The company’s complete Form 10 can be found here. Following the transaction, Mr. Gabelli will serve as CEO of both firms. Associated Capital’s business will consist of:
Our Business
We are a newly formed Delaware corporation organized to be the holding company for GAMCO’s alternative investment management business, institutional research services business and certain cash and other assets in the spin-off. Our principal executive offices are located at One Corporate Center, Rye, NY 10580. Our telephone number is (914) 921-5135. Our website address is www.associated-capital-group.com. Information contained on or connected to our website does not and will not constitute part of this information statement or the Registration Statement filed on Form 10, of which this information statement is a part.
Alternative Investment Management
We own a 93.9% interest in Gabelli Securities, Inc. (“GSI”), a registered investment advisor. GSI and its wholly owned subsidiary, Gabelli & Partners, LLC (“Gabelli & Partners”), collectively serve as general partners or investment managers to investment funds including limited partnerships and offshore companies (collectively, “Investment Partnerships”), and separate accounts. We primarily manage assets in equity event-driven value strategies, across a range of risk and event arbitrage portfolios. The business earns fees from its advisory assets, and income (loss) from trading and investment portfolio activities. The advisory fees include management and incentive fees. Management fees are largely based on a percentage of the portfolios’ levels of assets under management (“AUM”). Incentive fees are based on the percentage of profits derived from the investment performance delivered to clients’ invested assets. As of June 30, 2015, we managed a total of $1.1 billion in assets. GSI is registered with the Securities and Exchange Commission (the “SEC”) as an investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Certain employees of GAMCO own 1.9% of GSI, and the remaining 4.2% of GSI is owned by individual investors unrelated to GAMCO.
Institutional Research Services
We operate our institutional research services business through G.research, LLC (“G.research”), a wholly owned subsidiary of GSI. G.research is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Through G.research, we provide institutional research services as well as act as an underwriter. G.research is regulated by the Financial Industry Regulatory Authority (“FINRA”). G.research’s revenues are derived primarily from institutional research services.
Our Strategy
Our business strategy targets global growth of the business through continued leveraging of our proven asset management strengths including our funds, long-term performance record, diverse product offerings and experienced investment, research and client relationship professionals. In order to achieve performance and growth in AUM and profitability, we are pursuing a strategy which includes the following key elements:
- continuing an active fundamental investment approach;
- growing our Investment Partnerships advisory business;
- capitalizing on acquisitions, alliances and lift-outs;
- pursuing partnerships and joint ventures;
- continuing our sponsorship of industry conferences;
- attracting and retaining experienced professionals.
With Mr. Gabelli at the helm of both firms, we’re not sure how much change there will be at either, but this may be the first step in a larger plan by Mr. Gabelli to transform the company he founded, controls and runs.
Disclosure: The author holds no position in any stock mentioned.
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