American Capital LLC, our asset management company, at 806 million of fair market value, is now our largest portfolio company investment. After successfully serving the shareholders of American Capital Agency, and American Capital Mortgage by generating some of the highest returns in their industry, we helped raise a combined 644 million of equity for these two funds in the second quarter. We are pleased that we were able to grow our existing funds under management and look forward to increase the number of her funds under management overtime.
In addition, our portfolio companies, both in the U.S. and Europe experienced moderate revenue and EBITDA growth year-over-year. Our U.S. portfolio experienced unrealized appreciation and notably, European Capital’s euro denominated NAV held steady.
Our investment in European Capital was mostly impacted by a decline in the stock price to NAV of comparable public companies and negative foreign currency movements. So overall, we are pleased with portfolio company performance despite Europe’s troubles.
Our capital management strategies are also driving shareholder value. Over the past year we have repurchased 9% of our shares which has contributed $0.65 of accretion to our NAV per share. We remain committed to stock repurchase and dividend program and closing the discount to our NAV per share.Additionally, our strategies have contributed – our tax strategies have contributed $1.70 to our NAV per share, $0.46 per share in the last quarter alone. Lastly, our cash management and debt reduction efforts have allowed us to continue to delever and derisk our balance sheet, improving the potential to refinance and lower our cost of debt and improve on its terms.Many of you are aware of our recent 8-K filing concerning two potential new debt facilities and unfortunately, securities laws prevent us from commenting further on that announcement. Hopefully, these comments give a more wholesome picture of the American Capital’s performance in the second quarter.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV