Ad Solutions, Inc. (dba JW Player)	Internet Software and Services	LIBOR+8.75%, 10.75% floor, 3.00% ETP, due 6/15/2023	12/12/2019		30,000,000		29,848,597		29,902,702	7.70
Massdrop, Inc.	Computer & Electronics Retail	LIBOR+8.25% PIK, 10.65% floor, 4.00% ETP, due 1/15/2023⁽⁴⁾	7/22/2019		17,660,490		17,574,953		17,261,165	4.45
Mingle Healthcare Solutions, Inc.	Health Care Technology	LIBOR+9.50%, 11.75% floor, 4.00% ETP, due 8/15/2022	8/15/2018		4,416,667		4,546,842		4,546,842	1.17


	June 30, 2020
	Investments at		Percentage of
Geographic Region	Fair Value		Net Assets
Western United States	$	225,145,581	57.99	%
Northeastern United States		84,931,318	21.88
Northwestern United States		29,410,787	7.58
United Kingdom		24,651,013	6.35
South Central United States		20,117,214	5.18
Midwestern United States		15,060,474	3.88
Canada		11,172,824	2.88
Total	$	410,489,211	105.73	%


Portfolio Company	Investment Type	June 30, 2020
Brilliant Earth, LLC	Senior Secured Term Loan	$	5,000,000
CloudPassage, Inc.	Senior Secured Term Loan		2,500,000
CloudPay Solutions Ltd.	Senior Secured Term Loan		5,000,000
Credit Sesame, Inc.	Revolving Line		585,569
Dtex Systems, Inc.	Senior Secured Term Loan		7,000,000
INRIX, Inc.	Senior Secured Term Loan		3,000,000
Intact Vascular, Inc.	Senior Secured Term Loan		15,000,000
Massdrop, Inc.	Senior Secured Term Loan		5,000,000
ShareThis, Inc.	Senior Secured Term Loan		2,000,000
The Kairn Corporation	Senior Secured Term Loan		750,000
Total unused commitments to extend financing		$	45,835,569


	Shares	Price Per
Issuance Date	Issued	Share		Gross Proceeds
October 8, 2015	1,667	$	15.00	$	25,000
December 22, 2016	333,333		15.00		5,000,000
April 19, 2017	1,000,000		15.00		15,000,000
June 26, 2017	1,666,667		15.00		25,000,000
September 12, 2017	2,666,667		15.00		40,000,000
December 22, 2017	3,000,000		15.00		45,000,000
May 31, 2018⁽¹⁾	70,563		14.82		1,045,570
August 31, 2018⁽¹⁾	117,582		14.92		1,754,244
September 27, 2018	1,997,337		15.02		30,000,000
November 15, 2018⁽¹⁾	202,779		15.07		3,055,498
January 14, 2019	4,344,964		15.19		66,000,000
March 26, 2019⁽¹⁾	326,431		15.14		4,942,168
May 21, 2019⁽¹⁾	374,783		15.13		5,670,467
May 24, 2019	3,232,189		15.16		49,000,000
July 16, 2019⁽¹⁾	464,986		15.13		7,035,236
August 26, 2019⁽¹⁾	480,121		14.76		7,088,143
October 15, 2019	1,666,667		15.00		25,000,000
November 12, 2019⁽¹⁾	43,979		14.76		649,123
December 20, 2019	3,333,333		15.00		50,000,000
December 23, 2019⁽¹⁾	487,166		14.52		7,073,650
March 20, 2020⁽¹⁾	575,132		14.58		8,385,423
March 31, 2020	21,021		15.00		315,308
May 21, 2020⁽¹⁾	529,020		14.25		7,538,541
Total	26,936,387			$	404,578,371


	As of June 30, 2020 (Unaudited)
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Common Stock	$	2,980,045	$	—	$	—	$	2,980,045
Corporate Bonds		—		318,374		—		318,374
Senior Secured Term Loans		—		—		369,034,328		369,034,328
Preferred Stock		—		—		17,891,494		17,891,494
Warrants		—		—		20,264,970		20,264,970
Total Portfolio Investments		2,980,045		318,374		407,190,792		410,489,211
U.S. Treasury Bill		44,998,500		—		—		44,998,500
Total Investments	$	47,978,545	$	318,374	$	407,190,792	$	455,487,711


	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Term Loans	$	—	$	—	$	349,570,424	$	349,570,424
Preferred Stock		—		—		437,515		437,515
Warrants		—		—		18,008,337		18,008,337
Total Portfolio Investments		—		—		368,016,276		368,016,276
U.S. Treasury Bill		99,965,423		—		—		99,965,423
Total Investments	$	99,965,423	$	—	$	368,016,276	$	467,981,699


	Preferred		Senior Secured
	Stock		Term Loans		Warrants		Total
Fair value at December 31, 2019	$	437,515	$	349,570,424	$	18,008,337	$	368,016,276
Amortization of fixed income premiums or accretion of discounts		—		4,331,997		—		4,331,997
Purchases of investments⁽¹⁾		18,687,450		77,680,287		2,011,400		98,379,137
Sales or repayments of investments⁽¹⁾		—		(57,316,891)		(2,749,949)		(60,066,840)
Realized gain (loss)		—		(7,883,584)		1,179,751		(6,703,833)
Change in unrealized appreciation (depreciation)		(1,233,471)		2,652,095		1,815,431		3,234,055
Fair value at June 30, 2020	$	17,891,494	$	369,034,328	$	20,264,970	$	407,190,792
Change in unrealized appreciation (depreciation) on Level 3 investments still held as of June 30, 2020	$	13,979	$	3,431,640	$	(1,855,184)	$	1,590,435


										% of
Portfolio			Acquisition	Principal/						Net
Companies	Sub-Industry	Investment Description^{(1),(5),(6),(11)}	Date	Shares		Cost		Fair Value^(2),(9)		Assets
Non-control/non-affiliate investments (continued)
Warrants⁽⁸⁾ (continued)
Aspen Group Inc.	Education Services	Warrant for Common Stock, exercise price $6.87/share, expires 7/25/2022	7/25/2017		224,174	$	583,301	$	914,000	0.24	%
Brilliant Earth, LLC	Internet Retail	Warrant for Class P Units, exercise price $5.25/share, expires 9/30/2029	9/30/2019		333,333		973,000		1,000,000	0.26
Circadence Corporation	Application Software	Warrant for Series A-5 Preferred Stock, exercise price $1.08/share, expires 12/20/2028	12/20/2018		1,666,667		3,630,000		3,203,115	0.83
		Warrant for Series A-5 Preferred Stock, exercise price $1.08/share, expires 10/31/2029	10/31/2019		416,667		845,540		800,779	0.21
CloudPassage, Inc.	Data Processing & Outsourced Services	Warrant for Series D-1 Preferred Stock, exercise price $1.60/share, expires 6/13/2029	6/13/2019		210,938		273,798		224,860	0.06
CloudPay Solutions Ltd.	Human Resource & Employment Services	Warrant for Series B Preferred Stock, exercise price $66.53/share, expires 6/30/2030⁽¹³⁾	6/30/2020		11,273		217,500		217,500	0.06
Credit Sesame, Inc.	Specialized Consumer Services	Warrant for Common Stock, exercise price $0.01/share, expires 1/7/2030	1/7/2020		191,601		424,800		402,413	0.10
Dejero Labs Inc.	System Software	Warrant for Common Stock, exercise price $0.01/share, expires 5/31/2029⁽⁷⁾	5/31/2019		333,621		192,499		200,373	0.05
Dtex Systems, Inc.	Application Software	Warrant for Series C-Prime Preferred Stock, exercise price $0.6000/share, expires 6/1/2025	6/1/2018		500,000		59,000		272,682	0.07
		Warrant for Series C-Prime Preferred Stock, exercise price $0.6000/share, expires 7/11/2026	7/11/2019		833,333		114,719		454,470	0.12
Echo 360 Holdings, Inc.	Education Services	Warrant for Series E Preferred Stock, exercise price $1.5963/share, expires 5/3/2029	5/3/2019		1,066,767		299,762		629,630	0.16
INRIX, Inc.	Internet Software and Services	Warrant for Common Stock, exercise price $9.29/share, expires 7/26/2029	7/26/2019		150,804		522,083		480,612	0.12
Intact Vascular, Inc.	Health Care Supplies	Success fee, expires 6/25/2027 ⁽¹²⁾	6/25/2020		N/A		97,100		97,100	0.03
Longtail Ad Solutions, Inc. (dba JW Player)	Internet Software and Services	Warrant for Common Stock, exercise price $1.49/share, expires 12/12/2029	12/12/2019		322,997		38,800		145,349	0.04
Massdrop, Inc.	Computer & Electronics Retail	Warrant for B Series Preferred Stock, exercise price $1.1938/share, expires 7/22/2019	7/22/2019		848,093		183,188		201,846	0.05
Mingle Healthcare Solutions, Inc.	Health Care Technology	Warrant for Series AA Preferred Stock, exercise price $0.24/share, expires 8/15/2028	8/15/2018		1,625,000		492,375		—	—


										% of
Portfolio			Acquisition	Principal/						Net
Companies	Sub-Industry	Investment Description^{(1),(5),(6),(11)}	Date	Shares		Cost		Fair Value^(2),(9)		Assets
Non-control/non-affiliate investments (continued)
Warrants⁽⁸⁾(continued)
Mojix, Inc.	Application Software	Warrant for Common Stock, exercise price $10.64/share, expires 5/16/2027	5/16/2017		164,427	$	417,645	$	—	—	%
		Warrant for Series 1 Preferred Stock, exercise price $0.28/share, expires 12/17/2029	12/17/2019		358,849		—		—	—
		Warrant for Series 1 Preferred Stock, exercise price $0.28/share, expires 5/30/2029	5/30/2019		358,849		21,531		—	—
		Warrant for Series 1 Preferred Stock, exercise price $0.28/share, expires 12/20/28	12/20/2018		7,176,973		806,991		—	—
MTBC, Inc.	Health Care Technology	Warrant for Common Stock, exercise price $7.50/share, expires 1/8/2022	1/8/2020		1,000,000		435,000		2,580,000	0.66
		Warrant for Common Stock, exercise price $10.00/share, expires 1/8/2023	1/8/2020		1,000,000		837,000		2,385,000	0.61
3DNA Corp. (dba NationBuilder)	Application Software	Warrant for Series C-1 Preferred Stock, exercise price $1.4643/share, expires 12/28/2028	12/28/2018		273,164		104,138		49,130	0.01
Ouster, Inc.	Technology Hardware, Storage & Peripherals	Warrant for Series B Preferred Stock, exercise price $11.3158/share, expires 11/27/2028	11/27/2018		1,805,597		103,010		151,165	0.04
Pivot3, Inc.	Data Processing & Outsourced Services	Warrant for Series D Preferred Stock, exercise price $0.59/share, expires 5/13/2029	5/13/2019		2,033,898		216,610		—	—
RealWear, Inc.	Technology Hardware, Storage & Peripherals	Warrant for Series A Preferred Stock, exercise price $4.4464/share, expires 10/5/2028	10/5/2018		112,451		135,841		—	—
		Warrant for Series A Preferred Stock, exercise price $4.4464/share, expires 12/28/2028	12/28/2018		22,491		25,248		—	—
		Warrant for Series A Preferred Stock, exercise price $6.78/share, expires 6/27/2029	6/27/2019		123,894		380,850		—	—
Scale Computing, Inc.	System Software	Warrant for Series F-1 Preferred Stock, exercise price $0.8031/share, expires 3/29/2029	3/29/2019		2,147,926		345,816		—	—
SendtoNews Video, Inc.	Advertising	Warrant for Class B Non-Voting Stock, exercise price $0.67/share, expires 6/30/2027 ^(3),(7)	6/30/2017		191,500		246,461		33,000	0.01
ShareThis, Inc.	Data Processing & Outsourced Services	Warrant for Series D-3 Preferred Stock, exercise price $2.4320/share, expires 12/3/2028	12/3/2018		647,615		2,162,000		2,162,000	0.56


										% of
Portfolio			Acquisition	Principal/						Net
Companies	Sub-Industry	Investment Description^{(1),(5),(6),(11)}	Date	Shares		Cost		Fair Value⁽²⁾		Assets
Non-control/non-affiliate investments (continued)
Senior Secured Term Loans (continued)
Mojix, Inc.	Application Software	Tranche I: LIBOR+12% PIK, 11.00% floor, 5% ETP, due 5/15/2021	5/16/2017	$	6,296,833	$	6,161,982	$	4,726,334	1.26	%
		Tranche II: LIBOR+12% PIK, 11.00% floor, 5% ETP, due 5/15/2021	8/3/2017		2,098,944		2,067,505		1,575,445	0.42
		Tranche III: LIBOR+12% PIK, 11.00% floor, 5% ETP, due 5/15/2021	7/6/2018		524,206		518,864		393,914	0.10
		Tranche IV: LIBOR+12% PIK, 11.00% floor, 5% ETP, due 5/15/2021	9/5/2018		523,474		516,902		392,469	0.10
		Tranche V: LIBOR+12% PIK, 11.00% floor, 5% ETP, due 5/15/2021	1/28/2019		1,042,472		1,020,642		782,469	0.21
		Tranche VI: LIBOR+12% PIK, 11.00% floor, due 1/31/2020	12/18/2019		1,000,000		1,000,000		1,000,000	0.27
3DNA Corp.(dba NationBuilder)	Application Software	Tranche I: LIBOR+9.00%, 11.50% floor, 5% ETP, due 4/28/2022	12/28/2018		7,000,000		7,016,888		6,942,703	1.84
		Tranche II: LIBOR+9.00%, 11.50% floor, 5% ETP, due 4/28/2022	6/12/2019		500,000		502,374		497,063	0.13
Ouster, Inc.	Technology Hardware, Storage & Peripherals	LIBOR+8.50%, 10.75% floor, 3.50% ETP, due 5/15/2021	11/27/2018		10,000,000		10,007,056		10,007,056	2.66
Pivot3, Inc.	Data Processing & Outsourced Services	LIBOR+8.50%, 11.00% floor, 4% ETP, due 11/15/2022	5/13/2019		20,000,000		19,863,175		19,728,122	5.24
RealWear, Inc.	Technology Hardware, Storage & Peripherals	LIBOR+8%, 10.35% floor, 5% ETP, due 6/28/2023	6/28/2018		25,000,000		24,653,512		24,653,512	6.55
Scale Computing, Inc.	System Software	LIBOR+9.25%, 11.75% floor, 4.5% ETP, due 9/15/2022	3/29/2019		15,000,000		14,798,210		14,418,842	3.83
ShareThis, Inc.	Data Processing & Outsourced Services	Tranche I: LIBOR+9.25%, 11.60% floor, 5% ETP, due 6/15/2022	12/3/2018		19,250,000		18,123,758		18,123,758	4.82
		Tranche II: LIBOR+9.25%, 11.60% floor, 5% ETP, due 6/15/2022	1/17/2019		750,000		699,312		699,312	0.19
		Tranche III: LIBOR+9.25%, 11.60% floor, 5% ETP, due 6/15/2022	7/24/2019		10,000,000		917,457		971,457	0.25
Total Senior Secured Term Loans							358,385,089		349,570,424	92.89
Preferred Stock⁽⁸⁾
Aria Systems, Inc.	Application Software	Series G Preferred Stock	7/10/2018		289,419		250,000		437,515	0.12
Warrants⁽⁸⁾
Aginity, Inc.	Application Software	Warrant for Series A Preferred Stock, exercise price $1.949/share, expires 5/25/2028⁽¹²⁾	5/25/2018		359,158		167,727		—	—
		Warrant for Series A-1 Preferred Stock, exercise price $0.01/share, expires 2/25/2029	2/25/2019		205,234		151,873		—	—


										% of
Portfolio			Acquisition	Principal/				Fair		Net
Companies	Sub-Industry	Investment Description^{(1),(5),(6),(11)}	Date	Shares		Cost		Value⁽²⁾		Assets
Non-control/non-affiliate investments (continued)
Warrants⁽⁸⁾ (continued)
AllClear ID, Inc.	Specialized Consumer Services	Warrant for Common Stock, exercise price $0.01/share, expires 9/1/2027	9/1/2017	$	870,514	$	1,749,733	$	906,205	0.24	%
Aria Systems, Inc.	Application Software	Warrant for Series G Preferred Stock, exercise price $0.8638/share, expires 6/29/2028	6/29/2018		2,170,641		770,578		2,633,681	0.69
Aspen Group Inc.	Education Services	Warrant for Common Stock, exercise price $6.87/share, expires 7/25/2022	7/25/2017		224,174		583,301		631,000	0.17
Brilliant Earth, LLC	Internet Retail	Warrant for Class P Units, exercise price $5.25/share, expires 9/30/2029	9/30/2019		333,333		973,000		955,667	0.25
CareCloud Corporation	Healthcare Technology	Warrant for Series A-1 Preferred Stock, exercise price $0.8287/share, expires 6/16/2025	4/17/2019		2,262,579		394,163		—	—
Circadence Corporation	Application Software	Warrant for Series A-5 Preferred Stock, exercise price $1.08/share, expires 12/20/2028	12/20/2018		166,667		3,630,000		3,393,522	0.90
		Warrant for Series A-5 Preferred Stock, exercise price $1.08/share, expires 10/31/2029	10/31/2019		416,667		845,540		848,580	0.22
Cloud Passage, Inc.	Data Processing & Outsourced Services	Warrant for Series D-1 Preferred Stock, exercise price $1.60/share, expires 6/13/2029	6/13/2019		210,938		273,798		266,626	0.07
Dejero Labs Inc.	Data Processing & Outsourced Services	Warrant for Common Stock, exercise price $0.01/share, expires 5/31/2029^(3),(7)	5/31/2019		333,621		192,499		198,664	0.05
Dtex Systems, Inc.	Application Software	Warrant for Series C-Prime Preferred Stock, exercise price $0.6000/share, expires 6/1/2025	6/1/2018		500,000		59,000		575,000	0.02
		Warrant for Series C-Prime Preferred Stock, exercise price $0.6000/share, expires 7/11/2026	7/11/2019		833,333		114,719		115,000	0.03
Echo 360 Holdings, Inc.	Education Services	Warrant for Series E Preferred Stock, exercise price $1.5963/share, expires 5/3/2029	5/3/2019		1,066,767		299,762		318,963	0.08
eSilicon Corporation	Semiconductors	Warrant for Series H Preferred Stock, exercise price $1.01/share, expires 7/31/2027	7/31/2017		1,485,149		543,564		2,249,999	0.60
		Warrant for Series H Preferred Stock, exercise price $1.01/share, expires 6/21/2029	6/21/2019		990,099		312,871		500,000	0.13
INRIX, Inc.	Internet Software and Services	Warrant for Common Stock, exercise price $9.29/share, expires 7/26/2029	7/26/2019		150,804		522,083		475,485	0.13
Longtail Ad Solutions, Inc. (dba JW Player)	Internet Software and Services	Warrant for Common Stock, exercise price $1.49/share, expires 12/12/2029	12/12/2019		332,997		38,800		38,800	0.01


					Range
Description	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)
Preferred Stock	$	17,891,494	Recent private market and merger and acquisition transaction prices	N/A	N/A
Senior Secured Term Loans⁽¹⁾		359,464,721	Discounted Cash Flow analysis	Discount Rate	10.7%-102.2% (16.9%)
			Market approach	Origination yield	10.7%-100.1% (15.1%)
		9,569,607	PWERM	Discount Rate	20.0%-25.0% (22.5%)
Warrants⁽²⁾		14,604,218	Black Scholes model	Risk-free interest rate	0.2%-2.4% (0.2%)
				Average industry volatility	30.0%-70.0% (49.5%)
				Estimated time to exit	0.5 years-9.7 years (1.8 years)
		5,660,752	PWERM	Discount Rate	19.5%-35.0% (26.9%)
Total Level 3 Investments	$	407,190,792


	Date of
Loan Facility	Advance	Due Date	Amount		Rate
KeyBank National Association Loan Facility	6/30/2020	5/31/2022	$	25,000,000	3.98	%
			$	25,000,000


	June 30, 2020 (Unaudited)						December 31, 2019
					Percentage						Percentage
					of Total						of Total
Investments	Cost		Fair Value		Portfolio		Cost		Fair Value		Portfolio
Portfolio Investments
Common Stock	$	1,978,455	$	2,980,045	0.7	%	$	—	$	—	—	%
Corporate Bonds		253,095		318,374	0.1			—		—	—
Senior Secured Term Loans		375,196,904		369,034,328	81.0			358,385,089		349,570,424	74.6
Preferred Stock		18,937,450		17,891,494	3.9			250,000		437,515	0.1
Warrants		18,825,013		20,264,970	4.4			18,383,811		18,008,337	3.9
Total Portfolio Investments		415,190,917		410,489,211	90.1			377,018,900		368,016,276	78.6

U.S. Treasury Bill		44,999,250		44,998,500	9.9			99,982,765		99,965,423	21.4
Total Investments	$	460,190,167	$	455,487,711	100.0	%	$	477,001,665	$	467,981,699	100.0	%

Investment Rating		Rating Definition

1		Performing above plan and/or strong enterprise profile, value, financial performance/coverage. Maintaining full covenant and payment compliance as agreed.
2		Performing at or reasonably close to plan. Acceptable business prospects, enterprise value, financial coverage. Maintaining key covenant and payment compliance as agreed. All new loans are initially graded Category 2.
3		Performing below plan of record. Potential elements of concern over performance, trends and business outlook. Loan-to-value remains adequate. Potential key covenant non-compliance. Full payment compliance.
4		Performing materially below plan. Non-compliant with material financial covenants. Payment default/deferral could result without corrective action. Requires close monitoring. Business prospects, enterprise value and collateral coverage declining. These investments may be in workout, and there is a possibility of loss of return but no loss of principal is expected.
5		Going concern nature in question. Substantial decline in enterprise value and all coverages. Covenant and payment default imminent if not currently present. Investments are nearly always in workout. May experience partial and/or full loss.


	Shares	Price
Issuance Date	Issued	Per Share		Gross Proceeds
December 22, 2016	333,333	$	15.00	$	5,000,000
April 19, 2017	1,000,000		15.00		15,000,000
June 26, 2017	1,666,667		15.00		25,000,000
September 12, 2017	2,666,667		15.00		40,000,000
December 22, 2017	3,000,000		15.00		45,000,000
May 31, 2018⁽¹⁾	70,563		14.82		1,045,570
August 31, 2018⁽¹⁾	117,582		14.92		1,754,244
September 27, 2018	1,997,337		15.02		30,000,000
November 15, 2018⁽¹⁾	202,779		15.07		3,055,498
January 14, 2019	4,344,964		15.19		66,000,000
March 26, 2019⁽¹⁾	326,431		15.14		4,942,168
May 21, 2019⁽¹⁾	374,783		15.13		5,670,467
May 24, 2019	3,232,189		15.16		49,000,000
July 16, 2019⁽¹⁾	464,986		15.13		7,035,236
August 26, 2019⁽¹⁾	480,121		14.76		7,088,143
October 15, 2019	1,666,667		15.00		25,000,000
November 12, 2019⁽¹⁾	43,979		14.76		649,123
December 20, 2019	3,333,333		15.00		50,000,000
December 23, 2019⁽¹⁾	487,166		14.52		7,073,650
March 20, 2020⁽¹⁾	575,132		14.58		8,385,423
March 31, 2020	21,021		15.00		315,308
May 21, 2020⁽¹⁾	529,020		14.25		7,538,541
Total	26,934,720			$	404,553,371


	Payments Due By Period
			Less than						More than
	Total		1 year		1–3 years		3–5 years		5 years
Reverse repurchase agreement⁽¹⁾	$	44,773,302	$	44,773,302	$	—	$	—	$	—
Credit facilities⁽²⁾		25,000,000		25,000,000		—		—		—
Total	$	69,773,302	$	69,773,302	$	—	$	—	$	—


			Amount
Date Declared	Record Date	Payment Date	per Share
May 3, 2018	May 15, 2018	May 31, 2018	$	0.15
July 26, 2018	August 15, 2018	August 31, 2018	$	0.25
November 1, 2018	October 31, 2018	November 15, 2018	$	0.35
March 22, 2019	March 22, 2019	March 26, 2019	$	0.40
May 2, 2019	May 7, 2019	May 21, 2019	$	0.45
May 2, 2019	May 31, 2019	July 16, 2019	$	0.46
July 30, 2019	August 8, 2019	August 26, 2019	$	0.45
September 27, 2019	September 30, 2019	November 12, 2019	$	0.04
December 9, 2019	December 10, 2019	December 23, 2019	$	0.40
March 5, 2020	March 6, 2020	March 20, 2020	$	0.40
May 7, 2020	May 8, 2020	May 21, 2020	$	0.35

3.1	Articles of Amendment and Restatement ⁽¹⁾

3.2	Articles of Amendment ⁽²⁾

3.3	Amended and Restated Bylaws ⁽²⁾

4.1	Form of Subscription Agreement ⁽³⁾

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended*

31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended*

32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*


	RUNWAY GROWTH CREDIT FUND INC.
Date: August 13, 2020
	By:	/s/ R. David Spreng
		R. David Spreng
		President, Chief Executive Officer and Chairman of the Board of Directors

Date: August 13, 2020	By:	/s/ Thomas B. Raterman
		Thomas B. Raterman
		Chief Financial Officer, Treasurer and Secretary
		(Principal Financial and Accounting Officer)

ugust
/s/ R. David Spreng
R. David Spreng
Chief Executive Officer

August 13, 2020


/s/ Thomas B. Raterman
Thomas B. Raterman
Chief Financial Officer

August 13, 2020


	/s/ R. David Spreng
	Name: R. David Spreng
	Date: August 13, 2020


	/s/ Thomas B. Raterman
	Name: Thomas B. Raterman
	Date: August 13, 2020