ACP Capital announces the closing of £150 million equity placing

20 March 2007

ACP Capital Limited, the integrated finance and asset management company focused on both the asset-backed and non asset-backed sectors in the European small and medium-sized enterprise (SME) market, today announces a placing of 120 million new ordinary shares with new and existing institutional investors at a placing price of 125p per share (the "Placing Shares"),
raising a gross amount of £150 million. The placing is being conducted by Collins Stewart Europe.

In relation to the placing, the Company announced on 6 February 2007 its intended development plans (the "Intended Development Plans"). It was announced that a significant portion of the placing proceeds are earmarked for the following purposes:

  1. Investments in a series of strategic platforms to enhance the Company's origination capabilities throughout Europe - the Company further announced on 15 March 2007 that it is in discussions with a number of such platforms, including:
    • UK SME focused finance businesses - The Company is currently in discussions with identified businesses with a view to taking a minority equity stake and/or providing a series of financing facilities funded by the Company and its vehicles. As an example, ACP Capital has initiated discussions with Beacon, a leading UK residential mortgage lender, regarding a potential investment in that company.
    • Italian SME focused finance businesses - The Company is currently in discussions to create a joint venture with Eurinvest Finanza Stabile Srl ("Eurinvest"), an established Italian investment house, with a view to gaining a foothold in the Italian SME market. In parallel, the Company has entered into discussions with Investimenti e Sviluppo S.p.A., a listed company on the Italian Stock Exchange in which Eurinvest is a shareholder, in respect of a possible investment in Finleasing Lombarda S.p.A. Finleasing Lombarda
      S.p.A is an Italian SME finance business which was recently subject to a binding acquisition contract for 100 per cent. of its shares by Investimenti e Sviluppo S.p.A.
    • French SME focused finance businesses - ACP Capital has entered into exclusive discussions with a privately owned leasing specialist focusing on the French SME sector, with a view to acquiring up to 49 per cent. of that company.
    • German SME focused finance businesses - The Company is currently in discussions with regards to (a) acquiring a stake in a small but established German bank with experience in corporate SME and real estate lending, including the ability to issue Pfandbrief (see below), and (b) acquiring its own German banking license. The Company also intends to provide funding lines for identified loan products to independent German SME loan originators.
  2. Implementation of senior debt funding capabilities:
    • Senior debt underwriting - The Company intends to put in place a leveraged loan underwriting facility of up to approximately €150 million, in order to provide non- investment grade senior funding for a given transaction. This facility would, when combined with facilities provided by the Company's vehicles, enable the Company and itsvehicles to offer an underwritten finance package of up to an aggregate of pproximately
      €250 million per transaction. This would represent the development of the Company's ongoing underwriting and syndication activities in which the Company's management has significant experience.
    • Investment grade funding - The Company intends to put in place an investment grade funding vehicle with third party banks which will enable the Company to offer funding lines for diversified pools of assets to the strategic platforms.
  3. Continued growth of the asset management business through the launch of new managed vehicles and warehousing of assets for such vehicles, including:
    • 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 business, and through the primary and secondary markets. Once fully launched, ACP Senior High Yield is intended to offer investors a secure, high-yielding product targeting a stabilized dividend yield in the region of 8-10% resulting from the vehicle's investments primarily in senior debt instruments combined with partial downside protection provided
      by ACP Capital.
    • ACP Infrastructure I - the first in an intended series of dedicated infrastructure vehicles that would fund equity holdings in infrastructure assets. The Company has signed a non-bonding term sheet with an international operator in the shipping container and railcar sectors with a view to developing an off balance sheet capability for that operator.
    • ACP Strategic Equity - The Company intends to establish a strategic equity vehicle through which it would intend to hold strategic equity investments in companies and vehicles. The Company's Directors believe that through ACP Strategic Equity, the Company could generate significant returns which are expected to be achieved through the combination of the Company's integrated finance capabilities. The Company's
      intention is that ACP Strategic Equity will differentiate itself from private equity in that it (a) will not, generally, seek majority control of target companies and (b) can have a longer term investment period.

By adopting its planned strategy under the Intended Development Plans, ACP Capital aims to establish itself as one of the leading integrated finance providers to the European SME sector.

Derek Vago, Chief Executive Officer of ACP Capital, participated in the placing subscribing for 400,000 ordinary shares, resulting in a shareholding post placing of 6.47 per cent

Following the admission of the Placing Shares, the Company will have a total of 199,531,941 ordinary shares of 0.1p nominal value in issue, equivalent to a market capitalisation of approximately £249 million at the placing price.

Derek Vago, Chief Executive Officer of ACP Capital commented:

"We are delighted with the support for our strategy that we have experienced from both new and existing institutional investors in this milestone equity placing for ACP Capital. With this mandate from our shareholders, we will continue to implement our intended development plans with the aim of establishing ACP Capital as one of the leading integrated finance providers to the European SME market. In addition, we are also now considering and have initiated discussions regarding a possible move from AIM to the Official List of the London Stock Exchange this year."

Enquiries to:

ACP Capital Limited +44 (0)20 7082 3917
Collins Stewart Europe Limited
(Nominated Advisor to the Company)
Simon Atkinson:		 +44 (0)20 7523 8350