Och-Ziff Capital Management Group LLC Reports Third Quarter 2008 Results

11/04/2008

Third Quarter 2008 Dividend of $0.025 per Class A Share

NEW YORK, Nov. 4 /PRNewswire-FirstCall/ -- Och-Ziff Capital Management Group LLC (NYSE: OZM) (the "Company" or "Och-Ziff") today reported its results and the declaration of a cash dividend on its Class A Shares for the third quarter ended September 30, 2008.

Third Quarter Highlights

  • Distributable Earnings for the Och-Ziff Funds segment of $54.3 million, or $0.14 per Adjusted Class A Share
  • Dividend of $0.025 per Class A Share to be paid on November 12, 2008 to holders of record as of the close of business on October 1, 2008
  • Assets under management of $31.2 billion as of September 30, 2008, 7% lower than June 30, 2008, but 4% higher than September 30, 2007
  • Economic Income Revenues for the Och-Ziff Funds segment of $153.0 million, 7% higher than the 2007 third quarter

 

For the third quarter and nine months ended September 30, 2008, Och-Ziff reported a GAAP net loss of $69.4 million, or $0.94 per basic and $1.07 per diluted Class A Share, and $398.4 million, or $5.37 per basic and diluted Class A Share, respectively. The GAAP net loss in both periods resulted primarily from third quarter and first nine months non-cash expenses of $425.6 million and $1.3 billion, respectively, associated with the Company's reorganization in connection with its initial public offering ("IPO") in November 2007. These expenses are related to the amortization of Och-Ziff Operating Group A Units ("Group A Units"), which represent equity interests in the Company's principal operating subsidiaries that were issued to the Company's pre-IPO owners in exchange for their pre-IPO interests in those subsidiaries. The Group A Units vest annually over five years from the closing of the IPO. Accordingly, amortization of these expenses is expected to result in a GAAP net loss each quarter through 2012. Once vested, the Group A Units may be exchanged on a one-to-one basis for Class A Shares.

Also contributing to the GAAP net loss in the third quarter and first nine months of 2008 were non-cash expenses of $17.5 million and $67.7 million, respectively, for the amortization of equity-based compensation, primarily related to Class A restricted share units ("RSUs") awarded to all of the Company's employees in connection with the IPO. These RSUs vest annually over four years from the closing of the IPO. Each RSU represents the right to receive one Class A Share upon vesting.

Distributable Earnings for the Och-Ziff Funds segment for the third quarter and nine months ended September 30, 2008 was $54.3 million or $0.14 per Adjusted Class A Share, and $159.1 million, or $0.40 per Adjusted Class A Share, respectively. Distributable Earnings is a supplemental non-GAAP financial measure that management believes provides a meaningful basis for comparison of the after-tax operating performance of the Och-Ziff Funds segment, which includes substantially all of the Company's business. Additionally, management uses Distributable Earnings, among other financial data, to determine the earnings available to distribute as dividends to holders of the Company's Class A Shares and to the Company's partners and Ziff Brothers Investments (the "Ziffs") with respect to their Group A Units.

Distributable Earnings is equal to the Economic Income of the Och-Ziff Funds segment less adjusted income taxes. These adjusted income taxes are estimated assuming all Group A Units and RSUs were converted on a one-to-one basis into Class A Shares ("Adjusted Class A Shares"). Distributable Earnings per Share is equal to Distributable Earnings divided by the weighted average number of Adjusted Class A Shares. Distributable Earnings should not be considered as an alternative to GAAP net income or cash flow, and is not necessarily indicative of liquidity or the cash available to fund operations. For a reconciliation of the Och-Ziff Funds segment third quarter and first nine months 2008 Economic Income to Distributable Earnings, please see Exhibit 8 of the financial tables that accompany this press release.

Och-Ziff's assets under management were $31.2 billion as of September 30, 2008, 7% lower than the $33.6 billion in assets under management as of June 30, 2008, but 4% higher than the $30.1 billion in assets under management as of September 30, 2007. The $1.1 billion year-over-year increase was driven principally by performance-related appreciation of $843.2 million and net inflows of $2.4 billion (which included the reinvestment by the Company's partners and the Ziffs of approximately $1.6 billion in after-tax proceeds from the Company's IPO and concurrent Class A Share sale to Dubai International Capital) during the fourth-quarter of 2007. The year-over-year increase was also driven by net inflows of $305.2 million (which exclude redemptions for the 2008 third quarter as these are reflected in assets under management as of October 1, 2008) during the first nine months of 2008. These increases were partially offset by performance related depreciation of $2.5 billion during the first nine months of 2008, driven principally by performance-related declines in September 2008. During the 2008 third quarter, the $2.4 billion decrease in assets under management was driven by performance-related depreciation of $2.5 billion and net inflows of $73.5 million (which exclude redemptions for September 2008 as these are reflected in assets under management as of October 1, 2008).

Assets under management as of October 1, 2008 were $30.5 billion, which reflects September 2008 redemptions (net of October 1, 2008 capital inflows) of $718.5 million. The majority of redemptions occur on quarter ends. All redemptions are paid on the first day of the following month and capital inflows for that month are accepted on the same day.

    Assets under management by fund were as follows:

                                                             % Change (4)
                                                         --------------------
                                                         Sep. 2008  Sep. 2008
    (dollars in    September 30, June 30,  September 30,    vs.        vs.
     billions)          2008        2008        2007     Jun. 2008  Sep. 2007
                   ------------- --------- ------------- ---------  ---------

    OZ Master Fund          18.8      20.0         19.0        -6%        -1%
    OZ Europe Master Fund    5.8       6.4          6.1       -10%        -5%
    OZ Asia Master Fund (1)  3.2       3.8          3.4       -14%        -4%
    OZ Global Special
     Investments Master
     Fund (2)                2.0       2.1          0.4        -2%       415%
    Other (3)(4)             1.4       1.3          1.2         NM         NM

(1) Includes investment of $0.1 billion in after-tax proceeds from the Company's Class A Share sales.

(2) Includes investment of $1.5 billion in after-tax proceeds from the Company's Class A Share sales.

(3) Includes Real Estate Funds, managed accounts and other funds not significant to the Company's results.

    (4) Rounding differences may occur.


    Performance by fund was as follows(1):

                                                2008
                              -----------------------------------------
                               July   August  September    3Q     YTD(2)
                              ------  ------  --------- ------- -------

    OZ Master Fund            -0.59%  -0.58%     -5.41%  -6.51%  -5.80%
    OZ Europe Master Fund     -1.35%  -0.38%     -7.22%  -8.82%  -8.43%
    OZ Asia Master Fund       -1.17%  -4.18%     -7.53% -12.43% -16.87%
    OZ Global Special
     Investments Master Fund   0.06%  -0.45%     -2.73%  -3.11%  -2.99%

(1) Please see important disclosures on Exhibit 9 of the financial supplement accompanying this press release.

    (2) As of September 30, 2008.


For both the third quarter and nine months ended September 30, 2008, the majority of the performance-related depreciation was due to unprecedented market volatility and the ensuing flight to quality during September, which resulted in substantial declines in the value of almost every asset class globally and adversely impacted investment returns in each of the Company's master funds. However, the Company's funds significantly outperformed major markets worldwide during both periods. Challenging market conditions during the 2008 third quarter also resulted in increased redemptions as institutional investors re-balanced and/or reduced their exposures to hedge funds and the capital markets generally.

"Turbulence in the global financial markets reached unprecedented levels during the third quarter," said Daniel Och, Chairman and Chief Executive Officer of Och-Ziff. "Our performance reflected the effect of record volatility in the equity markets and substantial declines in asset values globally, which made it exceptionally difficult to sustain stable investment performance. We continue to actively manage our business, as we have always done, with minimal use of leverage and a consistent and disciplined focus on preserving fund investors' capital, relying on the risk management processes which have been integral to our approach throughout our fourteen-year history. While we anticipate that the market will present additional challenges, we believe that the strength of our performance and sustainability of our business position us to benefit over the long-term from the opportunities that will arise globally from the current environment."

Summary results OF THE OCH-ZIFF FUNDS SEGMENT

The Company conducts substantially all of its business through the Och-Ziff Funds segment, which is currently the Company's only reportable operating segment. This segment provides management and advisory services to the Company's hedge funds and separately managed accounts.

The Company's other operations are currently comprised of its real estate business, which manages and provides advisory services to its real estate funds, and investments in new businesses established to expand certain of the Company's private investment platforms. These other operations, which currently are in early growth stages and are not material to the overall financial performance of the Company, are not included in the Och-Ziff Funds segment and therefore not included in the calculations of Economic Income, Distributable Earnings and Distributable Earnings per Share.

The performance measure for the Och-Ziff Funds segment is Economic Income, which management uses to evaluate the financial performance of and make operating decisions for the segment. Management believes that investors should review the same performance measure that it uses to analyze the Company's core business performance. Economic Income is a pre-tax measure that does not include allocations to the Company's partners and the Ziffs, which related solely to their pre-IPO interests, reorganization expenses related to the Company's IPO, equity-based compensation expenses, taxes, or partners' and others' interests in the Company's consolidated subsidiaries, among other adjustments. For further information regarding these adjustments, please see Exhibit 7 of the financial tables that accompany this press release.

For reconciliations of Economic Income to total Company GAAP net income (loss) for the periods discussed below, please see Exhibits 3 through 6 of the financial tables that accompany this press release.

    Economic Income

    Economic Income Revenues

Third-quarter 2008 Economic Income Revenues were $153.0 million, a 7% increase from third-quarter 2007 Economic Income Revenues of $142.4 million. Management Fees were $147.7 million, 14% higher than third-quarter 2007 Management Fees of $130.0 million.

Economic Income Revenues for the first nine months of 2008 were $446.7 million, a 23% increase from Economic Income Revenues of $361.9 million in the prior year period. Management Fees were $438.0 million, up 28% from Management Fees of $341.8 million in the prior year period.

The increase in Management Fees in both periods was driven by the year-over-year net increase in assets under management.

    Economic Income Expenses

    Compensation and Benefits

Third-quarter 2008 Compensation and Benefits expenses totaled $28.8 million, 64% higher than third-quarter 2007 Compensation and Benefits expenses of $17.6 million. Third-quarter 2008 Compensation and Benefits included $12.4 million of bonus expense, primarily related to accruals for bonus guarantees which will be paid at year-end.

Compensation and Benefits expenses for the first nine months of 2008 were $77.0 million, 62% higher than Compensation and Benefits expenses of $47.6 million in the prior year period. Compensation and Benefits for this period included $27.8 million of bonus expense, primarily related to accruals for bonus guarantees which will be paid at year-end, and to non-recurring payments to certain existing personnel and new employees.

The increase in Compensation and Benefits in both periods was driven by increased headcount related to the infrastructure needed to become a public company and to support business growth.

Non-Compensation Expenses

Third-quarter 2008 non-compensation expenses were $30.5 million, a 13% decrease from third-quarter 2007 non-compensation expenses of $35.1 million. The decrease was driven principally by lower interest expense on the Company's $750 million term loan due to the decline in the loan's LIBOR-based borrowing rate. The decrease was also driven by reduced professional services fees which were higher in the 2007 third quarter due to audit and consulting costs incurred in connection with the Company's IPO. On a comparative basis, the Company's 2007 annual audit and consulting costs were primarily incurred in the first quarter of 2008. These decreases were partially offset by increases in insurance, occupancy and business development costs related to the infrastructure needed to become a public company and to support business growth.

Non-compensation expenses for the first nine months of 2008 were $95.0 million, a 38% increase from non-compensation expenses of $68.8 million in the prior year period. The increase was driven primarily by higher interest expense on the Company's term loan. The loan was entered into during the third quarter of 2007, so interest expense was incurred for only part of the nine month period in the prior year. Partially offsetting this difference was the decline in the loan's LIBOR-based borrowing rate. The remainder of the increase was driven by insurance, business development, occupancy and technology costs related to the infrastructure needed to become a public company and to support business growth.

Economic Income

Third-quarter 2008 Economic Income totaled $93.8 million, a 4% increase from third-quarter 2007 Economic Income of $89.7 million. Economic Income for the first nine months of 2008 totaled $274.7 million, a 12% increase from Economic Income of $245.5 million in the prior year period.

The Economic Income margin is computed as the ratio of Economic Income to Economic Income Revenues. The third-quarter 2008 margin was 61%, two percentage points lower than the third-quarter 2007 margin of 63%. The margin for the first nine months of 2008 was 62%, six percentage points lower than the margin of 68% in the prior year period.

CAPITAL

As of September 30, 2008, Class A Shares outstanding totaled 74,138,572. For purposes of calculating Distributable Earnings per Share, the Company assumes that all Group A Units and outstanding RSUs have been converted on a one-to-one basis into Class A Shares. For the third quarter and nine months ended September 30, 2008, the total weighted-average Adjusted Class A Shares outstanding were 400,371,024 and 400,003,864, respectively.

DIVIDEND

The Board of Directors of Och-Ziff declared a third-quarter 2008 dividend of $0.025 per Class A Share, to be paid on November 12, 2008 to holders of record at the close of business on October 1, 2008.

For U.S. federal income tax purposes, the dividend will be treated as a partnership distribution. Based on the best information currently available, the Company estimates that when calculating withholding taxes, the entire amount of the third quarter 2008 dividend will be treated as U.S. source dividend income.

Non-U.S. holders of Class A Shares are generally subject to U.S. federal withholding tax at a rate of 30% (subject to reduction by applicable treaty or other exception) on their share of U.S. source dividends and certain other types of U.S. source income realized by the Company. With respect to interest, however, no withholding is generally required if proper certification (on an IRS Form W-8) of a beneficial owner's foreign status has been filed with the withholding agent. In addition, non-U.S. holders must generally provide the withholding agent with a properly completed IRS Form W-8 to obtain any reduction in withholding.

Och-Ziff will host a conference call today, November 4, 2008, at 8:30 a.m. Eastern Time to discuss the Company's third quarter 2008 results. The call will be open to the public and can be accessed by dialing 888-679-8038 (callers inside the U.S.) or 617-213-4850 (callers outside the U.S.). The number should be dialed at least ten minutes prior to the start of the call. The passcode for the call will be 37357806. A simultaneous webcast of the call will be available to the public on a listen-only basis on the For Shareholders page of the Company's website at www.ozcap.com.

For those unable to listen to the live broadcast, a replay will be available by dialing 888-286-8010 (callers inside the U.S.) or 617-801-6888 (callers outside the U.S.), passcode 65169610, beginning approximately two hours after the event for two weeks. A webcast replay of the event will also be available on the For Shareholders page of the Company's website.

Forward-Looking Statements

The information contained in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of the Company with respect to, among other things, its future financial or business performance, events, strategies or expectations, including but not limited to its ability to generate returns and preserve capital and its ability to expand its investment platforms. Such forward-looking statements are generally identified by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "opportunity," "assume," "remain," "sustain," "achieve" or the negative version of those words or other comparable words.

Any forward-looking statements contained in this press release are based upon historical performance of the Company and its subsidiaries and on current plans, estimates and expectations of the Company and its subsidiaries. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, including but not limited to global and domestic market and business conditions, the Company's ability to successfully compete for fund investors, talent and investment opportunities, successful formulation and execution of its business and growth strategies, the Company's ability to appropriately manage conflicts of interest, and tax and other regulatory factors relevant to the Company's structure and status as a public company, as well as assumptions relating to the Company's operations, financial results, financial condition, business prospects, growth strategy and liquidity.

If one or more of these or other risks or uncertainties materialize, or if the Company's assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risks that are included in the Company's filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and its Quarterly Reports on Form 10-Q. Any forward-looking statements contained in this press release are made only as of the date hereof. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This press release does not constitute an offer of any Och-Ziff fund.

About Och-Ziff Capital Management Group LLC

Och-Ziff Capital Management Group LLC is one of the world's largest institutional alternative asset managers with offices in New York, London, Hong Kong, Tokyo, Bangalore and Beijing. Och-Ziff's funds seek to deliver consistent, positive, risk-adjusted returns throughout market cycles, with a strong focus on capital preservation. Och-Ziff's multi-strategy approach combines global investment strategies, including merger arbitrage, convertible and derivative arbitrage, equity restructuring, credit and distressed investments, private investments and real estate.

As of November 1, 2008, Och-Ziff had approximately $28.3 billion in estimated assets under management with over 700 investor relationships. For more information, please visit www.ozcap.com.

                                     Exhibit 1
                       OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
          Consolidated and Combined Statements of Operations (Unaudited)
                 (dollars in thousands, except per share amounts)


                                  Three Months Ended       Nine Months Ended
                                     September 30,           September 30,
                                  -------------------      ------------------
                                      2008       2007        2008        2007
                                      ----       ----        ----        ----

    Revenues
      Management fees             $148,976   $131,323    $441,770    $181,337
      Incentive income               4,373      6,028       5,483       7,415
      Other revenues                   925      6,466       3,179       8,296
      Income of consolidated
       Och-Ziff funds                2,768      3,149       7,654     534,736
                                     -----      -----       -----     -------
      Total Revenues               157,042    146,966     458,086     731,784
                                   -------    -------     -------     -------

    Expenses
      Compensation and benefits     50,377     23,519     155,388      61,506
      Allocations to non-equity
       partner interests            (3,039)   343,943        (865)    489,266
      Reorganization expenses      425,585          -   1,276,753           -
      Profit sharing                  (305)    80,038      (1,736)    104,412
      Interest expense               7,118     12,185      24,791      12,810
      General, administrative and
       other                        24,732     24,111      83,771      59,523
      Expenses of consolidated
       Och-Ziff funds                1,043        955       2,400     341,934
                                     -----        ---       -----     -------
      Total Expenses               505,511    484,751   1,540,502   1,069,451
                                   -------    -------   ---------   ---------

    Other Income (Loss)
      Net earnings (losses)
       on investments in and
       deferred income receivable
        from Och-Ziff funds and
       other entities              (20,825)     9,569     (24,995)     51,215
      Net gains (losses) of
       consolidated Och-Ziff funds   1,290     (2,180)        787   2,336,089
                                     -----     ------         ---   ---------
      Total Other Income (Loss)    (19,535)     7,389     (24,208)  2,387,304
                                   -------      -----     -------   ---------
    Income (Loss) before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries (368,004)  (330,396) (1,106,624)  2,049,637
    Income taxes                    14,735      8,066      22,696      15,349
                                    ------      -----      ------      ------
    Income (Loss) before Partners'
     and Others' Interests in
     Income of Consolidated
     Subsidiaries                 (382,739)  (338,462) (1,129,320)  2,034,288
    Partners' and others'
     interests in income of
     consolidated subsidiaries     313,295     (1,452)    730,957  (2,174,762)
                                   -------     ------     -------  ----------
    Net Loss                      $(69,444) $(339,914)  $(398,363)  $(140,474)
                                  ========  =========   =========   =========



    Net Loss per Class A Share
      Basic                       $  (0.94)             $   (5.37)
                                    ======                 ======

      Diluted                     $  (1.07)             $   (5.37)
                                    ======                 ======

    Weighted Average Class A
     Shares Outstanding
      Basic                     74,138,572             74,138,572
                                ==========             ==========

      Diluted                  385,238,096             74,138,572
                               ===========             ==========



                              Exhibit 2
                OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
             Och-Ziff Funds Economic Income (Unaudited)
                       (dollars in thousands)


                                        Three Months
                                       Ended September
                                             30,
                                      ----------------
                                         2008     2007 % Change
                                         ----     ---- --------

    Economic Income Revenues
      Management fees                $147,747 $130,011       14%
      Incentive income                  4,373    6,028      -27%
      Other revenues                      919    6,387      -86%
                                          ---    -----
      Total Economic Income Revenues  153,039  142,426        7%
                                      -------  -------

    Economic Income Expenses
      Compensation and benefits        28,813   17,589       64%
      Non-compensation expenses        30,463   35,094      -13%
                                       ------   ------
      Total Economic Income Expenses   59,276   52,683       13%
                                       ------   ------
    Och-Ziff Funds Economic Income    $93,763  $89,743        4%
                                      =======  =======



                                        Nine Months
                                       Ended September
                                             30,
                                      ----------------
                                         2008     2007 % Change
                                         ----     ---- --------

    Economic Income Revenues
      Management fees                $438,034 $341,799       28%
      Incentive income                  5,483   11,968      -54%
      Other revenues                    3,149    8,087      -61%
                                        -----    -----
      Total Economic Income Revenues  446,666  361,854       23%
                                      -------  -------

    Economic Income Expenses
      Compensation and benefits        76,989   47,550       62%
      Non-compensation expenses        94,967   68,833       38%
                                       ------   ------
      Total Economic Income Expenses  171,956  116,383       48%
                                      -------  -------
    Och-Ziff Funds Economic Income   $274,710 $245,471       12%
                                     ======== ========


    See Exhibits 3 - 6 for reconciliations of Och-Ziff Funds
    Economic Income to total Company GAAP Net Income (Loss).



                                  Exhibit 3
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Och-Ziff Funds Economic Income to GAAP Net Income
                              (Loss) (Unaudited)
                            (dollars in thousands)


                                                 Three Months Ended
                                                 September 30, 2008
                                             ----------------------------

                                            Och-Ziff Funds
                                               Economic        Other
                                                Income       Operations
                                            --------------  -----------

    Revenues
      Management fees                             $147,747        $1,312
      Incentive income                               4,373             -
      Other revenues                                   919             6
      Income of consolidated Och-Ziff funds              -         2,696
                                                   -------         -----
      Total Revenues                               153,039         4,014
                                                   -------         -----

    Expenses
      Compensation and benefits                     28,813         1,878
      Allocations to non-equity partner interests        -             -
      Reorganization expenses                            -             -
      Profit sharing                                     -             -
      Interest expense                               7,118             -
      General, administrative and other             23,345           472
      Expenses of consolidated Och-Ziff funds            -           897
                                                    ------           ---
      Total Expenses                                59,276         3,247
                                                    ------         -----

    Other Income (Loss)
      Net losses on investments in and deferred
       income receivable from Och-Ziff funds and
       other entities                                    -        (1,544)
      Net gains (losses) of consolidated Och-Ziff
       funds                                             -         1,859
                                                       ---         -----
      Total Other Income (Loss)                          -           315
                                                       ---           ---

    Income (Loss) Before Income Taxes and Partners'
     and Others' Interests in Income of
     Consolidated Subsidiaries                      93,763         1,082
    Income taxes                                         -            19
                                                       ---            --
    Income (Loss) Before Partners' and Others'
     Interests in Income of Consolidated
     Subsidiaries                                   93,763         1,063
    Partners' and others' interests in income of
     consolidated subsidiaries                           -        (3,876)
                                                   -------        ------
    Net Income (Loss)                              $93,763       $(2,813)
                                                   =======       =======



                               Three Months Ended September 30, 2008
                               -------------------------------------
                          Reconciling Adjustments (1)
                          ---------------------------
                          Funds
                      Consolidation  Other Adjustments          Total Company
                      -------------  -----------------          -------------

    Revenues
      Management fees          $(83)               $-               $148,976
      Incentive income            -                 -                  4,373
      Other revenues              -                 -                    925
      Income of consolidated
       Och-Ziff funds            72                 -                  2,768
                                 --                 -                  -----
      Total Revenues            (11)                -                157,042
                                ---               ---                -------

    Expenses
      Compensation and benefits                19,686  (a) (b)        50,377
      Allocations to non-equity
       partner interests          -            (3,039) (c)            (3,039)
      Reorganization expenses     -           425,585  (d)           425,585
      Profit sharing              -              (305) (e)              (305)
      Interest expense            -                 -                  7,118
      General, administrative
       and other                  -               915  (f)            24,732
      Expenses of consolidated
       Och-Ziff funds           146                 -                  1,043
                                ---               ---                  -----
      Total Expenses            146           442,842                505,511
                                ---           -------                -------

    Other Income (Loss)
      Net losses on investments
       in and deferred income
       receivable from Och-Ziff
       funds and other entities   -           (19,281) (g)           (20,825)
      Net gains (losses) of
       consolidated Och-Ziff
       funds                   (569)                -                  1,290
                               ----               ---                  -----
      Total Other Income (Loss)(569)          (19,281)               (19,535)
                               ----           -------                -------

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in
     Income of Consolidated
     Subsidiaries              (726)         (462,123)              (368,004)
    Income taxes                  -            14,716  (f)            14,735
                                ---            ------                 ------
    Income (Loss) Before
     Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries (726)         (476,839)              (382,739)
    Partners' and others'
     interests in income of
     consolidated subsidiaries  726           316,445  (f)           313,295
                                ---           -------                -------
    Net Income (Loss)            $-         $(160,394)              $(69,444)
                                 ==         =========               ========

    (1) See Exhibit 7 for a description of the adjustments made to arrive at
     total Company GAAP Net Income (Loss).


                                  Exhibit 4
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Och-Ziff Funds Economic Income to GAAP Net Income
                              (Loss) (Unaudited)
                            (dollars in thousands)

                                                 Three Months Ended
                                                 September 30, 2007
                                             ----------------------------

                                            Och-Ziff Funds
                                               Economic        Other
                                                Income       Operations
                                            --------------  -----------

    Revenues
      Management fees                             $130,011        $1,312
      Incentive income                               6,028             -
      Other revenues                                 6,387            79
      Income of consolidated Och-Ziff funds              -         3,037
                                                       ---         -----
      Total Revenues                               142,426         4,428
                                                   -------         -----

    Expenses
      Compensation and benefits                     17,589          (710)
      Allocations to non-equity partner interests        -           304
      Profit sharing                                     -            87
      Interest expense                              12,185             -
      General, administrative and other             22,909           177
      Expenses of consolidated Och-Ziff funds            -           895
                                                       ---           ---
      Total Expenses                                52,683           753
                                                    ------           ---

    Other Income (Loss)
      Net earnings (losses) on investments in and
       deferred income receivable from Och-Ziff
       funds and other entities                          -             -
      Net losses of consolidated Och-Ziff funds          -        (1,889)
                                                       ---        ------
      Total Other Income (Loss)                          -        (1,889)
                                                       ---        ------

    Income (Loss) Before Income Taxes and Partners'
     and Others' Interests in Income of Consolidated
     Subsidiaries                                   89,743         1,786
    Income taxes                                         -            68
                                                       ---            --
    Income (Loss) Before Partners' and Others'
     Interests in Income of Consolidated
     Subsidiaries                                   89,743         1,718
    Partners' and others' interests in income of
     consolidated subsidiaries                           -        (1,715)
                                                       ---        ------
    Net Income (Loss)                              $89,743            $3
                                                   =======            ==



                               Three Months Ended September 30, 2007
                               -------------------------------------
                          Reconciling Adjustments (1)
                          ---------------------------
                          Funds
                      Consolidation  Other Adjustments          Total Company
                      -------------  -----------------          -------------

    Revenues
      Management fees            $-                $-               $131,323
      Incentive income            -                 -                  6,028
      Other revenues              -                 -                  6,466
      Income of consolidated
       Och-Ziff funds           112                 -                  3,149
                                ---               ---                  -----
      Total Revenues            112                 -                146,966
                                ---               ---                -------

    Expenses
      Compensation and benefits   -             6,640  (a) (b)        23,519
      Allocations to non-equity
       partner interests          -           343,639  (c)           343,943
      Profit sharing              -            79,951  (e)            80,038
      Interest expense            -                 -                 12,185
      General, administrative
       and other                  -             1,025  (f)            24,111
      Expenses of consolidated
       Och-Ziff funds            60                 -                    955
                                 --               ---                    ---
      Total Expenses             60           431,255                484,751
                                 --           -------                -------

    Other Income (Loss)
      Net earnings (losses) on
       investments in and
       deferred income
       receivable from Och-Ziff
       funds and other entities (24)            9,593  (g)             9,569
      Net losses of
       consolidated Och-Ziff
       funds                   (291)                -                 (2,180)
                               ----               ---                 ------
      Total Other Income (Loss)(315)            9,593                  7,389
                               ----             -----                  -----

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in
     Income of Consolidated
     Subsidiaries              (263)         (421,662)              (330,396)
    Income taxes                  -             7,998  (f)             8,066
                                ---             -----                  -----
    Income (Loss) Before
     Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries (263)         (429,660)              (338,462)
    Partners' and others'
     interests in income of
     consolidated subsidiaries  263                 -                 (1,452)
                                ---               ---                 ------
    Net Income (Loss)            $-         $(429,660)             $(339,914)
                                 ==         =========              =========



    (1) See Exhibit 7 for a description of the adjustments made to arrive at
    total Company GAAP Net Income (Loss).


                                  Exhibit 5
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Och-Ziff Funds Economic Income to GAAP Net Income
                              (Loss) (Unaudited)
                            (dollars in thousands)



                                                  Nine Months Ended
                                                  September 30, 2008
                                             ---------------------------

                                            Och-Ziff Funds
                                               Economic        Other
                                                Income       Operations
                                            --------------  -----------

    Revenues
      Management fees                             $438,034        $3,934
      Incentive income                               5,483             -
      Other revenues                                 3,149            30
      Income of consolidated Och-Ziff funds              -         7,548
                                                       ---         -----
      Total Revenues                               446,666        11,512
                                                   -------        ------

    Expenses
      Compensation and benefits                     76,989         2,969
      Allocations to non-equity partner interests        -             -
      Reorganization expenses                            -             -
      Profit sharing                                     -             -
      Interest expense                              24,791             -
      General, administrative and other             70,176         1,194
      Expenses of consolidated Och-Ziff funds            -         1,891
                                                       ---         -----
      Total Expenses                               171,956         6,054
                                                   -------         -----

    Other Income (Loss)
      Net losses on investments in and deferred
       income receivable from Och-Ziff funds and
       other entities                                    -        (6,144)
      Net gains (losses) of consolidated Och-Ziff
       funds                                             -         2,761
                                                       ---         -----
      Total Other Income (Loss)                          -        (3,383)
                                                       ---        ------

    Income (Loss) Before Income Taxes and Partners'
     and Others' Interests in Income of Consolidated
     Subsidiaries                                  274,710         2,075
    Income taxes                                         -           226
                                                       ---           ---
    Income (Loss) Before Partners' and Others'
       Interests in Income of Consolidated
       Subsidiaries                                274,710         1,849
    Partners' and others' interests in income of
     consolidated subsidiaries                           -        (9,455)
                                                       ---        ------
    Net Income (Loss)                             $274,710       $(7,606)
                                                  ========       =======



                                            Nine Months Ended
                                            September 30, 2008
                                            ------------------
                                         Reconciling
                                        Adjustments (1)
                                        ---------------
                                  Funds             Other           Total
                              Consolidation      Adjustments        Company
                              -------------      -----------        -------

    Revenues
      Management fees                 $(198)          $-            $441,770
      Incentive income                    -            -               5,483
      Other revenues                      -            -               3,179
      Income of consolidated
       Och-Ziff funds                   106            -               7,654
                                        ---          ---               -----
      Total Revenues                    (92)           -             458,086
                                        ---          ---             -------

    Expenses
      Compensation and benefits           -       75,430  (a) (b)    155,388
      Allocations to non-equity partner
       interests                          -         (865) (c)           (865)
      Reorganization expenses             -    1,276,753  (d)      1,276,753
      Profit sharing                      -       (1,736) (e)         (1,736)
      Interest expense                    -            -              24,791
      General, administrative and other   -       12,401  (f)         83,771
      Expenses of consolidated
       Och-Ziff funds                   509            -               2,400
                                        ---          ---               -----
      Total Expenses                    509    1,361,983           1,540,502
                                        ---    ---------           ---------

    Other Income (Loss)
     Net losses on investments in and
      deferred income receivable from
      Och-Ziff funds and other
      entities                            -      (18,851) (g)        (24,995)
      Net gains (losses) of
       consolidated Och-Ziff funds   (1,974)           -                 787
                                     ------          ---                 ---
      Total Other Income (Loss)      (1,974)     (18,851)            (24,208)
                                     ------      -------             -------

    Income (Loss) Before Income
     Taxes and Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries       (2,575)  (1,380,834)         (1,106,624)
    Income taxes                          -       22,470  (f)         22,696
                                        ---       ------              ------
    Income (Loss) Before Partners'
     and Others' Interests in Income
     of Consolidated Subsidiaries    (2,575)  (1,403,304)         (1,129,320)
    Partners' and others' interests
     in income of consolidated
     subsidiaries                     2,575      737,837  (f)        730,957
                                      -----      -------             -------
    Net Income (Loss)                    $-    $(665,467)          $(398,363)
                                         ==    =========           =========




    (1) See Exhibit 7 for a description of the adjustments made to arrive at
     total Company GAAP Net Income (Loss).


                                  Exhibit 6
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Och-Ziff Funds Economic Income to GAAP Net Income
                              (Loss) (Unaudited)
                            (dollars in thousands)



                                                  Nine Months Ended
                                                 September 30, 2007
                                             ---------------------------

                                            Och-Ziff Funds
                                               Economic        Other
                                                Income       Operations
                                            --------------  -----------

    Revenues
      Management fees                             $341,799        $3,934
      Incentive income                              11,968             -
      Other revenues                                 8,087           209
      Income of consolidated Och-Ziff funds              -         6,355
                                                       ---         -----
      Total Revenues                               361,854        10,498
                                                   -------        ------

    Expenses
      Compensation and benefits                     47,550           915
      Allocations to non-equity partner interests        -           665
      Profit sharing                                     -           204
      Interest expense                              12,810             -
      General, administrative and other             56,023           487
      Expenses of consolidated Och-Ziff funds            -         1,526
                                                       ---         -----
      Total Expenses                               116,383         3,797
                                                   -------         -----

    Other Income (Loss)
      Net earnings (losses) on investments in and
       deferred income receivable from Och-Ziff
       funds and other entities                          -             -
      Net gains (losses) of consolidated Och-Ziff
       funds                                             -        (1,289)
                                                       ---        ------
      Total Other Income (Loss)                          -        (1,289)
                                                       ---        ------

    Income (Loss) Before Income Taxes and Partners'
     and Others' Interests in Income of
     Consolidated Subsidiaries                     245,471         5,412
    Income taxes                                         -           103
                                                       ---           ---
    Income (Loss) Before Partners' and Others'
     Interests in Income of Consolidated
     Subsidiaries                                  245,471         5,309
    Partners' and others' interests in income of
     consolidated subsidiaries                           -        (4,940)
                                                       ---        ------
    Net Income (Loss)                             $245,471          $369
                                                  ========          ====



                                            Nine Months Ended
                                            September 30, 2007
                                            ------------------
                                       Reconciling
                                      Adjustments (1)
                                     ----------------
                                  Funds             Other           Total
                              Consolidation      Adjustments        Company
                              -------------      -----------        -------

    Revenues
      Management fees             $(164,396)          $-            $181,337
      Incentive income               (4,553)           -               7,415
      Other revenues                      -            -               8,296
      Income of consolidated
       Och-Ziff funds               528,381            -             534,736
                                    -------          ---             -------
      Total Revenues                359,432            -             731,784
                                    -------          ---             -------

    Expenses
      Compensation and benefits           -       13,041  (a) (b)     61,506
      Allocations to non-equity
       partner interests                  -      488,601  (c)        489,266
      Profit sharing                      -      104,208  (e)        104,412
      Interest expense                    -            -              12,810
      General, administrative
       and other                          -        3,013  (f)         59,523
      Expenses of consolidated
       Och-Ziff funds               340,408            -             341,934
                                    -------          ---             -------
      Total Expenses                340,408      608,863           1,069,451
                                    -------      -------           ---------

    Other Income (Loss)
      Net earnings (losses) on
       investments in and deferred
       income receivable from
       Och-Ziff funds and other
       entities                    (186,580)     237,795  (g)         51,215
      Net gains (losses) of
       consolidated Och-Ziff
       funds                      2,337,378            -           2,336,089
                                  ---------          ---           ---------
      Total Other Income (Loss)   2,150,798      237,795           2,387,304
                                  ---------      -------           ---------

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries 2,169,822     (371,068)          2,049,637
    Income taxes                          -       15,246  (f)         15,349
                                        ---       ------              ------
    Income (Loss)
     Before Partners' and Others'
      Interests in Income of
      Consolidated Subsidiaries   2,169,822     (386,314)          2,034,288
    Partners' and others'
     interests in income of
     consolidated subsidiaries   (2,169,822)           -          (2,174,762)
                                 ----------          ---          ----------
    Net Income (Loss)                    $-    $(386,314)          $(140,474)
                                         ==    =========           =========




    (1) See Exhibit 7 for a description of the adjustments made to arrive at
    total Company GAAP Net Income (Loss).


                                    Exhibit 7
                        OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Description of Adjustments Made to Reconcile Och-Ziff Funds Economic
                          Income to GAAP Net Income (Loss)



    Funds Consolidation
    Economic Income reflects management fees and incentive income earned from
    each of the Company's hedge funds and separately managed accounts,
    excluding the Company's real estate funds and investments in new
    businesses, which are included within the Company's other operations. The
    impacts of consolidation and the related eliminations of the Och-Ziff
    funds are not included in Economic Income. Management fees and incentive
    income earned by the offshore Och-Ziff funds segment prior to June 30,
    2007, were eliminated in consolidation. The Company deconsolidated these
    funds on June 30, 2007.

    Other Adjustments
    (a) Economic Income recognizes deferred cash compensation expense in the
    period in which it is awarded, as management determines the total amount
    of compensation based on the Company's performance in the year of the
    award.

    (b) Economic Income excludes equity-based compensation expense, as
    management does not consider these expenses when evaluating the
    performance of the Och-Ziff Funds segment.

    (c) Economic Income excludes allocations to non-equity partner interests.
    Management reviewed the performance of the Och-Ziff Funds segment before
    it made any allocations to the Company's non-equity founding partners for
    periods prior to the Reorganization. For these periods, allocations to
    the founding partners, other than Mr. Och, were treated as expenses for
    U.S. GAAP purposes. Following the Reorganization, only allocations
    related to earnings on previously deferred incentive income allocations
    to non-equity partner interests are incurred and these allocations are
    excluded from Economic Income.

    (d) Economic Income excludes Reorganization expenses, which are non-cash
    expenses directly attributable to the reclassification of interests held
    by the founding partners and the Ziffs prior to the Reorganization as
    Och-Ziff Operating Group A Units.

    (e) Economic Income excludes the profit sharing expense related to the
    Ziffs' interest in the Company. Management reviewed the performance of
    the Och-Ziff Funds segment before it made any allocations to the Ziffs
    for periods prior to the Reorganization. Following the Reorganization,
    only profit sharing expense related to the allocation of earnings on
    previously deferred incentive income allocations to the Ziffs are
    incurred and these allocations are excluded from Economic Income.

    (f) Economic Income excludes depreciation, changes in the tax receivable
    agreement liability, income taxes and partners' and others' interests in
    income of consolidated subsidiaries, as management does not consider
    these items when evaluating the performance of the Och-Ziff Funds
    segment.

    (g) Economic Income excludes the net earnings (losses) on the deferred
    income receivable from Och-Ziff funds and net earnings (losses) on
    investments in Och-Ziff funds and other entities, as these amounts
    primarily relate to earnings (losses) on amounts due to affiliates for
    deferred or reinvested incentive income previously allocated to the
    founding partners and the Ziffs, and earnings (losses) on amounts due to
    employees under deferred cash compensation arrangements.



                                     Exhibit 8
                       OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
        Reconciliation of Och-Ziff Funds Economic Income to Och-Ziff Funds
                         Distributable Earnings (Unaudited)
                 (dollars in thousands, except per share amounts)




                                      Three Months Ended   Nine Months Ended
                                       September 30, 2008  September 30, 2008
                                      -------------------  ------------------
    Och-Ziff Funds Economic Income                $93,763            $274,710
    Adjusted income taxes (1)                     (39,490)           (115,572)
                                                  -------            --------
    Distributable Earnings                        $54,273            $159,138
                                                  =======            ========



    Distributable earnings                        $54,273            $159,138
    Weighted-Average Adjusted Class A
     Shares (1)                               400,371,024         400,003,864
                                              -----------         -----------
    Distributable Earnings Per Share                $0.14               $0.40
                                                    =====               =====


    (1)  Assumes the conversion of 311,099,524 Group A Units held by the
     Company's partners and the Ziffs for the three and nine months ended
     September 30, 2008, and the vesting of 15,132,928 and 14,765,768
     weighted-average RSUs for the three and nine months ended September 30,
     2008, respectively, into Class A Shares on a one-to-one basis.



                                    Exhibit 9
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                         Financial Supplement (Unaudited)
                              (dollars in millions)

                                       Three Months          Nine Months
                                    Ended September 30,  Ended September 30,
                                    -------------------  -------------------
                                            2008                 2008
                                            ----                 ----

    Total Assets Under Management (1)
      Beginning of Period Balance               $33,618              $33,387
      Net Flows                                      73                  305
      Appreciation (Depreciation)(2)             (2,452)              (2,453)
                                                 ------               ------
      End of Period Balance                     $31,239              $31,239
                                                =======              =======

    Total Assets Under Management by Fund
      OZ Master Fund                                                 $18,832
      OZ Europe Master Fund                                            5,784
      OZ Asia Master Fund                                              3,247
      OZ Global Special Investments Master Fund                        2,023

    Och-Ziff Funds - Net
     Returns (3)
      OZ Master Fund                               -6.5%                -5.8%
      OZ Europe Master Fund                        -8.8%                -8.4%
      OZ Asia Master Fund                         -12.4%               -16.9%
      OZ Global Special Investments Master Fund    -3.1%                -3.0%



                                                  Year Ended December 31,
                                                  -----------------------
                                                   2007     2006     2005
                                                   ----     ----     ----

    Total Assets Under Management (1)
      Beginning of Period Balance               $22,621  $15,627  $11,251
      Net Flows                                   7,591    4,135    3,117
      Appreciation (Depreciation) (2)             3,175    2,859    1,259
                                                  -----    -----    -----
      End of Period Balance                     $33,387  $22,621  $15,627
                                                =======  =======  =======

    Total Assets Under Management by Fund
      OZ Master Fund                            $19,771  $15,449  $12,001
      OZ Europe Master Fund                       6,416    3,481    1,887
      OZ Asia Master Fund                         3,852    2,332      605
      OZ Global Special Investments Master Fund   2,082      195       43

    Och-Ziff Funds - Net Returns (3)
      OZ Master Fund                               11.5%    14.8%     8.8%
      OZ Europe Master Fund                        14.8%    22.3%    15.7%
      OZ Asia Master Fund                          12.2%    14.0%    14.2%
      OZ Global Special Investments Master Fund    17.2%    13.9%     0.2%

    (1)  Includes deferred incentive income receivable from the offshore
     funds and amounts invested by the Company, its partners and certain
     other affiliated parties for which the Company charged no management
     fees and received no incentive income for the periods presented.
     Amounts presented in this table are not the amounts used to calculate
     Management Fees and Incentive Income for the respective periods.

    (2) Appreciation reflects the aggregate net capital appreciation for
     the entire period and is presented on a total return basis, net of
     all fees and expenses (except incentive income on certain unrealized
     private investments that could reduce returns on these investments at
     the time of realization), and includes the reinvestment of all
     dividends and income. Management Fees and Incentive Income vary by
     product. Past performance is no guarantee of future results.

    (3) Reflects a composite of the monthly return and year-to-date
     return for the feeder funds comprising each of the Company's most
     significant master funds and is presented on a total return basis,
     net of all fees and expenses of the relevant fund (except incentive
     income on certain unrealized special investments that could reduce
     returns at the time of realization), and includes the reinvestment of
     all dividends and income. Performance includes realized and
     unrealized gains and losses attributable to certain private and
     initial public offering investments that are not allocated to all
     investors in the funds. Investors that do not participate in such
     investments or that pay different fees may experience materially
     different returns. Past performance is no guarantee of future
     results.



                                 Exhibit 10
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                 Returns of OZ Master Fund During Negative
                       Return Months of S&P 500 Index
                                (Unaudited)



              Number of      Total Return of      Total Return of
               Months            S&P 500           OZ Master Fund
             of Negative     During Negative      During Negative
    Year Returns of S&P 500   Return Months   Return Months of S&P 500
    ---- ------------------   -------------   ------------------------
    1994          3               -8.5%                1.7%
    1995          1               -0.4%                0.1%
    1996          2               -6.4%                3.9%
    1997          3              -13.1%                4.0%
    1998          3              -17.2%               -2.7%
    1999          5              -11.8%                6.2%
    2000          8              -27.1%               12.0%
    2001          6              -33.2%                0.4%
    2002          8              -41.9%               -5.0%
    2003          3               -5.2%                4.6%
    2004          3               -6.4%                1.1%
    2005          5               -8.7%                0.7%
    2006          1               -2.9%                0.5%
    2007          5              -11.6%                1.4%
    1Q08          3               -9.7%               -0.8%
    2Q08          1               -8.4%               -0.5%
    3Q08          2               -9.8%               -6.0%



                     Distribution of Net Monthly
                     Returns since April 1, 1994
                     ---------------------------

                Net Monthly Return          Number of
                of OZ Master Fund           Months
                -----------------           ------
                  less than -3%                4
                  -2% to -3%                   0
                  -1% to -2%                   3
                  0% to -1%                    17
                  0% to 1%                     59
                  1% to 2%                     44
                  2% to 3%                     29
                  3% to 4%                     10
                  4% to 5%                     5
                  greater than 5%              3

    Total net return for the OZ Master Fund, Ltd. (the "Fund") represents a
    composite of the average return of the feeder funds that comprise the
    Fund. Returns are presented on a total return basis, net of all fees and
    expenses (except incentive income on certain unrealized private
    investments that could reduce returns on these investments at the time of
    realization), and include the reinvestment of all dividends and income.
    Performance includes realized and unrealized gains and losses attributable
    to certain private and initial public offering investments that are not
    allocated to all investors in the Fund. Investors that do not participate
    in such investments or that pay different fees may experience materially
    different returns. Past performance is no guarantee of future results.

    For the period from 1994 through 1997, performance represents the
    performance of Och-Ziff Capital Management, L.P., a Delaware limited
    partnership that was managed by Daniel Och following an investment
    strategy that is substantially similar to that of the Fund. In addition,
    during this period, performance was calculated by deducting Management
    Fees on a quarterly basis and Incentive Income on a monthly basis.
    Beginning January 1998, performance has been calculated by deducting both
    Management Fees and Incentive Income on a monthly basis from the composite
    returns of the Fund.

    Readers should not assume that there is any material overlap between
    those securities in the portfolio of the Fund and those that comprise
    the S&P 500 Index. It is not possible to invest directly in the
    S&P 500 Index. Returns of the S&P 500 Index have not been reduced
    by fees and expenses associated with investing in securities and include
    the reinvestment of dividends. The S&P 500 Index is an equity index
    owned and maintained by Standard & Poor's, a division of McGraw-Hill,
    whose value is calculated as the free float-weighted average of the
    share prices of 500 large-cap corporations listed on the NYSE and
    Nasdaq. The comparison of S&P 500 Index performance relative to the
    Fund's performance during months in which the S&P 500 Index declined
    is for the limited purpose of illustrating how the Fund has
    performed during periods of declines in the broad equity market.
    It should not be considered an indication of how the Fund will
    perform relative to the S&P 500 Index in the future.

    Please note that the Fund's investment objective is not to beat the
    S&P 500 Index. Furthermore, the Fund's performance has frequently
    trailed that of the S&P 500 Index in periods of positive
    performance.


                                 Exhibit 11
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                      Fund Performance (Unaudited) (1)


                                                    2007
                                                    ----
                                  January  February  March  April   May
                                  -------  --------  -----  -----   ---

    Och-Ziff Funds - Net Returns
    OZ Master Fund                   1.97%     1.31%  1.38%  1.81% 2.40%
    OZ Europe Master Fund            1.57%     1.35%  1.84%  2.70% 2.85%
    OZ Asia Master Fund              2.69%     0.48%  0.37%  2.96% 2.67%
    OZ Global Special Investments
     Master Fund                     1.89%     1.42%  1.06%  2.93% 1.44%
    S&P 500 Index - Total Return (2) 1.51%    -1.96%  1.12%  4.43% 3.49%



                                                    2007
                                                    ----
                                   June   July  August  September  October
                                   ----   ----  ------  ---------  -------

    Och-Ziff Funds - Net Returns
    OZ Master Fund                 0.19% -0.49%  -0.96%      0.95%    2.07%
    OZ Europe Master Fund          0.83%  0.22%  -0.64%      1.25%    1.25%
    OZ Asia Master Fund            0.09% -1.00%  -2.08%      0.43%    2.84%
    OZ Global Special Investments
     Master Fund                   0.83% -0.40%  -0.54%      1.72%    3.11%
    S&P 500 Index - Total
     Return (2)                   -1.66% -3.10%   1.50%      3.74%    1.59%



                                                          2007
                                                          ----
                                              November  December  FY2007
                                              --------  --------  ------

    Och-Ziff Funds - Net Returns
    OZ Master Fund                               -0.32%     0.67%  11.48%
    OZ Europe Master Fund                        -0.58%     1.32%  14.81%
    OZ Asia Master Fund                           0.12%     2.12%  12.17%
    OZ Global Special Investments Master Fund     1.97%     0.61%  17.19%
    S&P 500 Index - Total Return (2)             -4.18%    -0.69%   5.49%



                                                        2008
                                                        ----
                                         January  February  March   1Q08
                                         -------  --------  -----   ----

    Och-Ziff Funds - Net Returns
    OZ Master Fund                         -1.12%     1.02% -0.73% -0.84%
    OZ Europe Master Fund                  -2.00%     0.81% -0.54% -1.74%
    OZ Asia Master Fund                    -1.95%     1.78% -2.41% -2.61%
    OZ Global Special Investments Master
     Fund                                  -0.72%     0.57% -0.45% -0.60%
    S&P 500 Index - Total Return (2)       -6.00%    -3.25% -0.43% -9.45%



                                                           2008
                                                           ----
                                              April   May    June   2Q08
                                              -----   ---    ----   ----

    Och-Ziff Funds - Net Returns
    OZ Master Fund                             0.96%  1.11% -0.45%  1.62%
    OZ Europe Master Fund                      0.31%  1.69%  0.20%  2.21%
    OZ Asia Master Fund                       -0.18% -0.16% -2.19% -2.52%
    OZ Global Special Investments Master Fund  0.64%  0.43% -0.34%  0.73%
    S&P 500 Index - Total Return (2)           4.87%  1.30% -8.43% -2.73%



                                                     2008
                                                     ----
                                   July  August  September   3Q08     YTD
                                   ----  ------  ---------   ----     ---

    Och-Ziff Funds - Net Returns
    OZ Master Fund                -0.59%  -0.58%     -5.41%  -6.51%  -5.80%
    OZ Europe Master Fund         -1.35%  -0.38%     -7.22%  -8.82%  -8.43%
    OZ Asia Master Fund           -1.17%  -4.18%     -7.53% -12.43% -16.87%
    OZ Global Special Investments
     Master Fund                   0.06%  -0.45%     -2.73%  -3.11%  -2.99%
    S&P 500 Index - Total
     Return (2)                   -0.84%   1.45%     -8.91%  -8.37% -19.29%

    (1) Fund performance reflects a composite of the return for the
    feeder funds comprising each of the Company's most significant master
    funds and is presented on a total return basis, net of all fees and
    expenses of the relevant fund (except incentive income on certain
    unrealized private investments that could reduce returns on these
    investments at the time of realization), and includes the reinvestment
    of all dividends and income. Performance includes realized and
    unrealized gains and losses attributable to certain private and
    initial public offering investments that are not allocated to all
    investors in the funds. Investors that do not participate in such
    investments or that pay different fees may experience materially
    different returns. Past performance is no guarantee of future
    results.

    (2) Readers should not assume that there is any material overlap
    between those securities in the portfolios of the funds and those
    that comprise the S&P 500 Index. It is not possible to invest directly
    in the S&P 500 Index. Returns of the S&P 500 Index have not been
    reduced by fees and expenses associated with investing in securities
    and include the reinvestment of dividends. The S&P 500 Index is an
    equity index owned and maintained by Standard & Poor's, a division
    of McGraw-Hill, whose value is calculated as the free float-weighted
    average of the share prices of 500 large-cap corporations listed on
    the NYSE and Nasdaq. The comparison of S&P 500 performance relative
    to the funds' performance should not be considered an indication of
    how the fund will perform relative to the S&P 500 in the future.
    Please note that the funds' investment objective is not to beat the
    S&P 500  Index. Furthermore, the funds' performance has frequently
    trailed that of the S&P 500 Index in periods of positive performance.

SOURCE Och-Ziff Capital Management Group LLC

CONTACT: Investor Relations Contact, Tina Madon, Managing Director, Head of Investor Relations, Och-Ziff Capital Management Group LLC, +1-212-719-7381, tina.madon@ozcap.com; or Media Relations Contact, Steve Bruce or Chuck Dohrenwend, The Abernathy MacGregor Group, for Och-Ziff Capital Management Group LLC, +1-212-371-5999