Runway Growth Capital will continue its independent operations and advisory role to Runway Growth Finance Corp. (Nasdaq: RWAY), maintaining its current leadership team.
This strategic acquisition allows Runway Growth Capital to leverage BC Partners Credit’s extensive resources, platform, and scale, enhancing capital formation and diversifying financing solutions for both investors and borrowers.
MENLO PARK, Calif. and NEW YORK, Jan. 30, 2025 /PRNewswire/ — Runway Growth Capital LLC (“Runway”), a premier provider of growth loans for venture and non-venture-backed companies seeking alternatives to equity financing, has been acquired by private investment funds advised by BC Partners Credit, the $8 billion credit division of BC Partners, a major alternative investment firm with approximately $40 billion in assets under management. Mount Logan Capital, a Canadian alternative asset management firm managed internally by BC Partners Credit employees, also participated in the transaction through a minority investment.
The acquisition marks a significant step for both firms, combining Runway’s specialized expertise in venture debt with the global platform of BC Partners Credit. Runway will continue to operate as the investment adviser to its private investment funds and Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth Finance”), a publicly-traded business development company, under a new advisory agreement. Crucially, Runway’s existing officers, senior management, and investment team are expected to remain in their current roles, ensuring continuity and expertise.
Ted Goldthorpe, Head of BC Partners Credit, emphasized the strategic rationale behind the acquisition: “Bringing together Runway’s deep understanding of the venture debt landscape, their established network, and proven track record with the global reach and robust resources of BC Partners Credit creates a powerful synergy. This combination allows our combined entity to establish a significant and diversified presence within the venture debt ecosystem. The demand for Runway’s tailored financing solutions is strong, and we are excited to immediately expand Runway’s investment capabilities and support their continued success in generating attractive, risk-adjusted returns for investors.”
David Spreng, Founder and Chief Executive Officer of Runway, also commented on the positive future outlook: “Becoming part of the BC Partners Credit platform represents an exciting new phase for Runway and strongly supports our long-term vision. This transaction significantly enhances our ability to provide crucial financing solutions to high-caliber, late-stage, and growth-oriented companies. With the backing of BC Partners Credit, Runway is ideally positioned to increase our origination volume within our target investment range of $30 to $150 million. We can broaden our offerings to reach a wider range of companies and sponsors and strengthen our financing capabilities to better serve the high-growth venture debt and growth sectors. The integration process with BC Partners Credit is already progressing smoothly, and we are actively leveraging shared insights and capabilities to further enhance our origination efforts. We are confident that Runway is now poised for accelerated growth, offering even greater value to borrowers and supported by a stronger team and an expanded network of venture capital and private equity sponsors.”
The definitive agreement between Runway and BC Partners Credit was initially announced in October 2024. Further details for investors can be found on the Runway website at www.runwaygrowth.com.
Advisors Involved in the Transaction
Oppenheimer & Co. Inc. served as the exclusive financial advisor for Runway Growth Capital LLC. Legal counsel for Runway Growth Capital LLC was provided by Wachtell, Lipton, Rosen & Katz, while Eversheds Sutherland(US) LLP acted as legal counsel to the independent directors of Runway Growth Finance. BC Partners received legal counsel from Simpson Thacher & Bartlett LLP.
About BC Partners & BC Partners Credit: Leaders in Global Investment
BC Partners is a leading international investment firm operating across private equity, private debt, and real estate strategies. Established in 1986, BC Partners has built a strong reputation for identifying and growing successful businesses, working in close partnership with management teams to create value. With a global perspective and a strong European heritage, BC Partners leverages its deep industry expertise and operational resources to support its portfolio companies.
BC Partners Credit, launched in February 2017, is the dedicated credit investment arm of BC Partners. Focusing on attractive credit opportunities across market cycles, BC Partners Credit specializes in complex market segments and provides flexible financing solutions to middle-market companies. Their investment approach benefits from the broader BC Partners platform, drawing upon extensive industry knowledge and operational capabilities, particularly within sectors such as Business Services, Industrials, and Healthcare. For more information, please visit www.bcpartners.com/credit-strategy.
About Mount Logan Capital Inc.: An Alternative Asset Management Firm
Mount Logan Capital Inc. is an alternative asset management and insurance solutions company focused on generating attractive returns through investments in North American public and private debt securities and reinsurance of annuity products. The company operates through its subsidiaries, Mount Logan Management LLC (“ML Management”) and Ability Insurance Company (“Ability”). Mount Logan actively manages and invests in loans, debt securities, and other credit instruments, aiming for strong risk-adjusted returns while prioritizing capital preservation throughout economic cycles. ML Management, formed in 2020, is a registered investment adviser with the SEC. Ability Insurance, acquired in 2021, is a Nebraska-based insurer and reinsurer specializing in long-term care and annuity products.
About Runway Growth Capital LLC: Specialists in Growth Loans
Runway Growth Capital LLC is the investment adviser behind investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY), a business development company, and other private funds. These funds are dedicated to providing growth capital to companies seeking alternatives to equity financing. Under the leadership of industry veteran David Spreng, Runway focuses on providing senior term loans, typically ranging from $30 million to $150 million, to rapidly expanding companies in the United States and Canada. Runway’s expertise lies in understanding the unique financing needs of growth-stage companies and delivering tailored capital solutions to fuel their continued expansion. Further details about Runway Growth Capital LLC and its platform can be found at www.runwaygrowth.com.
About Runway Growth Finance Corp.: Providing Flexible Capital Solutions
Runway Growth Finance Corp. is a specialty finance company committed to offering flexible capital solutions to late- and growth-stage companies looking beyond traditional equity financing. As a closed-end investment company regulated as a business development company under the Investment Company Act of 1940, Runway Growth Finance plays a crucial role in supporting the growth of innovative companies. Externally managed by Runway Growth Capital LLC, Runway Growth Finance benefits from the established expertise and leadership of David Spreng and his team. For additional information, please visit www.runwaygrowth.com.
Forward-Looking Statements and Important Disclosures
This announcement contains forward-looking statements that involve risks and uncertainties, as they pertain to future events, performance, or financial conditions. These statements may include projections regarding the future operating results of Runway or Runway Growth Finance, distribution forecasts, business prospects, and the anticipated impact of Runway Growth Finance’s investments. Words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project,” and “intend” are indicative of forward-looking statements. Actual results may differ materially due to various factors, including but not limited to: future operating results and net investment income, the ability to attract and retain talent, business prospects, investment impacts, portfolio company performance, adequacy of cash resources, timing of cash flows, and changes in laws or regulations. Runway and Runway Growth Finance undertake no obligation to update these forward-looking statements.
Investors considering Runway Growth Finance should carefully review its investment objectives, strategies, and risks, as detailed in Runway Growth Finance’s most recent annual report on Form 10-K, available on www.runwaygrowth.com and the SEC’s website, www.sec.gov.
No Offer or Solicitation
This announcement is for informational purposes only and does not constitute a prospectus, advertisement, or an offer to sell or solicit offers to purchase securities in Runway Growth Finance or any fund managed by Runway, BC Partners, or their affiliates.
SOURCE Runway Growth Capital LLC
