ACP Capital intends to expand its asset management business through the establishment of sector-specific managed vehicles (Managed Vehicles). These are expected to take advantage of the planned flow of opportunities from ACP Capital's Strategic Platforms in SME sectors across Europe .
To date, ACP Capital has launched two Managed Vehicles, ACP Mezzanine Limited, a dedicated subordinated lender in the European SME space, and IFR Capital plc, an acquisition vehicle focusing on consolidation in the European food sector, which forms part of ACP Strategic Equity (see below).
ACP Capital intends to launch two Managed Vehicles per year, focusing on, amongst other areas, strategic equity holdings in European SMEs, high-yielding senior debt instruments, infrastructure assets and real estate sale and leasebacks.
Each of these Managed Vehicles will be capitalized predominantly with third party equity and managed by ACP Capital, which will in turn benefit from asset management fees and income from lending activities, plus value creation arising from share price appreciation in Managed Vehicles in which ACP Capital owns stakes (anticipated to be in the region of 25% in each vehicle on a long term basis).
Discussions are currently underway with existing asset managers regarding joint ventures to enable greater access to these markets and assets are currently being warehoused for two new Managed Vehicles, ACP Senior High Yield and ACP Strategic Equity which are both expected to be launched in 2007.
