Mount Logan Capital Inc. announced on October 20, 2026, that its wholly owned subsidiary, Mount Logan Management LLC, has entered into a definitive agreement to acquire the management business of Alternative Fund Advisors, LLC. Under the agreement, MLM will replace AFA as the investment adviser to the AFA Asset Based Lending Fund, a registered closed-end management investment company. The transaction, valued at up to $4.6 million, includes the purchase of goodwill, intellectual property, and books and records related to the Fund.
As consideration, MLM will pay AFA $300,000 in cash at closing, followed by deferred installments on the first, second, and third anniversaries of the closing. These payments are subject to reduction if the Fund’s net assets decline during the first year following the transaction. Additionally, MLM has agreed to pay AFA 40% of the management and incentive fees received from the Fund for five years following the closing, subject to suspension if the Fund experiences eight consecutive quarters of specified net outflows and its net assets fall below the closing level.
The Fund, which currently manages approximately $230 million in assets, will be renamed the Mount Logan Asset Based Lending Fund upon closing. The transaction is expected to close in the first quarter of 2027, subject to approval by the Fund’s board of trustees, shareholders, and regulatory authorities. Mount Logan currently manages approximately $460 million in interval fund assets, and the company stated the deal is expected to be immediately accretive to its FRE (a non-GAAP financial measure).
