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Och-Ziff AUM down 32 per cent year-on-year

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Och-Ziff Capital Management Group has reported that its assets under management were USD22.6bn as of 31 March 2009, 16 per cent lower than 31 December 2008 and 32 per cent lower than 31

Och-Ziff Capital Management Group has reported that its assets under management were USD22.6bn as of 31 March 2009, 16 per cent lower than 31 December 2008 and 32 per cent lower than 31 March 2008.

It says the USD10.7bn year-over-year decrease was driven by net outflows of USD6.1bn and performance-related depreciation of USD4.6bn.

During the 2009 first quarter, the USD4.4bn decrease in assets under management was driven by net outflows of USD5.1bn partially offset by performance-related appreciation of USD733m.

Assets under management as of 1 April 2009 were USD20.3bn, which reflects redemptions for the month of March 2009 of USD2.3bn. The company says redemptions continued to be adversely impacted due to the continued effect of other alternative asset managers that imposed gates, or who otherwise restricted access to investor capital.

For the first quarter ended 31 March 2009, Och-Ziff reported a GAAP net loss of USD81.9m, or USD1.07 per basic and diluted Class A Share, compared with a GAAP net loss of USD268.1m, or USD3.62 per basic and diluted Class A Share for the first quarter ended 31 March 2008. The primary driver of the year-over-year reduction in the GAAP net loss was an increase in net loss allocated to partners’ and others’ interests in income of consolidated subsidiaries resulting from the adoption of FAS 160, partially offset by a decline in management fees due to lower assets under management.

The company says the 2009 first quarter GAAP net loss primarily resulted from non-cash expenses of USD419.9m associated with the company’s reorganisation in connection with its initial public offering in November 2007.

The company has declared a USD0.05 first quarter cash dividend on its Class A Shares.

"Despite continued challenging market conditions, we delivered strong absolute returns during the first quarter and in April," says Daniel Och, chairman and chief executive officer of Och-Ziff (pictured). "We see the current environment – which places a premium on investment performance, fund infrastructure and investment process transparency to fund investors – as an excellent one in which to continue to generate strong absolute returns for our fund investors. The number of compelling investment opportunities remains greater than it has been in many years, and there is a smaller universe of investors pursuing those ideas. While it may take some time for investors to begin to re-allocate capital to alternative asset managers, we believe that we will benefit from our competitive strengths and gain market share as a result."

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