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American Capital Receives $127 Million From Sale of Paradigm Precision Holdings



    American Capital Receives $127 Million From Sale of Paradigm Precision
                                   Holdings

PR Newswire

BETHESDA, Md., Feb. 20, 2013

BETHESDA, Md., Feb. 20, 2013 /PRNewswire/ -- American Capital, Ltd. (Nasdaq:
ACAS) ("American Capital") announced today that its portfolio company Paradigm
Precision Holdings, LLC ("Paradigm Precision") was sold to Dynamic Precision
Group, a portfolio company of The Carlyle Group (NASDAQ: CG), on January 31,
2013.  American Capital and its affiliated funds have received $129 million in
debt and equity proceeds, subject to post-closing adjustments, of which $127
million was received by American Capital.  American Capital's compounded
annual rate of return earned on its senior debt, subordinated debt and equity
investments since the first quarter of 2007 was 11%, including interest,
dividends and fees earned over the life of its investment. 

"American Capital is proud of its role in building Paradigm Precision into a
leader of precision machined aerospace engine parts," said Myung Yi, Senior
Vice President and Managing Director, American Capital Special Situations
Group.  "American Capital has been fortunate to partner with an outstanding
management team, which has driven Paradigm Precision's growth and successful
expansion into global markets." 

"Over the course of our investment, Paradigm built a strong position in all
key and next-generation engine platforms," said Yaniv Zief, Vice President,
American Capital Special Situations Group.  "We believe that Paradigm
Precision is a great addition to Dynamic Precision Group's business."

Paradigm Precision is a leading and premier global supplier of precision
aerospace components for jet engine manufacturers.  Based in Peabody,
Massachusetts with additional facilities in Malden, Massachusetts; East
Berlin, Connecticut; Tempe, Arizona; Guaymas, Mexico, and; Tunis, Tunisia;
Paradigm Precision is a manufacturer of highly complex, close tolerance parts
and assemblies used mainly in aircraft engine and industrial gas turbines.  In
addition to working with all of the major turbine engine original equipment
manufacturers, the company also supplies parts used in land-based power
generation and other specialty applications. 

During the first half of 2007, American Capital and an affiliate invested in
Paradigm Precision for the One Stop Buyouts® of Smith West Inc. ("Smith
West"), Palmer Manufacturing Co. Inc. ("Palmer") and Eurocast S.A.
("Eurocast"), leading manufacturers of precision machined aerospace engine
components.  In addition, in September 2008, American Capital invested in
Paradigm Precision to support the acquisition of TM Industries, Inc., a
high-precision machining company that specializes in machining large size,
highly technical parts for customers in the aerospace, power generation, oil
and gas and defense markets.  For more information on American Capital's
investment in Paradigm Precision, please go to
www.americancapital.com/Pages/our_portfolio/companies/paradigm_precision_holdings.aspx.

Since American Capital's 1997 IPO through the fourth quarter of 2012, the
company has earned a 10% compounded annual return, including interest,
dividends, fees and net gains, on over 340 realizations of senior debt,
subordinated debt, equity and structured products investments, totaling $18
billion of committed capital.  American Capital earned a 27% compounded annual
return on the exit of its equity investments, including dividends, fees and
net gains.

For a chart showing a partial listing of American Capital's exited portfolio
companies, please go to
http://www.americancapital.com/Pages/our_portfolio/exited.aspx.    

ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset
manager.  American Capital, both directly and through its asset management
business, originates, underwrites and manages investments in middle market
private equity, leveraged finance, real estate and structured products. 
American Capital manages $18.6 billion of assets, including assets on its
balance sheet and fee earning assets under management by affiliated managers,
with $117 billion of total assets under management (including levered
assets).  American Capital, through a wholly-owned portfolio company, manages
publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with
approximately $10 billion market capitalization and American Capital Mortgage
Investment Corp. (Nasdaq: MTGE) with approximately $850 million market
capitalization. From its eight offices in the U.S. and Europe, American
Capital and its affiliate, European Capital, will consider investment
opportunities from $10 million to $750 million.  For further information,
please refer to www.AmericanCapital.com.

This press release contains forward-looking statements. The statements
regarding expected results of American Capital are subject to various factors
and uncertainties, including the uncertainties associated with the timing of
transaction closings, changes in interest rates, availability of transactions,
changes in regional, national or international economic conditions, or changes
in the conditions of the industries in which American Capital has made
investments.

Contact: (301) 951-6122
Myung Yi, Senior Vice President and Managing Director, Special Situations
Group 
Yaniv Zief, Vice President, Special Situations Group

SOURCE American Capital, Ltd.

Website: http://www.americancapital.com
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