equity founded 1958 headquarters washington dc united states products leveraged buyout mezzanine capital revenue us 258 million fy 2009 1 net income us 521 million fy 2009 1 total assets us 2.67 billion fy 2009 2 total equity us 1.20 billion fy 2009 2 number of employees 150 parent ares capital corp. website www.alliedcapital.com allied capital was a private equity investment firm and mezzanine capital lender providing debt and equity capital for leveraged buyouts acquisitions and restructurings of established businesses . allied operates as a business development company a form of publicly traded private equity company and is among the largest bdcs . allied invests primarily in middle market companies in the business services financial services consumer products industrial health care retail and energy sectors . the firm is headquartered in washington dc with offices in new york city . contents 1 history 1.1 allied and short sellers 1.2 the 2007 2009 credit crunch 1.3 sale to ares capital 2 references 3 external links history edit allied capital corporation was founded in 1958 and completed its first public offering of stock in 1960 on the otc . in 2001 allied was listed on the new york stock exchange . allied s stock was repeatedly noted for a high dividend yield . 3 allied and short sellers edit between 2002 and 2008 david einhorn the manager of greenlight capital a hedge fund engaged in heavy short selling of allied s stock as he tried to demonstrate that the company s valuation of its illiquid securities was inflated . this activity led to a highly publicized feud between einhorn and the company . 4 as early as 2003 allied complained publicly about einhorn s activities . 5 einhorn s activities in relation to allied were also examined by the sec to determine whether his statements about the company were intended to manipulate its stock price . 6 in 2004 allied came under scrutiny . 7 8 in june 2007 the s.e.c. found that allied broke securities laws relating to the accounting and valuation of illiquid securities it held . however it did not issue any fines or penalties and allied settled without admitting or denying the allegations . 6 9 in 2008 einhorn authored fooling some of the people all of the time 10 describing his concerns about the company s accounting practices and his encounters with the company over those years . 11 in his book einhorn explains how he uncovers the fact that allied capital is basically run as a ponzi scheme and in order to keep the appearances of a valid investment proposition allied capital is forced to cook the books by constantly overpricing its loans and the value of its subsidiaries . 12 in 2008 allied came under wider criticism for aggressive accounting policies . 6 the 2007 2009 credit crunch edit as the credit markets began to slow in 2007 allied appeared to be unaffected . in january 2008 allied completed a structured secondary transaction with goldman sachs . goldman and allied created agile fund i llc a new special purpose vehicle to acquire 170 million of private equity and mezzanine capital interests from allied capital representing 13.7 % of allied s equity portfolio . goldman also agreed to invest 125 million in future investment vehicles managed by allied . allied also sold a portfolio of venture capital and private equity fund interests . 13 on september 30 2008 allied capital shares fell by more than half their value as ciena capital one of its portfolio companies filed for bankruptcy . 14 15 sale to ares capital edit in late 2009 allied agreed to be purchased by ares capital . prospect capital submitted a competing bid in early 2010 but was rejected by allied management . the sale to ares was approved by shareholders on march 26 2010 and was finalized on april 1 with allied closing for the last time at 5 a share . references edit a b allied capital ald annual sec income statement filing via wikinvest a b allied capital ald annual sec balance sheet filing via wikinvest ben stein . finding the meaning of life along with a 7 % return . new york times march 12 2006 a company a fund and a feud . new york times november 8 2006 if short sellers take heat maybe it s time to bail out . new york times january 26 2003 a b c following clues the s.e.c. didn t. new york times january 31 2009 u.s. criminal inquiry focuses on allied capital loan unit . reuters december 28 2004 floyd norris july 15 2005 . keeping shareholders in the dark . the new york times . allied capital settles s.e.c. inquiry . reuters june 21 2007 einhorn david . fooling some of the people all of the time . isbn 978 0 470 07394 0 einhorn throws the book at allied gavekal book review fooling some of the people all of the time . gavekal . 2 june 2008 . retrieved 4 december 2014 . goldman sachs establishes relationship with allied capital . altassets january 2008 allied capital slumps 50 % as ciena capital goes bust . marketwatch september 30 2008 allied capital s end run . forbes september 30 2008 external links edit allied capital company website this website is no longer a valid reference v t e private equity and venture capital investment firms investment strategy venture growth mezzanine secondaries leveraged buyout history history of private equity and venture capital early history of private equity private equity in the 1980s private equity in the 1990s private equity in the 2000s investors angel investor corporate venture capital commercial bank crowdfunding institutional investor insurance company investment bank endowment family office fund of funds high net worth individual merchant bank pension fund sovereign wealth fund private equity firms venture capital firms portfolio companies retrieved from https en.wikipedia.org w index.php title allied capital & oldid 685952533 categories private equity firms based in washington d.c.companies established in 1958financial services companies of the united states1958 establishments in washington d.c. navigation menu personal 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