American Capital's Sponsor Finance Group Invests $220 Million in the Third Quarter of 2014

BETHESDA, Md., Oct. 28, 2014 /PRNewswire/ -- American Capital, Ltd. ACAS ("American Capital") announced today that in the third quarter of 2014 its Sponsor Finance Group invested approximately $220 million in support of leading private equity firms.  These investments were led by American Capital and European Capital offices in the United States and Europe and were made in support of leading private equity firms' company buyouts and add-on acquisitions as well as in support of existing portfolio companies. 

"During the third quarter, our Sponsor Finance team not only made six investments in new platform companies, but also provided several incremental investments to support existing portfolio companies," said Ryan Brauns, American Capital Managing Director and Head of Sponsor Finance.  "As we review investment opportunities in the pipeline for the remainder of 2014 and look ahead to 2015, our experienced professionals in both our U.S. and European offices are prepared to invest capital to support new platform investments and dividend recapitalizations, as well as support the growth of our existing portfolio companies."   

A summary of select third quarter transactions is outlined below.

DataPipe, Inc.
In September, American Capital invested an additional $17 million in a second lien facility in DataPipe, Inc. to support an add-on acquisition led by ABRY Partners, LLC. Headquartered in Jersey City, New Jersey, with locations in Europe and Asia, DataPipe is a global provider of outsourced IT solutions to medium and large size enterprise customers.

iParadigms, LLC
In August, American Capital invested $27 million in a second lien facility to support the acquisition of iParadigms, LLC by Insight Ventures.  Headquartered in Oakland, California, iParadigms is a provider of cloud-based educational technologies to prevent plagiarism, verify content and evaluate student learning.

Cole-Parmer Instrument Company
In August, American Capital invested $25 million in a second lien facility to support the acquisition of Cole-Parmer Instrument Company ("Cole-Parmer") by GTCR.  Headquartered in Vernon Hills, Illinois, Cole-Parmer is a global source of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

Tectum Holdings, Inc.
In August, American Capital invested in a second lien facility and equity to support the acquisition of Tectum Holdings, Inc. ("THI") by TA Associates.  Headquartered in Ann Arbor, Michigan, THI is a leading manufacturer of pickup truck accessories, principally soft and hard truck bed covers, also known as tonneaus.  THI's products are sold under market leading brands, including Extang, Truxedo, Undercover Advantage, Retrax, BedRug and BAK Industries.

Sparta Systems, Inc.
In July, American Capital invested $26 million in a unitranche facility and equity to support the acquisition of Sparta Systems, Inc. by Thoma Bravo, LLC.  Sparta Systems is a global provider of enterprise quality management software (EQMS) solutions, which enable businesses to safely and efficiently deliver their products to market.  Sparta Systems is headquartered in Hamilton, New Jersey and has locations across Europe and Asia.

Risk & Co.
In July, European Capital invested €35 million in unitranche bonds in Risk & Co., a portfolio company of Latour Capital.  The financing enabled Risk & Co. to finance an add-on acquisition as well as future acquisitions.  Headquartered in Paris, France, Risk & Co. is a leading French consulting firm providing corporations with security and strategic intelligence, particularly related to foreign operations.

Sausalitos
In July, European Capital invested €10 million in unitranche bonds to support the acquisition of Sausalitos by funds advised by Ergon Capital Partners.  European Capital also holds €2 million of the undrawn capex facility along with Kartesia Advisor LLP.  Headquartered in Munich, Germany, Sausalitos is one of the top five German leisure restaurant chains.

American Capital and its affiliated funds have invested approximately $11 billion in over 260 portfolio companies in support of leading private equity firms' company buyouts, refinancings, add-on acquisitions, dividend recapitalizations and growth opportunities. For more information about American Capital's portfolio, go to www.americancapital.com/our-portfolio. 

ABOUT AMERICAN CAPITAL
American Capital, Ltd. ACAS 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, energy & infrastructure and structured products.  American Capital manages $19 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $83 billion of total assets under management (including levered assets).  Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. AGNC, American Capital Mortgage Investment Corp. MTGE and American Capital Senior Floating, Ltd. ACSF with approximately $11 billion of total net book value.   From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million.  For further information, please refer to www.AmericanCapital.com.

ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with €0.9 billion in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd ("American Capital"). It is managed by European Capital Asset Management Limited (the "Investment Manager"), a wholly-owned affiliate of American Capital. The Investment Manager has offices in London and Paris with 55 employees. Since its inception, European Capital Limited has invested €3.6 billion in over 100 companies in Europe. European Capital and its affiliates will consider senior, mezzanine and unitranche debt investment opportunities from 10 million to 100 million in either euros or sterling and up to 400 million for One Stop Buyouts®. For further information, please refer to www.EuropeanCapital.com.

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.

Contact: (212) 213-2009
Ryan Brauns, Managing Director and Head of Sponsor Finance

SOURCE American Capital, Ltd.