American Capital eyes $1.1bn vehicle

The Maryland-based firm is putting together its third mid-market vehicle

American Capital is putting together its third vehicle, American Capital Equity III, which will be comprised of existing portfolio company investments and new investor capital. The fund has $1.1 billion in capital commitments, split between $640 million in existing investments and $445 million in additional capital, and is expected to close in the next 90 days, according to a statement.

American Capital itself will commit over $100 million in additional capital to the fund beyond what it has already invested in the seven portfolio companies, according to sources familiar with the situation. The investor group was led by funds advised by Coller Capital, Goldman Sachs Asset Management and StepStone Group, and includes select sovereign wealth funds, state retirement and pension systems, high net worth family offices, superannuation funds and foundations.
The Private Fund Group of Credit Suisse is serving as the exclusive placement agent for the fund.

Prior to the closing, American Capital will contribute 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 remaining $445 million will go to the purchase of new control equity and equity-related investments in companies with $5 million to $25 million of EBITDA.

American Capital manages $19 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $93 billion of total assets under management (including levered assets).The firm and its affiliates invest from $10 million to $750 million per company in North America and €10 million to €400 million per company in Europe across all industries in the middle market.