American Capital Closes $1.1 Billion U.S. Lower Middle Market Private Equity Fund

BETHESDA, Md., Sept. 24, 2014 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that it has closed American Capital Equity III, LP ("ACE III"), its new private equity fund focused on investing in U.S. companies in the lower middle market.  The transaction further expands American Capital's asset management business and diversifies its investor base, adding new private equity limited partners and increasing American Capital's earning assets under management.

The investor group, which was led by funds advised by Coller Capital, Goldman Sachs Asset Management and StepStone Group, also includes select sovereign wealth funds, state retirement and pension systems, high net worth family offices, superannuation funds and foundations, totaling 39 limited partners.

ACE III is managed by American Capital's wholly-owned portfolio company, American Capital Asset Management, LLC ("ACAM"), through an affiliate, and will earn a management fee and a carried interest in the net profits of ACE III, subject to certain hurdles.  As previously announced, ACE III acquired a portfolio of equity investments from American Capital and an option to purchase the equity interest of another portfolio company.  ACE III has an additional $445 million of capital commitments generally to fund the purchase of new control equity and equity-related investments in companies with $5 to $25 million of EBITDA.

Following the closing, American Capital's asset management affiliate, American Capital Asset Management, manages nine private funds and three public funds with approximately $13 billion of earnings assets under management and $83 billion of total assets under management (including levered assets).  ACAM manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF).  In addition, ACAM manages private funds American Capital Equity I, LLC, American Capital Equity II, LP, ACAS CLO 2007-1, Ltd., ACAS CLO 2012-1, Ltd., ACAS CLO 2013-1, Ltd., ACAS CLO 2013-2, Ltd., ACAS CLO 2014-1, Ltd. and European Capital Limited.

American Capital announced the launch of ACE III on May 6, 2014.  For more information, please refer to the ACE III Press Release on May 6, 2014.

ABOUT AMERICAN CAPITAL EQUITY III, LP
American Capital Equity III, LP is a $1.1 billion private equity fund ("ACE III") focused on investing in companies in the lower middle market.  In addition to managing a secondary portfolio of equity investments acquired from American Capital, ACE III has a $445 million capital commitment to fund the purchase of new control equity and equity-related investments in companies with $5 to $25 million of EBITDA.  ACE III is managed by an affiliate of American Capital Asset Management, LLC, including ten investment professionals based in Bethesda, MD.  For more information, click here.     

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 $83 billion of total assets under management (including levered assets).  Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $11 billion of aggregate 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

SOURCE American Capital, Ltd.