American Capital closes third fund on $1.1 billion

The fund will focus on lower middle market investments

Maryland-based American Capital has closed its third fund on $1.1 billion, according to a statement. American Capital Equity III, will focus on control investments in lower middle market companies in the US.

The fund was launched in April of this year according to Private Equity International’s research and analytics division.

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

American Capital declined to comment on fundraising.

The fund will be managed by American Capital Asset Management, a portfolio company of American Capital. The fund has also acquired a portfolio of equity investments from American Capital with an option to purchase the equity interest of another portfolio company. The fund has an additional $445 million in capital commitments to invest, and will target companies with $5 to $25 million of EBITDA.

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.