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Including investments in HomeAway by American Capital's affiliated funds under management, American Capital realized $18 million in inception-to-date gains. The combined group also received 2.1 times its equity investment and realized a compounded annual rate of return of 39% over the life of its equity investment, including dividends and fees.
"This exit of HomeAway is one of over 20 exits of portfolio companies since the beginning of the fourth quarter of 2008," said Malon Wilkus, Chairman and CEO. "These exits have helped us accumulate substantial liquidity in this market, while reducing our debt by approximately $300 million over the same period."
"HomeAway is an excellent example of American Capital's dedication to growing portfolio companies," said Bowen Diehl, Managing Director, Sponsor Finance. "Since November 2006, American Capital and its affiliated funds under management invested a total of $120 million in HomeAway to support its complimentary add-on acquisitions and expansion strategies, all which greatly created value for the company and assisted in making it the largest network of vacation listings in the world. Our investments in turn have benefited American Capital and its affiliated funds under management as we have received total inception-to-date gains of $18 million."
HomeAway is a leading operator of online listing marketplaces for vacation rental properties in the United States and Europe. HomeAway's portfolio of vacation rental websites includes HomeAway.com, VRBO.com, VacationRentals.com, Holiday-Rentals.co.uk, FeWo-direkt.de, Abritel.fr, Homelidays.fr and OwnersDirect.co.uk.
American Capital and its affiliated funds under management first invested $70 million of debt and equity in HomeAway in November 2006 to support HomeAway's acquisitions. In several follow-on investments in 2007, American Capital and its affiliated funds under management provided an additional $50 million in financing to HomeAway for a total investment of $120 million. Previously, through a series of transactions during 2008, American Capital was repaid its debt investments and partially exited its equity investments in HomeAway. For more information about American Capital's investments in HomeAway, please go to http://www.americancapital.com/our_portfolio/companies/homeaway.html.
Since American Capital's August 1997 IPO through the second quarter of 2009, the company has earned a 15% compounded annual return, including interest, dividends, fees and net gains, on 264 realizations of senior debt, subordinated debt and equity investments, totaling $12 billion of committed capital. These realizations represent 49% of all amounts invested by American Capital since its August 1997 IPO. Proceeds from these realizations exceeded the total associated prior quarter valuation of the investments by less than 1%. American Capital earned a 30% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.
For a chart showing American Capital's exited portfolio companies, please go to http://www.americancapital.com/our_portfolio/exited.html.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $11 billion(1)( )in capital resources under management and nine offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.
(1) As of June 30, 2009.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions or changes in the conditions of the industries in which American Capital has made investments.
Contact:
Bowen Diehl, Managing Director, Sponsor Finance - (214) 273-6630
Patrick White, Vice President, Sponsor Finance - (310) 806-6280
Tim Huelskamp, Associate, Technology Group - (508) 598-1100
Media - (301) 968-9400
SOURCE American Capital Ltd.
http://www.americancapital.com
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