BETHESDA, Md., May 16, 2014 /PRNewswire/ -- American Capital,
Ltd. (Nasdaq: ACAS) ("American Capital" or "the Company") announced
today the formation of the Lower Middle Market Buyout group, led by
Sean Eagle, Eugene Krichevsky, David
Steinglass and Justin DuFour,
who have more than a decade of experience working together at
American Capital and more than 50 years of collective experience
managing and investing in lower middle market buyouts. The
Lower Middle Market group has an initial staff of 10 investment
professionals (the "Team") and is located in the Company's
Bethesda, MD office.
On May 6, 2014, American Capital
announced the launch of American Capital Equity III, LP ("ACE
III"), a new $1.1 billion private
equity fund being managed by the Lower Middle Market Buyout
group. Upon closing, ACE III will purchase seven middle
market companies from American Capital, with an option to purchase
the equity interest of one of the companies at a future date.
The current American Capital Investment Teams responsible for these
companies will work together with the Lower Middle Market group to
manage these investments.
The Lower Middle Market group will also manage $445 million of committed capital, which will be
used to pursue control equity investments in lower middle market
companies primarily in the business and technology services,
healthcare products and services and industrial growth end markets,
with EBITDA of $5 to $25
million. For more information, please refer to the ACE
III Press Release on May 6, 2014.
The Lower Middle Market Buyout group will operate within
American Capital's asset management affiliate, American Capital
Asset Management LLC, which is dedicated to creating, capitalizing
and managing alternative investment funds across asset classes,
including private equity, private finance, real estate and energy
and infrastructure.
"We are delighted to have Sean, Eugene, David, Justin and their
entire Team continue to devote their attention to lower middle
market buyouts and deploy and manage our new ACE III fund," said
Malon Wilkus, American Capital
Chairman and Chief Executive Officer. "They have broad
industry experience, complementary skill sets and an excellent
track record investing in lower middle market buyouts through
several economic and credit cycles while at American Capital.
The Lower Middle Market Buyout group complements our larger
investment platform where we target middle and upper middle market
buyout opportunities up to $750
million in size, as well as energy, infrastructure and
special situations investment strategies."
"We are excited by the opportunity to manage ACE III and deploy
its $445 million of committed capital
in lower middle market buyouts of companies with EBITDA of
$5 to $25 million," said Sean Eagle, Managing Director, Lower Middle
Market Buyouts.
"We believe our collective experience investing in lower middle
market companies, coupled with American Capital's infrastructure
and significant market coverage, differentiates us in this segment
of the market and positions us well to deliver attractive returns
for our investors," said Eugene
Krichevsky, Managing Director, Lower Middle Market
Buyouts.
The Lower Middle Market Buyout group is seeking companies that
have proven management teams, defensible market positions, stable
recurring revenue streams and high cash flow conversion. Key
highlights of the targeted industries include increased
outsourcing, favorable demographic trends and recession resistance,
and overall market growth potential.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq:
ACAS) is a publicly traded private equity firm and global asset
manager. American Capital, both directly and through its
asset management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate, energy & infrastructure and structured
products. American Capital manages $19
billion of assets, including assets on its balance sheet and
fee earning assets under management by affiliated managers, with
$84 billion of total assets under
management (including levered assets). Through an affiliate,
American Capital manages publicly traded American Capital Agency
Corp. (Nasdaq: AGNC) with approximately $9
billion of net book value, American Capital Mortgage
Investment Corp. (Nasdaq: MTGE) with approximately $1 billion of net book value and American Capital
Senior Floating, Ltd. (Nasdaq: ACSF) with approximately
$151 million in net book value.
From its eight offices in the U.S. and Europe, American Capital and its affiliate,
European Capital, will consider investment opportunities from
$10 million to $750 million. For
further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. Such
statements are subject to various factors and uncertainties,
including the uncertainties associated with the timing of
transaction closing, changes in interest rates, availability of
transactions, changes in regional, national or international
economic conditions, or changes in the conditions of the industries
in which American Capital has made investments.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy any securities. The offering of
these securities have not and will not be registered under the
Securities Act of 1933, as amended and may not be offered absent
registration or an exemption from registration.
Contact:
Investor Relations - (301) 951-5917
Media Relations - (301) 968-9400
SOURCE American Capital, Ltd.