American Capital Invests $28.5 Million in Indian BPO/ARM Provider

BETHESDA, MD – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today it has invested $28.5 million to support the acquisition of Zenta by H-Cube LLC. Zenta is a U.S.-based leader in high quality business process outsourcing services. H-Cube was formed earlier this year by GTCR Golder Rauner LLC and Henry Hortenstine, a former Executive Vice President of Affiliated Computer Services Inc., a Fortune 500 global business process outsourcing company. Mr. Hortenstine will become Executive Chairman of Zenta and Priya Hiranandani, Zenta’s founder, will continue to serve as Zenta’s Chief Executive Officer. American Capital’s investment takes the form of a senior term loan and a modest equity co- investment alongside GTCR and Zenta senior management. American Capital has also committed additional debt financing to support anticipated growth and for other corporate purposes.

“This is American Capital’s fifth transaction with GTCR,” said American Capital COO Ira Wagner. “We are investing in a demonstrated leader in the business processing services industry and working with a private equity firm with significant industry experience. We look forward to continuing to expand our relationship with GTCR and supporting the growth of Zenta.”

American Capital has invested over $2.4 billion in the last twelve months, $760 million year to date and over $350 million quarter to date. For more information about American Capital’s portfolio, go to http://www.ACAS.com/our_portfolio/our_portfolio.cfm.

“American Capital is backing a company with an outstanding history of revenue and earnings growth and a blue chip customer base in a growing industry,” said American Capital Managing Director Tom Gregory. “In addition, Zenta’s founder, Priya Hiranandani and Henry Hortenstine, the newly appointed Executive Chairman, will be working closely with an experienced management team. The combination of strong brand equity, infrastructure development and strong global growth dynamics in the business outsourcing industry add up to a winning investment.”

“Zenta has proved adept at managing a highly competitive labor market, improving and maintaining attractive operating margins,” said American Capital Vice President Demian Kircher. “The services provided by Zenta enable their customers to lower their cost structure and maximize value.”

Zenta, founded in 2001 and headquartered in Wayne, Pennsylvania, with principal operating offices in India, provides business process outsourcing (“BPO”) services. The Company is the sixth largest Indian BPO and one of the largest non-captive Indian BPO service providers in its market. Zenta currently has over 2,600 full time employees in its operational facilities in Mumbai, India. Zenta’s business offering includes credit card servicing, mortgage servicing, accounts receivable management and insurance claims management. Zenta is ISO-9001 certified and was recently rated in the top 10 of India’s BPO companies by NASSCOM, the leading organization for public policy for the Indian software industry.

“American Capital has proved once again to be an outstanding partner for GTCR,” said GTCR Principal David Randell. “We highly value their flexibility, commitment to getting the job done and the wide range of expertise they bring to a transaction.”