ACP Capital intends to establish a strategic equity vehicle (ACP Strategic Equity) that will hold equity positions in European SMEs originated directly and through ACP Capital's origination platforms.
ACP Strategic Equity will offer investors the opportunity to access equity opportunities in the otherwise highly impenetrable SME markets by virtue of ACP Capital's extensive origination network in the markets of Germany , Italy , France and the UK .
ACP Capital expects to access deals involving companies that fall below the radar of most equity investors or companies who are only willing to raise equity as part of a wider integrated finance package, such as that provided by ACP Capital. In addition, ACP Capital may also be able to negotiate more attractive pricing on equity deals in situations where ACP Capital is also servicing the senior debt and mezzanine requirements of a given company.
ACP Capital hopes to capitalise on its position as a comprehensive financier in the SME sector to serve the equity requirements of companies for whom traditional private equity approaches are seen as undesirable. ACP Strategic Equity will differentiate itself from private equity funds in that it (a) will not, generally, seek majority control of target companies, (b) may have a longer-term investment time horizon and (c) will usually invest as part of an overall integrated finance approach, which ACP Capital believes to be a distinct advantage in the European SME market.
ACP Capital anticipates substantial opportunities for the development of an SME-focused equity holding vehicle and currently intends to launch ACP Strategic Equity by the end of 2007. At present, assets are being warehoused for ACP Strategic Equity, namely ACP Capital's holding in IFR Capital.
