Mount Logan Announces Minority Stake Acquisition in Runway Growth Capital
Deal News | Nov 01, 2024 | Globenewswire
Mount Logan Capital Inc. has announced a strategic move to acquire a minority stake in Runway Growth Capital LLC. This acquisition is part of a larger transaction where BC Partners Credit will secure a majority interest in Runway, a prominent North American lending platform managing $1.4 billion in private credit assets. The purpose of this collaboration is to strengthen Runway's origination channels, expand capital availability and enhance investment solutions. Mount Logan's involvement will be facilitated through the issuance of $5 million in common shares. This deal, anticipated to close in the fourth quarter of 2024, aligns with Mount Logan's strategy to fortify its position in venture lending and diversify its private credit offerings. The management team and operations at Runway remain stable post-transaction. The acquisition underscores the growing opportunities within the North American credit markets, promising substantial synergies and growth in asset management capabilities for Mount Logan. Legal advisors for the deal include Wildeboer Dellelce LLP for Mount Logan and Simpson Thacher & Bartlett LLP for BC Partners.
Sectors
- Private Equity
- Credit and Lending Services
- Financial Advisory
- Asset Management
Geography
- Canada – Mount Logan Capital Inc. is based in Toronto, Canada, where part of the transaction originates.
- United States – Runway Growth Capital operates in the United States, where it provides financial loans to companies headquartered across the U.S.
- North America – The transaction and operations span across the North American market, targeting fast-growing companies in Canada and the U.S.
Industry
- Private Equity – The acquisition involves BC Partners, a private equity firm, taking a majority stake in Runway Growth Capital.
- Credit and Lending Services – Runway Growth Capital operates within the credit and lending industry, providing substantial loans to growth-stage companies.
- Financial Advisory – The involvement of legal and financial advisors such as Wildeboer Dellelce LLP and Oppenheimer & Co. Inc. highlights the advisory aspect of this transaction.
- Asset Management – Mount Logan's focus and strategic investment indicate a significant engagement in asset management, especially in private credit assets.
Financials
- $5 million – The amount Mount Logan is investing through the issuance of shares to acquire a minority stake in Runway Growth Capital.
- $1.4 billion – Value of Runway's management in private credit assets.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mount Logan Capital Inc. | Minority Stake Buyer | Company | A Toronto-based alternative asset management and insurance solutions company focused on private credit. |
| BC Partners Credit | Majority Stake Buyer | Company | The credit arm of BC Partners, an international investment firm involved in this strategic acquisition. |
| Runway Growth Capital LLC | Target Company | Company | A leading investment adviser providing growth loans to companies in North America. |
| Wildeboer Dellelce LLP | Legal Advisor | Company | Canadian legal counsel for Mount Logan in this transaction. |
| Simpson Thacher & Bartlett LLP | Legal Advisor | Company | Legal counsel to BC Partners for this transaction. |
| Oppenheimer & Co. Inc. | Financial Advisor | Company | Exclusive financial advisor to Runway Growth Capital LLC. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | Legal counsel to Runway Growth Capital LLC. |
| Eversheds Sutherland (US) LLP | Legal Advisor | Company | Legal counsel to the independent directors of Runway Growth Finance. |