Runway Growth Capital LLC, a prominent provider of growth loans for venture and non-venture-backed companies, has been acquired by private investment funds advised by Bc Partners Credit, the credit arm of BC Partners, a major international investment firm managing approximately $40 billion in assets. Mount Logan Capital, an alternative asset management company managed by BC Partners Credit employees, also participated in the transaction as a minority investor. This strategic acquisition, finalized recently, marks a significant step for both firms, poised to expand their reach and capabilities within the dynamic venture debt landscape.
Runway Growth Capital will maintain its operational independence, continuing to act as the external investment advisor to Runway Growth Finance Corp. (Nasdaq: RWAY). The existing leadership team, including officers and senior management, is expected to remain in place, ensuring continuity and leveraging their established expertise in the sector. The acquisition allows Runway Growth Capital to tap into BC Partners Credit’s extensive platform, resources, and scale, which will be instrumental in accelerating capital formation and diversifying financing avenues for both investors and borrowers.
Ted Goldthorpe, Head of BC Partners Credit, emphasized the strategic alignment and synergistic potential of the acquisition. “Combining Runway’s specialized expertise, robust network, and proven track record in venture debt with the global scale and comprehensive resources of BC Partners Credit creates a powerful synergy. This combination allows our combined firm to establish a significant and diversified presence in the venture debt ecosystem. The demand for Runway’s tailored financing solutions is substantial, and we are excited to immediately expand Runway’s investment capabilities. We are confident that Runway will continue to generate strong returns for investors through carefully selected, attractive risk-adjusted investments.”
David Spreng, Founder and Chief Executive Officer of Runway, also expressed enthusiasm about the future direction. “Becoming part of the BC Partners Credit platform marks an exciting new phase of growth for Runway. This transaction is a significant leap forward in realizing our long-term vision of delivering sophisticated financing solutions to exceptional, late and growth-stage companies. With the backing of BC Partners Credit, Runway is ideally positioned to increase origination volume within our target investment range of $30-150 million. We can broaden our offerings to serve a wider array of companies and sponsors, and strengthen our financing capabilities to effectively support high-growth companies in the venture debt and broader growth sectors. The integration process with BC Partners Credit is already well underway following regulatory approvals, and we are actively sharing insights and leveraging combined capabilities to enhance origination efforts. We believe Runway is now exceptionally well-positioned for substantial growth, offering more comprehensive solutions for borrowers and benefiting from a strengthened team that extends our network of venture capital and private equity sponsors.”
The definitive agreement between Runway and BC Partners Credit was initially announced in October 2024, paving the way for this finalized acquisition. Interested parties can find further details and investor-related materials on Runway’s website.
About BC Partners and BC Partners Credit
BC Partners stands as a leading international investment firm, with a diverse portfolio spanning private equity, private debt, and real estate strategies. BC Partners Credit, launched in 2017, concentrates on identifying compelling credit investment opportunities across various market conditions, often focusing on complex and underserved market segments. The platform leverages BC Partners’ extensive industry expertise and operational resources to deliver flexible financing solutions to middle-market companies operating across sectors like Business Services, Industrials, Healthcare, and other carefully selected industries. More detailed information is available on the BC Partners website.
About Mount Logan Capital Inc.
Mount Logan Capital Inc. is an alternative asset management and insurance solutions company focused on public and private debt securities within the North American market. It also engages in the reinsurance of annuity products. Mount Logan Capital actively manages and invests in loans, debt securities, and other credit-oriented instruments, aiming for attractive risk-adjusted returns while prioritizing capital preservation throughout credit cycles.
About Runway Growth Capital LLC
Runway Growth Capital LLC serves as the investment advisor to various investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY), a business development company, and other private funds. These funds specialize in providing growth capital to companies seeking alternatives to equity financing. Under the leadership of industry veteran David Spreng, Runway funds offer senior term loans, typically ranging from $30 million to $150 million, to rapidly expanding companies based in the United States and Canada. Additional details about Runway Growth Capital LLC and its platform can be found on their website.
About Runway Growth Finance Corp.
Runway Growth Finance is a specialty finance company dedicated to offering flexible capital solutions to late-stage and growth-stage companies looking beyond equity financing. Runway Growth Finance operates as a closed-end investment company, regulated as a business development company. It is externally managed by Runway Growth Capital LLC, a registered investment advisor established in 2015 under the leadership of David Spreng. Further details are available on the Runway Growth Finance Corp. website.
This acquisition signifies a strategic alignment that strengthens both BC Partners Credit’s and Runway Growth Capital’s positions in the financial market, particularly within the venture debt sector. The combined entity is expected to offer enhanced services and broader financing capabilities, benefiting both investors and high-growth companies seeking capital.
