Runway Growth Capital Closes Acquisition by BC Partners Credit and Mount Logan Capital
- Runway Growth Capital will continue to operate independently and serve as the external investment adviser to Runway Growth Finance Corp. (Nasdaq: RWAY), with the current team remaining in place
- Runway Growth Capital will leverage BC Partners Credit's extensive platform, resources, and scale to accelerate capital formation and diversify financing options for both investors and borrowers
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, and BC Partners Credit, the $8 billion credit arm of BC Partners, an approximately $40 billion AUM alternative investment firm, today announced that they, along with Mount Logan Capital, a Canadian alternative asset management company internally managed by employees of BC Partners Credit, closed a transaction whereby private investment funds advised by BC Partners Credit, and Mount Logan Capital pursuant to its minority investment, have acquired Runway Growth Capital LLC.
Runway will continue to serve as the investment adviser to private investment funds and to Runway Growth Finance Corp. (Nasdaq: RWAY) ("Runway Growth Finance"), a publicly-traded business development company, under a new investment advisory agreement. As previously announced, Runway's current officers, senior management and investment personnel are expected to continue to serve as officers and senior management.
Ted Goldthorpe, Head of BC Partners Credit, said, "Combining Runway's expertise, network, and track record in venture debt with the global scale and resources of BC Partners Credit enables our combined firm to establish a diversified presence in the venture debt ecosystem. Runway's solutions are in high demand. We look forward to expanding Runway's investment capabilities, on day one, and to Runway continuing to drive returns for investors through attractive risk-adjusted investments."
Runway Founder and Chief Executive Officer David Spreng commented, "Officially joining the BC Partners Credit platform marks an exciting new chapter for Runway and significantly contributes to our long-term vision of providing financing solutions to high quality, late and growth-stage companies. This transaction well positions Runway to increase originations within our target investment range of $30-150 million, expand our offerings to target companies and sponsors, and enhance our financing capabilities to support high-growth companies in the venture debt and growth sectors. Following the receipt of required regulatory antitrust approvals, our work with BC Partners Credit is well underway, and we've already begun sharing insights and capabilities to bolster originations. Looking ahead, we believe Runway is positioned for growth, with more to offer borrowers than ever before and a strengthened team that widens our network of VC and PE sponsors."
Runway previously announced its definitive agreement with BC Partners Credit in October 2024. For additional information and investor materials, please visit the Runway website at www.runwaygrowth.com.
-ENDS-
Advisors Oppenheimer & Co. Inc. acted as the exclusive financial advisor to Runway Growth Capital LLC. Wachtell, Lipton, Rosen & Katz acted as legal counsel to Runway Growth Capital LLC and Eversheds Sutherland (US) LLP acted as legal counsel to the independent directors of Runway Growth Finance. Simpson Thacher & Bartlett LLP acted as legal counsel to BC Partners.
About BC Partners & BC Partners Credit BC Partners is a leading international investment firm in private equity, private debt, and real estate strategies. BC Partners Credit was launched in February 2017, with a focus on identifying attractive credit opportunities in any market environment, often in complex market segments. The platform leverages the broader firm's deep industry and operating resources to provide flexible financing solutions to middle-market companies across Business Services, Industrials, Healthcare and other select sectors. For further information, visit www.bcpartners.com/credit-strategy.
About Mount Logan Capital Inc. Mount Logan Capital Inc. is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products, primarily through its wholly owned subsidiaries Mount Logan Management LLC ("ML Management") and Ability Insurance Company ("Ability"), respectively. Mount Logan also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle. ML Management was organized in 2020 as a Delaware limited liability company and is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended. Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies and annuity products acquired by Mount Logan in the fourth quarter of fiscal year 2021.
About Runway Growth Capital LLC Runway Growth Capital LLC is the investment adviser 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 $30 million to $150 million to fast-growing companies based in the United States and Canada. For more information on Runway Growth Capital LLC and its platform, please visit www.runwaygrowth.com.
About Runway Growth Finance Corp. Runway Growth Finance is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth Finance is a closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Runway Growth Finance is externally managed by Runway Growth Capital LLC, an established registered investment adviser that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.