American Capital launches $450 million American Capital CLO Fund I

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – American Capital, Ltd. has closed American Capital CLO Fund I, LP, a $450 million fund focused on investing in equity tranches of collateralized loan obligations, according to a Tuesday press release.

The transaction expands American Capital’s asset management business and increases its third-party earning assets under management by about $450 million, or 3%.

The fund purchased $300 million of American Capital’s existing CLO equity portfolio at its fair value as of June 30, subject to standard adjustments.

The fund has $150 million of investment capacity.

An affiliate of American Capital’s asset management company, American Capital Asset Management, LLC, manages the fund for customary management and incentive fees.

“This is our first fund dedicated to CLO equity and it diversifies our asset management income while leveraging an existing investment team,” Tom McHale, American Capital senior vice president of finance, said in the release.

American Capital is a private equity firm and asset manager based in Bethesda, Md.

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