Venture Debt Lender Runway Growth Expands Life Sciences Business
(Bloomberg) -- Venture debt firm Runway Growth Capital is expanding its reach into life sciences with its first deal in the sector and a new San Diego office focused on the business line.
The firm recently provided medical device developer Intact Vascular Inc. with a $30 million loan, according to a statement. The financing will help fund the commercialization and future development of Intact’s system for arterial dissection repair, Runway said.
Runway earlier this year hired Rob Lake from Bridge Bank to grow its footprint in life sciences, which it sees as a fertile ground for future investments, particularly during the coronavirus pandemic.
In the statement, Lake said health care and life sciences businesses “offer substantial enterprise value and represent a significant portion of the overall technology and innovation landscape in the U.S.”
Runway, via its business development company, provides senior term loans of $10 million to $50 million to fast-growing companies in the U.S. and Canada. The firm, helmed by Chief Executive Officer David Spreng, has made loan commitments totaling $560 million since inception, according to its website.
Oaktree Capital Management in 2016 made an initial $125 million capital commitment in Runway, which was later boosted to $139 million, according to an SEC filing. Oaktree provided Runway with a $112.5 million commitment in June 2019.
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