ACP Capital Limited, a Jersey-based niche investment and fund manager, is preparing to list on London's Alternative Investment Market in January 2006.

The Company has successfully raised GBP 50 million, by way of a placing of 50,000,000 ordinary shares at 100p with institutional investors.

The market capitalisation of ACP on listing will be in excess of GBP 64 million. This includes the existing shareholders prior to the listing, consisting of Derek Vago, the CEO of the Company, who will own 19.47 per cent of the issued share capital in the enlarged Company and will be its largest shareholder and certain non-executive directors, including François Georges, the former CEO of Pierres et Vacances, Heiner Kamps, the CEO of Kamps Food Retail Investments, and Alan Braxton, Managing Director of Presidio Partners.

ACP Capital, based in Jersey and incorporated in August 2005, focuses primarily on the asset-backed (real estate) sectors by providing/investing mezzanine and/or equity financing (together the 'Assets' to opportunities (the 'Opportunities') in Continental Europe and the UK. The Company will develop a series of third party funds in which it will act as the fund manager,. It is envisaged that the first fund to be launched in the New Year will be a fund focussing on investment in mezzanine financings (the 'Mezzanine Fund').

These Opportunities are intended to include financing and investing in operating companies with asset-backed collateral and where the Company can add value through financial optimisation such as sale-leasebacks, and financing/investing in sale-leaseback opportunities directly.

The Company also intends to become a strategic investor in and/or form strategic alliances with companies who operate in similar sectors to the Company ('Strategic Platforms'), and where the Company, through the expertise of its personnel in financial optimisation, can add strategic value, whilst at the same time providing ongoing funding from its proposed various funds and funding vehicles in order to assist such companies in their growth.

The Company believes that Continental Europe will be its primary focus for the products it intends to focus on, given that these are relatively underserved and, where there will be significant demand in the future. In this capacity, Heiner Kamps and François Georges, will play a significant role in origination for the Company in the German and French markets.  ACP Capital's principal aims are therefore to:

• Build a niche investment and fund management business in the asset backed sectors (ACP intends to launch a new managed fund targeting a niche product sector each year subsequently to 2007);

• Have assets under management in excess of £1 billion and revenues of £40 million after three years (it is anticipated that further funding will be required to achieve these goals);

• Achieve return on equity  of 20+%; and

• Deliver a dividend yield of 6% for 2007.

ACP Capital's international management team comprises the following: Derek Vago, founder and CEO, with circa 15 years experience in the European and Asian markets. Derek was responsible for growing Nomura International PLC's Asset Finance Group into one of the leading players in the provision of both investment and non-investment grade finance in the European markets. This included transactions such as the acquisition of seven Center Parcs European assets (EUR 433m) with Pierres et Vacances, and the acquisition of Earls Court & Olympia (EUR 370m) alongside St James Capital, and its subsequent restructuring & sale/manage-back.

Non-executive Directors include Heiner Kamps, founder of Kamps AG and a leading retail operator in Germany, and François Georges, the former CEO of Pierre & Vacances who has extensive sale-leaseback experience. Additionally, Alan Braxton, co-founder and Managing Director of Presidio Partners, an international private placement advisor, will also be a non-executive director.

Purpose of the IPO

ACP Capital intends to use the majority of the net proceeds of the fundraising, along with the existing capital to provide funds for investing in and financing a combination of (a) mezzanine assets including capital required for the Mezzanine Fund, (b) operating companies and sale-leasebacks, and (c) Strategic Platforms.

Derek Vago, Chief Executive of ACP Capital, said: 'Institutional investors are seeking to invest in the rapidly growing structured finance sectors within the European markets. ACP, given its strategy of developing niche funds specialising in these sectors, enables such investors to access these markets through ACP directly rather than by investing in individual funds.'

Collins Stewart Limited is acting as Nominated Adviser and Broker to the Placing. Dealings in shares in ACP Capital  is expected to commence on the 6 January 2006.

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