BC Partners has reached a definitive agreement to buy Runway Growth Capital in a deal expected to close before the end of the year. Terms weren’t disclosed.
BC Partners, a New York-based firm with $40 billion assets under management, will acquire Runway through its credit arm, BC Partners Credit ($8 billion AUM), according to an agreement announced 31 October. Runway Growth has a total AUM of $1.46 billion, according to affiliate publication Private Debt Investor research.
Founded in 2015 and headquartered in Menlo Park, California, Runway focuses on what it calls “growth lending.” Asked to explain that term (as distinct from “venture debt”), Runway Growth founder David Spreng said in an interview with PDI: “Traditionally, venture debt refers to loans for early-stage companies, while Runway focuses almost exclusively on late and growth-stage companies, aligning with our approach to take on less risk.”
In a statement, Ted Goldthorpe, head of BC Partners Credit, said the acquisition is strategic for the parent firm “as we expand our offerings through a robust suite of financing solutions to all stakeholders [and] continue to accelerate our growth trajectory.” The move will diversify the credit arm to compete in a multi-trillion dollar market with strong tailwinds.
The deal, Spreng noted, “came out of six months of talks: BC was clearly an ideal partner for us.”
The agreement arrives on the heels of another deal in which BC Partners formed an alliance with Piper Sandler for direct lending to regional banks and insurance companies. The common denominator may simply be that in each case, BC is buying into bodies of existing successful expertise.
Runway Growth will continue to operate independently, serving as the external investment adviser to Runway Growth Finance, a publicly traded BDC. Existing leadership and investment teams will remain.
The parties say that the deal will expand origination channels, enhance investment offerings and accelerate capital formation as Runway Growth looks to strengthen the venture ecosystem.
BC Partners has reached a definitive agreement to buy Runway Growth Capital in a deal expected to close before the end of the year. Terms weren’t disclosed.
BC Partners, a New York-based firm with $40 billion assets under management, will acquire Runway through its credit arm, BC Partners Credit ($8 billion AUM), according to an agreement announced 31 October. Runway Growth has a total AUM of $1.46 billion, according to affiliate publication Private Debt Investor research.
Founded in 2015 and headquartered in Menlo Park, California, Runway focuses on what it calls “growth lending.” Asked to explain that term (as distinct from “venture debt”), Runway Growth founder David Spreng said in an interview with PDI: “Traditionally, venture debt refers to loans for early-stage companies, while Runway focuses almost exclusively on late and growth-stage companies, aligning with our approach to take on less risk.”
In a statement, Ted Goldthorpe, head of BC Partners Credit, said the acquisition is strategic for the parent firm “as we expand our offerings through a robust suite of financing solutions to all stakeholders [and] continue to accelerate our growth trajectory.” The move will diversify the credit arm to compete in a multi-trillion dollar market with strong tailwinds.
The deal, Spreng noted, “came out of six months of talks: BC was clearly an ideal partner for us.”
The agreement arrives on the heels of another deal in which BC Partners formed an alliance with Piper Sandler for direct lending to regional banks and insurance companies. The common denominator may simply be that in each case, BC is buying into bodies of existing successful expertise.
Runway Growth will continue to operate independently, serving as the external investment adviser to Runway Growth Finance, a publicly traded BDC. Existing leadership and investment teams will remain.
The parties say that the deal will expand origination channels, enhance investment offerings and accelerate capital formation as Runway Growth looks to strengthen the venture ecosystem.
