Associated Capital ACGP

Associated Capital Group, Inc. is a Delaware corporation that provides alternative investment management services and operates a direct investment business to acquire and control businesses that fit its criteria over time. The company generates income from proprietary investments and manages assets across a range of risk and event arbitrage portfolios and in equity event-driven value strategies. It serves a wide variety of investors globally, including private wealth management clients, corporations, corporate pension and profit-sharing plans, foundations and endowments.

Associated Capital Group, Inc. generates revenue primarily through management and incentive fees from its advisory activities. Management fees are largely based on a percentage of assets under management, while incentive fees are based on a percentage of the investment returns of certain client portfolios. The company also derives income from its proprietary capital, which is earmarked for direct investments in new and existing businesses using various techniques and structures.

Associated Capital Group, Inc. operates through the following segments: Investment Partnerships and Direct Investments.

• Investment Partnerships: This segment provides investment management services through Gabelli & Company Investment Advisers, Inc. and its wholly-owned subsidiary Gabelli & Partners, LLC, which together serve as general partners or investment managers to investment funds and separate accounts. The segment manages assets in merger arbitrage, event-driven value, and other alternative strategies. It employs absolute return strategies with the objective of generating positive returns independent of broad market direction. The Gabelli name and Gabelli Partners brand are used in connection with the funds and investment vehicles offered under this segment.
• Direct Investments: This segment focuses on acquiring and controlling businesses through the company's direct investment business, which invests in new and existing businesses using a variety of techniques and structures. Key vehicles under this segment include Gabelli Private Equity Partners, LLC, formed in August 2017 with $150 million of authorized capital as a fund-less sponsor, and Gabelli Principal Strategies Group, LLC, created in December 2015 to pursue strategic operating initiatives. The segment emphasizes investments in growth capital, leveraged buyouts, and restructurings, with a focus on small and mid-sized companies.

Associated Capital Group, Inc. competes in the intensely competitive alternative asset management industry against other managers in the United States and globally, including alternative investment management firms, insurance companies, banks, brokerage firms, and financial institutions offering similar products. Many competitors are subsidiaries of large diversified financial companies with greater resources, larger assets under management, and more extensive sales organizations. The company has historically competed on the basis of long-term investment performance of its products, particularly its absolute return and event-driven strategies.

Associated Capital Group, Inc. serves private wealth management clients, corporations, corporate pension and profit-sharing plans, foundations, and endowments globally. The company targets investors seeking non-market correlated returns and has expanded its investor base through its alternative investment funds and separately managed accounts.