The good-looking Axygen described here was thrown into confusion by ACAS' recent email claiming that the sale "for about $400 million in cash" caused ACAS to receive $182 million in proceeds.
I'll post the link to ACAS' statement when it goes online, but my email claims that "The total inception to date gain and income, including dividend and fee income, from the equity invested by American Capital’s affiliated funds under management was $102 million, representing a 25% compounded annual rate of return." This suggests that while the investment was exited at $400,000,000, much of that price went not to ACAS but into accounts managed for third parties which also had funds invested in Axygen.
The upshot: The Axygen exit doesn't show ACAS can exit 120% above last-reported fair value; like the recent fair+4% sale, this shows ACAS again nets about fair value.
ACAS' sale of debt instruments yielding quarterly interest payments of $2.25m provides cash capable of paying down debt, or entering distressed situations with high rates of return eclipsing ACAS' cost of capital. I'm betting on the latter. $182m cash goes a long way these days. Since the rest of the $400m presumably is headed into ACAS-managed accounts, the $182m will go even further: ACAS will be able to invest it alongside funds under management, and will be in a position to get free "leverage" in this way while positioning itself and the beneficiaries of managed funds for the future.