Runway Growth Capital, a provider of growth loans to companies seeking alternatives to equity financing, has been acquired by private investment funds advised by BC Partners Credit and Mount Logan Capital.
BC Partners Credit, the $8bn credit arm of BC Partners, and Mount Logan, a Canadian alternative asset manager, finalised the transaction following a definitive agreement announced in October 2024.
As part of the deal, Mount Logan acquired the remaining minority stake in Runway through the issuance of $5m in its common shares, while BC Partners and its affiliates secured a majority investment.
BC Partners Credit head Ted Goldthorpe said: “Combining Runway’s expertise, network, and track record in venture debt with the global scale and resources of BC Partners Credit enables our combined firm to establish a diversified presence in the venture debt ecosystem.
“Runway’s solutions are in high demand.”
Following the acquisition, Runway will continue to operate as the investment adviser to private investment funds and Runway Growth Finance, a publicly traded business development company, under a new investment advisory agreement.
Runway’s existing officers, senior management, and investment team are expected to retain their roles.
Runway Growth Finance is expected to benefit from expanded investment opportunities and value creation strategies through BC Partners’ extensive origination capabilities and broader platform.
Runway founder and CEO David Spreng said: “Officially joining the BC Partners Credit platform marks an exciting new chapter for Runway and significantly contributes to our long-term vision of providing financing solutions to high quality, late and growth-stage companies.
“This transaction well positions Runway to increase originations within our target investment range of $30-150 million, expand our offerings to target companies and sponsors, and enhance our financing capabilities to support high-growth companies in the venture debt and growth sectors.
Oppenheimer & Co served as the exclusive financial adviser to Runway Growth Capital, while Wachtell, Lipton, Rosen & Katz provided legal counsel.
Eversheds Sutherland (US) acted as legal counsel to the independent directors of Runway Growth Finance, and Simpson Thacher & Bartlett advised BC Partners.
