September Special Situations Research Forum (Members Only, Limited Space) (Ended)
Topic: American Capital Ltd (ACAS)
Special situations are corporate actions which could reveal an undervalued security and hence an investment opportunity. Some examples of Special Situations are spinoffs, liquidations, tender offers, restructurings, bankruptcy exits etc. In the Special Situations Research Forum we will discuss an investment situation decided 3 weeks in advance. Every participant in the Forum is expected to research the topic before attending the meeting.
American Capital Ltd (ACAS) is a business development company that had a brush with failure during the 2008-2009 financial crisis. For the decade prior to the financial crisis American Capital traded above NAV and was able to grow through equity raises, ever since the crisis it's traded well below NAV. In response the company suspended it's dividend payment, switched to a c-corp for tax purposes, and has been steadily buying back shares shrinking the share count significantly. In addition to internally managing the company assets, American Capital also manages $15B in third party capital through publicly traded mREITs, CLOs, and private equity vehicles. This fall American Capital will be separating the asset manager from the BDC through a spinoff of the BDC. By separating into two companies, American Capital hopes to close the discount to their stated $20.35 NAV.
This meeting is a collaborative effort so please be sure to research the topic before the meeting and be prepared to contribute to the discussion.
Attendance will be limited to 15 members - first-come, first-served.
Vishal Mishra; Mishra Capital Partners LLC
Nick Redmond; Oculus Asset Management
Members - Free
Attire: Business Casual
Registration: Limited to 15 members
3:30pm - 5:00pm - Discussion
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