Issue of Equity

RNS Number:2660T
ACP Capital Limited
20 March 2007


Date:           20 March 2007
On behalf of:   ACP Capital Limited AIM: APL ("ACP Capital" or "the Company")
                For immediate release


ACP Capital announces the closing of #150 million equity placing

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 Euro150 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 its vehicles to offer an
    underwritten finance package of up to an aggregate of approximately Euro250
    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    [phone]

Collins Stewart Europe Limited (Nominated Advisor to the Company)

Simon Atkinson:        [phone]


Notes to Editors:

ACP Capital Limited

ACP Capital is a Jersey-incorporated specialized integrated finance and asset
management company focusing on both the asset-backed and non asset-backed
sectors in the European small and mid-sized enterprise (SME) market. The
company's shares were admitted to trading on AiM in January 2006, raising
approximately #50m before costs, followed by a further #15m share placing in
December 2006. In February 2007, the company announced its intention to pursue a
further capital raise in the region of #150m in 2007 in order to finance its
intended development plans, including the development of additional funding
lines, managed vehicles and strategic platforms (as announced 6 February 2007).

As an integrated finance specialist, ACP Capital offers 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.
The company intends to put in place levered loan and non-investment grade
funding vehicles in order to complement its current product base with a view to
providing financing solutions across the capital structure.

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. These managed vehicles are intended to take
advantage of the planned flow of asset opportunities from the expansion of the
company's funding capabilities and strategic platforms. ACP Capital intends to
receive management and performance related fees from these vehicles in addition
to any share price increase as a strategic equity investor. To date, ACP Capital
has launched 2 such vehicles, ACP Mezzanine and IFR Capital. As announced on 8
March 2007, ACP Capital has raised a committed leverage facility of #125m with
Deutsche Bank for 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 SME-focused integrated finance business, and through the
primary and secondary markets.



Results- FY 2006


For the period 30 August 2005 to 31 December 2006, ACP Capital generated total
income and increase in fair value of investments of #19.0 million and a net
profit of #15.0 million with diluted earnings per ordinary share of 21.5 pence
for the period. ACP Capital paid out a dividend of 3.0 pence per ordinary share,
representing an increase from the target of 2.0 pence per ordinary share stated
in the company's admission document published in December 2005.



Senior Management

Derek Vago, CEO, was previously managing director and co-head of the Asset
Finance Group (AFG) at Nomura International plc where he was responsible for all
balance sheet activities including equity, mezzanine, and senior debt financing
across both asset backed and non asset-backed sectors. Among transactions he led
for AFG were the acquisition of seven Center Parcs European assets and the
acquisition of Earls Court and Olympia. In 3 years Derek built the AFG into a
30-strong team generating upwards of #40m in revenues with a book of
approximately #2 billion. Derek was previously co-head of the European Real
Estate Investment Banking Group of Credit Suisse First Boston in London and has
over 15 years experience in international financial markets and corporate
finance.

Eric Youngblood, CFO, has 18 years experience in Global Structured Finance,
primarily in Securitisation. He was most recently at Nomura International plc
where he was the Head of Asset-Backed Securitisation for AFG. Prior to Nomura,
Eric was Director of Securitisation at CDC IXIS Capital Markets, where he was
responsible for developing the company's international securitisation activities
outside of France. Earlier in his career, Eric was Managing Director, Head of
Structuring at Bear Stearns in both Madrid and London and Head of Asset
Securitisation for Commerzbank in London.


Nikolaj Larsen, Managing Director, Head of Strategic Investments has 6 years
experience in Investment Banking. Prior positions include Head of Core
Underwriting in the AFG team at Nomura International plc where he focused on
asset backed deals such as the Earls Court and Olympia acquisition and non-asset
backed deals such as the acquisition and financing of Nordsee GmbH for the
German food retailer Kamps Food Retail Investment SA ("KFRI").


Non executive directors include Heiner Kamps, founder of Kamps AG and a leading
retail operator in Germany, and Francois Georges, former CEO of Pierres &
Vacances. Mr. Kamps and Mr. Georges provide direct access to opportunities
arising in Germany and France. Alan Braxton, a further non executive director is
currently managing director of Presidio Partners, a leading international
private placement advisor.


Jeff Bennett, CIO, ACP Mezzanine Limited has over 18 years of non-investment
grade financing experience, most recently at Morgan Stanley where he was a
Managing Director in the Leveraged Finance Group. During his time at Morgan
Stanley, Jeff structured some of the largest European financings including: the
Euro10bn financing package for Ineos Group Holdings' acquisition of Innovene, the
#1.4bn financing to support the public to private leveraged buyout of Debenhams,
and a Euro30bn senior bank facility for France Telecom.







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

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