Alternative asset manager American Capital quietly released a statement in June and its first paragraph, after a lengthy amount of gobbledy gook, ended with the following: "Post close, American Capital owns approximately 83 percent of SMG, on a fully diluted basis."
The company and an affiliate invested $631 million in a buyout of SMG – facility manager for 203 venues worldwide and employer of 34,000 people.
"SMG, the world leader in facility management, marketing and development, is an exciting investment opportunity for American Capital," the company’s Brian Graff said in a statement. "For this investment, we assembled an appropriate financing package consisting of different forms of capital to meet SMG management team’s current needs and future growth plans."
Although the news dropped in June, it has not been reported inside the concert industry until now. American Capital is the third largest U.S. publicly traded alternative asset manager, third to The Blackstone Group and Fortress, according to the company, and is an investor in management, employee and private equity buyouts.
"American Capital’s firm understanding of our unique business model and ability to provide a complete financing package makes them an extremely valued partner," SMG CEO Wes Westley said in a statement. "We look forward to a strong relationship with our new investment partner as we continue to expand our geographical reach and find new ways to offer a variety of top-of-the-line services to both new and existing customers."
Several contacts at SMG – possibly on their way to attend the IAAM conference in Salt Lake City – were not available at press time.