Marlton Partners nominates directors to 180 Degree Capital board

Published 01/07/2025, 11:06
Marlton Partners nominates directors to 180 Degree Capital board

CHICAGO - Marlton Partners L.P., which owns approximately 5.2% of 180 Degree Capital Corp. (NASDAQ:TURN), has nominated four director candidates for election to the company’s board at a special meeting scheduled for September 15, 2025.

The nominees include James C. Elbaor, Gabriel Gliksberg, Aaron Morris, and Andrew Greenberg. The special meeting was called after Marlton delivered a formal demand on June 17, citing TURN’s failure to convene an annual shareholder meeting since April 2024.

According to Marlton, the company agreed to the September 15 date requested by TURN’s board to align with the regulatory timeline for TURN’s proposed sale to Mount Logan Capital Inc. (Cboe Canada:MLC). Mount Logan’s stock has shown remarkable strength recently, with a 37.5% return over the past week and trading at $0.85, near its 52-week high of $0.96. According to InvestingPro, which offers comprehensive analysis of 1,400+ stocks including MLC, the company’s momentum indicators suggest strong market confidence in its expansion strategy.

James Elbaor, President of Marlton Partners, stated that the special meeting represents "a long overdue opportunity for TURN shareholders to cast their vote on the composition of the Board" and "a chance to truly realign the Company’s direction with shareholder interests."

Marlton criticized TURN’s performance under CEO Kevin Rendino’s leadership since 2017 and highlighted concerns including the company’s failure to hold required meetings, rejection of shareholder proposals, and spending over $6 million on deal-related expenses and management retention bonuses.

The investment firm stated its nominees would bring experience in investment management, governance, and fiduciary oversight to the board. The slate includes Elbaor, who leads Marlton Partners; Gliksberg, founder of ATG Capital Management; Greenberg, managing partner at Saker Management; and Morris, co-founder of Morris Kandinov LLP. For investors seeking deeper insights into this developing situation, InvestingPro offers exclusive ProTips and detailed financial metrics for both TURN and MLC, helping you make more informed investment decisions. The Pro Research Report available on InvestingPro provides comprehensive analysis of both companies’ financial health and growth prospects.

Marlton said it intends to file a preliminary proxy statement with the SEC regarding the nominations. The information in this article is based on a press release statement from Marlton Partners.

In other recent news, Marlton Partners L.P. has urged the board of 180 Degree Capital Corp. to expedite a shareholder vote on the company’s pending sale to Mount Logan Capital Inc. Marlton, which holds approximately 5.2% of 180 Degree Capital’s outstanding stock, criticized the board for delaying the vote for over five months since the deal was announced in January 2025. The investment firm expressed concerns over the board’s management, highlighting that the delay has led to significant costs for shareholders, estimated at $6–7 million. This amount represents 15.8% of the company’s first-quarter net asset value, which has already declined by 4.7% through the first quarter of 2025. Marlton emphasized the importance of shareholder democracy and criticized the board for not engaging with shareholders, noting the absence of monthly net asset value estimates and earnings calls. The firm plans to file a proxy statement to solicit votes for its slate of director nominees at the 2025 annual meeting. Marlton’s letter calls for the board to fulfill its fiduciary duties and facilitate a timely vote on the transaction.

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