Runway Growth Capital Closes Acquisition by BC Partners Credit and Mount Logan Capital
Runway Growth Capital has completed its acquisition by BC Partners Credit and Mount Logan Capital. The transaction combines Runway's venture debt expertise with BC Partners Credit's $8 billion credit platform and Mount Logan Capital's alternative asset management capabilities. Runway will continue to operate independently and serve as the external investment adviser to Runway Growth Finance Corp. (RWAY), with the current management team remaining in place.
The deal aims to accelerate capital formation and diversify financing options. Runway will maintain its focus on providing growth loans in the $30-150 million range to venture and non-venture-backed companies. The combined entity will leverage BC Partners Credit's global scale and resources to expand investment capabilities and enhance financing solutions for high-growth companies in the venture debt and growth sectors.
Runway Growth Capital ha completato la sua acquisizione da parte di BC Partners Credit e Mount Logan Capital. La transazione combina l'expertise nel debito di venture di Runway con la piattaforma di credito da 8 miliardi di dollari di BC Partners Credit e le capacità di gestione di asset alternativi di Mount Logan Capital. Runway continuerà a operare in modo indipendente e fungerà da consulente per gli investimenti esterni di Runway Growth Finance Corp. (RWAY), mantenendo in posizione il team di gestione attuale.
L'accordo mira ad accelerare la formazione di capitale e diversificare le opzioni di finanziamento. Runway manterrà il suo focus nel fornire prestiti per la crescita nella fascia da 30 a 150 milioni di dollari a imprese sostenute e non sostenute da venture. L'entità combinata sfrutterà la scala globale e le risorse di BC Partners Credit per espandere le capacità di investimento e migliorare le soluzioni di finanziamento per le aziende ad alta crescita nei settori del debito di venture e della crescita.
Runway Growth Capital ha completado su adquisición por parte de BC Partners Credit y Mount Logan Capital. La transacción combina la experiencia en deuda de capital de riesgo de Runway con la plataforma de crédito de 8 mil millones de dólares de BC Partners Credit y las capacidades de gestión de activos alternativos de Mount Logan Capital. Runway continuará operando de manera independiente y actuará como asesor externo de inversiones para Runway Growth Finance Corp. (RWAY), con el equipo de gestión actual permaneciendo en su lugar.
El acuerdo tiene como objetivo acelerar la formación de capital y diversificar las opciones de financiamiento. Runway mantendrá su enfoque en proporcionar préstamos de crecimiento en el rango de 30 a 150 millones de dólares a empresas respaldadas y no respaldadas por capitales de riesgo. La entidad combinada aprovechará la escala y los recursos globales de BC Partners Credit para expandir las capacidades de inversión y mejorar las soluciones de financiamiento para empresas de alto crecimiento en los sectores de deuda de capital de riesgo y crecimiento.
Runway Growth Capital은 BC Partners Credit와 Mount Logan Capital에 의해 인수되었음을 완료했습니다. 이 거래는 Runway의 벤처 부채 전문성을 BC Partners Credit의 80억 달러 규모의 신용 플랫폼 및 Mount Logan Capital의 대체 자산 관리 능력과 결합합니다. Runway는 독립적으로 운영을 계속할 것입니다 및 Runway Growth Finance Corp. (RWAY)의 외부 투자 자문역을 맡으며 현재의 관리 팀은 그대로 유지됩니다.
이번 거래는 자본 형성과 자금 조달 옵션을 다양화하는 것을 목표로 하고 있습니다. Runway는 벤처 및 비벤처 기업에 대해 3천만에서 1억 5천만 달러 규모의 성장 대출을 제공하는 데 집중할 것입니다. 결합된 기관은 고성장 기업을 위한 벤처 부채 및 성장 분야의 투자 능력을 확장하고 자금 조달 솔루션을 향상시키기 위해 BC Partners Credit의 글로벌 규모와 자원을 활용할 것입니다.
Runway Growth Capital a achevé son acquisition par BC Partners Credit et Mount Logan Capital. La transaction combine l'expertise en dette de capital-risque de Runway avec la plateforme de crédit de 8 milliards de dollars de BC Partners Credit et les capacités de gestion d'actifs alternatifs de Mount Logan Capital. Runway continuera d'opérer de manière indépendante et agira en tant que conseiller en investissement externe pour Runway Growth Finance Corp. (RWAY), avec l'équipe de direction actuelle restant en place.
L'accord vise à accélérer la formation de capital et à diversifier les options de financement. Runway maintiendra son accent sur la fourniture de prêts de croissance dans une fourchette de 30 à 150 millions de dollars à des entreprises soutenues par des fonds de capital-risque ou non. L'entité combinée tirera parti de l'échelle mondiale et des ressources de BC Partners Credit pour étendre ses capacités d'investissement et améliorer les solutions de financement pour les entreprises à forte croissance dans les secteurs de la dette de capital-risque et de la croissance.
Runway Growth Capital hat seine Übernahme durch BC Partners Credit und Mount Logan Capital abgeschlossen. Die Transaktion kombiniert die Expertise von Runway im Bereich Risikokapitalverbindlichkeiten mit der 8 Milliarden Dollar großen Kreditplattform von BC Partners Credit und den Möglichkeiten zur alternativen Vermögensverwaltung von Mount Logan Capital. Runway wird weiterhin unabhängig operieren und als externer Anlageberater für Runway Growth Finance Corp. (RWAY) fungieren, wobei das derzeitige Management-Team an Ort und Stelle bleibt.
Der Deal zielt darauf ab, die Kapitalbeschaffung zu beschleunigen und die Finanzierungsmöglichkeiten zu diversifizieren. Runway wird sich weiterhin darauf konzentrieren, Wachstumsdarlehen im Bereich von 30 bis 150 Millionen US-Dollar an risikobehaftete und nicht-risikobehaftete Unternehmen bereitzustellen. Die kombinierte Einheit wird die globale Größe und die Ressourcen von BC Partners Credit nutzen, um die Investmentfähigkeiten auszuweiten und die Finanzierungslösungen für wachstumsstarke Unternehmen im Bereich der Risikokapitalverbindlichkeiten und des Wachstums zu verbessern.
- Access to BC Partners Credit's $8 billion credit platform and resources
- Enhanced ability to increase loan originations in $30-150 million range
- Expanded financing capabilities and investment options
- Retention of existing management team ensuring operational continuity
- None.
Insights
The acquisition of Runway Growth Capital by BC Partners Credit represents a transformative development in the venture debt landscape, creating a powerhouse that combines specialized expertise with institutional scale. This strategic integration merits careful analysis across multiple dimensions:
Strategic Positioning & Market Impact: The deal effectively creates a strengthened player in the $30-150 million venture debt segment, a sweet spot that historically has been underserved. By maintaining Runway's independent operations while leveraging BC Partners'
Operational Synergies & Growth Catalysts:
- Enhanced origination capabilities through BC Partners' global network and relationships
- Improved access to capital markets and funding sources
- Potential for product expansion and larger deal sizes
- Strengthened competitive position against both traditional banks and alternative lenders
Shareholder Implications: For RWAY investors, this transaction presents several positive elements: 1) Operational continuity through retention of key management 2) Enhanced institutional backing that could lower funding costs 3) Potential for accelerated portfolio growth through improved deal flow 4) Access to BC Partners' extensive resources while maintaining Runway's specialized focus.
Market Opportunity: The timing is particularly relevant given the current market environment where traditional venture capital has become more selective, creating increased demand for venture debt solutions. The combined platform is well-positioned to capitalize on this opportunity while maintaining disciplined underwriting standards.
- 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 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
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.
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
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
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.
Forward-Looking Statements
Some of the statements in this document constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to future operating results of Runway or Runway Growth Finance, and distribution projections; business prospects of Runway or Runway Growth Finance, and the prospects of Runway Growth Finance's portfolio companies; and the impact of the investments that Runway Growth Finance expects to make. In addition, words such as "anticipate," "believe," "expect," "seek," "plan," "should," "estimate," "project" and "intend" indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this document involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the future operating results and net investment income projections of Runway or Runway Growth Finance; (ii) the ability of Runway or Runway Growth Capital and their affiliates to attract and retain highly talented professionals; (iii) the business prospects Runway or Runway Growth Finance, and the prospects of Runway Growth Finance's portfolio companies; (iv) the impact of the investments that Runway Growth Finance expects to make; (v) the ability of the portfolio companies of Runway Growth Finance to achieve their objectives; (vi) the adequacy of the cash resources and working capital of Runway Growth Finance; (vii) the timing of cash flows, if any, from the operations of the portfolio companies of Runway Growth Finance; and (viii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities). The forward-looking statements included in this document are based on information available on the date hereof, and Runway and Runway Growth Finance assume no obligation to update any such forward-looking statements. Although Runway and Runway Growth Finance undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that Runway Growth Finance in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Important Disclosures
Investors considering an investment in Runway Growth Finance, the business development company advised by Runway, should carefully evaluate the investment objectives, investment strategies, and various risks of investing in Runway Growth Finance, which are not described in detail (or at all) in this document. Please see a detailed discussion of these risk factors and other related risks in Runway Growth Finance's most recent annual report on Form 10-K in the section entitled "Risk Factors", which may be obtained on Runway Growth Finance's website, www.runwaygrowth.com, or the SEC's website, www.sec.gov.
No Offer or Solicitation
This document is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this document is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in Runway Growth Finance or in any fund or other investment vehicle managed by Runway, BC Partners, or any of their affiliates
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SOURCE Runway Growth Capital LLC
FAQ
What is the strategic impact of BC Partners Credit's acquisition of Runway Growth Capital for RWAY shareholders?
How will the BC Partners Credit acquisition affect Runway's (RWAY) investment strategy?
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