American Capital launches Paris office

American Capital Strategies has established a Paris-based European affiliate known as European Capital Financial Services (European Capital). A six-strong team, headed by Jean Eichenlaub, will invest between E5m and E125m of equity, mezzanine and senior debt to fund growth, acquisitions and recapitalisations. It will invest through buyouts as well as directly in companies. According to press reports, Eichenlaub affirms that European Capital would initially rely on Nasdaq-listed American Capital to finance its deals, adding that the European franchise may go about raising its own funds in due course. Eichenlaub, who joined the organisation four weeks ago, has become managing director and a member of the investment committee. He has spent the last five years at Fonds Partenaires Gestion, where he served three years as deputy managing director. Previously, he was a director and head of the asset and structured finance department at Commerzbank in Paris. Eichenlaub is joined at European Capital by director Jacques Pancrazi, who was a colleague at Fonds Partenaires Gestion, where he had responsibility for portfolio management and financial performance monitoring. In addition, American Capital managing director Roland Cline has relocated to Paris. Malon Wilkus and Ira Wagner, respectively CEO and COO of American Capital, have become managing directors of European Capital. Eichenlaub said the ability to provide one-stop equity and debt finance would enable the firm to move quicker on deals than competitors, who in most cases have to organise external finance. He said that, providing the acquired company was progressing well, the firm would subsequently seek to sell down the senior debt element to the syndication market. Eichenlaub hinted that European Capital would launch further offices around the continent in due course, with a move to the UK possibly on the cards. American Capital has completed three buyouts in Europe over the last three years. One of these was in France in July last year, when it invested E55m in Sinodis, a food brand distributor. Since listing on Nasdaq in August 1997, American Capital has invested approximately $5bn in 150 portfolio companies in sectors including services, transport, retail and healthcare. The firm has over 100 investment professionals in seven offices around the US, and has capital resources exceeding $5.2bn.

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