On October 31, 2024, Mount Logan Capital Inc. agreed to acquire a minority stake in Runway Growth Capital LLC for $5 million in Mount Logan common shares, in conjunction with BC Partners Credit’s majority acquisition. Runway Growth Capital, a prominent provider of growth loans to venture and non-venture-backed companies, manages funds including Runway Growth Finance Corp., a business development company.

The $5 million transaction aims to expand Mount Logan’s credit portfolio, leveraging Runway’s expertise in private credit and growth lending. BC Partners Credit, the $8 billion credit arm of BC Partners, joins as a majority stakeholder, aligning with Mount Logan to provide enhanced capital solutions across North America.

The transaction is set to close in Q4 2024, pending customary conditions and stockholder approval of a new advisory agreement for Runway Growth Finance. Legal advisors included Wildeboer Dellelce LLP for Mount Logan, Simpson Thacher & Bartlett LLP for BC Partners, and Wachtell, Lipton, Rosen & Katz for Runway. Eversheds Sutherland (US) LLP advised Runway Growth Finance’s independent directors, while Oppenheimer & Co. Inc. served as Runway’s exclusive financial advisor.

Mount Logan expects to benefit strategically from Runway’s robust lending platform without changes to Runway’s management or operations. This acquisition strengthens Mount Logan’s position as a diversified private credit manager and enhances access to North American credit markets, providing additional investment opportunities and portfolio diversification.