Curated News
By: NewsRamp Editorial Staff
October 10, 2025
Runway Growth Acquires SWK in $220M Healthcare Finance Deal
TLDR
- Runway Growth's acquisition of SWK Holdings provides competitive advantage through portfolio diversification and mid-single-digit NII accretion for enhanced shareholder returns.
- The merger expands Runway Growth's healthcare portfolio from 14% to 31% through NAV-for-NAV transaction valued at approximately $220 million with $75.5 million in stock.
- This acquisition supports healthcare innovation by providing non-dilutive financing to commercial-stage companies developing lifesaving medical technologies and products.
- Runway Growth's $1.3 billion asset expansion through SWK acquisition creates one of the largest specialty finance platforms in the healthcare venture debt space.
Impact - Why it Matters
This merger represents a significant consolidation in the specialty finance sector that could reshape how growth-stage healthcare companies access capital. For entrepreneurs and companies in the life sciences space, the combined entity creates a more substantial funding source with enhanced capabilities to support medical innovation. Investors benefit from increased scale and diversification in a high-growth sector, while the healthcare industry gains access to more sophisticated financing options that don't dilute ownership. The transaction also signals continued maturation of the venture debt market, providing validation for alternative financing models beyond traditional equity rounds.
Summary
Runway Growth Finance Corp., a leading provider of flexible capital solutions to late- and growth-stage companies, has announced a definitive merger agreement to acquire SWK Holdings Corp., a life science focused specialty finance company. This strategic acquisition represents a significant move to diversify and optimize Runway Growth's portfolio while adding substantial scale to its operations. The transaction, valued at approximately $220 million, will expand Runway Growth's balance sheet to $1.3 billion in total assets and is expected to generate mid-single-digit net investment income accretion following completion.
David Spreng, Runway Growth's Founder and CEO, emphasized that this transaction meaningfully advances the company's strategy by adding SWK's high-quality healthcare and life sciences investments. The merger will dramatically increase Runway Growth's exposure to the healthcare sector, with healthcare investments rising to approximately 31% of the portfolio from just 14% previously. SWK's portfolio includes 22 companies with an approximate fair value of $242 million, bringing significant expertise in providing non-dilutive financing to small- and mid-sized commercial-stage healthcare companies. The transaction structure includes $75.5 million in Runway Growth shares to be issued to SWK's shareholders, broadening Runway Growth's shareholder base and enhancing trading liquidity.
The acquisition positions Runway Growth to execute on both organic and inorganic growth strategies, supported by the BC Partners Credit platform. Key benefits include expanded investment capabilities in healthcare and life sciences, enhanced portfolio diversification through high-quality complementary investments, and improvements in financial metrics including dividend coverage and return on equity. The transaction, which has received unanimous approval from SWK's Board of Directors and support from Carlson Capital L.P., is expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals. Investors can learn more about these developments through the Runway Investor Relations website and upcoming conference calls scheduled for October 10, 2025.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Runway Growth Acquires SWK in $220M Healthcare Finance Deal
