APL Acp Capital

RNS Number:4277S
ACP Mezzanine Ltd
16 April 2008

     ACP Mezzanine Provides Euro3 million Subordinated Debt to Support German
                                  Acquisition

16 April 2008


ACP Mezzanine Limited ("ACP Mezzanine" or the "Company": ACPM.LN), the
closed-ended investment company focused on sub-investment grade lending to
European small and medium-sized enterprises ("SME"), today announces the
provision of Euro3 million of subordinated debt to support the acquisition of
Maschinenfabrik Spaichingen GmbH ("MSG") by GCI Automotive Holding GmbH, a
joint-venture between ACP Capital Limited ("ACP Capital": APL.LN) and GCI
Management AG ("GCI" : GCI.DE).

MSG is a medium-sized, formerly family-owned, German business and is active in
three main areas: automotive parts manufacturing for commercial diesel engines,
control engineering and the manufacture of ultrasonic, hot air and laser welding
machines for the automotive industry. MSG is engaging in substantial
expansionary capital expenditure over the next 5 years, primarily to deliver new
contracts which have been recently secured. The capital expenditure is expected
to be partially funded through debt and equity. Total revenues of the MSG Group
in 2007 were approx. Euro67.5m and total assets are around Euro65m.

MSG represents the first of circa Euro500m of lending opportunities with attractive
risk / return profiles that ACP Mezzanine is currently evaluating.

ACP Capital's indirect acquisition of MSG is the first joint venture between ACP
Capital and GCI, ACP Capital's key strategic partner for its merchant banking
strategy in Germany. This strategic relationship with GCI, a Deutsche
Borse-listed private equity company focused on the SME sector in German-speaking
parts of Europe, is anticipated to generate a range of new investment
opportunities for ACP Capital. ACP Mezzanine will benefit as the preferred debt
funding partner for GCI transactions, leading to potential opportunities for
debt underwriting and lending.

Derek Vago, Chief Executive Office of ACP Capital Limited, the parent of ACP
Mezzanine's investment manager, commented:

"This transaction demonstrates the benefits for ACP Mezzanine arising from ACP
Capital's strategic platforms and integrated finance approach. Representing a
diversification of the origination network for ACP Mezzanine, we view this
transaction as an important step towards the next phase of ACP Mezzanine's
growth."


Enquiries:

Rob Bailhache & Nick Henderson, Financial Dynamics          +44 (0) 207 269 7200
(Media Relations)

Sacha Macintosh, ACP Capital UK LLP                         +44 (0) 844 800 4530

Chris Wells, Stewart Wallace, Collins Stewart               +44 (0) 207 523 8350



For further information on ACP Mezzanine and ACP Capital, please visit
www.acpcapital.com.

About ACP Mezzanine

ACP Mezzanine Limited (LSE AIM: ACPM) is a Jersey-incorporated, closed ended
investment company listed on AIM. It is a provider of sub-investment grade
finance to European small and mid-sized enterprises - with a primary focus on
the UK, France, Germany and Italy - originating, structuring and underwriting
the majority of its investments through ACP Capital Limited ("ACP Capital":
APL.LN) and ACP Capital's European network. ACP Mezzanine aims to optimise
risk-adjusted returns by actively managing its portfolio and to distribute at
least 85% of profits as dividends. ACP Capital Limited owns 47% of ACP Mezzanine
and, through a subsidiary, acts as its investment manager.

Fundamental changes in the market, such as Basel II, are expected to accelerate
demand for alternatives to traditional bank financing in these segments. As a
non-regulated lender, ACP Mezzanine is not affected by Basel II. In line with
its strategy, ACP Mezzanine has a small exposure to the retail mortgage backed
securities sector as well as an anticipated negligible exposure to the US
(expected to be limited to certain US infrastructure assets).

By taking control of a majority of the underwriting process through ACP
Capital's investment manager, ACP Mezzanine benefits from a diversified flow of
assets whilst ensuring a risk-balanced growth.

By the end of 2009, the Company intends to have Euro550 million of assets under
management and looks set to achieve its target balance sheet mix as stated in
its admission document.

About ACP Capital

ACP Capital (LSE AIM: APL) is a Jersey-incorporated specialist integrated
finance and asset management company focused on providing equity and debt
products to European small and medium sized enterprises (the "SMEs").

ACP Capital aims to benefit from opportunities generated from the strong growth
in SME demand for integrated finance, combined with the reduced appetite for SME
lending among traditional banks owing to higher regulatory capital requirements.

In order to better serve the SME markets directly, ACP Capital is establishing
localised operating platforms (the "Platforms") in its key markets of Germany,
France and the United Kingdom. These include to-date Leasecom, a leading SME
finance provider in France, and GCI, a specialist private equity firm for the
German SME market. Further Platforms are being evaluated currently to serve the
remaining key markets.








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