Mount Logan Management LLC has signed a definitive agreement to replace Alternative Fund Advisors, LLC as the investment adviser for the AFA Asset Based Lending Fund. The move brings Mount Logan's interval fund assets under management to approximately $460 million, a figure the company expects to be immediately accretive to its fee revenue once the deal closes.
The transaction involves Mount Logan's wholly owned registered investment adviser, Mount Logan Management LLC, acquiring certain business records, intellectual property, and goodwill from Alternative Fund Advisors. This acquisition will allow the fund to continue its focus on asset-based and specialty finance investing while gaining access to a larger asset management platform. The fund, which currently manages approximately $230 million in assets, is expected to be renamed the Mount Logan Asset Based Lending Fund upon closing.
Ted Goldthorpe, CEO of Mount Logan Capital Inc., described the deal as a significant milestone in building out the company's evergreen credit platform. He noted that the fund complements the existing Opportunistic Credit Interval Fund, creating a scaled product suite for the private wealth channel that spans asset-based specialty finance and opportunistic corporate credit. Goldthorpe stated that the strategy leverages the credit sourcing and underwriting capabilities of the broader Mount Logan and BC Partners Credit platform.
Marco Hanig, CEO of Alternative Fund Advisors, expressed excitement about the next phase for the fund. He expects that the resources and investment expertise of the Mount Logan platform will enhance the fund's strategy through direct origination alongside third-party channels. The fund currently offers daily subscriptions at net asset value and conducts quarterly repurchase offers limited to 5% of its net assets.
As of September 30, 2026, the AFA Asset Based Lending Fund held approximately $230 million in net assets across 650 underlying investments. Launched on June 30, 2021, the fund targets current income through a portfolio of asset-based loans in specialty finance, real estate, and other private credit areas. Mount Logan Capital Inc., which reported over $2 billion in assets under management as of June 30, 2026, operates through subsidiaries including Mount Logan Management LLC and Ability Insurance Company.
The transaction requires approval by a majority of the fund's shareholders and customary regulatory approvals. The board of trustees for the AFA Asset Based Lending Fund and the board of directors for Mount Logan have both unanimously approved the change in investment adviser. Mount Logan intends to file a proxy statement with the U.S. Securities and Exchange Commission shortly after this announcement to commence the shareholder vote solicitation.
Subject to these requisite approvals, Mount Logan expects the transaction to close in Q1 2027. The company cautions that its estimates of fee revenue contribution are forward-looking statements based on management's current expectations and assumptions. Actual results may differ materially from these estimates due to factors outside the company's control, including industry performance and general economic conditions.
Dechert LLP is serving as legal counsel to Mount Logan, while Faegre Drinker Biddle & Reath LLP serves as counsel to the fund and its board of trustees. Reitler Kailas & Rosenblatt LLP is legal counsel to Alternative Fund Advisors, with Berkshire Global Advisors acting as its financial advisor.