All day we’ve been hearing rumors of layoffs at American Capital, and the firm earlier this evening announced that it plans to cut around 110 jobs and shut down two offices. The press release didn’t say which offices, but we heard from the rumor mill that likely targets are Boston, Chicago or one of the firm’s remaining California offices (probably Palo Alto). We’ve also heard that layoffs are already underway, with many employees getting the bad news today.
American Capital made similar moves earlier this year, laying off 80 employees and closing both its Philadelphia and San Francisco offices. One industry source told me the Chicago office recently saw some its most productive deal-makers leave, which makes it a greater target for closing (or at least major downsizing). However, the firm recently hired Joseph Romic and Bradley Nii, formerly of Goldman Sachs and Lehman Brothers, respectively, to lead specialty finance practices in Chicago and the West Coast.
Calls to five different investment professionals at the Chicago office were not returned. One of the firm’s spokespeople has not returned calls all day (perhaps writing this press release), and the other (Brian Maney) is no longer with the company as of a few weeks ago, the receptionist told me.