Runway Growth Capital Forms Strategic Alliance with BC Partners
Runway Growth Capital LLC and BC Partners Credit have officially announced a significant strategic partnership. This union marks an important step for Runway, as BC Partners’ credit arm aims to acquire Runway Growth Capital, further fortifying their capabilities within the investment sector.
Continued Independence and Leadership
Regardless of the acquisition, Runway Growth Capital will retain its independence and continue to act as the external investment adviser for Runway Growth Finance, a publicly traded business development company. The current leadership team, including their exceptional investment professionals, will remain intact, ensuring a consistent vision and operational structure.
Enhancing Investment Solutions
This transaction is poised to expand origination channels significantly. By merging these two financial powerhouses, it sets the stage for enhanced investment solutions and accelerates capital formation. Runway Growth Capital is eager to leverage this occasion to fortify the venture ecosystem, delivering robust growth for all stakeholders involved.
Insight from Leadership
David Spreng, the Founder and CEO of Runway, remarked, "This alliance is designed to bolster our value proposition for investors and borrowers. Joining BC Partners will enable us to ramp up our originations within our targeted investment range of $30 million to $150 million. Additionally, our platform will now offer structured equity preferred investments and broaden our operational strategies to include asset-based lending and equipment leasing. By aligning with BC Partners, we believe we can unlock a host of valuable opportunities for our investors and facilitate increased access to diversified investment options."
BC Partners' Perspective
In his commentary, Ted Goldthorpe, Head of BC Partners Credit, expressed enthusiasm about the partnership. He stated, "The team at Runway has created one of the most respected platforms in the growth funding sector. Our collaboration will open doors for additional origination activities and capital structure optimization. This merger is not only beneficial for Runway but also enhances BC Partners Credit’s suite of offerings, reinforcing our position as a diversified credit manager serving a multi-trillion-dollar market."
Transaction Timeline and Conditions
As the deal awaits closure, it is essential to highlight that the transaction is anticipated to finalize in the fourth quarter of 2024. This closing is contingent upon customary conditions, including the approval of a new investment advisory agreement with Runway by the stockholders of Runway Growth Finance. The board unanimously recommends that stockholders approve the new agreement, which will allow Runway to continue providing investment advisory services.
Advisors on the Deal
For this strategic transaction, Oppenheimer & Co. Inc. is serving as the exclusive financial advisor for Runway Growth Capital. Legal support comes from prestigious firms, including Wachtell, Lipton, Rosen & Katz for Runway, and BC Partners is represented by Simpson Thacher & Bartlett LLP.
About Runway Growth Capital LLC
Runway Growth Capital LLC serves as an investment adviser for various funds, including Runway Growth Finance Corp. It primarily focuses on providing growth loans ranging from $30 million to $150 million to rapidly growing companies in North America. Runway is dedicated to offering innovative financing solutions that help businesses thrive without the necessity of conventional equity funding.
About Runway Growth Finance Corp.
Runway Growth Finance is a business development company concentrating on flexible financing options for growth-stage companies looking for alternatives to equity. Managed by Runway Growth Capital, this closed-end investment fund is designed to adhere to regulations outlined in the Investment Company Act of 1940.
About BC Partners
BC Partners is a global leader in investment management, specializing in private equity, private debt, and real estate strategies. Their credit division was launched in recent years and continues to unearth lucrative credit opportunities. By tapping into BC Partners’ extensive resources and industry knowledge, the firm aims to provide tailored financing solutions that meet the diverse needs of middle-market enterprises.
Frequently Asked Questions
What is the significance of the acquisition by BC Partners Credit?
The acquisition signifies a strategic partnership that will enhance investment solutions and broaden origination channels for Runway Growth Capital.
Will Runway Growth Capital maintain its operations independently?
Yes, Runway Growth Capital will continue to operate independently while serving as the external investment adviser to Runway Growth Finance.
How will this partnership benefit investors?
The partnership is expected to introduce more investment opportunities, greater diversification, and attractive risk-adjusted returns for investors.
What types of financing solutions will be expanded post-acquisition?
The acquisition will allow for structured equity preferred investments, asset-based lending, and new strategies like equipment leasing.
Who are the key figures leading this initiative?
David Spreng, the Founder and CEO of Runway, and Ted Goldthorpe, Head of BC Partners Credit, are the key leaders spearheading this strategic alliance.
