APL Acp Capital

RNS Number:5984X
ACP Capital Limited
01 June 2007


ACP Capital Limited (AIM: APL)

1 June 2007


ACP Capital makes strategic investment in GCI Management AG


ACP Capital Limited ("ACP Capital" or the "Company"), the merchant bank
specializing in the provision of integrated finance and asset management
services for the European small and medium sized enterprise ("SME") markets,
today announces its participation as a strategic investor though a scheduled
capital increase in GCI Management AG ("GCI").


GCI is a Deutsche Borse-listed private equity company focused on the SME sector
in the German-speaking part of Europe. Alongside its investment activities, GCI
also operates a consultancy business in the areas of strategy, management and
financing.


GCI intends to increase its existing issued share capital of 8,813,934 shares by
issuing 3,299,100 new shares.  ACP Capital has agreed to acquire 2,401,805 of
these new shares at Euro8.00 each.  The shareholding represents 19.83% of GCI's
enlarged issued share capital following the capital increase.  The transaction
is  is expected to be effective following the approval of GCI shareholders at at
its Annual General Meeting in July 2007.


Together, ACP Capital and GCI intend to continue to identify complementary
benefits from their strategic alignment in the areas of co-investment, debt
financing and other business.


The acquisition is expected to cement a long-term relationship, with GCI
becoming ACP Capital's key strategic partner for its merchant banking strategy
in Germany.  The partnership fulfils a key strategic objective for ACP Capital
in Europe's largest economy of building a pan-European merchant banking and
asset management platform for SMEs in the core markets of Germany, Italy,
France, and the UK.


GCI intends to continue to manage its existing assets and funds under management
with future growth focused on later-stage private equity and turnaround
investment opportunities, primarily in Germany.  ACP Capital aims to provide a
series of financing products to GCI's existing and future investment portfolio
that would enable GCI to expand its financial product ranges in areas such as
senior debt, and senior and junior mezzanine.  The partnership is also expected
to enable GCI to increase overall transaction sizes leading to possibilities of
investing in majority stakes and buyouts with longer time horizons.


ACP Capital anticipates that the strategic relationship with GCI will generate a
range of new investment opportunities. As a result of a potential co-investment
agreement, ACP Capital will be granted rights to co-invest in the equity of GCI
transactions on the same terms as GCI, enabling potential deal flow for ACP
Strategic Equity (a strategic equity holding vehicle anticipated to be launched
by the end of 2007). Additionally, ACP Capital will be the preferred debt
funding partner for GCI transactions, resulting in potential opportunities for
senior debt underwriting and mezzanine lending opportunities for ACP Mezzanine
Limited, the AIM-listed sub-investment grade lender managed by ACP Capital.


Other benefits for ACP Capital arising from the acquisition of the strategic
shareholding include leasing business opportunities throughout Europe and
increased market presence in Germany, taking the Company to the next level in
its development following the establishment of an associated office in Munich.


Enquiries:

Simon Atkinson, Collins Stewart Europe Limited
(Nominated Advisor to the Company)                   +44 (0) 20 7523 8350


Rob Bailhache, Financial Dynamics Limited            +44 (0) 20 7269 7200
(Media Relations)


About GCI Management


GCI Management AG, Munich (www.gci-management.com), listed on the Frankfurt
stock exchange (ISIN DE0005855183), is a management and investment company
engaged in consulting, private equity and financial services. In line with its
growth strategy, GCI Management strives to acquire minority and majority
interests in companies with high value potential, generally of the old economy
such as machinery manufacturers, automotive suppliers and in the real estate
sector.



About ACP Capital


ACP Capital is a Jersey-incorporated specialized integrated finance and asset
management company focusing on both the asset-backed and non asset-backed
sectors in the European small and mid-sized enterprise (SME) market. The
company's shares were admitted to trading on AIM in January 2006, raising
approximately #50m before costs, followed by a further #15m share placing in
December 2006. In March 2007, the company announced a further #150m capital
raising in order to finance its intended development plans, including the
development of additional funding lines, managed vehicles and strategic
platforms (as announced 6 February 2007).


As an integrated finance specialist, ACP Capital offers a combination of equity,
mezzanine and senior debt to companies in niche markets, such as the German
"Mittelstand" (small and middle-sized privately-owned companies), and for asset
backed transactions, for example, in the real estate and infrastructure sectors.
The company intends to put in place levered loan and non-investment grade
funding vehicles in order to complement its current product base with a view to
providing financing solutions across the capital structure.


As an asset manager, ACP Capital manages a series of investment vehicles that
can provide the required funding for its integrated finance capabilities. ACP
Capital intends to launch at least 2 managed vehicles each year in specific
sectors in its target markets. These managed vehicles are intended to take
advantage of the planned flow of asset opportunities from the expansion of the
company's funding capabilities and strategic platforms. ACP Capital intends to
receive management and performance related fees from these vehicles in addition
to any share price increase as a strategic equity investor. To date, ACP Capital
has launched 2 such vehicles, ACP Mezzanine and IFR Capital. As announced on 8
March 2007, ACP Capital has raised a committed leverage facility of #125m with
Deutsche Bank for ACP Senior High Yield, a soon-to-be-launched managed vehicle
focusing on the acquisition of European senior debt assets originated primarily
through ACP Capital's SME-focused integrated finance business, and through the
primary and secondary markets.


ACP Capital's Board includes the highly regarded retail entrepreneur, Heiner
Kamps, the Director General of the international real estate investment and
development company Jesta Group, Francois Georges, the Managing Director of the
full service real estate private equity firm Presidio Partners LLC, Alan
Braxton, an Italian certified barrister and Director of Investimente e Sviluppo
S.p.a., Daniele Discepolo, Derek Vago, Eric Youngblood, Nikolaj Larsen and two
other Non-Executive Directors.


About ACP Mezzanine


ACP Mezzanine Limited is a Jersey-incorporated company which listed on AIM in
July 2006 and whose strategy is to pursue a primary strategy as a mezzanine
lender, originating, structuring and underwriting the majority of its mezzanine
investments. ACP Mezzanine's investment strategy is implemented and managed by
ACP Capital through an Investment Management Agreement. ACP Mezzanine's strategy
is different from that followed by a number of participants in the mezzanine
financing market, which focus on acquiring assets directly from third parties
through a syndication process.


ACP Mezzanine lends primarily across Europe, with origination arising through a
direct integrated finance approach alongside ACP Capital's strategic platforms
and managed vehicles, and, to a lesser extent, purchases assets in the secondary
market if the expected risk adjusted returns are attractive. It is expected that
the integrated finance approach will account for at least two thirds of ACP
Mezzanine's investments over time.


ACP Mezzanine's Board includes Derek Vago, Christophe Tanghe, Wolfgang
Mellinghof and two other Non-Executive Directors.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCEAXKFELKXEEE

ACP Capital (LSE:APL)
Historical Stock Chart
From Jun 2024 to Jul 2024

ACP Capital (LSE:APL)
Historical Stock Chart
From Jul 2023 to Jul 2024