Runway Growth Capital LLC has announced a strategic partnership with BC Partners Credit, which will enhance its operations while maintaining its independence. Runway will continue to serve as the external investment adviser to Runway Growth Finance Corp. (Nasdaq: RWAY), with its existing team remaining intact.
The collaboration aims to leverage BC Partners Credit's extensive resources and platform to diversify financing options for both investors and borrowers. This partnership is expected to accelerate capital formation and expand Runway's investment capabilities.
The transaction, which also involves Mount Logan Capital, was finalized on January 30, 2025. BC Partners Credit, managing approximately $8 billion in credit assets, and Mount Logan Capital, a Canadian alternative asset management firm, have acquired Runway Growth Capital. Under a new investment advisory agreement, Runway will continue advising private investment funds and Runway Growth Finance Corp.
Ted Goldthorpe, Head of BC Partners Credit, emphasized the benefits of combining Runway's expertise in venture debt with BC Partners' global scale. He noted that Runway's solutions are in high demand and expressed optimism about expanding investment capabilities from day one.
David Spreng, Founder and CEO of Runway, described the partnership as a significant milestone that aligns with Runway's vision of providing financing solutions to high-quality, late-stage, and growth-stage companies. He highlighted the potential for increased originations within their target investment range of $30-150 million and the opportunity to enhance financing capabilities for high-growth companies.
The partnership follows a definitive agreement announced in October 2024, and regulatory antitrust approvals are currently being processed. Runway is already collaborating with BC Partners Credit to share insights and bolster originations.
Oppenheimer & Co. Inc. served as the exclusive financial advisor to Runway Growth Capital, while Wachtell, Lipton, Rosen & Katz provided legal counsel to Runway. Eversheds Sutherland (US) LLP advised the independent directors of Runway Growth Finance, and Simpson Thacher & Bartlett LLP represented BC Partners.
BC Partners is a prominent international investment firm specializing in private equity, private debt, and real estate strategies. Its credit arm, BC Partners Credit, focuses on identifying attractive credit opportunities across various market environments. The firm utilizes its extensive industry resources to offer flexible financing solutions to middle-market companies in sectors such as Business Services, Industrials, and Healthcare.
Mount Logan Capital Inc. is an alternative asset management company that focuses on public and private debt securities in North America. It also engages in the reinsurance of annuity products through its subsidiaries. Mount Logan actively manages and invests in loans and debt securities that offer attractive risk-adjusted returns.
For more information, visit Runway's website at www.runwaygrowth.com and BC Partners at www.bcpartners.com/credit-strategy.
