American Capital Strategies
Encyclopedia
American Capital is an alternative asset management company based in Bethesda, Maryland
. Founded in 1986 and publicly traded since 1997, American Capital is the largest U.S. publicly traded private equity fund
and one of the largest publicly traded alternative asset
managers. American Capital operates as a Business Development Company
, a form of publicly traded private equity
company.
The Company provides capital to middle market companies with sales between $10 million and $750 million. 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. Historically, a majority of its financings have been to assist in the funding of change of control management buyout
s.
American Capital is an equity partner in management and employee buyouts; provides mezzanine
and senior debt financing for buyouts led by private equity firms; and provides capital directly to private and public companies. American Capital has the capability to provide One Stop Buyout ® services, funding senior debt, mezzanine and equity. American Capital and its affiliates invest from $5 million to $300 million per company in North America and €5 million to €25 million per company in Europe.
American Capital suffered heavily from the credit crisis in 2008. The company's stock price declined precipitously in November 2008, after the company was forced to suspend its dividends to shore up its liquidity and buy back its struggling European affiliate, European Capital. Throughout much of 2009, the company attempted to avoid bankruptcy, ultimately agreeing to an out of court restructuring. In June 2010, American Capital completed its debt restructuring
.
Bethesda, Maryland
Bethesda is a census designated place in southern Montgomery County, Maryland, United States, just northwest of Washington, D.C. It takes its name from a local church, the Bethesda Meeting House , which in turn took its name from Jerusalem's Pool of Bethesda...
. Founded in 1986 and publicly traded since 1997, American Capital is the largest U.S. publicly traded private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
and one of the largest publicly traded alternative asset
Alternative asset
An alternative asset is a newer type of asset that has not been traditionally considered part of an investment portfolio. Historically, examples include real estate, commodities, as well as rare coins and stamps, artwork or trading cards...
managers. American Capital operates as a Business Development Company
Business Development Company
A Business Development Company is a form of publicly traded private equity in the United States created by Congress in 1980 as amendments to the Investment Company Act of 1940...
, a form of publicly traded private equity
Publicly traded private equity
Publicly traded private equity refers to an investment firm or investment vehicle, which makes investments conforming to one of the various private equity strategies, and is listed on a public stock exchange.There are fundamentally two separate opportunities that private equity firms...
company.
The Company provides capital to middle market companies with sales between $10 million and $750 million. 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. Historically, a majority of its financings have been to assist in the funding of change of control management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
s.
American Capital is an equity partner in management and employee buyouts; provides mezzanine
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
and senior debt financing for buyouts led by private equity firms; and provides capital directly to private and public companies. American Capital has the capability to provide One Stop Buyout ® services, funding senior debt, mezzanine and equity. American Capital and its affiliates invest from $5 million to $300 million per company in North America and €5 million to €25 million per company in Europe.
American Capital suffered heavily from the credit crisis in 2008. The company's stock price declined precipitously in November 2008, after the company was forced to suspend its dividends to shore up its liquidity and buy back its struggling European affiliate, European Capital. Throughout much of 2009, the company attempted to avoid bankruptcy, ultimately agreeing to an out of court restructuring. In June 2010, American Capital completed its debt restructuring
Debt restructuring
Debt restructuring is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its...
.