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TORONTO, July 5, 2023 (GLOBE NEWSWIRE) — Mount Logan Capital Inc. announced. (NEO: MLC) (“Mount Logan”, “our”, “we” or “the Company”) today that it has completed its previously announced transaction with Ovation Partners, LP (“Ovation”) to manage Ovation’s alternative income platform focused on investments in commercial lending, real estate lending, consumer finance, and litigation finance.
Highlights
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- Mount Logan Management LLC, a wholly owned subsidiary of Mount Logan Corporation (“ML Management”) now acts as advisor to the Alternative Income Platform, which focuses on investments in commercial lending, real estate lending, consumer finance and litigation finance.
- As previously announced, some Ovation employees have already transitioned to work under ML management, and in conjunction with the closure, some additional Ovation employees have become employees of ML management which concludes the transition of Ovation employees to ML management.
- At closing, Mount Logan issued to Ovation a total of 3,186,398 common shares of Mount Logan at an estimated price of C$2.83.
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Management comment
- Ted Goldthorpe, CEO and Chairman of Mount LoganHe said, “We are excited to announce the closing of this significant transaction for the Mount Logan platform. With this transaction, Mount Logan adds another specialized credit investment strategy to our already diverse portfolio of funds and expands our team and our ability to grow. This transaction benefits existing investors in Ovation, which is Very strategic for Mount Logan and increases the revenue generated from our management fee streams, in line with our stated growth targets.”
- Mike Rovner, Managing Partner, Ovation He added, “We are excited to officially join the Mount Logan platform. We believe this transaction enables the alternative income platform to grow and enhance the performance of the core portfolio while leveraging Mount Logan’s resources, scale and access.”
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About Mount Logan Capital Inc.
Mount Logan Capital, Inc. is an alternative asset management and insurance solutions company focused on public and private debt securities in the North American market and reinsurance of premium products through its wholly owned subsidiaries ML Management and Ability Insurance Company (“Ability”). The Company actively originates, evaluates, subscribes to, manages, monitors and invests in loans, debt securities and other credit instruments that offer attractive risk-adjusted returns and provide a low risk of capital impairment throughout the credit cycle.
Ability Insurance is a Nebraska-based insurer and reinsurer of long-term care policies that Mount Logan acquired in the fourth quarter of fiscal year 2021. Ability is unique in the insurance industry in that the morbidity risk in its long-term care portfolio is largely reinsured. to third parties, and Ability no longer insures or reinsures new long-term care risks.
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About Ovation Partners
Ovation Partners is an investment manager offering diversified portfolios of private credit investments in the specialist finance market. Formed in 2011, Ovation has invested more than $1.9 billion in specialized financial and real estate assets that it believes traditional banks and asset managers have largely ignored. Ovation seeks to preserve capital and provide income distributions.
Cautionary statement regarding forward-looking statements
This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions “seeks,” “expects,” “believes,” “estimates,” “will,” “goal,” and similar expressions. Forward-looking statements are not historical facts but reflect the Company’s current expectations regarding future results or events and are based on information currently available to it. Certain material factors and assumptions have been applied in making these forward-looking statements. The forward-looking statements discussed in this release include, but are not limited to, statements regarding the Company’s business strategy, model, approach and future activities; Portfolio composition, size and performance, asset management activities and related revenue, capital raising activities, future credit opportunities for the company, portfolio realization, protecting stakeholder value, expanding the company’s loan portfolio, including through the addition of the Ovations alternative investment platform to the Mount Logan platform Potential benefits of combining the Mount Logan platform with Ovation and expected growth and increased revenue. All forward-looking statements made in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions; However, the Company cannot provide any assurance that actual results or developments will be achieved on specific dates or at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including that anticipated synergies of a potential transaction with Ovation may not materialize as anticipated; the risk that the Company may not be successful in integrating the acquired business without significant use of the Company’s resources and management interest; The risk that the acquired business may require a significant investment in capital and other resources in order to expand and grow the business; The Company has limited operating history in relation to the asset management oriented business model and issues discussed under “Risk Factors” in the Company’s most recent Annual Information Submission and Management Discussion and Analysis. Therefore, readers should not place undue reliance on any of these forward-looking statements. Further, the forward-looking statement speaks only as of the date this statement was made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are being made as of the date of this press release.
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This press release is not, and under no circumstances can be construed as a prospectus or advertisement, and the sending of this release is not, and under no circumstances can it be construed as an offer to sell or an offer to buy any securities in the Company or in any Fund or other investment vehicle. This press release is not intended for US persons. The Company’s shares are not registered under the United States Securities Act of 1933, as amended, and the Company is not registered under the United States Investment Corporation Act of 1940 (the “1940 Act”). U.S. persons are not permitted to purchase Company stock if there is no applicable exemption from registration under each of these laws. In addition, the number of investors in the United States, U.S. Persons or purchasing for the account or benefit of U.S. Persons, will be limited to the number required to comply with the available exemption from the 1940 registration requirements represents.
Contacts:
Mount Logan Capital Corporation
365 Bay Street, Suite 800
Toronto, ON M5H 2V1
Jason Ross
Chief Financial Officer
Jason.Roos@mountlogancapital.ca
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