Further Equity Placing

RNS Number:0458N
ACP Capital Limited
01 December 2006


Date:                1 December 2006
On behalf of:        ACP Capital Ltd AIM: APL ("ACP Capital" or "The Company")
                     For immediate release



Not for publication, release or distribution, directly or indirectly, in or into
the United States of America, Canada, Australia or Japan, or their respective
territories or possessions


               ACP Capital Ltd announces a further equity placing


Placing of further equity

ACP Capital, the niche integrated finance provider specialising in the European
SME (Small and Medium Enterprise) market which listed on AiM in January this
year, today announces a placing of approximately 13 million new ordinary shares
with new and existing institutional investors at a placing price of 115p per
share, raising a gross amount of #15 million. The placing is being conducted by
Collins Stewart Europe Limited. After the placing, the Company will have a
market capitalisation of approximately #89 million, at the placing price.


Company Update

Following the successful flotation this year of both ACP Mezzanine Limited AIM:
ACPM ("ACP Mezzanine") in July and IFR Capital PLC AIM:IFR ("IFR" or "IFR
Capital") in November, the Company has a current estimated net asset value of
#72 million (prior to the placing announced today), representing an increase of
approximately 31% since its own IPO on 6 January 2006.

ACP Mezzanine continues to build up its mezzanine assets according to its
investment strategy, is on track to meet its first year's projections. As part
of its expansion, it expects to finalise a second leverage financing facility in
December 2006.

In addition to the launch of these companies, the Company and its subsidiaries
(the "Group") have been strengthening its human resources since its IPO. The
Group now has 9 employees (including Jeff Bennett, Eric Youngblood and Nikolaj
Larsen) and is interviewing for over 10 positions including key roles for the
positions of Risk Manager, Financial Controller (based in Jersey), Head of Debt
Syndication, Chief Investment Officers to head up a value enhancement vehicle
and a strategic equity vehicle (see below for description), as well as Vice
Presidents, credit analysts and junior analysts. The key hires are intended to
be in place by February 2007.

In parallel, the Group is also developing its European network and is in
discussions to establish offices in Munich and Milan, which is anticipated for
early 2007. Some of the proposed candidates will be located in these locations.
Furthermore, Nikolaj Larsen, as Head of Strategic Investments and who has joined
the ACP Capital Board will relocate to Munich in early 2007. Derek Vago will
also relocate to the continent in 2007 focusing in parallel on the development
of the continental European markets.


Strategy

The Company is in the process of evaluating the launch of further managed
vehicles, in line with its integrated finance strategy, that it intends will
further enable cross-origination opportunities between the platforms/vehicles.
The full roll-out strategy is based on a further equity fundraising of up to
#150m intended for early 2007.

The Company is currently holding assets to be transferred, or is in the process
of negotiating acquisitions with a view to transfer, to several proposed new
managed vehicles including:


*   a Strategic Equity vehicle, which ACP Capital intends will hold its
    strategic equity investments in companies, such as IFR Capital, with 
    origination of assets arising from ACP Capital's integrated finance 
    capabilities;

*   a High Income vehicle, which ACP Capital intends will be the first of a 
    number of funds geared primarily for retail investors that it expects to
    establish and which it intends will acquire/hold a diversified portfolio 
    of debt instruments such as senior and subordinated debt, across various 
    asset classes, with the Company proposing to hold a first loss equity 
    position; and

*   a Value Enhancement/Sale and Leaseback vehicle, focused primarily on 
    continental Europe, and which ACP Capital intends will focus on investments 
    in the infrastructure sector (such as wind farms, shipping containers, ports
    and rail cars) and in the PFI space (such as schools). The vehicle will 
    focus on investments in long-term sale & lease-back assets (for example, 
    nursing homes) and in assets which require 'repositioning' through capital 
    expenditure. The Company's target is to raise circa Euro250m for this vehicle 
    as an unlisted fund by June 2007.


The Company also intends to commit its equity funding to develop key strategic
and core assets to complement or propagate its 'merchant banking' capabilities
including developing:

*   Strategic Platforms: the Company intends to acquire, invest in or enter 
    into joint ventures with existing specialist operators in sectors where
    the Company, through its integrated finance capabilities, could assist in
    enhancing growth thus generating a flow of business for the Company. The 
    Company is currently in discussions with, amongst others:

    o   leading CLO asset managers in relation to preferred funding;

    o   originators in key markets such as Italy and Germany in relation to
        joint ventures; and

    o   infrastructure operators in relation to a joint venture;


*   Senior Debt Underwriting Capabilities: the Company is in discussions with 
    banks to put in place a senior debt funding line of up to Euro150m to
    underwrite senior debt, both asset-backed and non asset-backed. This 
    facility would, when combined with ACP Mezzanine's underwriting capabilities
    of Euro75m for an individual transaction, enable the Company to offer an 
    underwriting package of up to a total of Euro250m per transaction, with the 
    Company or a managed vehicle providing up to Euro25m of equity.


Use of placing proceeds

The Directors of ACP Capital believe that the Company has a very strong
immediate pipeline of opportunities which will put the Company in a strong
position for the proposed further equity raising in Q1 2007. The placing
proceeds, in addition to existing capital, will be used to fund in part this
pipeline.


Dividend Policy

The Company plans that it will be able to surpass its stated target dividend of
2p per share for the year ended 31 December 2006 and considers the target
dividend for the year ended 31 December 2007 of at least 6p per share to be
realistic, taking into account the placing announced today.

The new ordinary shares to be issued under the placing will rank pari passu in
all respects with the existing ordinary shares of the Company, except that they
will not be entitled to receive dividends for the year ending 31 December 2006.
It is expected that admission to trading on AIM and dealings in the new ordinary
shares will commence on 6 December 2006. The placing is conditional upon any
final consents required to be obtained from the Jersey Financial Services
Commission.


Derek Vago, CEO of the Company, commented:

"ACP Capital has had a great first year, and has established a strong pipeline
of opportunities for 2007. We believe that our goal of creating a combined
merchant bank and asset management business focused predominantly on the SME
sector is proving to be extremely successful, enabling us to continue the
excellent growth we have achieved in ten months of actual operation with a net
asset value increase exceeding 30% and the launch of two managed vehicles, IFR
Capital and ACP Mezzanine. We believe we are well positioned to launch two to
three further managed vehicles in 2007."


Enquiries to:

Derek Vago
ACP Capital Limited
Tel: + 44(0)20 7082 3922


Rob Bain/Andrew Dunn
Redleaf Communications Ltd
Tel: [phone]



Notes to Editors


ACP Capital Limited

ACP Capital is a Jersey-incorporated niche integrated finance provider
specialising in the European SME market whose shares were admitted to trading on
AIM in January 2006. As an integrated finance specialist, ACP Capital can offer
a combination of equity, mezzanine and senior debt to companies in niche
markets, such as the German "Mittelstand" (small and middle-sized
privately-owned companies), and  for asset backed transactions, for example, in
the real estate and infrastructure sectors.

As an asset manager, ACP Capital manages a series of investment vehicles that
can provide the required funding for its integrated finance capabilities. ACP
Capital intends to launch at least 2 managed vehicles each year in specific
sectors in its target markets.

ACP Capital's strategy is to develop strong synergies between its broad funding
capabilities and its various managed vehicles, providing optimal financing
solutions to its clients while securing a strong flow of recurring revenue for
its core business.

ACP Capital's CEO is Derek Vago, who is assisted on the Board by Heiner Kamps,
Francois Georges and Alan Braxton (as well as 2 other Non-Executive Directors).
In addition, Nikolaj Larsen (Head of Strategic Investments) has recently been
appointed to the Board and Eric Youngblood (CFO) will be appointed to the Board
subject to formalities, expected imminently. A further key team member is Jeff
Bennett, who is the Group's Chief Investment Officer for ACP Mezzanine.


ACP Mezzanine Limited

ACP Mezzanine Limited is a Jersey-incorporated company which listed on AIM in
July 2006 and whose strategy is to pursue a primary strategy as a mezzanine
lender, originating, structuring and underwriting the majority of its mezzanine
investments. ACP Mezzanine's investment strategy is implemented and managed by
ACP Capital through an Investment Management Agreement. ACP Mezzanine's strategy
is different from that followed by a number of participants in the mezzanine
financing market, which focus on acquiring assets directly from third parties
though a syndication process.

ACP Mezzanine lends primarily across Europe, with origination arising through a
direct integrated finance approach alongside ACP Capital's strategic platforms
and managed vehicles, and, to a lesser extent, purchases assets in the secondary
market if the expected risk adjusted returns are attractive. It is expected that
the integrated finance approach will account for at least two thirds of ACP
Mezzanine's investments over time.

ACP Mezzanine's Board includes Derek Vago, Jeff Bennett, Christophe Tanghe and 2
other Non-Executive Directors. In addition, Wolfgang Mellinghof will be
appointed to the Board subject to formalities, expected imminently.


IFR Capital PLC

The newly-established acquisition vehicle IFR Capital was admitted to AIM on 15
November 2006, raising circa Euro135m pre expenses, and is supported by its two
sponsors ACP Capital and Heiner Kamps, the food entrepreneur and founder of
Kamps AG.

The strategy of IFR Capital is to become a sustainable, vertically integrated
food retail company through acquisitions, with a targeted revenue of at least
Euro1.5bn by 2009. Post admission it is IFR's intention to make offers to acquire
Kamps Food Retail Investments S.A. and three bakery chains (Muller Brot, Anker
Brot and Lowenbacker).

IFR Capital's Board is led by Heiner Kamps, who is assisted by Arent Foch,
Michael Gerling, Nikolaj Larsen and Derek Vago (amongst others) as Non-executive
Directors.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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