Business Context and Reporting Period
Company: GSV Growth Credit Fund Inc. (Note: Input metadata referenced "Runway Growth Finance Corp.", but the filing text identifies the registrant as GSV Growth Credit Fund Inc.)
Reporting Period: Quarterly period ended June 30, 2016.
Status: Development Stage Company. The entity was formed on August 31, 2015, and has not yet commenced investment operations or completed its initial private offering. As of the reporting date, the company has no portfolio investments and has generated no operating income.
Key Financial Metrics
| Metric | Value (June 30, 2016) | Value (Dec 31, 2015) |
|---|---|---|
| Total Assets | $25,000 | $25,000 |
| Cash and Cash Equivalents | $25,000 | $25,000 |
| Total Liabilities | $0 | $0 |
| Total Net Assets | $25,000 | $25,000 |
| Net Asset Value (NAV) Per Share | $15.00 | $15.00 |
| Investment Income | $0 | $0 |
| Operating Expenses | $0 | $0 |
| Net Increase/Decrease in Net Assets | $0 | $0 |
Capital Structure: 1,667 shares of common stock issued and outstanding. All shares were purchased by the CEO, R. David Spreng, for an aggregate price of $25,000.
Material Changes vs. Prior Period
There were no material changes in financial position or results of operations compared to the prior period (December 31, 2015). The company remains in the development stage with no investment activity, no revenue, and no recorded expenses. Cash balances and net assets remained static at $25,000.
Outlook, Management Commentary, and Risks
- Operational Status: The company intends to be managed by GSV Growth Credit LLC. It plans to file an election to be treated as a Business Development Company (BDC) and a Regulated Investment Company (RIC) once it receives aggregate commitments totaling at least $50 million.
- Fee Waivers: The Adviser has agreed to waive all management fees from the commencement of investment activities through December 31, 2016.
- Cost Allocation: Initial organization and operating costs are borne by the company up to the greater of $500,000 or 0.50% of total capital commitments. Excess costs are borne by the Adviser. As no external capital commitments have been received, no costs have been recorded by the company.
- Risk Factors: Significant risks include the inability to raise the required $50 million in capital, economic downturns affecting target portfolio companies, interest rate volatility, and the speculative nature of private credit investments. The company is also subject to the risks associated with being an "emerging growth company."
Investor Verification Checklist
- Verify the company's ability to secure the required $50 million in external capital commitments to commence operations.
- Confirm the timeline for filing the BDC and RIC elections with the SEC.
- Monitor the status of the private offering and any potential dilution from future equity issuances.
- Review the specific terms of the Advisory and Administration agreements once finalized, particularly regarding fee structures post-waiver period.
- Assess the financial stability of the Adviser (GSV Growth Credit LLC) given that it is currently absorbing organization costs.