FRANKFURT, Germany, April 26 /PRNewswire/ --
-- Expands Pan European Mezzanine Group
European Capital Financial Services Limited ("European Capital") announced today the opening of its Frankfurt office. The office will concentrate on mezzanine investments. European Capital is an affiliate of American Capital Strategies Ltd. (Nasdaq: ACAS), a United States based publicly traded alternative asset manager with approximately US$10.9 billion in assets and capital commitments under management as at 31 December 2006. Leading European Capital in Frankfurt is Robert von Finckenstein, Managing Director, reporting to Nathalie Faure Beaulieu, Managing Director and Head of Pan European Mezzanine, based in London. The Frankfurt office is the third European Capital office, in addition to London and Paris.
"We are delighted to welcome Robert von Finckenstein to European Capital and continue building European Capital by expanding into Germany," said Ira Wagner, President of European Capital and Chief Operating Officer of American Capital Strategies Ltd. "We believe that Robert's considerable knowledge of the German market will enable European Capital to expand its Pan European Mezzanine activities significantly as we build relationships with both German private equity firms and directly with German companies."
As at 15 April 2007 the European Capital group had invested an aggregate of EUR1.6 billion in 45 companies since its establishment in August 2005, of which EUR1.2 billion was invested in 30 companies during 2006. European Capital investments in Germany total EUR42 million (based on portfolio company headquarter locations), including investments in Deutsche Connectors, a designer and manufacturer of customised environmentally sealed connectors for harsh environments; Moeller, a supplier of low voltage electrical distribution and automation components for industrial, commercial and residential use; Flint Inks, an inks producer; Iglo Birds Eye, a manufacturer of frozen foods; and Metall Technologie Holding, a manufacturer and marketer of furnaces for heat treatment applications. European Capital has investments in the U.K., Germany, France, Luxembourg, the Netherlands, Sweden, Norway, Spain, Switzerland and Italy. Mezzanine investments have been in consumer and leisure, healthcare, business and financial services and the industrials sector. For more information about European Capital's portfolio, go to www.europeancapital.com/our_portfolio/po....
"As at 15 April 2007 European Capital has completed 41 mezzanine investments totalling EUR1 billion since the formation of our Pan European Mezzanine operation in 2005 and we face a strong pipeline in a buoyant market," said Ms. Beaulieu. "I am confident Robert will make a valuable contribution to European Capital as he builds the Frankfurt team in the coming years."
The sponsors which European Capital has worked with include: 3i, Apax Partners, AXA Private Equity, Bain Capital, Blackstone Group International, Candover Partners, Cinven, Doughty Hanson & Co., Electra Partners Europe, Investcorp International, Kohlberg Kravis Roberts & Co., Legal & General Ventures, Lehman Brothers Merchant Banking, Permira and WENDEL Investissement.
"I am very pleased to be joining a firm with the track record and resources of European Capital," said Mr. von Finckenstein. "We are well positioned to grow and face the challenges and opportunities of an active mezzanine market."
Prior to European Capital, Mr. von Finckenstein was Managing Director and Co-Head of DAM Advisors Ltd. in London. At DAM Advisors he originated mezzanine and subordinated debt transactions for German Mittelstand companies. Prior to DAM Advisors, he was a Director of Global Loan Products at Dresdner Kleinwort Wasserstein's Acquisition Finance Group in Frankfurt where he structured and arranged complex transactions, particularly in the telecommunications, media and technology sector.
ABOUT EUROPEAN CAPITAL
European Capital is a closed-ended investment company incorporated in Guernsey in August 2005 for pan-European equity, mezzanine and senior debt investment. It is managed by European Capital Financial Services (Guernsey) Limited (the "Investment Manager"), a wholly-owned subsidiary of American Capital Strategies, Ltd. ("American Capital"). American Capital is a leading US based investor in equity, mezzanine and senior debt securities and is also the majority owner of European Capital.
European Capital's investment criteria
The European Capital group targets companies that generally meet a combination of the following criteria: a robust track record, strong cash flows, significant growth prospects, strong competitive positioning, an experienced management team with a significant ownership interest and potential for the European Capital group to gain liquidity and/or realise appreciation in its investments.
The European Capital group expects to make investments which are typically between EUR5 million and EUR125 million. European Capital sponsored buyouts would typically be of companies with an enterprise value of between EUR50 million and EUR500 million. The European Capital group may however participate in co-investments with the American Capital group in transactions involving companies with a larger enterprise value.
About American Capital
American Capital was founded in 1986 and is a NASDAQ-listed alternative investment asset management company which directly and through managed funds provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalisations. It had approximately $10.9 billion of assets and capital commitments under management as at 31 December 2006.
This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'projects', 'anticipates', 'expects', 'intends', 'may', 'will', or 'should' or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding European Capital's intentions, beliefs or current expectations concerning, among other things, European Capital's results of operations, financial condition, liquidity, prospects, growth and strategies.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.
Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect European Capital's view with respect to future events as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to European Capital's operations, results of operations, growth strategy and liquidity. European Capital undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.
Information in this announcement or any of the documents cannot be relied upon as a guide to future performance.
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