Mount Logan Capital (MLCI) Investor presentation summary

Strategic rationale and transaction overview

• Mount Logan and 180 Degree Capital will combine in an all-stock transaction, creating a Nasdaq-listed alternative asset management and insurance solutions platform with $2.4+ billion in AUM and $1.1 billion in insurance assets.

• Pro forma equity value is approximately $113.6 million, with ownership split about 60% Mount Logan and 40% 180 Degree Capital.

• The combined entity, to be called Mount Logan Capital Inc., will be led by current Mount Logan CEO Ted Goldthorpe and is expected to pay quarterly dividends.

• Boards of both companies unanimously approved the deal, with significant shareholder support already secured; closing is anticipated in mid-2025, subject to regulatory and shareholder approvals.

• The business model is built on predictable earnings growth, supported by durable fee- and spread-related earnings, and aims for attractive valuation relative to industry peers.

Business model, synergies, and growth drivers

• The platform integrates asset management and insurance, leveraging recurring fee and spread earnings, with a target net asset yield of 7.5% and a targeted SRE margin of 1.0%.

• Synergies between asset management and insurance are expected to drive organic ROE up to 20%+ using permissible leverage, with a powerful flywheel effect.

• Mount Logan's standalone fee-related earnings are projected to grow from $7.5–$8.0 million in 2024E to $12.5–$14.5 million in 2025E, driven by AUM growth and cost optimization.

• The combined balance sheet will support accelerated investment into M&A and organic initiatives, with capital reinvested into growth opportunities.

• BC Partners, a $40 billion AUM alternative asset manager, will continue to support Mount Logan via a servicing agreement and as a shareholder.

Leadership, track record, and market positioning

• Mount Logan's senior management, with deep experience from Goldman Sachs, Apollo, and BC Partners, will continue to lead the business.

• Leadership has a history of successfully investing together and building credit platforms, with a focus on both liquid and illiquid credit strategies.

• 180 Degree Capital brings expertise in microcap public companies, constructive activism, and proprietary investment sourcing, expanding Mount Logan's private credit capabilities.

• The combined entity is expected to benefit from increased scale, diversification, and liquidity, unlocking significant value for shareholders.

• The pro forma business is positioned for predictable earnings growth, supported by a strong reputation and a compelling valuation relative to peers.