family office, Cascade Investment
, has bought a convertible note from a publicly-traded mutual fund shop led by another billionaire.
| Bill Gates|
, chairman and CEO of Gamco Investors
that Cascade has agreed to buy a $110-million, five-year convertible note
in Gamco, a note which could convert into a 15.9-percent stake at $55 per Gamco share (an 80-percent premium over Gamco's $30.56 share price as of market close yesterday). The note has a coupon of 4.5 percent.
Margaret Collins of Bloomberg reported
on the Cascade's Gamco investment.
"We are delighted to renew our relationship with Cascade which will provide us with broad flexibility in pursuing our growth initiatives," Gabelli states.
Indeed, Gamco president and chief operating officer Douglas Jamieson
that this is not the first time that Cascade has invested in Gamco. And the publication notes that Cascade's Alan Heuberger
previously served on Gamco's board.
Gamco had $39.3 billion in AUM as of June 30, and it has a market capitalization of $901.64 million as of market close yesterday. That market cap translates into about 2.3 percent of Gamco's AUM.
Neil Anderson, Managing Editor
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