Bethesda, MD – July 16, 2007 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that Standard & Poor's (S&P) selected American Capital to be included in the S&P 500 Index, effective after the close of trading July 6, 2007. American Capital was added to the S&P 500 in the category of Financials, Asset Management and Custody Banks. The Company is approximately the 355th firm in size, based on market capitalization, within the Index. American Capital is the first publicly traded alternative asset management company to be included in the S&P 500.
“We are honored and proud to be recognized among the foremost companies in the world,” said Malon Wilkus, American Capital Chairman, CEO and President. “Inclusion in the S&P 500, one of the most commonly used benchmarks for the overall U.S. stock market, validates American Capital’s strategy to build the first and one of the largest publicly traded alternative asset managers and the largest publicly traded private equity fund in the U.S. In less than ten years from our August 1997 initial public offering, American Capital has grown to be the 355th largest US publicly traded company in the S&P 500, in terms of market capitalization, a tremendous achievement. During that period, we have paid out over $1.7 billion of dividends and provided a 22% compounded annual return to our shareholders. Among other achievements, we pioneered the formation of permanent capital in the private equity industry. We pioneered the securitization of our asset class and achieved BBB investment grade ratings. We established and manage (LSE: ECAS), a $2.5 billion private equity fund, and recently listed it on the London Stock Exchange. I congratulate American Capital’s employees for their hard work and well earned recognition and thank our shareholders for their support.”
"Over the past ten years, we have built an institution with one of the best capabilities to originate, underwrite, finance, syndicate, monitor and exit alternative investments,” said John Erickson, Chief Financial Officer. “As one of the lowest leveraged financial institutions, limited by law to one to one debt to equity, American Capital has outperformed more levered financial institutions in good times as well as troubled times. Over the past ten years, we have outperformed the S&P 500 in every year with the exception of our first full year as a public company, including during the three years that the S&P 500 had negative returns. And as a result, we have provided our shareholders with consistent, excellent performance. The sources, flexibility and cost of our capital have been unmatched. Among other things, being in the S&P 500 will help us tell our unique story to a wider investor audience.”
“American Capital raised $155 million in its 1997 Nasdaq listing. Now American Capital and the funds it manages have invested approximately $21 billion in over 370 portfolio companies through twelve offices worldwide,” said Ira Wagner, Chief Operating Officer. “We have done this with the best market coverage and largest transaction flow in our industry, and by exercising considerable investment discipline. We became the leading provider of sub-debt and equity to the middle market, and we have transformed it. Inclusion in the S&P 500 is testimony to our operational and financial success.”
“This significant milestone recognizes the strengths of our business model and organization and the quality of American Capital’s employees,” said Samuel Flax, General Counsel. “Our corporate and reporting structure, unique in the S&P 500, makes us a leader in good corporate governance and accurate financial reporting. Our independent board and use of a third party valuation firm provides important validation of the quality of our assets and balance sheet and our ability to maintain investment discipline. When taken together with our payment of over 90% of our ordinary taxable income in dividends, we believe there is no firm more open and transparent to its stockholders.”
ABOUT S&P 500
The S&P 500 is world-renowned index which includes 500 leading large capitalization companies across major industries of the U.S. economy. It is considered to be one of the leading benchmark indicators of performance for the overall market.
ABOUT AMERICAN CAPITAL
American Capital is the only alternative asset management company that is a member of the S&P 500. With $15 billion in assets under management, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.
As of June 30, 2007, American Capital shareholders have enjoyed a total return of 578% since the Company's IPO an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $1.7 billion in dividends and paid $24.24 dividends per share since going public in August 1997 at $15 per share.
American Capital outperformed 76%, 73%, 74% and 91% of all U.S. public companies with a current market capitalization greater than $1 billion in the 1-year, 3-years, 5-years and since IPO, in each case ending June 30, 2007.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit www.AmericanCapital.com or www.EuropeanCapital.com.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, 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.
John Erickson, Chief Financial Officer (301) 951-6122
Tom McHale, Senior Vice President, Finance (301) 951-6122
SOURCE: American Capital Ltd.