Runway Growth Capital Provides a $20 Million Growth Loan Commitment to Swing Education

Rhea-AI Summary

Runway Growth Capital (NASDAQ:RWAY) has announced a $20 million growth loan commitment to Swing Education, comprising a first lien term loan and a revolving credit line. Swing Education, founded in 2015, operates an online marketplace connecting schools with qualified substitute teachers across multiple states including California, Arizona, Texas, Illinois, New York, New Jersey, and Washington, D.C.

The funding aims to support Swing Education's nationwide expansion and address the critical shortage of substitute teachers in K-12 education. The company streamlines substitute teacher hiring and placement processes through technology and support services. The financing structure, including both a first lien and revolver, was designed to accommodate the seasonal nature of the education sector.

Positive

• Strategic $20 million loan commitment demonstrates confidence in Swing Education's business model
• Flexible financing structure with first lien and revolving credit line accommodates seasonal business needs
• Expansion opportunity into multiple major U.S. markets
• Non-dilutive capital preserves equity for existing shareholders

Negative

• Additional debt obligation could impact future financial flexibility
• Exposure to seasonal fluctuations in the education sector

Insights

Investment Banking Analyst

Runway Growth Capital's $20M loan to Swing Education strengthens its lending portfolio in the high-growth education technology sector.

Runway Growth Capital (RWAY) has expanded its loan portfolio with a $20 million growth loan commitment to Swing Education, structured as a first lien term loan plus a revolving credit line. This investment targets the education technology sector, specifically addressing the nationwide substitute teacher shortage through Swing's technology platform that connects schools with qualified educators.

The deal structure reveals careful consideration of Swing Education's business model and cash flow patterns. By combining a term loan with a revolving credit facility, Runway has designed a flexible financing solution that accommodates the seasonal fluctuations inherent to the education sector, demonstrating sophisticated sector-specific underwriting.

For Runway's portfolio, this transaction represents a strategic expansion into the education technology vertical while maintaining its focus on growth-stage companies seeking alternatives to equity dilution. The first lien position secures Runway's investment with priority claim on Swing Education's assets, balancing risk with the growth opportunity.

Swing Education's geographic footprint across multiple states (California, Arizona, Texas, Illinois, New York, New Jersey, and Washington, D.C.) indicates the company has already achieved significant scale since its 2015 founding, suggesting Runway is backing a proven business model with established market validation rather than an early-stage concept.

This transaction aligns with Runway's stated investment thesis of providing non-dilutive capital to growth companies with clear expansion trajectories, potentially generating predictable interest income for Runway while supporting a company addressing a persistent market need in education.

Funding will support Swing Education's nationwide expansion and help meet continued demand for qualified substitute teachers.

MENLO PARK, Calif., Aug. 7, 2025 /PRNewswire/ -- Runway Growth Capital LLC ("Runway"), a leading provider of growth loans to both venture and non-venture-backed companies seeking an alternative to raising equity, today announced a $20 million commitment to Swing Education, a leading online marketplace that connects schools with qualified substitute teachers. The commitment is comprised of a first lien term loan and a revolving credit line.

Founded in 2015 and based in the San Francisco Bay Area, Swing Education partners with school districts across California, Arizona, Texas, Illinois, New York, New Jersey, and Washington, D.C. By streamlining the substitute teacher hiring and placement processes through technology and support services, Swing addresses one of the most urgent challenges in K–12 education: the acute shortage of substitute teachers.

"Swing Education plays a critical role in addressing the persistent shortage of classroom educators by making it easier for schools to connect with high-quality substitute teachers," said Greg Greifeld, Chief Investment Officer at Runway. "We're proud to support a company that is not only scaling quickly but also delivering real impact across the education system. We worked hard to provide them with a flexible financing solution, via a first lien and a revolver, to ensure they have access to capital when needed, given the seasonal nature of the education sector."

"This new investment from Runway Growth Capital comes at a pivotal moment for Swing as we continue expanding our reach to address nationwide teacher shortages," said Asha Visweswaran, CEO of Swing Education. "We appreciate Runway's support and confidence in our mission to ensure every classroom has a teacher and every student gets the opportunity to learn."

Runway's investment reflects its dedication to help growth-stage companies achieve their objectives through non-dilutive capital that aligns with long-term strategic goals.

About Runway Growth Capital LLC
Runway Growth Capital LLC is the investment advisor to investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY), a business development company, and other private funds, which are lenders of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, these funds provide senior term loans of a target of $20 million to $150 million to fast-growing companies based in the United States and Canada. For more information, visit www.runwaygrowth.com.

About Swing Education
Swing Education is an online staffing marketplace that connects substitute teachers with schools. Founded in 2015 by former K-12 educators and administrators, Swing makes it easier for schools and districts to find reliable, qualified substitute teachers when they need them most. With millions of absence days filled to date, Swing is dedicated to improving the experience of finding substitute teachers, becoming a sub, and keeping student learning on track. Swing serves thousands of school districts across California, Arizona, Illinois, Texas, New Jersey, New York, and Washington D.C. To learn more about Swing Education, visit www.SwingEducation.com.

Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition, or results and involve a number of risks and uncertainties. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission made by Runway and Runway's affiliated funds. Neither Runway nor Runway's affiliated funds undertake a duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

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SOURCE Runway Growth Capital LLC

FAQ

What is the size of RWAY's loan commitment to Swing Education in 2025?

Runway Growth Capital has committed $20 million to Swing Education, structured as a first lien term loan and a revolving credit line.

How will RWAY's loan to Swing Education be structured?

The loan commitment consists of two components: a first lien term loan and a revolving credit line, designed to provide flexible financing for seasonal business needs.

Which states does Swing Education currently operate in?

Swing Education operates across multiple states including California, Arizona, Texas, Illinois, New York, New Jersey, and Washington, D.C.

What is the purpose of RWAY's loan to Swing Education?

The loan will support Swing Education's nationwide expansion and help meet the continued demand for qualified substitute teachers in K-12 education.

When was Swing Education founded and where is it based?

Swing Education was founded in 2015 and is based in the San Francisco Bay Area.