Responding to the growth of its portfolio, American Capital Strategies Ltd. of Bethesda, Md., named Executive Vice President Adam Blumenthal as its first chief operating officer.
As COO, Blumenthal will continue to sit on the firm’s investment committee in addition to overseeing pre- and post-deal activities. When the firm is evaluating an investment, Blumenthal will direct the team of principals and associates to develop a proposal that fits the needs of the investment committee.
After the firm makes an investment and a company enters the portfolio, the new COO will direct the advisers on the board, keeping an eye for acquisition candidates and evaluate capital needs.
“Generally, I will work to makes sure we bring constructive thinking to the company,” Blumenthal said.
The publicly traded company has been an increasingly active investor since raising $150 million through its initial public offering in 1997. Currently, American Capital has more than $275 million in capital under management and filed a shelf registration two weeks ago with the Securities and Exchange Commission that would cover an additional $250 million in equity capital.
“Just two years ago we had less than $10 million invested in portfolio companies and we now have 20X that dollar value today,” Blumenthal said. “We have built an infrastructure that can handle probably another 2X to 3X that in our portfolio.”
To that end, the firm has begun to more actively pursue equity investments, in addition to its continued activity in subordinated debt investing. The firm invests between $3 million and $20 million in middle market companies via subordinated debt, growth equity, ESOP and management buyouts and restructurings.
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