Mount Logan Capital Completes Strategic Minority Investment in Runway Growth Capital

Mount Logan Capital Inc. (Cboe Canada: MLC) has successfully completed its strategic minority investment in Runway Growth Capital LLC (Runway), a leading provider of growth loans to both venture and non-venture-backed companies. This strategic partnership aligns with Mount Logan's investment philosophy, focusing on stable, predictable, and consistent growth. The transaction is expected to create value for both investors and borrowers by expanding origination channels, diversifying financing solutions, and enhancing sponsor relationships.

Runway, led by industry veteran David Spreng, specializes in providing senior term loans of $30 million to $150 million to fast-growing companies based in the United States and Canada. This focus on late-stage growth platforms complements Mount Logan's existing credit offerings and enhances its credit capabilities. By partnering with Runway, Mount Logan gains access to a new vertical in the private credit market, namely venture lending, further diversifying its private credit fund offerings.

The combination of Mount Logan, BC Partners, and Runway is expected to create value for investors and borrowers through several strategic initiatives and opportunities for growth. By joining forces, the combined entity will have access to a broader range of capital sources and origination channels, enabling them to provide more financing solutions to borrowers. This expanded capital availability will allow Runway to increase its originations within its target investment range of $30-150 million and expand its offerings to both target companies and sponsors.

The combination will also introduce new financing solutions, such as structured equity preferred investments, asset-based lending, and equipment leasing, to cater to a wider range of companies' needs. This diversification will enable the combined entity to support high-growth companies in the venture debt and growth sectors more effectively.

The strategic minority investment in Runway is expected to create value for investors and borrowers by expanding origination channels, diversifying financing solutions, enhancing sponsor relationships, optimizing capital structures, and leveraging the expertise of a best-in-class manager. By aligning with Runway, Mount Logan will be better positioned to support high-growth companies and generate attractive risk-adjusted returns for investors.

In conclusion, Mount Logan Capital's strategic minority investment in Runway Growth Capital is a testament to the company's commitment to stable, predictable, and consistent growth. This partnership will enable Mount Logan to expand its credit capabilities, diversify its private credit fund offerings, and create value for both investors and borrowers. As the combined entity continues to grow and innovate, it will remain focused on delivering attractive risk-adjusted returns to its investors while maintaining a stable and consistent growth trajectory.