180 Degree Capital and Mount Logan Capital: A Merger for Growth and Synergy

In a strategic move to create a leading alternative asset management and insurance solutions platform, 180 Degree Capital Corp. (Nasdaq: TURN) and Mount Logan Capital Inc. (Cboe Canada: MLC) have announced their intention to merge in an all-stock transaction. The combined entity, Mount Logan Capital Inc., will have over $2.4 billion in assets under management, positioning it as a significant player in the financial services sector.

The merger brings together two companies with complementary strengths and a shared vision for growth. Mount Logan Capital, a premier credit asset manager, will benefit from 180 Degree Capital's track record of investing in public markets and its deep network of relationships. This synergy will enable Mount Logan to expand its bespoke private credit solutions into publicly traded companies, opening up new growth opportunities.

180 Degree Capital, on the other hand, will gain access to Mount Logan's regulated insurance solutions business, which has $1.1 billion in total assets. This addition will provide 180 Degree Capital shareholders with exposure to a new, stable revenue stream, while also enhancing the combined company's ability to offer comprehensive financial solutions to its clients.



The combined company will be led by Ted Goldthorpe, the current CEO of Mount Logan Capital, who will assume the role of CEO of the merged entity. The new Mount Logan Capital Inc. is expected to pay quarterly dividends, subject to board approval, further enhancing shareholder value.

The merger has received strong support from shareholders, with approximately 23% of Mount Logan and 20% of 180 Degree Capital shareholders signing voting agreements in favor of the transaction. Additionally, an additional 9% of Mount Logan and 7% of 180 Degree Capital shareholders have provided written non-binding indications of support.

The combined company's strong pro forma balance sheet will support investment into a highly actionable pipeline of organic and inorganic growth opportunities across both asset management and insurance solutions businesses. This strategic combination will create alignment among all shareholders, who will now share in the upside of a larger company aligned towards two of the fastest growing segments in the financial services space.

In conclusion, the merger of 180 Degree Capital and Mount Logan Capital is a transformative transaction that will create a powerful alternative asset management and insurance solutions platform. By leveraging the strengths of both companies and combining their complementary expertise, the new Mount Logan Capital Inc. is well-positioned to drive significant strategic and financial benefits in the immediate and longer-term future.