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American Capital Closes $450MM CLO Equity Fund

November 04, 2015, 07:15 AM
Filed Under: Industry News

American Capital, Ltd. has closed American Capital CLO Fund I, LP ("American Capital CLO Fund I" or the "Fund"), its new $450 million fund focused on investing in equity tranches of collateralized loan obligations ("CLOs").  The transaction further expands American Capital's asset management business and increases American Capital's third-party earning assets under management by approximately $450 million, or 3%.

"We are very pleased to announce the closing of American Capital CLO Fund I," said Mark Pelletier, President of American Capital CLO Management, LLC and President and Chief Investment Officer of American Capital Senior Floating, Ltd.  "Our partners spent a significant amount of time underwriting both the assets and our team.  Their willingness to acquire a large pool of these assets at our carrying value, in conjunction with entrusting us to manage both these assets and the new investments we will make on their behalf, speaks to the trust they have placed in us."

As previously announced, the Fund purchased $300 million of American Capital's existing CLO equity portfolio at its fair value as of June 30, 2015, subject to standard adjustments.  The Fund has $150 million of investment capacity and an affiliate of American Capital's asset management company, American Capital Asset Management, LLC ("ACAM"), manages the fund for customary management and incentive fees.

"American Capital CLO Fund I is an important milestone in the development of our asset management platform," said Tom McHale, American Capital Senior Vice President, Finance.  "This is our first fund dedicated to CLO equity and it diversifies our asset management income while leveraging an existing investment team."

American Capital, Ltd. 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.

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