Mount Logan Capital’s wholly owned registered investment adviser, Mount Logan Management, (MLM), has entered into a definitive agreement to become the new investment adviser to the AFA Asset Based Lending Fund. In connection with the transaction, MLM and Alternative Fund Advisors (AFA), the fund’s current investment adviser, have entered into an asset purchase agreement (APA) pursuant to which MLM will acquire certain business records, intellectual property and goodwill of AFA related to the management of the Fund.
The fund will be MLM’s second evergreen credit interval fund, complementing MLM’s Opportunistic Credit Interval Fund. Together, the two funds establish a scaled product suite for the private wealth channel, spanning asset-based specialty finance and opportunistic corporate credit.
Upon closing, the fund will be renamed Mount Logan Asset Based Lending Fund. It will continue to provide access to a broadly diversified range of asset-based lending and specialty finance credits. Fund shareholders are expected to benefit from MLM’s scale, resources and extensive in-house origination capability. The fund manages approximately $230 million in assets from a wide range of investors, particularly those interested in diversifying their fixed income portfolios.
The transaction will bring MLM’s combined interval fund assets to approximately $460 million. Mount Logan currently expects the transaction will be immediately accretive to FRE upon closing.
“This is a significant milestone in the build-out of Mount Logan’s evergreen credit platform and reflects our continued discipline in acquiring permanent and semi-permanent capital vehicles,” Ted Goldthorpe, CEO of Mount Logan, said. “The fund broadens MLM’s core products, extends our distribution reach in the private wealth channel and is highly complementary to our Opportunistic Credit Interval Fund. It also provides a differentiated, institutionally managed asset-based lending strategy that leverages the credit sourcing and underwriting capabilities of the broader Mount Logan and BC Partners Credit platform.”
Marco Hanig, CEO of AFA, added, “We are excited about this next phase in the evolution of the AFA Asset Based Lending Fund. We expect the resources and investment expertise of the Mount Logan platform to enhance the Fund’s strategy through direct origination alongside third-party origination channels. We look forward to partnering with Ted and the Mount Logan team in the fund’s next phase of growth.”
Dechert is serving as legal counsel to Mount Logan. Faegre Drinker Biddle & Reath is serving as legal counsel to the AFA Asset Based Lending Fund and its Board of Trustees. Reitler Kailas & Rosenblatt is serving as legal counsel and Berkshire Global Advisors is serving as financial advisor to AFA.
