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American Capital Invests $125 Million in Velocity Financial Group

Bethesda, MD – June 21, 2007 – American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it and an affiliate have invested $125 million in Velocity Financial Group Inc., a newly formed specialty finance company that will provide equipment financing and working capital to middle market and venture-backed companies.  American Capital’s investment takes the form of senior subordinated debt and preferred equity.  American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment.  Velocity Financial Group’s management is investing alongside American Capital.[more...]