Jun. 5, 2014, 8:02 AM| Comment!
Jun. 3, 2014, 11:21 AM| Comment!
May 23, 2014, 7:36 AM
- The selloff in BDCs is a buying opportunity, writes BDC reporter, noting the opportunity today to invest in a basket of BDCs (using BDCS as a proxy) at an 11% higher yield than just three months ago. The sector is yielding 43% more than high yield bonds (HYG) and nearly double floating rate loans (BKLN).
- The higher yield, of course, reflects market concern distributions are set to fall (and BKCC and MCGC cut in Q1), but for the sector as a whole, distributions have been fairly stable over the last three years. Further, a number of players are under-leveraged or in growth phase, and occasionally have realized gains which are paid out as special distributions.
- Keep this list around, says BDC Reporter, musing on those who may boost payouts over the next year: ACAS, ARCC, ACRE, ACSF, CPTA, FDUS, FSFR, FULL, HCAP, HTGC, MAIN, MVC, TAXI, PSEC, TCPC, TSLX
- ETFs: BDCL, BDCS, BIZD
May 7, 2014, 4:28 PM
- Pretax NOI of $16M or $0.06 per share falls 69% from Q4.
- Book value per share of $19.29 up $0.32 from the end of Q4.
- 8.9M shares repurchased at average price of $15.38 each. Repurchases have stopped as company retains Goldman to advise on splitting ACAS's investments and asset management businesses.
- CC tomorrow at 11 ET
- Previously: American Capital beats by $0.05, misses on revenue
- Source: Press Release
- ACAS +2.5% AH
May 7, 2014, 4:26 PM| Comment!
May 7, 2014, 1:39 PM
- American Capital (ACAS +3.6%) posts strong gains after moving to boost its asset management business with the formation of American Capital Equity III, a private equity fund focused on companies in the lower middle market. The closing of the fund is expected within 90 days and will increase ACAS earning AUM by $900M, or 7%.
- The investor group is led by funds advised by Collier Capital, GS Asset Management, and StepStone Group, and also includes SWFs, state retirement and pension systems, among others.
- Source: Press Release
May 6, 2014, 5:35 PM
- ACAS, ANAC, ANDE, APU, AR, ASYS, ATLS, ATO, AVG, AWK, BALT, BKD, BODY, BREW, BRKR, CAR, CDE, CDXS, CF, CLR, CODI, COUP, CSLT, CTL, CTRP, CXW, CZR, DCTH, DK, DYN, ERII, ESS, EXPD, FANG, FMI, FNV, FURX, GEOS, GMCR, GPOR, GTAT, GTY, HAIN, HK, HNSN, IL, IPAR, KGC, KIM, KND, KW, LCI, LGP, LHCG, LPSN, LXU, MCP, MDR, MHLD, MIDD, MKL, MM, MRIN, MWE, NKTR, NLY, NRP, NSTG, NVAX, NVEC, NVTL, OSUR, PAA, PGTI, PHH, PL, PMT, PNNT, PODD, POWR, PRU, QEP, QTM, RATE, REG, RIG, RNDY, RST, SCMP, SCTY, SD, SFM, SN, SWM, TCAP, TGB, TGI, TROX, TSLA, TWO, TWTC, TXTR, UGI, UIL, UNM, WGL, WR, WTR, XOMA, Z.
May 5, 2014, 12:15 PM
- American Capital (ACAS -0.7%) received $54M in equity proceeds from the sale, reaping a $35M gain, and will recognize $20M of dividend income and additional realized gains over the life of the investment. The company's IRR on its debt and equity investments was 17% (initial investment was 2003).
- Source: Press Release
Apr. 17, 2014, 11:00 AM| 3 Comments
Apr. 10, 2014, 2:57 PM
- Particularly hard hit in a red BDC sector (BIZD -1%) is American Capital (ACAS -3.2%). The stock had run up sharply two weeks ago on hopes for a spinoff of the asset management business, but receptive public markets are necessary for such a move. With today's decline, the shares have given back about all of those gains.
- Also struggling over the past couple of weeks is Northstar Realty Finance (NRF -3.4%) which is spinning off its asset management unit.
Apr. 1, 2014, 12:53 PM
- American Capital (ACAS +0.4%) Energy & Infrastructure has appointed Robert Wholey as Managing Director. He comes over after nine years at Highstar Capital and prior to that at UBS' Global Energy Group.
- Still reverberating is yesterday's announcement of a suspension in dividends while the company considers strategic moves, one of them maybe being the spinoff of the American Capital Asset Management a la NorthStar Realty Finance.
Mar. 31, 2014, 8:23 AM
- A spinoff of the asset management unit coming? The move to suspend repurchases comes as the board studies whether American Capital's (ACAS) corporate structure is the "optimum means for operation and capitalization of the business."
- In Q1, the company bought back 8.9M shares or 3.3% of the float at an average price of $15.38 each. Since Q3 of 2011, American Capital has bought back 101.6M shares or 29.4% of the float at an average price of $11.74, accretive to Dec. 31 NAV of $18.97 per share by $1.75.
- Source: Press Release
Mar. 4, 2014, 7:54 AM
- Declines in the sector in response to Russell's decision to exclude BDCs from its indices are due to technical, not fundamental reasons, says analyst Jonathan Bock. "We believe select BDCs offer compelling return opportunities in this low rate, low credit loss environment. In our view, those risk/return elements are unaffected by whether or not the BDCs are included in Russell Indices."
- Among Wells' highest rated names: American Capital (ACAS), Ares Capital (ARCC), Golub Capital (GBDC), Medley Capital (MCC), and TCP Capital (TCPC).
- Related ETFs: BDCL, BDCS, BIZD
Feb. 26, 2014, 11:23 AM| Comment!
Feb. 25, 2014, 12:20 PM
- "After consulting with clients concerned with certain reporting requirements, expenses, and investment restrictions relating to business development companies (BDCs), S&P Dow Jones has decided to remove all identified BDCs from its U.S. Indices.
- Press release
- BDC ETFs: BDCL, BDCS, BIZD
- Earlier: Prospect Capital (PSEC -2.7%) is removed from the S&P 600 SmallCap Index and Apollo Investment (AINV -7.3%) is removed from the S&P 400 MidCap Index.
- Prospect's market cap is $3.4B, Apollo's $1.9B. Other BDCs with market caps over $1B: Fifth Street (FSC -0.8%), Ares Capital (ARCC -1.5%), American Capital (ACAS -1.7%), Main Street (MAIN -1.7%), Hercules Technology (HTGC -2%). Close enough to $1B for an argument: Solar Capital (SLRC -1.8%) and Golub Capital (GBDC -0.2%).
Feb. 11, 2014, 3:22 PM
- Noting American Capital Asset Management seems to be rather conservatively valued on American Capital's (ACAS -6.8%) balance sheet, FSI Group's Eric Stein - on the company's earnings call (transcript) - asks management if it would consider spinning the business off.
- CEO Malon Wilkus responds that his team is keeping close track of the public market valuations of asset managers. " That possibly presents an opportunity for us. It's extremely -- it's safe. It's something that we're extremely interested in and paying a great deal of attention to."
- Wells' Jonathan Bock follows up, noting there is a recent comp in the form of NorthStar Realty (NRF) which has soared following the plan to spinoff its asset management unit.
- Earlier earnings coverage
ACAS vs. ETF Alternatives
American Capital Ltd is an asset management and private equity firm. The Company originates, underwrites and manages investments in the middle market private equity, leveraged finance, real estate, energy and structured products.
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