Runway Growth Capital: A New Dawn with BC Partners Credit and Mount Logan Capital

The investment landscape is witnessing a significant shift with the recent acquisition of Runway Growth Capital by BC Partners Credit and Mount Logan Capital. This strategic move is set to reshape the venture ecosystem, bringing together the strengths of three prominent players to create a powerful synergy. Let's delve into the implications of this acquisition and explore the benefits it holds for investors and borrowers alike.

Runway Growth Capital, a leading provider of growth loans to both venture and non-venture-backed companies, has announced its acquisition by BC Partners Credit, the $8 billion credit arm of BC Partners, and Mount Logan Capital. This long-term, strategic investment complements BC Partners' existing platform across private lending, opportunistic credit, and specialty finance. The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

The acquisition of Runway Growth Capital by BC Partners Credit and Mount Logan Capital is expected to deliver increased value for both investors and borrowers in the near- and long-term. By joining the BC Partners Credit platform, Runway will gain access to BC Partners' origination capabilities and expansive platform, enabling it to capitalize on a broader range of investment and value creation opportunities. This access will allow Runway to expand its origination channels, enhance investment solutions, and accelerate capital formation and fundraising capabilities, ultimately strengthening the venture ecosystem.

Runway Founder and Chief Executive Officer David Spreng commented on the transaction, "This strategic partnership positions Runway to accelerate originations within our ideal investment range of $30-150 million and expand our offerings to both target companies and sponsors. The combination will enhance our capabilities by introducing structured equity preferred investments, asset-based lending, and the ability to operate in new strategies such as equipment leasing, while strengthening our sponsor relationships through fund finance and other fund-level offerings. By combining BC Partners' resources and scale with our network, expertise, and differentiated presence in the market, we believe Runway will deliver more comprehensive financing solutions for a wider range of companies."

Ted Goldthorpe, Head of BC Partners Credit, shared his enthusiasm for the acquisition, stating, "David and the team at Runway have built one of the most well-respected platforms across growth and venture lending. Their solutions are sought after by fast-growing companies, and we look forward to building on their momentum. As a virtue of being part of the BC Partners Credit platform, we see many compelling opportunities for Runway to generate additional origination activities, optimize its capital structure, and create value for investors and borrowers. Likewise, the acquisition is quite strategic for BC Partners Credit, as we expand our offerings through a robust suite of financing solutions to all stakeholders. We will continue to accelerate our growth trajectory, establishing BC Partners Credit as a best-in-class, fully diversified credit manager, serving a multi-trillion-dollar market with strong tailwinds."

In conclusion, the acquisition of Runway Growth Capital by BC Partners Credit and Mount Logan Capital is a strategic move that is expected to bring significant benefits to investors and borrowers. By combining the strengths of these three prominent players, the new entity will have access to more capital, expanded origination channels, and enhanced fundraising capabilities. This will enable Runway to offer more comprehensive financing solutions, tailored to the specific needs of borrowers, ultimately creating value for both investors and borrowers. As the acquisition closes in the fourth quarter of 2024, the venture ecosystem will witness a new dawn, marked by increased innovation, growth, and opportunity.