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Calamos to Become Fully Private Money Manager

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Calamos Asset Management says its shares are set to be fully acquired by its founder and Chairman John Calamos and CEO John Koudounis, who — along with other members of the Calamos family — already own a majority stake in the firm. After the deal is complete, the firm will operate as a private entity.

The news was announced Tuesday and comes as the Chicago-based firm is moving to stem asset outflows. 

“As investors at Calamos, we have always taken the long view. I believe a fully private ownership structure will enable John Koudounis to focus on managing our business to his vision for our firm’s long-term growth,” John Calamos said in a statement.

The deal is being structured as a tender offer through which an entity formed by Calamos and Koudounis will buy any outstanding shares of Class A common stock of Calamos Asset Management for $8.25 a share in cash.

CAM’s board formed an independent special committee to explore such a transaction in October. The committee concluded that the proposed transaction “would be fair and in the best interests of the company’s public shareholders,” according to a press release.

“Upon arriving at Calamos [in April 2016], I directed an extensive analysis of our corporate structure. Being a fully private company — consistent with 95% of asset managers today — will allow us to manage the business with the same long-term view that we apply to our investment approach,” Koudounis said in a statement. “By eliminating the distraction of the market’s increased focus on short-term metrics, we can be singularly dedicated to improving our key performance areas.”

Recent Results

In the third quarter, the firm’s assets under management were $20.1 billion, down from $22.5 billion a year earlier. Net outflows were $746 million in the third quarter, $1.0 billion in the second and $436 million in the third quarter a year ago.

Total revenues in the most-recent quarter were $48.3 million vs $57.6 million in the third quarter of 2015. The firm’s operating margin was 8.5% in the third quarter vs. 15.0% a year ago.

Calamos, which built its business through its use of covertible securities, appointed Thomas Herman to serve as its CFO in June. He replaced Nimish Bhatt.

— Check out Calamos Hires USAA CIO to Head Fixed Income Strategies on ThinkAdvisor.