Marlton Partners: Source Capital's Merger Proposal Offers TURN Shareholders a Path to Value

Marlton Partners, owning 4.6% of 180 Degree Capital Corp (NASDAQ: TURN), has publicly supported Source Capital's (NYSE: SOR) merger proposal, valuing TURN at 101% of its net asset value per share. Marlton's nomination of independent candidates for TURN's Board, including James Elbaor, Gabi Gliksberg, and Aaron Morris, reflects their concerns about TURN's chronic underperformance and large discount to net asset value (Marlton Partners, 2024). The proposed merger with SOR addresses these concerns by offering a premium valuation, reduced expenses, improved liquidity, and potentially enhanced performance (Source Capital, 2025).

The proposed merger between 180 Degree Capital Corp (TURN) and Source Capital (SOR) aligns with Marlton Partners' investment philosophy, which favors stability, predictability, and consistent growth. The premium valuation at 101% of NAV, dramatic cost reduction with an expense ratio dropping from 8.3% to 0.93%, access to regular income through Source's 5.9% distribution rate, and enhanced liquidity with a market cap increasing from $38M to $390M all contribute to enhanced shareholder value (Source Capital, 2025).



Marlton's support for the merger highlights the potential benefits for TURN shareholders, as the combined entity's increased market capitalization, improved liquidity, access to income, and reduced expenses could all contribute to enhanced shareholder value. The presence of multiple offers creates a competitive dynamic that could benefit shareholders, with Marlton's 4.6% ownership stake and director nominations adding significant pressure on the board to maximize shareholder value. If the board fails to act in the best interests of shareholders, they may face a proxy contest or other challenges from Marlton and other shareholders.

The proposed merger with Source Capital has the potential to influence the dynamics of the upcoming annual meeting and the board's fiduciary duties by creating a competitive landscape that encourages the board to maximize shareholder value. The board must now carefully evaluate all strategic alternatives and engage with shareholders to ensure they are acting in the best interests of the company and its stakeholders.

In conclusion, Marlton Partners' support for Source Capital's merger proposal offers TURN shareholders a path to value, with potential benefits including premium valuation, reduced expenses, improved liquidity, and access to income. The competitive dynamic created by multiple offers encourages the board to maximize shareholder value, with the upcoming annual meeting and the board's fiduciary duties likely to be influenced by the proposed merger.