Allied Capital Corporation (ACC) is a closed-end, non-diversified management investment company that operates as a business development company. The Company's investment objective is to achieve current income and capital gains. The Company is engaged in private equity business. ACC primarily invests in debt and equity securities of private companies in a variety of industries. From time to time, it may invest in companies that are public but lack access to additional public capital. At December 31, 2007, the Company's private finance portfolio included investments in 120 companies. In addition to managing its own assets, ACC manages certain funds that also invest in the debt and equity securities of primarily private middle-market companies in a variety of industries. It may invest in the equity of these funds, along with other third parties. ACC is internally managed.