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Understanding American Capital After 2Q2013

Background

American Capital Ltd. (NASDAQ:ACAS), manager of two publicly-traded mREITs and practically the only business development company ("BDC") to pay no dividend at all, reported its quarterly results this week. This article identifies both good news and bad news in that report. Although ACAS' fee-based funds-management business is having a greater effect on the company, most of ACAS' assets and income still result from its own investments of its own capital in its own portfolio companies.

For a longer view of the firm, this author has ten earlier articles on ACAS.

Business Basics at ACAS

Before the crash of '08, ACAS' management complained on calls that the firm - then called American Capital Strategies - was unfairly...

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