q1 2010 shareholder presentation may 2010

Q1 2010 Sh h ld P iQ1 2010 Shareholder PresentationMay 5, 2010

© 2010 American Capital. All Rights Reserved. Nasdaq: ACAS

Nasdaq: ACAS

Safe Harbor Statement

This presentation contains statements that, to the extent they are not recitations of historical fact,

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

yconstitute "forward-looking statements" within the meaning of the Private Securities LitigationReform Act of 1995. All such forward-looking statements are intended to be subject to the safeharbor protection provided by the Reform Act. Actual outcomes and results could differ materiallyfrom those forecast due to the impact of many factors beyond the control of American Capital. Allforward looking statements included in this presentation are made only as of the date of thispresentation and are subject to change without notice. Certain factors that could cause actualpresentation and are subject to change without notice. Certain factors that could cause actualresults to differ materially from those contained in the forward-looking statements are included inour periodic reports filed with the SEC. Copies are available on the SEC’s website atwww.sec.gov. We disclaim any obligation to update our forward looking statements unlessrequired by law.

The following slides contain summaries of certain financial and statistical information aboutAmerican Capital, Ltd. They should be read in conjunction with our periodic reports that are filedfrom time-to-time with the Securities and Exchange Commission including our annual report onForm 10-K for the year ended December 31, 2009 and our subsequent periodic filings. Historicalresults discussed in this presentation are not indicative of future results.

Additional InformationNo information contained in this presentation constitutes an offer or invitation to acquire ordispose of any securities or investment advice in any jurisdiction. Any statements included hereinregarding earnings enhancement are not a profit forecast and should not be interpreted to meanthat American Capital’s future earnings will necessarily match or exceed those of any prior year.

2

that American Capital s future earnings will necessarily match or exceed those of any prior year.

Nasdaq: ACAS

Q1 2010 Financial SummaryQ y$0.17 NOI Per Diluted Share

143% increase from Q4 2009$(0.27) Net Realized Loss Per Diluted Share$0.65 Net Earnings Per Diluted Share

$0.92 net unrealized appreciation per diluted share31% annualized ROE

$8.98 Net Asset Value (“NAV”) Per Share$0.69 increase in NAV per share from Q4 2009 ● 8% increase● 8% increase

$2.5 B net asset value$8.31 pro forma NAV per share as adjusted for April 19, 2010 $295 MM equity offering

$820 MM Cash Balance$1.2 B cash balance as of April 30, 2010

1.6:1 Debt to Equity$449 MM debt repaid since June 30 2008

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$449 MM debt repaid since June 30, 2008$3.1 B Debt, Net of Cash

Nasdaq: ACAS

Net Unrealized Appreciation (Depreciation) of Portfolio Investments*

10%$1 000

Net Unrealized Appreciation (Depreciation) of Porfolio Investments* US GDP

US GDP

o t o o est e ts$ In Millions

$528

$45 $126 $254

1.2%3.2% 3.6%

2.1% 1.5%2.2%

5.6%3.0% 5%

10%

$500

$1,000

($5)($224)

($384)($269)

($532)($554) ($626)

$45

-0.7%

-2.7%

-5.4%

-6.4%

-0.7%

-5%

0%

($500)

$0

($951)

($1 588)

($554) ($626)

-15%

-10%

($1,500)

($1,000)

($1,588)

-20%($2,000)Q1 06 Q1 07 Q1 09 Q1 10

4* Excludes unrealized appreciation (deprecation) on derivative agreements, foreign currency translation and the reversal of prior period net unrealized depreciation (appreciation) upon realization.

Nasdaq: ACAS

Quarterly Financial Results

10%$1 000

Net Earnings (Loss) US GDPUS GDP

Q y$ In Millions

$77 $107 $187 1.5%2.2%

5.6%3.0%

10%$1,000

($70)

($548) ($547)

$77 $107

-0.7%-2.7% -6.4%

-0.7%

0%$0

($813)

($548) ($547) ($547)-5.4%-10%($1,000)

($1,684)-20%($2,000)

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

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Nasdaq: ACAS

Portfolio Statistics

$5.7 B Portfolio of Investments at Fair ValueAs of March 31, 2010

10.3% weighted average yield on private finance debt investments* as of March 31, 2010

$164 MM Q1 2010 Revenue from Portfolio Investments7.0% Non-Accruing Loans at Fair Value

$263 MM of $3.8 B total loans at fair value4.3x Mean Net Debt to Valuation EBITDA** 5.5x Total Net Debt to Valuation EBITDA**2.2x Interest Coverage Ratio

66* Reduced for non-accruing loans.** See slide 20 for definition of Mean and Total Net Debt to Valuation EBITDA

Nasdaq: ACAS

Past Due and Non Accrual Loans

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10$ in Millions

Current $ 5,115 $ 4,399 $ 4,047 $ 3,572 $ 3,648

0-30 Days Past Due $ 1 $ 1 $ 7 $ 38 $ -

31-60 Days Past Due - 4 113 - 3y

61-90 Days Past Due 7 29 - - -

> 90 Days Past Due 28 6 89 50 44

Total Past Due Loans at Cost $ 36 $ 40 $ 209 $ 88 $ 47$ $ $ $ $

Non-Accrual Loans at Cost $ 1,061 $ 996 $ 889 $ 811 $ 671

Total Loans at Cost $ 6,212 $ 5,435 $ 5,145 $ 4,471 $ 4,366

Non-Accrual Loans at Fair Value $ 214 $ 310 $ 285 $ 290 $ 263Non Accrual Loans at Fair Value $ 214 $ 310 $ 285 $ 290 $ 263

Total Loans at Fair Value $ 4,866 $ 4,288 $ 4,117 $ 3,729 $ 3,759

Non-Accrual Loans as a % of Total Loans at Cost 17.1% 18.3% 17.3% 18.1% 15.4%

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Non-Accrual Loans as a % of Total Loans at Fair Value 4.4% 7.2% 6.9% 7.8% 7.0%

Nasdaq: ACAS

$2.1 B of Realizations Since Q2 2008$ QGenerated Significant Liquidity Through Realizations

Despite the declining economy, capital and M&A markets

$520$476

$600$ in Millions

$463 $476

$400

$246

$125$163$200

$79$125

$0$0Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

8

Nasdaq: ACAS

$163 MM of Q1 Realizations$ Q

$114 MM Received from Principal Payments and Loan Sales $90 MM in principal prepayments$15 MM in loan syndications and sales$7 MM in scheduled principal amortization p p$2 MM collection of PIK notes and dividends and accreted OID

$49 MM Received from the Sale of Equity Investments$107 MM Net Portfolio Realized Losses$107 MM Net Portfolio Realized Losses

$8 MM gross portfolio realized gains$115 MM gross portfolio realized losses

9

Nasdaq: ACAS

Realization Performance(1)

Despite Difficult Market Conditions, Assets Have Been Sold at or Near Fair Value

Asset Sale Price Relative to Latest Fair Market Value

75%

100%

25%

50%

75%

1.4%

-1.9% -1.9%

1.1%

-0.6% -0.7% -3.7%-25%

0%

-100%

-75%

-50%

___________________________________(1) Measure defined as the comparison of the realized asset sale price to the previous period’s fair market value for fully

exited debt and equity securities. 10

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Nasdaq: ACAS

Portfolio Statistics

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

Control(1) Portfolio Company Assets at Fair Value as a % of Prior Quarter Investments at Fair Value

54% 55% 58% 54% 59% 57%

Total Investments at Fair Value to Total Investments at Cost 69% 64% 60% 60% 61% 63%

Mean Net Debt to Valuation EBITDA(2) 4 0 4 2 4 4 4 6 4 5 4 3Mean Net Debt to Valuation EBITDA(2) 4.0 4.2 4.4 4.6 4.5 4.3

Total Net Debt to Valuation EBITDA(2) 5.1 5.3 6.5 5.9 5.8 5.5

Average EBITDA Margin 20.4% 20.8% 20.8% 20.5% 20.1% 20.8%

Total Senior Debt as a % of Investments at Fair Value 32% 34% 35% 35% 32% 31%

Total Subordinated Debt as a % of Investments at Fair Value 37% 37% 35% 35% 35% 35%

Total Equity Assets as a % of Investments at Fair Value 29% 27% 28% 27% 30% 31%

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(1) Includes private finance investments that we control or can gain control of the board of directors of the portfolio company as of the measurement date, including equity securities and those securities held by entities managed by American Capital, LLC on the a fully diluted basis.

(2) See slide 20 for definition of Mean and Total Net Debt to Valuation EBITDA.

Nasdaq: ACAS

Appreciation, Depreciation, Gains and Lossespp , p ,

NET REALIZED GAINS AND LOSSESPrivate Finance Portfolio

Q1 2010$ (106)

$ in Millions

Structured ProductsForeign CurrencyDerivative Agreements

(1)(3)

(16)

Net Realized Losses $ (126)

NET UNREALIZED APPRECIATION AND DEPRECIATIONReversal of Prior Period Unrealized Depreciation Upon RealizationPrivate Finance PortfolioEuropean Capital Limited Investment

CostValue

N/A$ 6,618

1 380

FairValue

N/A$ 5,016

392

$ 103 11150European Capital Limited Investment

European Capital Limited Foreign Currency Translation*American Capital Agency Corp. American Capital, LLCStructured Products

1,380N/A

5075

890

392N/A

6460

166

5069(2)26

-Foreign Currency Translation**Derivative Agreements

N/A-

N/A(107)

(87) (6)

Net Unrealized Appreciation $ 264

TOTAL $ 9,013 $ 5,591 $ 138

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* Represents foreign currency translation on the accumulated unrealized depreciation on the investment and is reported as unrealized appreciation of portfolio company investments on our Consolidated Statements of Operations. ** Represents foreign currency translation on the cost basis of our foreign currency denominated assets and liabilities, of which $84 MM relates to European Capital Limited. Reported as unrealized depreciation from foreign currency translation on our Consolidated Statements of Operations.

Nasdaq: ACAS

European Capital Updatep p pECAS Net Asset Value is Approximately $0.8 B as of March 31, 2010

ACAS equity investment is fair valued at $278 MM● $35 MM increase from Q4 2009

► $50 MM increase net of $15 MM in foreign currency translation● Valuation includes significant discount to NAV

C t d t f dit f iliti ld ff t li ti f► Covenants and tenor of credit facilities could affect realization of NAV

► Comparable publicly traded funds currently trading at discount to NAV

Credit Facilities are in Compliance$75 MM Bridge Loan Funded by ACAS in March 2010

Used to retire one of four credit facilities, eliminating an ACAS guarantee$60 MM id i A il 2010$60 MM repaid in April 2010

ECAS Generated Over €200 MM of Portfolio Realizations from November 2009 through April 2010

Proceeds exceeds prior quarter valuations by approximately 6%

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p q y pp y

Nasdaq: ACAS

IRR by Static Pool and Exited Investments+

40%

All InvestmentsExited Investments+

IRR by Static Pool and Exited Investments

8%

18%

8%

21%

13%

3%7%

5%9%

13%10%

24%17%

24%

9%

20%12%

10%3%

-3%-11%

5% -1%

-3%

-20%

Pre-2001 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Aggregate 2005-2010

Aggregate

-50%

-75%-80%Static Pool Investments at Fair Value as % of Total 3/31/10 Portfolio at Fair Value

*

14+ Includes exited securities of existing portfolio companies. * Not considered meaningful as only $55 MM, or 5.4%, of investments have been exited.

Pre-2001 2001 2002 2003 2004 2005 2006 2007 20080.4% 0.0% 2.4% 7.3% 6.2% 21.5% 21.9% 29.7% 10.6%

2009

0.0%2010

0.0%

Nasdaq: ACAS

$295 MM Equity Issuance in April$ q y p58.3 MM Common Shares Issued to Group of Institutional Investors75% Purchased by Paulson & Co. and AffiliatesySold at $5.06 per Share

5% discount to closing priceWill be Used for General Corporate Purposes Including theWill be Used for General Corporate Purposes, Including the Company’s Investment and Lending Activities and to Repay Indebtedness Under its Unsecured Debt Obligations

15

Nasdaq: ACAS

2010 Outlook and Business ForecastWe Believe Recession has Ended and Expect Growth in 2010

Generally asset valuations have stabilized and overall have yimproved

We Remain Focused onRestructuring our unsecured debtRestructuring our unsecured debtProviding operational, managerial and financial support to our portfolio companies Improving operating efficienciesImproving operating efficienciesRestructuring ECAS debt to maximize value

We are a Long-term, Patient InvestorG i f i l li i i h kGetting fair values on realizations in a tough market

16

End of Formal Presentation

© 2010 American Capital. All Rights Reserved. 17

Static Pool Information


Nasdaq: ACAS

Static Pool* % of Original Investments Exited

$8 000Original Investments and CommitmentsTotal Exits and Prepayments of Original Investments and Commitments

% g$ In Millions

$7,328

$6,000

$7,000

$8,000 Total Exits and Prepayments of Original Investments and Commitments

$5,179

$4,636

$3,277 $3 151

$4,000

$5,000

$1,021

$2,266

$1,434$962$1,065

$3,277 $3,151

$1,830

$1,083$998

$2,096

$1 000

$2,000

$3,000

$376$55

,$757

$353

$998

$0

$1,000

Pre-2001 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Static Pool % of Original Investments Exited

19

93.7% 93.9% 78.7% 75.5% 80.8% 45.2% 63.3% 43.0% 5.4% 0.0% 0.0%

Static Pool % of Original Investments Exited

* Static pool classification is based on the year the initial investment was made. Subsequent add-on investments are included in the static pool year of the original investment.

Nasdaq: ACAS

Credit Quality of Private Finance Portfolio*Q yQ4

2007Q1

2008Q2

2008Q3

2008Q4

2008Q1

2009Q2

2009Q3

2009Q4

2009Q1

2010Mean Net Debt to Valuation EBITDA1 N/A N/A N/A N/A 4 0 4 2 4 4 4 6 4 5 4 3Mean Net Debt to Valuation EBITDA1 N/A N/A N/A N/A 4.0 4.2 4.4 4.6 4.5 4.3Total Net Debt to Valuation EBITDA2 N/A N/A N/A N/A 5.1 5.3 6.5 5.9 5.8 5.5

Debt to EBITDA3 5.9 5.9 6.0 6.0 5.9 5.8 6.0 6.3 6.0 5.9Interest Coverage4 2.0 1.9 1.8 1.9 2.0 2.0 2.1 2.0 2.2 2.2Interest Coverage 2.0 1.9 1.8 1.9 2.0 2.0 2.1 2.0 2.2 2.2Debt Service Coverage5 1.7 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.8 1.8

1. Mean Net Debt represents the sum of (i) debt and other liabilities senior to ACAS, (ii) normalization for working capital and (iii) the mean of the total of ACAS’ debt in each portfolio company’s debt capitalization less cash of the portfolio company EBITDA ismean of the total of ACAS’ debt in each portfolio company’s debt capitalization, less cash of the portfolio company. EBITDA is defined as the earnings before interest, taxes, depreciation and amortization and other non-recurring charges. The Valuation EBITDA is defined as the EBITDA used to value the current enterprise value of the portfolio company which may be the EBITDA of the most recent twelve months or, when appropriate, the forecasted twelve months. Ratio excludes ACAS’ investments in technology, real estate and financial services companies as well as debt investments valued at liquidation value.

2. Total Net Debt represents the sum of (i) debt and other liabilities senior to ACAS, (ii) normalization for working capital and (iii) the total of ACAS’ debt in each portfolio company’s debt capitalization, less cash of the portfolio company. Ratio excludes ACAS’ p p y p , p p yinvestments in technology, real estate and financial services companies as well as debt investments valued at liquidation value.

3. Debt represents the sum of (i) total debt senior to ACAS and (ii) the total of ACAS’ debt in each portfolio company’s debt capitalization. EBITDA represents the EBITDA of the most recent twelve months. For portfolio companies with a nominal EBITDA, the Debt to EBITDA calculation is limited to 15 times EBITDA.

4. EBITDA divided by the total cash interest expense of the portfolio company during the most recent twelve month period, or when appropriate as a result of a new debt capital structure, the forecasted twelve months.

5 EBITDA di id d b th t t l h d l d i i l ti ti d t t l h i t t f th tf li d i th

20

5. EBITDA divided by the total scheduled principal amortization and total cash interest expense of the portfolio company during themost recent twelve month period, or when appropriate, the forecast twelve months.

* Weighted average based on total private financing portfolio assets at fair value

Nasdaq: ACAS

Portfolio Statistics(1)

$ In Millions

Pre- 2001StaticPool

2001Static Pool

2002 StaticPool

2003StaticPool

2004StaticPool

2005StaticPool

2006StaticPool

2007StaticPool

2008StaticPool

2009StaticPool

2010StaticPool

Pre-2001-2010

AggregatePortfolio

2005-2010 AggregatePortfolio

IRR - Fair Value - All Investments(2)

7.9% 18.1% 7.9% 20.9% 13.2% 2.9% 7.2% -10.5% -2.5% - - 4.5% -0.9%

5 8% 46 9% 11 4% 28 7% 27 6% 8 2% 12 7% 16 5% 9 6% 2 5% 5 0%IRR - Fair Value - Equity Investments Only(2)(3)(4)

5.8% 46.9% 11.4% 28.7% 27.6% -8.2% 12.7% -16.5% -9.6% - - 2.5% -5.0%

IRR - Exited Investments(5) 8.6% 20.2% 9.1% 23.5% 17.0% 23.9% 9.7% -3.3% -74.9% - - 13.0% 11.5%

Original Investments and Commitments

$ 1,065 $ 376 $ 962 $ 1,434 $ 2,266 $ 4,636 $ 5,179 $ 7,328 $ 1,021 $ - $ - $24,267 $18,164

Total Exits & Prepayments $ 998 $ 353 $ 757 $ 1,083 $ 1,830 $ 2,096 $ 3,277 $ 3,151 $ 55 $ - $ - $13,600 $8,579 Total Exits & Prepayments of Original Investments and Commitments

Total Interest, Dividends and Fees Collected

$ 386 $ 142 $ 307 $ 365 $ 540 $ 696 $ 785 $ 815 $ 154 $ - $ - $4,190 $2,450

Total Net Realized (Loss) Gain

$ (128) $ (4) $ (90) $ 142 $ 29 $ 293 $ (92) $ (377) $ (50) $ - $ - $(277) $(226)

Current Cost of $ 76 $ 23 $ 196 $ 331 $ 471 $ 2,326 $ 1,570 $ 3,221 $ 799 $ - $ - $9,013 $7,916Current Cost of Investments

$ 76 $ 23 $ 196 $ 331 $ 471 $ 2,326 $ 1,570 $ 3,221 $ 799 $ $ $9,013 $7,916

Current Fair Value of Investments

$ 20 $ 2 $ 136 $ 418 $ 351 $ 1,224 $ 1,249 $ 1,691 $ 607 $ - $ - $5,698 $4,771

Current Fair Value of Investments as a % of Total Investments

0.4% 0.0% 2.4% 7.3% 6.2% 21.5% 21.9% 29.7% 10.6% - - 100.0% 83.7%

$ (56) $ (21) $ (60) $ 87 $ (120) $ (1 102) $ (321) $ (1 530) $ (192) $ $ $(3 315) $(3 145)Net Unrealized Appreciation (Depreciation)

$ (56) $ (21) $ (60) $ 87 $ (120) $ (1,102) $ (321) $ (1,530) $ (192) $ - $ - $(3,315) $(3,145)

(1) Static pool classification is based on the year the initial investment was made. Subsequent add-on investments are included in the static pool year of the original investment.

(2) Assumes investments are exited at current fair value. (3) Excludes investments in Structured Products.

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( )(4) Excludes equity investments that are the result of conversions of debt and warrants received with the issuance of debt.(5) Includes exited securities of existing portfolio companies.

Nasdaq: ACAS


$ In MillionsPre-2001

StaticPool

2001Static Pool

2002 StaticPool

2003StaticPool

2004StaticPool

2005StaticPool

2006StaticPool

2007StaticPool

2008StaticPool

2009StaticPool

2010StaticPool

Pre-2001-2010 AggregatePortfolio

2005-2010 AggregatePortfolio

N l L t C t $ 18 $ 14 $ 27 $ - $ 39 $ 99 $ 136 $ 334 $ 4 $ - $ - $671 $573Non-accrual Loans at Cost $ 18 $ 14 $ 27 $ $ 39 $ 99 $ 136 $ 334 $ 4 $ $ $671 $573

Non-accrual Loans at Fair Value

$ 20 $ 2 $ 20 $ - $ 11 $ 78 $ 58 $ 70 $ 4 $ - $ - $263 $210

Equity Interests at Fair Value(3)

$ - $ - $ 1 $ 191 $ 73 $ 554 $ 422 $ 394 $ 138 $ - $ - $1,773 $1,508

Debt to EBITDA(6)(7)(8) 7.0 NM 8.1 4.5 6.2 4.6 5.3 6.9 6.3 - - 5.9 5.9Debt to EBITDA(6)(7)(8) 7.0 NM 8.1 4.5 6.2 4.6 5.3 6.9 6.3 5.9 5.9

Interest Coverage(6)(8) 1.9 NM 0.9 2.7 2.1 2.4 2.5 2.2 1.4 - - 2.2 2.2

Debt Service Coverage(6)(8) 1.9 NM 0.8 2.5 1.5 1.6 2.0 1.9 1.2 - - 1.8 1.8

Average Age of Companies(8)

37 yrs 25 yrs 50 yrs 40 yrs 45 yrs 29 yrs 31 yrs 28 yrs 25 yrs - - 31 yrs 29 yrs

Diluted Ownership Percentage(3)

63% 59% 39% 52% 46% 49% 43% 47% 33% - - 45% 44%

(1) Static pool classification is based on the year the initial investment was made Subsequent add-on investments are included in the static(1) Static pool classification is based on the year the initial investment was made. Subsequent add-on investments are included in the static pool year of the original investment.

(3) Excludes investments in structured products.(6) These amounts do not include investments in which American Capital owns only equity.(7) For portfolio companies with a nominal EBITDA amount, the portfolio company’s maximum debt leverage is limited to 15 times EBITDA.(8) Excludes investments in Structured Products, managed funds and American Capital, LLC.(9) Sales of the most recent twelve months, or when appropriate the forecasted twelve months.

22

(10) EBITDA of the most recent twelve months, or when appropriate the forecasted twelve months.(11) As a percentage of the company’s total debt investments.

Nasdaq: ACAS


$ I MilliPre-2001

St ti2001St ti

2002 St ti

2003St ti

2004St ti

2005St ti

2006St ti

2007St ti

2008St ti

2009St ti

2010St ti

Pre-2001-2010 A t

2005-2010 A t$ In Millions Static

PoolStatic Pool

StaticPool

StaticPool

StaticPool

StaticPool

StaticPool

StaticPool

StaticPool

StaticPool

StaticPool

AggregatePortfolio

AggregatePortfolio

Average Sales(8)(9) $ 46 $ 7 $ 46 $ 187 $ 95 $ 122 $ 132 $ 234 $ 98 $ - $ - $159 $166

Average EBITDA(8)(10) $ 4 $ - $ 9 $ 36 $ 23 $ 24 $ 36 $ 40 $ 28 $ - $ - $33 $34

Average EBITDA Margin 8.7% - 19.6% 19.3% 24.2% 19.7% 27.3% 17.1% 28.6% - - 20.8% 20.5%

Total Sales(8)(9) $ 70 $ 267 $ 169 $ 1,269 $ 820 $ 1,954 $ 5,854 $ 8,107 $ 1,190 $ - $ - $19,700 $17,105

Total EBITDA(8)(10) $ 6 $ 4 $ 18 $ 179 $ 167 $ 323 $ 896 $ 1,538 $ 234 $ - $ - $3,365 $2,991

% of Senior Loans(8)(11) 86% 21% 57% 61% 41% 38% 37% 62% 26% - - 47% 46%

% of Loans with Lien(8)(11) 100% 68% 100% 100% 91% 89% 93% 93% 61% - - 89% 87%% o oa s t e (8)( )

(1) Static pool classification is based on the year the initial investment was made. Subsequent add-on investments are included in the static pool year of the original investment.

(8) Excludes investments in Structured Products, managed funds and American Capital, LLC.(9) Sales of the most recent twelve months, or when appropriate the forecasted twelve months.(10) EBITDA of the most recent twelve months, or when appropriate the forecasted twelve months.

23

( ) , pp p(11) As a percentage of the company’s total debt investments.

Corporate Overviewp


Nasdaq: ACAS

American Capital OverviewAmerican Capital Overview

$14 B of Capital Resources Under Management as of 3/31/10$7 B t A i C it l*

Global Asset Manager

$7 B at American Capital*$7 B externally managed assets**

Founded in 1986, IPO in 1997$$24 B invested by American Capital since IPO

Balance Sheet$6.8 B of assets$2.5 B net asset value1.6:1 debt to equity

Financial Performance Since IPO$30.32 of dividends paid since 1997 IPO at $15.00 per share

25

* Includes American Capital’s investment in its externally managed funds.** Includes American Capital Agency Corp., American Capital Equity I, American Capital Equity II, ACAS

CLO-1 and ACAS CRE CDO 2007-1. European Capital Limited not included.

Nasdaq: ACAS

American Capital & Its Funds Under Managemente ca Cap ta & ts u ds U de a age e t

$34 B Invested** in 521 Portfolio Companies* Since IPO122 One Stop Buyouts™122 One Stop Buyouts229 PE buyouts sponsored by over 145 PE firms177 direct & other investments

Over 252 Portfolio Companies* as of 3/31/10$60 B of revenues*$10 B EBITDA*$10 B EBITDA*

$5 MM to $100 MM Investment Size in North America€5 MM to €25 MM Investment Size in Europe

* Includes portfolio companies of European Capital Limited. ** Includes investments of European Capital Limited, American Capital Agency Corp., American Capital

Equity I, American Capital Equity II and ACAS CLO-1. Excludes investment of ACAS CRE CDO 2007-1.26

Nasdaq: ACAS

People and Offices318 Employees as of March 31, 2010People and Offices

8 Offices in the U.S., Europe and Asia26 Investment Teams26 Investment Teams

95 investment professionals36 CPAs, Audit and Valuation Professionals (FACT)

Unique in our industry19 P O ti T19 Person Operations Team

One of the largest in our industry6 CEOs & Presidents2 COOs1 CFO5 Financial VPs and Associates3 Supply Chain Management Professionals

4 Person Syndication Team4 Person Syndication Team25 Person Legal Team9 Person Human Resource TeamIncludes 57 Employees at American Capital, LLCy

Primarily in Europe

27

Appreciation, Depreciation, Gains and LossesGains and Losses


Nasdaq: ACAS

Appreciation, Depreciation, Gains and Lossespp , p ,

NET REALIZED GAINS AND LOSSESPrivate Finance Portfolio

Q1 2010$ (106)

$ in Millions

Structured ProductsForeign CurrencyDerivative Agreements

(1)(3)

(16)

Net Realized Losses $ (126)

NET UNREALIZED APPRECIATION AND DEPRECIATIONReversal of Prior Period Unrealized Depreciation Upon RealizationPrivate Finance PortfolioEuropean Capital Limited Investment

CostValue

N/A$ 6,618

1 380

FairValue

N/A$ 5,016

392

$ 103 11150European Capital Limited Investment

European Capital Limited Foreign Currency Translation*American Capital Agency Corp. American Capital, LLCStructured Products

1,380N/A

5075

890

392N/A

6460

166

5069(2)26

-Foreign Currency Translation**Derivative Agreements

N/A-

N/A(107)

(87) (6)

Net Unrealized Appreciation $ 264

TOTAL $ 9,013 $ 5,591 $ 138

29

* Represents foreign currency translation on the accumulated unrealized depreciation on the investment and is reported as unrealized appreciation of portfolio company investments on our Consolidated Statements of Operations. ** Represents foreign currency translation on the cost basis of our foreign currency denominated assets and liabilities, of which $84 MM relates to European Capital Limited. Reported as unrealized depreciation from foreign currency translation on our Consolidated Statements of Operations.

New InvestmentsNew Investmentsand

Realizations


Nasdaq: ACAS

$163 MM of Q1 Realizations$ Q

$114 MM Received from Principal Payments and Loan Sales $90 MM in principal prepayments$15 MM in loan syndications and sales$7 MM in scheduled principal amortization p p$2 MM collection of PIK notes and dividends and accreted OID

$49 MM Received from the Sale of Equity Investments$107 MM Net Portfolio Realized Losses$107 MM Net Portfolio Realized Losses

$8 MM gross portfolio realized gains$115 MM gross portfolio realized losses

31

Nasdaq: ACAS

ACAS Realizations

13% Weighted Avg IRR on Senior and Subordinated Debt, Equity d St t d P d t E it *

1997 IPO-to-Date

and Structured Products Exits*289 realizations● $13 B of capital committed● 56% of total capital committed

Proceeds exceed prior quarter valuations by less than 1%Inclusive of fees earnedInclusive of fees earned

28% Weighted Average IRR on Equity Realizations**Inclusive of fees earned

$340 MM f A d PIK d A t d OID R id$340 MM of Accrued PIK and Accreted OID Repaid36% of total accrued PIK and accreted OID

32

* Includes fully exited portfolio companies and exited securities of existing portfolio companies. ** Excludes Structured Products, equity investments that are the result of conversions of debt to equity

and equity warrants received with debt fundings.

Nasdaq: ACAS

$84 MM of Q1 2010 New Investments*$ QBy Use of Funds

$75 MM for$75 MM for Recapitalization in 2

Portfolio Companies**

$1 MM for Growth and

89%

10%

1%$1 MM for Growth and

Working Capital in 1 Portfolio Company

10%$8 MM for 5 Distressed

Portfolio Companies

33

* New investments reported on committed amounts at origination.**Includes $75 MM for bridge loan financing to European Capital Limited to refinance its debt

obligations, of which $60 MM was repaid subsequent to 3/31/10

Nasdaq: ACAS

ACAS Current Investments Common Preferred WarrantsEquity in Managed Funds Sub Debt CLOCMBS Senior Senior >= LIBOR+650

At Cost

13% 22% 19% 19% 19% 16% 17%

12% 17% 14% 17% 15% 20%14% 16% 16% 13% 14%

5% 7% 6% 7% 6% 5%2% 2%2%2%3%2%5%2%2%2%2%2%2%2% 2% 2%5%

100%

CMBS Senior Senior LIBOR 650Senior < LIBOR+650 Revolver

1%1% 1%

2% 3%3%

3%3% 3% 3% 2%

3%5% 5%

6% 7%7%

5%5% 6% 6%

7%

13%11% 14%

14% 13%12%

14%16% 14% 14% 13%

19%

25%25%25%25%35%

2%2%

2% 2%3%3%7%

7%7%

7%7%7%

75%

1% 1% 1% 1% 1%

4% 5% 6%8% 8% 8%

9% 9% 9% 11% 10% 9% 9%13% 13% 14% 14%

1%2%2%3%

5% 4%4%1%6%

25%25%29%30%26%24%24%23%25%

24%28%29%

29%30%35%

25%

50%

17% 16% 18% 19%

1% 1% 1% 1% 1% 1% 1%%

5%4% 7%5% 7% 7%6% 6%5%7% 6% 6% 8% 8% 8% 7%7%

16%16%16%17%18%18%19%17%16%15%

20%19%18%

2%3%3%1%

0%

25%

34

Q106

Q107

Q108

Q109

Q110

Nasdaq: ACAS

ACAS Current Investments Common Preferred WarrantsEquity in Managed Funds Sub Debt CLOCMBS Senior Senior >= LIBOR+650Senior < LIBOR+650 Re ol ing Credit Facilit

At Fair Value

13% 14% 14% 25% 21% 22%

12% 16% 13% 16% 14% 18%13% 15% 16% 13% 15%

5%8% 9% 8% 7%8%

2%3%3%4%4%2%5%5%2%2%1%2%2%2%2%2%2%100%Senior < LIBOR+650 Revolving Credit Facility

33% 28% 27% 22%21% 24% 24%

1%1% 2%

2% 3% 2%3%

2%1% 2% 1%

1%2% 2% 2%

13%11% 14%

14% 13%11%

14%16% 14% 14% 14%

5%23% 23% 21% 22%

1%1%

1%1%1%2%1%1%3%3%2%4%

4%6%

7%6%4%4%3%

22%75%

2% 1%1% 1% 1% 1% 1%

4% 5% 6%9% 9%

9%9% 8% 8%

10%10%

4% 2% 2% 2% 5%

33% 28% 27%26% 26% 22% 21% 24% 27% 37% 37% 34% 35%

35% 35%

20%

1%3%3%

4%4%6% 5%5%

1%1%4%

25%

50%

18% 18% 19% 19%

1% 1% 1% 1% 1%

12%6%

12%7%

13%5%

9% 6%8%9% 9% 6% 7% 6% 6% 6%12%

19%18%18%19%

20%18%18%15%15%15%

19%19%17%4%4% 1%1%

0%

25%

35

Q106

Q107

Q108

Q109

Q110

Nasdaq: ACAS

Industry Diversificationy$5.7 Billion Total Investments at Fair ValueGlobal Industry Classification Standard (GICS)

Commercial Services and Supplies, 10.8%

L i E i t d

Capital Markets, 1.5% Other, 11.5%

Electrical Equipment, 6.3%

Construction and Engineering, 2.0%

Diversified Consumer Services, 2.0%

Leisure Equipment and Products, 1.7%

Household Durables, 5.9%

Internet and Catalog Retail,

Building Products, 2.3%

Computers and Peripherals, 2.2%

Food Products, 2.1%

Internet and Catalog Retail, 5.4%

Hotels, Restaurants and Leisure, 5.0%

Professional Services 2 8%

Pharmaceuticals, 2.8%

Electronic Equipment, Instruments and

Components, 2.4%

IT Services, 4.9%

Health Care Providers and Services, 4.6%

R l E t t d R l E t t

Life Sciences Tools and Services, 3.0%

Diversified Financial Services, 3.0%

Professional Services, 2.8%

36European Capital Limited, CLOs and CDOs are excluded from industry diversification break-out.CMBS and ACAS CRE CDO are included in Real Estate and Real Estate Investment Trusts grouping.

Real Estate and Real Estate Investment Trusts, 3.9%

Auto Components, 3.8%Internet Software and

Services, 3.5%Software, 3.4%

Health Care Equipment and Supplies, 3.2%

Nasdaq: ACAS

$31 MM ACAS Average Investment Size*

A I t t

$31 MM ACAS Average Investment Size0.5% of Total ACAS Assets

$ in Millions

$52 $53$50$50

$60 1.00%

Average InvestmentAverage Investment as a % of Total Assets

$38

$44$47

$43 $43 $44 $44$40

$33 $32 $30 $31$30

$40

$500.75%

$30 $31$30$29

$20

$30

0 25%

0.50%

$0

$10

0.00%

0.25%

Q1 06 Q1 07 Q1 08 Q1 09 Q1 10

* Investments at Fair Value 37

Nasdaq: ACAS

LTM Realizations as a % of Prior Year Assets

$6.0 100%LTM Amortization, Prepayments and Exits*$ in Billions

American Capital Controls 57% of Investments, thus Controls Timing of Exits***

4.4

4.9

4.54.5

3 8$4 0

$5.0

$6.0

75%

100%LTM Investment Turnover Rate**Quarterly Investment Turnover Rate**

2.2

3.43.8

3.12.9

2.0

57%

36%42%

43%

57% 55%60%

56% 57%

38%31%

$2 0

$3.0

$4.0

50%

1.0 1.1 1.21.0

1.31.51.5

5%7%3%

8%7%2%3%5%5%

9%14%13%

7%11%12%

20%10%

20%14%

10%15% 18%

$0 0

$1.0

$2.0

0%

25%

3%2%1%3%$0.0Q106

Q107

Q108

Q109

Q110

0%

Total Investments at Fair Value as of December 31 (in millions):2006 2007 2008 2009 Q1 2010

* Excludes repayments of bridge notes and accrued PIK interest from European Capital Limited.** Based on total investments at fair value at the beginning of the respective period.*** Includes private finance investments that we control or can gain control of the board of directors of the portfolio company as of the measurement

date, including equity securities and those securities held by entities managed by American Capital, LLC on the a fully diluted basis. 38

2006 2007 2008 2009 Q1 2010

$8,056 $10,924 $7,418 $5,575 $5,598

Nasdaq: ACAS

Realizations as a % of Prior Quarter Assets

10%$800

RealizationsNet Realized Gain (Loss) on Portfolio Company Investments*R li ti % f P i Q t I t t A t t F i V l

$ in millions

Q

$520 $463 $476 5%

7%

8%

10%

$600

$800 Realizations as a % of Prior Quarter Investment Assets at Fair Value

$246

$79 $125 $163 $73

5%

3%

2%

3%5%

$200

$400

($32)($79) ($47)

($282)

($107)

1% 0%

-$200

$0

($308) ($282)-5%-$400

Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010Total Investments at Fair Value (in millions):

$9,095 $7,418 $6,839 $6,185 $5,893 $5,575 $5,698

* Excluding taxes on realized net gain, foreign currency transactions and derivative agreements.

39

Credit Qualityy


Nasdaq: ACAS

Past Due and Non Accrual Loans

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10$ in Millions

Current $ 5,115 $ 4,399 $ 4,047 $ 3,572 $ 3,648

0-30 Days Past Due $ 1 $ 1 $ 7 $ 38 $ -

31-60 Days Past Due - 4 113 - 3y

61-90 Days Past Due 7 29 - - -

> 90 Days Past Due 28 6 89 50 44

Total Past Due Loans at Cost $ 36 $ 40 $ 209 $ 88 $ 47$ $ $ $ $

Non-Accrual Loans at Cost $ 1,061 $ 996 $ 889 $ 811 $ 671

Total Loans at Cost $ 6,212 $ 5,435 $ 5,145 $ 4,471 $ 4,366

Non-Accrual Loans at Fair Value $ 214 $ 310 $ 285 $ 290 $ 263Non Accrual Loans at Fair Value $ 214 $ 310 $ 285 $ 290 $ 263

Total Loans at Fair Value $ 4,866 $ 4,288 $ 4,117 $ 3,729 $ 3,759

Non-Accrual Loans as a % of Total Loans at Cost 17.1% 18.3% 17.3% 18.1% 15.4%

41

Non-Accrual Loans as a % of Total Loans at Fair Value 4.4% 7.2% 6.9% 7.8% 7.0%

Nasdaq: ACAS

Non-Accrual Loans

18.1%17.1%

18.3%

20%Non-Accrual Loans as a % of Total Loans at CostNon-Accrual Loans as a % of Total Loans at Fair Value

15.4%

13.2%

%

17.3%

15%

9 0%

9.2%8.8%

10%

9.0%

7.7%6.2%

5.2%

3 9%3 6%

4.8%

3 8%4.0%

5.4%

4.1%

5.7%

6.6%

7.9%

6.5%

7.8%7.7%

5.0%

7.0%

4 9% 3 9%4.3%

3 5%

7.2%

4.4%

6.9%

7.8%

5%

3.4%

3.9%3.6%3.5%

4.2%3.6%

3.8%3.7%

4.0%

3.6%4.0%

2.4%2.1%

4.9%

2.0%2.3%

1.5%1.4%

1.2%

2.2%

1.6%

2.4%

1.6%1.9%2.1%

2.7%

3.9% 3.5%

1.4%2.1%

1.5%1.5%0.9%

1.2%1.2%

1.5%

1.7%

2.9%

0%

4242

0%Q102

Q103

Q104

Q105

Q106

Q107

Q108

Q109

Q110

Financial Highlightsg g


Nasdaq: ACAS

First Quarter Income StatementsQ($ in Millions)

2006 2007 2008 2009 2010

Total Operating Income $ 173 $ 250 $ 292 $ 195 $ 164

Total Operating Expense(1) 38 76 79 79 58

Interest Expense 36 62 63 52 57

(Provision) Benefit for Income Taxes (6) 2 1(Provision) Benefit for Income Taxes (6) 2 1 - -

Net Operating Income 93 114 151 64 49

Net Gain on Extinguishment of Debt - - - 12 -

Net Realized Gain (Loss) 44 13 33 (131) (126)

Unrealized Appreciation (Depreciation) 24 7 (997) (492) 264( p )

Cumulative Effect of Accounting Change, Net of Income Tax 1 - - - -

Net Increase (Decrease) in Net$ $ $ ( ) $ ( ) $Assets from Operations $ 162 $ 134 $ (813) $ (547) $ 187

(1) Salaries, benefits and stock-based compensation and general and administrative expenses. 44

Nasdaq: ACAS

Balance Sheet Highlightsg gQ1 10 vs. Q1 09

Change

($ in Millions, except per share data and financial metrics) Q1 09 Q4 09 Q1 10 $ %Assets

Cash and Cash EquivalentsDebt Investments

$88$4,866

$835$3,729

$820$3,759

$732$(1,107)

832%-23%

Equity InvestmentsStructured ProductsTotal Investments at Fair Value

$ ,$1,830

$143$6,839

$ ,$1,679

$167$5,575

$ ,$1,773

$166$5,698

$( , )$(57)

$23$(1,141)

-3%16%

-17%

LiabilitiesLiabilitiesTotal Debt Outstanding% Secured / % Unsecured

$4,37747% / 53%

$4,14243% / 57%

$4,02642% / 58%

$(351)NA

-8%NA

EquityShareholders’ Equity $2 654 $2 329 $2 526 $(128) -5%Shareholders EquityNet Asset Value per Share

$2,654$12.32

$2,329$8.29

$2,526$8.98

$(128)$(3.34)

-5%-27%

RatiosDebt-to-EquityPrice to Book

1.6:10 1 X

1.8:10 3 X

1.6:10 6 X

NANA

NANAPrice-to-Book 0.1 X 0.3 X 0.6 X NA NA

45

Nasdaq: ACAS

Operating Income - Quarterly

$400 Fee income

$ in Millions16% Decrease over Q1 2009

p g Q y

$77

$326

$42$310 $78

$354

$34

$292

$263$27$278

$300

$350Interest and dividend income

$42

$173 $55

$212$51

$231$42

$244

$44

$250

$276

$24 $27

$16$218

$16$195

$140

$17$193

$13$169

$14$164

$150

$200

$250

$131

$42

$157$180

$202 $206$249 $268 $276 $258 $239 $251

$202$179

$127

$13$

$176 $156 $150

$50

$100

$ 50

$0Q106

Q107

Q108

Q109

Q110

Annual Operating Income Totals 2006 2007 2008 2009 YTD 2010

46

2006 2007 2008 2009 YTD 2010$860 $1,240 $1,051 $697 $164

Nasdaq: ACAS

Equity Interests at Fair Valueq yStructured to Grow at 18% – 30% IRRs

$4 762$5,000 Warrants$ in Millions

$4,433

$4,762

$4,375

$3,975$3,790$4,000

$ ,PreferredCommon

$2,051

$2,610$2,852 $2,766

$3,045 $3,118

$2,120

$3,000

$2,051 ,$1,830

$1,722 $1,580 $1,679$1,773

$1,000

$2,000

$0Q106

Q107

Q108

Q109

Q110

47

06 07 08 09 10

Nasdaq: ACAS

Net Operating Income Per Diluted Share

$1.00

p g

$0.77$0.81

$0.77 $0.76$0.73

$0.91

$0.81

$0.90

$0.77$0.71 $0.74

$0.80

$0 31$0.40

$0.60

$0.21

$0.31

$0.09$0.12

$0.07

$0.17$0.20

$0.00Q106

Q107

Q108

Q109

Q110

Annual NOI per Diluted Share Totals*

48* May not equal the sum of the 4 quarters due to changes in the weighted shares outstanding

2006 2007 2008 2009 YTD 2010$3.10 $3.36 $2.42 $0.56 $0.17

Nasdaq: ACAS

Net Realized Earnings (Loss) Per Diluted Share

$1.42$1.50

Net Realized Earnings (Loss) Per Diluted ShareNet Earnings (Loss) Less Net Appreciation & Depreciation

$1.13$0.97

$1.13 $1.13

$0.81

$1.18 $1.13$0.98 $0.95

$0.72

$0.50

$1.00

($0.01)

($0.27)($0.13)

($0.27)-$0.50

$0.00

($1.41)

($1.00)

-$2 00

-$1.50

-$1.00

$2.00Q106

Q107

Q108

Q109

Q110

Annual Net Realized Earnings (Loss) per Diluted Share*2006 2007 2008 2009 YTD 2010


2006 2007 2008 2009 YTD 2010$4.37 $4.57 $2.58 $(2.81) $(0.27)

Nasdaq: ACAS

Net Unrealized Appreciation (Depreciation) of Portfolio Investments*

$1,000

o t o o est e ts$ in Millions

$40 $160

$12 $192

$528

$45 $126 $254

$0

$500

($5)

($224)($384)

($269)

($532) ($554)($626)

($500)

$0

($951)

($1,500)

($1,000)

($1,588)

($2,000)Q1 06 Q1 07 Q1 08 Q1 09 Q1 10

50* Excludes unrealized appreciation (deprecation) on derivative agreements, foreign currency translation and the reversal of prior period net unrealized depreciation (appreciation) upon realization.

Nasdaq: ACAS

Net Earnings (Loss)

$788$700

$1,000$ in Millions

g ( )

$162$290

$132$312

$134 $21

($70)

$77 $107 $187

$200$100$400$700

($243)

($813)

($70)

($548) ($547)($547)

$1 100-$800-$500-$200

($1,684)$2 000

-$1,700-$1,400-$1,100

-$2,000Q106

Q107

Q108

Q109

Q110

Annual Net Earnings (Loss)2006 2007 2008 2009 YTD 2010$896 $700 $(3,115) $(910) $187

51

Nasdaq: ACAS

Net Earnings (Loss) Per Diluted Share

$4.68$5.00

g ( )

$1.34$2.16

$0.92

$2.10

$0.86$0.11 $0.30 $0.38 $0.65$1.00

$3.00

($1.27)($0.34)

($2.63) ($2.65) ($2.52)-$3.00

-$1.00

($4.16)

($8 13)

-$7.00

-$5.00

($8.13)-$9.00

Q106

Q107

Q108

Q109

Q110

Annual Net Earnings per Diluted Share Totals*2006 2007 2008 2009 YTD 2010


2006 2007 2008 2009 YTD 2010$6.55 $3.96 $(15.29) $(3.77) $0.65

Nasdaq: ACAS

$8.98 Net Asset Value per Share

$40

$ p

Per Share

$0.69 or 8% increase over December 31, 2009

0 6 *

$29 $30

$36 $35$33$35

$40 0.6x Price to Book*

$25$28 $28

$29 $30$28

$27$24$25

$30

$15

$12$15

$20

$9$8 $8 $9

$5

$10

Q1 Q1 Q1 Q1 Q1

53

06 07 08 09 10

* Based on ACAS stock price and NAV as of March 31, 2010

Nasdaq: ACAS

Historical Price to Book Multiple

2 0XPrice to book at period end Average Since IPO

p0.7x Price to Book at April 30, 2010

1.61.7

1 4

1.61.71.7

1.61.7

1.9

1.7

1.5 1.5

1.71.8

1.6 1.6 1.61.61.5

1.61.51 5X

2.0X

1.21.3

1.2

1.41.41.3

1.4

1.3

1.4

1.2

1.41.4 1.4 1.4 1.4

1.2

1.4

1.21.2

1.0

1.2

0 91.01.0X

1.5X1.3x

0 .9

0 .40 .4

0 .6

0.5X

0 .20 .20 .3

0.0XQ1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1

5454

98 99 00 01 02 03 04 05 06 07 08 09 10

Nasdaq: ACASUnprecedented Volatility of 2008 has Subsided

VIX Closing Price

VIX Index Peaked at 80.86 in November 2008 and was 17.59 on March 31, 2010

70

80

90

VIX Closing Price VIX 15 Year Historical Average

40

50

60

20

30

40

0

10

Apr-95

Apr-96

Apr-97

Apr-98

Apr-99

Apr-00

Apr-01

Apr-02

Apr-03

Apr-04

Apr-05

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

55

Daily closing price of VIX Index from 4/13/95 to 4/15/10.The Chicago Board Options Exchange SPX Volatility Index reflects a market estimate of future volatility, based on the weighted average of the implied volatilities for a wide range of strikes. 1st & 2nd month expirations are used until 8 days from expiration, then the 2nd and 3rd are used.Source: Capital IQ

Collateralized Loan Obligationsand

Commercial Mortgage Backed Securities


Nasdaq: ACAS

CLOs and CMBSCommercial Collateralized Loan Obligation (CLO) Investments

2% of total investments at fair valueCollateral comprised mostly of commercial loans● Assets generally performing as underwritten

Commercial Mortgage Backed Securities (CMBS) Investments1% of total investments at fair value1% of total investments at fair valueIncludes investment in commercial real estate CDO (CRE CDO) secured by CMBS bondsCollateral comprised of commercial mortgage loans● Current projected cumulative losses are greater than originally● Current projected cumulative losses are greater than originally

underwritten● Current projected losses are expected to occur earlier than

originally underwritten● While actual realized amount of principal losses of mortgage● While actual realized amount of principal losses of mortgage

collateral have not been substantial, significant cashflowshortfalls are occurring due to increased special servicing fees and interest shortfalls from appraisal reductions

57

Nasdaq: ACAS

Structured Product Cash Flows Versus Fair Value

$990$1,000

Annualized Quarterly Cash Flows Fair Value

St uctu ed oduct Cas o s e sus a a ue

In millions

$833

$716$660$700

$800

$900

$463

$386$400

$500

$600

$86 $83$121 $134

$182$134 $122 $111 $100 $85

$322

$186 $143 $174 $196 $167 $166 $200

$300

$400

$69 $86 $83 $ 00 $85 $39 $31

$0

$100

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Multiple

58

12.1x 11.5x 8.6x 5.5x 2.4x 2.5x 2.9x 1.5x 1.3x 1.7x 2.3x 4.3x 5.4x

Multiple

Nasdaq: ACAS

CMBS SpreadspQ1 2010 Spreads Tightened at the AAA Level for the 4 Straight Quarter but Credit Bonds remain wide due to mounting credit concernsmounting credit concerns

Cash Spreads

7K

8KBBB

5K

6K

7K

ads AA

2K

3K

4K

Spre

a

N U G G E T T A G : u s e r N a m e = n u ll& p lo t N a m e = n u ll0K

1K

Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10

Time

AAA

Source: Barclays Capital Live 59

Nasdaq: ACAS

CMBS Portfolio Yield Curve

Average CMBS Portfolio Yield Curve Qtr-over-Qtr Q107

80%

105%Q307

Q108

Q308

30%

55%

Q109

Q209

Q309

Q409

5%

30%

BBB- BB+ BB BB- B+ B B-

Q409

Q110

The curves above (Q1 2007 through Q1 2010) are based upon quarterly valuation marks used to determine the fair value of the ACAS CMBS portfolio. The CMBS portfolio values are determined primarily by ACAS internal valuation model (or ACAS discounted cash flow model) with consideration given to marks provided by various market participants and values implied by transactions in identical and similar bonds. The valuation method uses three different methods to derive value: 1) discounted)cash flow method, 2) comparable trades data points in the market, and 3) dealer provided marks. Each valuation is then appropriately weighted taking into consideration the accuracy and availability of data points and their relevance to the specific bond.

60

Market Share


Nasdaq: ACAS

Private Equity and Mezzanine Partnerships Annual Capital Raisedp

$5.0$10.8

$2.6$280

$ in Billions $292.5

$261.7

$25.2

$26.0$6.9

$200

$240

$176.7

$232.5

$276.7

$233 1

$7.0$7.5

$120

$160

$95 3

$ 6

$162.2

$200.4$233.1

$3 2

$3.3

$5 3

$5.8

$5.4$8.2 $3.0

$0.5

$0.5

$1.2

$1.4

$1.6$1.2

$4.9 $2.0$80

$120

$50.3

$95.3

$59.6$47.0

$35.7

$78.1$70.9

$47.2$28.8

$69.5

$25.6$43.5

$67.1$43.8

$88.1$52.6 $42.8

$28.4

$65.0 $64.5

$8.8

$2.9

$3.2 $5.3 $3.0$4.2

$1.5

$0.3 $3.1

$0.6

$0

$40

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1

$10.9

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 2010

Private Equity Partnerships Mezzanine Partnerships BDCs Actual*

*Includes equity and debt raises as well as repayment of capital. Sources: Buyouts Newsletter; Citigroup; American Capital Analysis 62

Nasdaq: ACAS

Average Purchase Price by Sponsors of Middle Market LBO Loans

Purchase Price Breakdown12.0x

Sponsors for Deals with EBITDA ≤ $50 MM*Middle Market LBO Loans

8.5x8 1x

9.3x

8.3x 8.5x10.0x

Senior Debt/EBITDA Sub Debt/EBITDA Equity/EBITDA Others

7.6x 7.5x7.1x 6.9x

5.9x6.7x

7.2x8.1x

7.0x

6.0x

8.0x

4.0x

0.0x

2.0x

N/A**

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 10

* Prior to 2003, media/telecom/energy/utility deals were excluded. After 2003, all outliers are excluded, regardless of industry.**Due to the limited number of transactions and amount of transaction data available for 2009, S&P has not reported this metric.Source: Standard & Poor’s Leveraged Commentary & Data 63

Nasdaq: ACAS

Investment PartnersInvestment PartnersSenior (101)ABN AMRO Bank of Texas Credit Suisse

AIG Barclays Deerfieldy

Aladdin Capital Blackstone Denali

Alcentra BNP Paribas Deutsche Bank

Allied Capital Calyon Dymas Capital Mgmt.

Alli d I i h B k C it l S Fi E i C it lAllied Irish Bank Capital Source Finance Emporia Capital

American Financial Cedarview Capital Fifth Third Bank

Angelo Gordon Churchill Financial FirstLight Financial

Ares Management CIBC World Markets Freeport Financial

Avenue Capital CIFC GE Antares Capital

Aviva CIT GMAC Commercial Finance

Babson Citigroup Goldentree Asset Management

Bank of America Citizens Bank Goldman Sachs Specialty LendingBank of America Citizens Bank Goldman Sachs Specialty Lending

Bank of Ireland Clinton Group Golub Associates

Bank of Montreal Collineo Greenwich Street Capital

Bank of New York Columbus Nova GSO

64

Bank of Nova Scotia Comerica Guggenheim Partners

Nasdaq: ACAS

Investment PartnersInvestment PartnersSenior ContinuedGulfstream Asset Management McDonnell Investments Silicon Valley Bank

Harris Bank Merrill Lynch Capital Stone CastleHarris Bank Merrill Lynch Capital Stone Castle

Highland Capital Monroe Capital Stone Tower

HP Financial Morgan Stanley Strategic Value Partners

Huntington National Bank National City Bank Texas Capital Bank

ING Financial Services NewStar Financial Tricadia

Israel Discount Bank Oaktree UBS Securities

Jefferies Babson Orchard First Source Union Bank of California

JPMorgan Chase ORIX Financial US Bancorpg p

Key Bank Pangaea Asset Management Van Kampen

LaSalle Bank PNC Bank Wachovia

Levine Leichtman Capital Rabo Bank Wells Fargo

Li ht i t C it l RBC C t W ll F F thillLightpoint Capital RBC Centura Wells Fargo Foothill

Loomis Sayles Regions West LB

M&I Bank Sandelman Partners Wilmington Trust

M&T Bank Siemens Financial Z Capital

65

Madison Capital Sigma Investments

Nasdaq: ACAS

Investment PartnersInvestment PartnersMezzanine (16)AIG Churchill ESOP Partners Royal Bank of ScotlandAIG Global Investment Group Credit Agricole Indosuez Stratford Capital PartnersAlbi Alli J h H k TIAA CREFAlbion Alliance John Hancock TIAA-CREF

Allied Capital LFPI Gestion Unicredit

Audax Mezzanine Fund Mass Mutual Life Insurance Co.

BNP Paribas Reliastar

Equity (146) 3i Audax Private Equity Booth Creek Management21 Centrale Partners Aura Capital Group Brentwood Associates

ABN AMRO Capital Auriga Partners Bridgepoint Capital

ABRY Partners Austin Ventures Bruckman, Rosser, Sherrill & Co.

Accel-KKR Axa Private Equity Caltius Equity PartnersAdvent International Bain Capital Cambridge Capital

Alchemy Partners Baird Capital Partners Candover Partners Ltd.

Allianz Capital Partners Barclays Private Equity CapVest Equity Partners

Apax Partners BC Partners Capzanine

Arcapita Beecken Petty O’Keefe & Company Carlyle GroupArgan Capital Behrman Capital Carousel Capitalg p p pAstorg Partners Blue Capital Management Castle Harlan

66

Nasdaq: ACAS

Investment PartnersInvestment PartnersEquity ContinuedCelerity Partners Crimson Investment Friend Skoler & Co.

C t P t CVC C it l P t F t CCentre Partners CVC Capital Partners Frontenac Company

Cerberus Capital Management DFW Capital George K. Baum Capital Partners

Charles River Capital Partners Diamond Castle Holdings Glide Buy Out Partners

Ch h C i l P D h H & C G B d & PCharterhouse Capital Partners Doughty Hanson & Co. Goense Bounds & Partners

Charterhouse Group International Duke Street Capital Golden Gate Capital

Chequers El Dorado Ventures Goldman Sachs Capital Partners

Churchill Equity Electra Partners Europe Graham Partners

Cinven Limited Engles Urso Follmer Great Hill Partners

Clear Creek Capital EQT Growth Capital Partners

ClearLight Partners Exeter Capital Partners GTCR Golder Rauner, LLC

Code Hennessy & Simmons Exponent Private Equity H.I.G. Capital

Compass Group Fenway Partners Halpern, Denny & Co.

Cortec Group Financiere Agache Harbour Group

67

Nasdaq: ACAS

Investment PartnersInvestment PartnersEquity ContinuedHarvest Partners Lincolnshire Management Palladium Equity Partners

ICV C it l P t Li C it l P th C it lICV Capital Partners Lion Capital Parthenon Capital

Industrial Opportunity Partners Littlejohn & Company Permira

Institutional Venture Partners MML Capital Partners Radius Partners

Investcorp International Inc. Monterey Capital Partners Red Diamond Capital

Keystone Holdings Morgenthaler Partners Redpoint Ventures

Kohlberg & Co. Nordic Capital RFE Investments

Kohlberg Kravis Roberts & Co. Northwest Equity Partners Richard L. Scott Investments

KRG Capital Partners Oak Hill Capital Management, Inc. Riverside Partners

Lake Capital Odyssey Investment Partners Roark Capital Group

Laminar Direct Capital Olympus Partners Sagard

LBO France One Equity Partners SAP Ventures

LGV Capital Onex Public Markets Group Sentinel Capital Partners

Liberty Partners Paine & Partners Shoreview Industries

68

Nasdaq: ACAS

Investment PartnersInvestment PartnersEquity ContinuedSorenson Capital TMB Industries Westbury Capital Partners

Stephens Group, Inc. Trident Capital Weston Presidio Capital

Sterling Investment Partners Trivest Partners Wimbledon Partners

Sterling Ventures U.S. Renewables Group Wind Point Partners

StoneCreek Capital Vestar Capital Partners Windjammer Capital Investors

Stratford Capital Partners Warburg Pincus Wingate Partners

Thayer Capital Partners Weinburg Capital PartnersThayer Capital Partners Weinburg Capital Partners

The Blackstone Group Welsh, Carson, Anderson & Stowe

Thoma Cressey Bravo WENDEL Investissement

Thompson Street Capital Partners Westar Capital

69

q1 2010 shareholder presentation may 2010

Business

b total loans

total net debt

accrual nonaccrual loans

acas q q1

millions q1

mean net debt

nonaccruing loans

b net asset value