The fireside chat, hosted by Giovanni Amodeo, featured Ted Goldthorpe, Head of Credit at BC Partners, and David Spreng, Founder at Runway Growth Capital. The discussion centered on the outlook for private credit in 2025, with a focus on industry consolidation and strategic acquisitions.

Backgrounds:

• Ted Goldthorpe: Head of Credit at BC Partners, overseeing a business with over $10 billion in assets, specializing in originated credit across various sectors.
• David Spreng: Founder of Runway Growth Capital, a leading player in growth lending and venture debt, providing loans to fast-growing, mostly private companies.

Key Topics Discussed:

Industry Consolidation:

• Drivers of Consolidation: Scale and complementarity of offerings are primary drivers. Ted emphasized the strategic nature of their recent acquisition of Runway Growth Capital.
• Strategic Fit: The acquisition provides BC Partners with a key position in the venture space, enhancing their ability to offer a broader range of financial solutions.

Acquisition Strategy:

• Strategic vs. Financial Transactions: Ted highlighted that some acquisitions are driven by financial reasons, while others, like the acquisition of Runway Growth Capital, are strategic.
• Cultural Fit: Both Ted and David stressed the importance of cultural alignment and shared business philosophies in making the acquisition successful.

Market Trends:

• Growth in Private Credit: The discussion touched on the increasing demand for private credit, particularly in the technology sector and amidst macroeconomic changes.
• Impact of Silicon Valley Bank Collapse: The collapse has increased the demand for capital in the venture space, presenting opportunities for growth.

Future Outlook:

• Products and Services: Ted and David discussed the potential for offering a wider range of products, including NAV lending, equipment finance, and GP loans.
• Investor Expectations: The conversation also covered how investor demands for diverse financial solutions drive the need for strategic acquisitions.

Challenges and Opportunities:

• Underwriting Expertise: Ted acknowledged the superior underwriting capabilities of David’s team, which complements BC Partners’ strengths.
• Market Timing: David noted the perfect timing of the acquisition, given the current market conditions and the strategic fit between the two companies.

Alignment and Integration:

• Team Integration: Both leaders emphasized the seamless integration of their teams and the importance of maintaining alignment in compensation and deal flow.
• Future Collaborations: The acquisition allows both companies to leverage each other’s strengths, providing larger loans and more comprehensive solutions to clients.

Conclusion:The fireside chat provided valuable insights into the strategic considerations behind industry consolidation and the future of private credit. Ted Goldthorpe and David Spreng’s discussion highlighted the importance of cultural fit, strategic alignment, and the growing demand for diverse financial solutions in the evolving landscape of private credit.

Key timestamps:

00:08 Introduction to the Fireside Chat
00:48 Background of the Guests
01:57 Discussion on Industry Consolidation
04:05 Investor Influence on Consolidation
05:18 Choosing the Right Partner
07:45 Assessing Platform Value Post-Acquisition
09:19 Identifying Skills and Capabilities Needed
10:28 Market Reaction to the Acquisition
11:55 Expanding Product Offerings
13:30 Creating Alignment Between Teams
16:48 Market Trends and Future Consolidation
18:41 Challenges of Scaling in Investment Firms
19:38 Growing Demand for Alternative Investments
21:03 Evolution of Private Credit Markets
22:40 Shift in Market Share from Banks
23:17 Future Product Outlook
24:44 Macroeconomic Risks and Concerns
26:24 Conclusion and Closing Remarks