US alternative asset manager American Capital Strategies enjoyed a $77 million profit from divestments in the second quarter of 2007.
The alternative asset manager sold $984 million worth of investments in the quarter.
But American Capital made a loss of $21 million from the sale of the assets of industrial gas carrier Logex Corporation and a negative 36 percent compounded annual rate of return on the investment including interest and fees since it backed it originally with a $25 million investment in 2001. The asset manager has realized losses of $30 million on its investment and it holds a subordinated debt investment that has unrealized depreciation of $8 million.
However, this performance was unrepresentative of the portfolio. American Capital received $22 million profit from the sale of its stake as part of a consortium backing healthcare and fitness company The Hygenic Corporation for $47 million. The buyout firm recorded a 39 percent compounded annual rate of return including interest, dividends and fees since 2004, when it bought the company for $23 million.
American Capital also realised a loss of $4 million from the sale of case designer Case Logic. After investing $20 million in senior debt with common stock warrants backing KRG Capital Partners acquisition of the company, American Capital received $17 million from the exit. Yet this earned a 15 percent compounded annual rate of return on its total investment, including interest, dividends and fees.
American Capital’s other realisations included the full repayment of $20 million debt investments in concrete saw company Soff-Cut Holdings, and the entire repayment of its $94 million senior term debt investments in automotive support company BBB Industries.