Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
FW ACA Investors, L.P.
   2. Issuer Name and Ticker or Trading Symbol
ACA Capital Holdings Inc [ACA] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
_____ Officer (give title below) __X__ Other (specify below)
See Remarks Below
(Last)
(First)
(Middle)
201 MAIN STREET, SUITE 3100		 3. Date of Earliest Transaction (Month/Day/Year)
11/15/2006
(Street)

FORT WORTH, TX 76012		 4. If Amendment, Date Original Filed(Month/Day/Year)
11/17/2006		 6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock (1) 11/15/2006   C   105,956.01 A (2) 105,956 D (4)  
Common Stock (1) 11/15/2006   C   527,324.18 A (3) 633,280.19 D (4)  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Series B Senior Convertible Preferred Stock (1) $ 0 11/15/2006   C     17,659.34   (2)   (2) Comm Stock 105,956.01 $ 0 0 D (4)  
Senior Convertible Preferred Stock (1) $ 0 11/15/2006   C     87.89   (3)   (3) Comm Stock 527,324.18 $ 0 0 D (4)  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
FW ACA Investors, L.P.
201 MAIN STREET, SUITE 3100
FORT WORTH, TX 76012		       See Remarks Below
GROUP III 31 LLC
201 MAIN STREET, SUITE 3100
FORT WORTH, TX 76012		       See Remarks Below
CRANDALL J TAYLOR
201 MAIN STREET, SUITE 3100
FORT WORTH, TX 76012		       See Remarks Below

Signatures

 /s/ Kevin G. Levy, Vice President of Group III 31, L.L.C, General Partner of FW ACA Investors, L.P.   03/22/2007
**Signature of Reporting Person Date
 /s/ Kevin G. Levy, Vice President of Group III 31, L.L.C.   03/22/2007
**Signature of Reporting Person Date
 /s/ Kevin G. Levy, Attorney-in-Fact for J. Taylor Crandall (5)   03/22/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) This amendment is being filed to reflect the appropriate beneficial ownership structure.
(2) The Series B Senior Convertible Preferred Stock converted into shares of the issuer's common stock on a 6-for-1 basis upon the closing of the initial public offering of the issuer's common stock and had no expiration date.
(3) The Convertible Preferred Stock converted into shares of the issuer's common stock on a 6,000-for-1 basis upon the closing of the initial public offering of the issuer's common stock and had no expiration date.
(4) Group III 31, L.L.C. is the general partner of FW ACA Investors, L.P. and Mr. Crandall is the sole member of Group III 31, L.L.C.
 
Remarks:
(5)  A Power of Attorney authorizing Kevin G. Levy to act on behalf of J. Taylor Crandall previously has been filed with the
 Securities and Exchange Commission.

The reporting persons may be deemed members of Section 13(d) "group" pursuant to the issuer's stockholders agreement. This
 filing shall not be deemed an admission that any reporting person is, for purposes of Section 13(d) or Section 16 of the
 Securities Exchange Act of 1934, as amended or otherwise, a member of a group or the beneficial owner of any securities in
 excess of the amount in which the reporting person has a pecuniary interest.

Group III 31, L.L.C. and Mr. Crandall may be deemed to be the beneficial owner of the securities reported herein only to the
 extent of his or its pecuniary interest therein. Pursuant to Rule 16a-1(a)(4) under the Act, this filing shall not be deemed
 an admission that Group III 31, L.L.C. or Mr. Crandall is, for purposes of Section 16 of the Act or otherwise, the
 beneficial owners of any securities reported herein in excess of such amount.

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