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Goldman, Coller back $1.1 bln American Capital mid-market Fund III

Firm: American Capital Ltd

Fund: American Capital Equity III

Amount Raised: $1.1 billion

Placement Agent: Credit Suisse

Law firm: Kirkland & Ellis

The Bethesda, Maryland, firm said American Capital Equity III (ACE III) already has purchased a portfolio of equity investments from American Capital Ltd, as well as an option for an equity interest in another portfolio company.

Coller Capital, Goldman Sachs Asset Management and StepStone Group led the 39-member LP group, which included sovereign wealth funds, state retirement and pension systems, high net worth family offices, superannuation funds and foundations.

The closing of ACE III comes after American Capital said in May that Sean EagleEugene KrichevskyDavid Steinglass and Justin DuFour would lead its 10-person Lower Middle Market Group, which is managing the fund. 

Also in May, American Capital Ltd said it would contribute all of its equity and equity-related investments in seven portfolio companies and an option to acquire American Capital’s equity investment in an additional portfolio company to ACE III. The aggregate value of these investments was about $640 million, subject to adjustments. The firm did not provide the names of the portfolio companies. A representative for American Capital did not reply to a request for comment from Buyouts.

The investor group, along with American Capital, committed up to $445 million in capital to fund the purchase of new control equity and equity-related investments in companies with $5 million to $25 million of EBITDA. Executives listed on a Form D filing for ACE III include Malon Wilkus, CEO and founder of American Capital Ltd, as well as other executive officers Gordon O’Brien, Ira Wagner, John Erickson and Samuel Flax.

“This is another example of using our well capitalized balance sheet to incubate new funds under management,” Wilkus said in a prepared statement.