BETHESDA, Md., Sept. 14 /PRNewswire-FirstCall/ -- American Capital Ltd. (Nasdaq: ACAS) announced today that on August 14, 2009, in connection with the sale of one of its portfolio companies, its debt investment in the company was repaid and it sold associated warrants. American Capital realized a gain of $16 million from the transaction, subject to postclosing adjustments. American Capital's total inception to date realized gain on this investment was $17 million and its compounded annual rate of return, including interest and fees earned over the life of its investment, was 39%. American Capital entered into a confidentiality agreement with the buyer of the company, which prohibits American Capital from announcing the company name and certain other transaction information.
American Capital received total proceeds of $37 million from the transaction. The proceeds received by American Capital were greater than the second quarter 2009 valuation of the investment by $1.5 million, or 4%.
"We are very pleased with this outcome, along with the many other exits we've experienced over the past eleven months. Since the beginning of the fourth quarter of 2008, we've received approximately $700 million of proceeds from realizations of portfolio investment repayments and exits, including over 20 exits of portfolio companies," said Darin Winn, Senior Vice President and Senior Managing Director. "Though this exit volume is far lower than prior years, it represents a significant amount of liquidity in today's market. Our proceeds for these exits during this period were 1.8% higher than the prior quarter's GAAP fair value of each investment, which speaks well of our quarterly valuations."
Since American Capital's August 1997 IPO through the second quarter of 2009, the company has earned a 15% compounded annual return, including interest, dividends, fees and net gains, on 264 realizations of senior debt, subordinated debt and equity investments, totaling $12 billion of committed capital. These realizations represent 49% of all amounts invested by American Capital since its August 1997 IPO. Proceeds from these realizations exceeded the total associated prior quarter valuation of the investments by less than 1%. American Capital earned a 30% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.
For a chart showing American Capital's exited portfolio companies, please go to http://www.americancapital.com/our_portfolio/exited.html.
ABOUT AMERICAN CAPITAL
American Capital 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 and structured products. Founded in 1986, American Capital has $11 billion(1) in capital resources under management and ten offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.
(1) As of June 30, 2009.
Media - (301) 968-9400
SOURCE: American Capital Ltd.
Media, American Capital Ltd., (301) 968-9400