Four alts giants vie for American Capital assets

 Ares, Apollo, Fortress and Blackstone are competing to acquire American Capital assets, according to a Reuters report.  

Ares Management, Apollo Global Management, Fortress Investment Group and Blackstone are among the companies bidding for the assets of American Capital (ACAS), according to Reuters.

 

Ares' BDC, the Ares Capital Corporation (ARCC) was already rumoured to be in the running for the $8 billion American Capital BDC. In a February SEC filing accompanying Ares Capital Corporation's request for permission to issue equity , the firm stated that it wanted to do so because market conditions had created acquisition opportunities. 

 

Spokespeople for Apollo, Blackstone and Ares declined to comment.

 

Representatives of American Capital and Fortress did not return calls seeking further comment by press time.

 

Last year, Elliot Management, a hedge fund that owns an 8.4 percent stake in American, opposed a plan to spin off assets from American's BDC into two existing vehicles. In early January, ACAS announced that it had completed a strategic review and would be working with Goldman Sachs and Credit Suisse Securities to solicit offers to purchase the company in whole or in part. The company said that its business lines and assets had value that was not being reflected in its share price.

 

 “After careful consideration, the board unanimously concluded that soliciting proposals at this time provides the best and most expedient path to unlock shareholder value,” said American's independent strategic review committee board Neil Hahl in a statement announcing the auction.

 

Earlier this month, American announced that it had purchased approximately 21.2 million shares of its own stock for a total of $296.5 million.

 

American Capital is a publicly traded private equity and asset management firm that originates, underwrites, and manages investments in mid-market private equity, leveraged finance, real estate and structured products. Including leverage, American manages $73 billion in assets and the company has a market capitalization of $3.8 billion. The Bethesda, Maryland based company maintains offices in Annapolis, Chicago, London, New York and Paris.