Runway Growth Finance Corp. , a leading provider of flexible capital solutions for late- and growth-stage companies, has announced a definitive merger agreement to acquire SWK Holdings Corporation , a specialty finance firm focused on life sciences. SWK provides minimally dilutive financing to small and mid-sized healthcare companies at the commercial stage.
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Runway Growth’s Founder and CEO, David Spreng, said the acquisition represents an important step forward in the company’s strategic growth plan. “This transaction meaningfully advances our strategy to diversify and optimize our portfolio by adding SWK’s high-quality investments in the key sectors of healthcare and life sciences,” he said. “It enhances our earnings power and positions us for long-term value creation through disciplined growth and a focus on excellent credit quality in the sectors we know best.”
Spreng added that with the continued backing of BC Partners Advisors L.P., Runway Growth is pursuing both organic and inorganic opportunities as part of its permanent capital strategy, supported by the $10 billion BC Partners Credit platform. Following the completion of the merger, the company’s total assets are expected to reach approximately $1.3 billion on a pro forma basis.
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The merger is expected to significantly expand Runway Growth’s exposure to healthcare and life sciences, increasing investments in these sectors from 14% to about 31% of the total portfolio as of June 30, 2025. The deal also enhances portfolio diversification, bringing in high-quality assets and reducing the average loan size, which strengthens the company’s overall risk profile.
Financially, the transaction is projected to deliver mid-single-digit run-rate net investment income accretion in the first full quarter after closing. It is also expected to improve dividend coverage, return on equity, and nominal leverage capacity. Through the merger terms, SWK shareholders will receive $75.5 million in Runway Growth shares, broadening Runway Growth’s shareholder base and improving trading liquidity.
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According to Spreng, the merger not only reinforces the company’s leadership in venture debt investing but also provides a repeatable, non-dilutive model for future strategic acquisitions. With SWK’s addition, Runway Growth strengthens its position as a key capital partner in the venture and growth ecosystem, especially within healthcare and life sciences two sectors driving innovation and long-term economic potential.
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