American Capital Closes New $1.1 Billion Lower Mid-Market Fund
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American Capital Closes New $1.1 Billion Lower Mid-Market Fund

acas nf2American Capital has closed American Capital Equity III, LP (ACE III), its new private equity fund focused on investing in US companies in the lower middle market, with $1.1 billion in capital commitments.

The investor group for ACE III was led by funds advised by Coller Capital, Goldman Sachs Asset Management and StepStone Group. Other limited partners include sovereign wealth funds, state retirement and pension systems, high net worth family offices, superannuation funds and foundations. In total, ACE III has 39 limited partners.

As we reported back in May (American Capital Launches New Lower Middle Market Fund), American Capital has already contributed all of its equity and equity-related investments in seven portfolio companies and an option to acquire American Capital’s equity investment in an additional portfolio company to ACE III.  The aggregate agreed upon value of these investments, assuming the option is exercised, is approximately $640 million.  An additional $445 million in capital commitments will be provided by the investor group and American Capital to allow ACE III to make new investments in companies with $5 million to $25 million of EBITDA.

ACE III is managed by American Capital’s subsidiary, American Capital Asset Management (ACAM) and includes ten investment professionals based in Bethesda.  ACAM now manages nine private funds and three public funds with approximately $13 billion of assets under management. The three public funds are American Capital Agency Corp. (NASDAQ: AGNC); American Capital Mortgage Investment Corp. (MTGE); and American Capital Senior Floating, Ltd. (ACSF). The nine private funds are American Capital Equity I; American Capital Equity II; American Capital Equity III; ACAS CLO 2007-1; ACAS CLO 2012-1; ACAS CLO 2013-1; ACAS CLO 2013-2; ACAS CLO 2014-1; and European Capital Limited.

American Capital is a publicly traded (NASDAQ: ACAS) private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products.  From its eight offices in the US and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million.  The firm is headquartered in Bethesda (www.AmericanCapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-26-14

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