<ARTICLE>                     6
<LEGEND>
This schedule contains financial information extracted from the financial
statement of American Capital Strategies, Ltd. for the three months ended 
September 30, 1998 and is qualified in entirety by reference to such financial
statements.
</LEGEND>
<CIK>                         0000817473
<NAME>                        American Capital Strategies, Ltd.
<MULTIPLIER>                                   1000
<CURRENCY>                                     U.S. Dollars
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                           DEC-31-1998
<PERIOD-START>                              JUL-01-1998
<PERIOD-END>                                SEP-30-1998
<EXCHANGE-RATE>                                   1.000
<INVESTMENTS-AT-COST>                           181,247
<INVESTMENTS-AT-VALUE>                          182,331
<RECEIVABLES>                                     1,580
<ASSETS-OTHER>                                       28
<OTHER-ITEMS-ASSETS>                              6,897
<TOTAL-ASSETS>                                  197,579
<PAYABLE-FOR-SECURITIES>                         44,993
<SENIOR-LONG-TERM-DEBT>                               0
<OTHER-ITEMS-LIABILITIES>                           144
<TOTAL-LIABILITIES>                              45,137
<SENIOR-EQUITY>                                       0
<PAID-IN-CAPITAL-COMMON>                        145,147
<SHARES-COMMON-STOCK>                            11,077
<SHARES-COMMON-PRIOR>                            11,069
<ACCUMULATED-NII-CURRENT>                           696
<OVERDISTRIBUTION-NII>                                0
<ACCUMULATED-NET-GAINS>                               0
<OVERDISTRIBUTION-GAINS>                              0
<ACCUM-APPREC-OR-DEPREC>                          6,599
<NET-ASSETS>                                    152,442
<DIVIDEND-INCOME>                                     0
<INTEREST-INCOME>                                 4,090
<OTHER-INCOME>                                      672
<EXPENSES-NET>                                      496
<NET-INVESTMENT-INCOME>                           3,900
<REALIZED-GAINS-CURRENT>                              0
<APPREC-INCREASE-CURRENT>                           924
<NET-CHANGE-FROM-OPS>                             4,824
<EQUALIZATION>                                        0
<DISTRIBUTIONS-OF-INCOME>                         3,545
<DISTRIBUTIONS-OF-GAINS>                              0
<DISTRIBUTIONS-OTHER>                                 0
<NUMBER-OF-SHARES-SOLD>                               8
<NUMBER-OF-SHARES-REDEEMED>                           0
<SHARES-REINVESTED>                                   0
<NET-CHANGE-IN-ASSETS>                                0
<ACCUMULATED-NII-PRIOR>                               0
<ACCUMULATED-GAINS-PRIOR>                             0
<OVERDISTRIB-NII-PRIOR>                               0
<OVERDIST-NET-GAINS-PRIOR>                            0
<GROSS-ADVISORY-FEES>                                 0
<INTEREST-EXPENSE>                                    0
<GROSS-EXPENSE>                                      496
<AVERAGE-NET-ASSETS>                             151,755
<PER-SHARE-NAV-BEGIN>                              13.65
<PER-SHARE-NII>                                     0.35
<PER-SHARE-GAIN-APPREC>                             0.08
<PER-SHARE-DIVIDEND>                                   0
<PER-SHARE-DISTRIBUTIONS>                            .32
<RETURNS-OF-CAPITAL>                                   0
<PER-SHARE-NAV-END>                                13.76
<EXPENSE-RATIO>                                    0.003
<AVG-DEBT-OUTSTANDING>                            34,868
<AVG-DEBT-PER-SHARE>                                3.15