BC Partners Credit has announced its acquisition of Runway Growth Capital, a strategic move aimed at enhancing BC Partners' existing private lending and credit services. This acquisition will allow Runway to continue operating independently while serving as the external investment adviser to Runway Growth Finance, a publicly traded business development company. The current leadership and investment teams at Runway will remain intact.

The transaction is expected to broaden Runway's origination channels and improve its investment solutions, thereby accelerating capital formation and fundraising efforts. Runway specializes in providing growth loans to both venture-backed and non-venture-backed companies, offering an alternative to equity financing.

David Spreng, Founder and CEO of Runway, expressed optimism about the deal, stating it will create increased value for investors and borrowers. The partnership will enable Runway to enhance its offerings, including structured equity preferred investments and asset-based lending, while also exploring new strategies like equipment leasing. This collaboration is anticipated to provide more comprehensive financing solutions and greater investment opportunities for Runway's investors.

Ted Goldthorpe, Head of BC Partners Credit, praised Runway's established reputation in growth and venture lending. He highlighted the potential for increased origination activities and optimized capital structures as part of the BC Partners Credit platform. The acquisition is seen as a strategic move to expand BC Partners Credit's offerings and solidify its position as a diversified credit manager in a growing market.

The transaction is expected to close in the fourth quarter of 2024, pending customary closing conditions, including stockholder approval of a new investment advisory agreement. The Board of Directors of Runway Growth Finance has unanimously recommended that stockholders approve this agreement.

Oppenheimer & Co. Inc. is serving as the exclusive financial advisor for Runway Growth Capital, while various legal firms are providing counsel for both Runway and BC Partners.

Runway Growth Capital LLC, led by David Spreng, focuses on providing senior term loans ranging from $30 million to $150 million to fast-growing companies in the U.S. and Canada. BC Partners, a prominent international investment firm, has a diverse portfolio that includes private equity, private debt, and real estate strategies.