American Capital was the sole lender and second lien agent on a $51 million second lien financing to support the acquisition of Compusearch Software Systems by ABRY Partners. Compusearch is a provider of acquisition and program management software to Federal agencies, the Department of Defense program offices, and government contractors. Compusearch had been a portfolio company of Arlington Capital Partners and JMI Equity since June 2010.
“American Capital has partnered with ABRY on previous investments and we are delighted they turned to us to work together on this investment in a leading federal government software provider,” said Ryan Brauns, American Capital Managing Director and Head of Sponsor Finance. “Having invested in Compusearch under previous ownership, this is an excellent opportunity for us to leverage our understanding of the company, its business, clients and industry and support its continued growth plans under ABRY.”
Compusearch’ software provides federal, defense and intelligence agencies with visibility, control, and transparency that is needed to manage productivity and performance and to meet government reporting requirements. The company’s software products were developed specifically for agencies of the US federal government and are the most widely adopted acquisition and grants management systems with more than 50,000 authorized users representing 80 organizations around the globe. Compusearch was founded in 1983 and is headquartered just west of Washington DC in Sterling, VA (www.compusearch.com).
American Capital’s Sponsor Finance Group works with private equity firms to provide unitranche, second lien, subordinated debt and minority equity investments, to support buyouts, recapitalizations, and add-on acquisitions. The group will underwrite up to $300 million and hold up to $150 million in companies with at least $10 million of EBITDA.
“Compusearch marks the third investment from American Capital in an ABRY portfolio company in the last 12 months,” said Brian St. Jean, a Partner at ABRY. “American Capital provided a second lien financing that was flexible and seamlessly sat behind a bank executed first lien facility.” Senior financing for this acquisition was provided by SunTrust.
American Capital (NASDAQ: ACAS) is a publicly traded 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 and structured products. Founded in 1986, American Capital has $80 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).
2015 PEPD • Private Equity’s Leading News Magazine • 6-4-15
