Runway Growth Finance to Acquire SWK Holdings in $220 Million Healthcare Portfolio Expansion
Runway Growth Finance Corp. is acquiring SWK Holdings Corp. in a $220 million deal that significantly expands its healthcare and life sciences portfolio while enhancing financial metrics and shareholder value.
Runway Growth Finance Corp. has entered into a definitive merger agreement to acquire SWK Holdings Corp., a life science focused specialty finance company, in a transaction valued at approximately $220 million. The acquisition represents a strategic move to diversify and optimize Runway Growth's investment portfolio while adding significant scale to its operations.
David Spreng, Runway Growth's Founder and CEO, stated that the transaction meaningfully advances the company's strategy to diversify and optimize its portfolio by adding SWK's high-quality investments in healthcare and life sciences. The acquisition is expected to generate mid-single-digit net investment income accretion during the first full quarter following the transaction close, while more than offsetting anticipated loan repayments previously signaled by the company.
The transaction will expand Runway Growth's exposure in the healthcare and life sciences sector, increasing healthcare investments to approximately 31% of the portfolio from 14% as of June 30, 2025. This expansion into a large and growing market comes with the addition of members from SWK's healthcare and life sciences teams, enhancing Runway Growth Capital's investment and deal sourcing capabilities.
Financially, the acquisition will expand Runway Growth's balance sheet to $1.3 billion in total assets pro forma for the SWK acquisition. The transaction enhances the company's already strong portfolio metrics through high quality investments in attractive verticals and a meaningful reduction in average loan size. Improvements in Runway Growth's financial profile will increase the company's nominal leverage capacity and support continued risk-adjusted returns.
The merger terms include $75.5 million in Runway Growth shares to be issued to SWK's shareholders, broadening Runway Growth's shareholder base and improving trading liquidity of common shares. The transaction is structured as 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 and including estimated SWK transaction expenses.
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. The acquisition positions Runway Growth to execute on both organic and inorganic growth strategies, offering 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. Runway Growth will hold a conference call to discuss the transaction, with participants able to register online at https://ir.runwaygrowth.com. 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.