8-K: Runway Growth Finance Corp. Announces Joint Venture with Cadma Capital Partners

Runway Growth Finance Corp. has formed a joint venture with Cadma Capital Partners to invest in lateand growth-stage companies with a financing capacity of up to $200 million.

Summary

• Runway Growth Finance Corp. has entered into a joint venture with Cadma Capital Partners, named Runway-Cadma I LLC.
• The joint venture will focus on providing financing to private and sponsor-backed lateand growth-stage companies.
• The partnership aims to expand high-quality asset origination for both firms.
• The joint venture has a financing capacity of up to $200 million.
• Runway Growth and Cadma will be equal partners in the venture.

Sentiment

Score: 8

Explanation: The announcement of a joint venture with a reputable partner and a significant financing capacity is a positive development for Runway Growth, suggesting a strong growth trajectory. The language used is optimistic and forward-looking.

Positives

• The joint venture is expected to increase Runway's presence in the growth lending markets.
• The partnership with Cadma is expected to provide access to high-quality asset origination.
• The joint venture has a significant financing capacity of up to $200 million.
• Cadma is a well-established credit financing platform with ties to Apollo Global Management.
• The partnership is expected to deliver returns for Runway's shareholders.

Risks

• The press release includes a standard forward-looking statement disclaimer, indicating that actual results may differ from expectations due to various risks and uncertainties.
• The success of the joint venture is dependent on the ability of both companies to effectively manage and deploy the capital.

Future Outlook

The joint venture is expected to increase Runway's presence in the growth lending markets and deliver returns for shareholders. The companies look forward to deepening the relationship in the years to come.

Management Comments

• Greg Greifeld, Acting CEO of Runway Growth, stated that Cadma is a disciplined and experienced partner that shares their mission to deliver creative financing solutions.
• Jon Beizer, CEO of Cadma, believes that their deep understanding of the venture ecosystem and Runway's track record will enable them to unlock substantial value.

Industry Context

This announcement reflects a trend of increased collaboration and joint ventures in the specialty finance sector, particularly in providing capital to lateand growth-stage companies. It also highlights the growing importance of alternative financing solutions for companies seeking to avoid equity dilution.

Comparison to Industry Standards

• The $200 million financing capacity is a significant commitment, placing the joint venture in a competitive position compared to other similar ventures in the growth lending space.
• Apollo Global Management's involvement through Cadma provides a strong backing, potentially giving the joint venture an advantage in terms of access to capital and expertise.
• Other players in the venture debt space include firms like Hercules Capital and Silicon Valley Bank, which have established track records in providing debt financing to technology and growth companies. This joint venture will need to compete with these established players.

Stakeholder Impact

• Shareholders of Runway Growth are expected to benefit from the increased presence in the growth lending markets and potential returns.
• Lateand growth-stage companies will have access to additional financing options.
• Employees of both Runway and Cadma may see new opportunities as the joint venture grows.

Next Steps

• The joint venture, Runway-Cadma I LLC, will begin investing in lateand growth-stage companies.
• Runway and Cadma will work together to expand high-quality asset origination.

Key Dates

Keywords

joint venture, venture debt, growth lending, financing, Cadma Capital Partners, Runway Growth Finance Corp, late-stage companies, Apollo Global Management