OUR BUSINESS

Direct Investments

American Capital makes direct minority investments of subordinated debt, senior debt and equity in middle market private and public companies. Since our 1997 IPO, we have made minority investments directly in over 90 companies.

For a broad range of strong middle market companies, traditional sources of capital have dried up in recent years:

• Public debt issuances are increasingly closed to middle market issuers;
• Public equity markets are not a viable means of capital raising for most middle market companies

American Capital can invest to fund growth, acquisitions, and recapitalizations in middle market companies. Because we are prepared to be a minority investor, we are often a good partner for successful family owned or closely held companies. Our ability to invest up to $100 million makes us an efficient alternative to the public equity markets for many middle market companies, shielding them from the risks that are inherent in raising money from volatile public markets.