Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF 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 *
  IP/MCLP, L.L.C.
 2. Date of Event Requiring Statement (Month/Day/Year)
11/09/2006		 3. Issuer Name and Ticker or Trading Symbol
ACA Capital Holdings Inc [ACA]
(Last)
(First)
(Middle)
717 FIFTH AVENUE, 12TH FLOOR		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
_____ Officer (give title below) __X__ Other (specify below)
See Remarks
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

NEW YORK, NY 10022		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 11,463.6
D
 

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
IP/MCLP, L.L.C.
717 FIFTH AVENUE
12TH FLOOR
NEW YORK, NY 10022		       See Remarks

Signatures

/s/ Bradley Cooper (1) 11/09/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(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).
 
Remarks:
Under the Stockholders Agreement, dated as of September 30, 2004, among Insurance Partners, L.P., Insurance Partners
 Offshore (Bermuda), L.P., IP/MCLP, L.L.C., the company and other stockholders named therein, as amended, IP/MCLP, L.L.C. has
 agreed to vote its shares of common stock in accordance with the terms of such agreement. As a result, the reporting person
 may be deemed to be a member of a group pursuant to Rule 13d-5 promulgated under the Securities Exchange Act of 1934 (the
 "Act"). This filing shall not be deemed an admission that the reporting person is, for purposes of Section 13(d) or Section
 16 of the Act or otherwise, a member of a group or the beneficial owner of any securities in excess of the amount in which
 it has a pecuniary interest.

(1)  By: Insurance Partners, L.P., its managing member
By: Insurance GenPar, L.P., its general partner
By: Insurance GenPar MGP, L.P., its general partner
By: Insurance Gen Par MGP, Inc., its general partner
By: Bradley Cooper, Senior Vice President

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