Och-Ziff Capital Management Group LLC Reports 2009 Fourth Quarter and Full Year Results

02/11/2010
2009 Fourth Quarter Dividend of $0.58 per Class A Share

NEW YORK, Feb 11, 2010 /PRNewswire via COMTEX/ -- Och-Ziff Capital Management Group LLC (NYSE: OZM) (the "Company" or "Och-Ziff") today reported a GAAP Net Loss(1) for the fourth quarter and full year ended December 31, 2009 of $47.2 million, or $0.58 per basic and diluted Class A Share, and $297.4 million, or $3.79 per basic and diluted Class A Share, respectively. The Company also declared a $0.58 per share fourth quarter cash dividend on its Class A Shares.

Summary Highlights

  • Distributable Earnings for the 2009 fourth quarter and full year of $281.4 million, or $0.69 per Adjusted Class A Share, and $355.3 million, or $0.88 per Adjusted Class A Share, respectively
  • Assets under management of $23.5 billion as of January 1, 2010, a 6% increase from $22.1 billion as of January 1, 2009, reflecting performance-related appreciation of $4.2 billion partially offset by $2.8 billion in net outflows
  • Estimated assets under management of $24.0 billion as of February 1, 2010, reflecting capital inflows of approximately $250 million and performance-related appreciation of approximately $250 million
  • Full-year net returns through December 31, 2009 for the OZ Master Fund of 23.1%, the OZ Europe Master Fund of 16.4%, the OZ Asia Master Fund of 34.0% and the OZ Global Special Investments Master Fund of 8.4%

 

"Last year was a very strong year for us, both on an absolute and a relative basis," said Daniel Och, Chairman and Chief Executive Officer of Och-Ziff. "We surpassed the high-water marks on our assets under management, with our OZ Master Fund having one of its best years ever and our Asia Master Fund achieving record performance. We maintained a disciplined focus on our long-standing investment and risk management processes which, when combined with the flexibility of our multi-strategy approach and the stability of our model, was central to the strength of our returns last year. We believe these attributes, which have continued to serve us well in 2010, position us to generate strong performance for our fund investors over the long term.

"We believe that the capital inflow cycle for the hedge fund industry has begun, and that our assets under management will grow over time. Institutional investors remain extremely focused on manager selection, and we remain confident that our track record, infrastructure and demonstrated alignment of interests with our fund investors will continue to differentiate us in the marketplace."

(1) References to the Company's GAAP Net Loss throughout this press release refer to the Company's GAAP Net Loss Allocated to Class A Shareholders.

GAAP NET LOSS ALLOCATED TO CLASS A SHAREHOLDERS

For the 2009 fourth quarter, Och-Ziff reported a GAAP Net Loss of $47.2 million, or $0.58 per basic and diluted Class A Share, compared to a GAAP Net Loss of $112.2 million, or $1.49 per basic and diluted Class A Share, for the 2008 fourth quarter. For the 2009 full year, Och-Ziff reported a GAAP Net Loss of $297.4 million, or $3.79 per basic and diluted Class A Share, compared to a GAAP Net Loss of $510.6 million, or $6.86 per basic and diluted Class A Share, for the 2008 full year.

The year-over-year reduction in the GAAP Net Loss in both periods was principally due to higher Incentive Income resulting from the performance-related appreciation in the Company's funds, as well as the adoption of SFAS No. 160. These factors were partially offset by higher compensation expenses primarily related to the increase in discretionary cash bonuses, and lower Management Fees due to decreased average assets under management.

The GAAP Net Loss in the 2009 fourth quarter and full year primarily resulted from non-cash expenses of $442.6 million and $1.7 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 (the "Och-Ziff Operating Group") that were issued to the Company's pre-IPO owners in exchange for their pre-IPO interests in those subsidiaries. Substantially all of the Group A Units vest annually over five years until November 2012. Accordingly, the amortization of these expenses is expected to result in a GAAP Net Loss each quarter through the end of 2012. Once vested, the Group A Units may be exchanged on a one-to-one basis for Class A Shares.

Additionally, the GAAP Net Loss in the 2009 fourth quarter and full year was attributable to non-cash expenses of $36.4 million and $122.5 million, respectively, for the amortization of equity-based compensation. This expense relates primarily to Class A Restricted Share Units ("RSUs") awarded to all of the Company's employees in connection with the IPO, which vest annually over four years from the closing of the IPO, and subsequent compensation-related grants. Each RSU represents the right to receive one Class A Share upon vesting.

Throughout this press release, the Company presents financial measures that are not prepared in accordance with GAAP. For a discussion of all of the Company's non-GAAP financial measures, please see the discussion "Non-GAAP and Segment Financial Measures" at the end of this press release.

DISTRIBUTABLE EARNINGS (NON-GAAP)

The Company's Distributable Earnings for the 2009 fourth quarter were $281.4 million, or $0.69 per Adjusted Class A Share, compared with $28.9 million, or $0.07 per Adjusted Class A Share, in the 2008 fourth quarter. Distributable Earnings for the 2009 full year were $355.3 million, or $0.88 per Adjusted Class A Share, compared with $185.2 million, or $0.46 per Adjusted Class A Share, for the 2008 full year. The year-over-year increase in Distributable Earnings for both periods was primarily due to higher Incentive Income in 2009 as the Company had positive performance and surpassed the high-water marks on its assets under management during the second half of 2009, as well as lower non-compensation costs. The increase was partially offset by lower Management Fees due to lower average assets under management, as well as higher compensation expenses, due principally to increased discretionary cash bonuses.

Distributable Earnings is a non-GAAP financial measure. For reconciliations of Distributable Earnings to the respective GAAP Net Loss for the periods described above, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

ASSETS UNDER MANAGEMENT

Och-Ziff's assets under management were $23.1 billion as of December 31, 2009, 4% higher than the $22.3 billion in assets under management as of September 30, 2009 but 14% lower than the $27.0 billion in assets under management as of December 31, 2008. The $3.9 billion year-over-year decrease was driven by net outflows of $8.1 billion, partially offset by performance-related appreciation of $4.2 billion during the year.

During the 2009 fourth quarter, the $802 million increase in assets under management was driven by performance-related appreciation of approximately $497 million and net inflows of approximately $305 million. Assets under management as of January 1, 2010 were $23.5 billion, which reflected January 1, 2010 capital inflows (net of redemption requests received for December 31, 2009) of approximately $400 million. The Company believes that the capital inflow cycle for the hedge fund industry has begun and that Och-Ziff will continue to generate fund investor interest.

Estimated assets under management as of February 1, 2010 were $24.0 billion, which reflected February 1, 2010 capital inflows (net of redemption requests received for January 31, 2010) of approximately $250 million and performance-related appreciation of approximately $250 million.

    Assets under management by fund:

                                                             % Change (1)
                                                             ------------
                          December  September  December Dec. 2009   Dec. 2009
                             31,        30,       31,       vs.        vs.
    (dollars in billions)    2009      2009      2008    Sep. 2009   Dec. 2008
                          --------- ---------- -------- ----------  ----------

    OZ Master Fund           15.6       14.8     16.4          5%         -5%
    OZ Europe Master Fund     3.0        3.0      5.1          0%        -42%
    OZ Asia Master Fund       1.2        1.3      2.4         -6%        -49%
    OZ Global Special
     Investments Master Fund  2.0        2.0      1.9          1%          5%
    Other (1) (2)             1.3        1.2      1.2         NM          NM

    (1) Rounding differences may occur.
    (2) Includes real estate funds, managed accounts and other funds not
        significant to the Company's assets under management.

Investment Performance

In the 2009 fourth quarter, performance-related appreciation was due primarily to attractive investment opportunities in merger arbitrage and long/short equities across all geographies, distressed credit in the U.S. and Europe, and structured credit, particularly in residential mortgage-backed securities.

    Performance by fund(1):

                                                2009
                           --------------------------------------------
                           October  November  December   4Q   Full Year
                           -------  --------  --------   --   ---------

    OZ Master Fund            0.68%     0.34%     1.14% 2.17%     23.11%
    OZ Europe Master Fund     0.09%     0.31%     0.43% 0.83%     16.43%
    OZ Asia Master Fund       1.16%     2.98%     1.94% 6.20%     33.96%
    OZ Global Special
     Investments
       Master Fund            0.02%     0.19%     1.03% 1.24%      8.42%

    (1) Please see important disclosures on Exhibit 10 of the financial
        supplement accompanying this press release.

ECONOMIC INCOME 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 segment. This segment provides management and advisory services to the Company's hedge funds and separately managed accounts.

The measures discussed below are presented on an Economic Income basis. For reconciliations of these segment measures to the respective GAAP measures, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

Total Revenues - Economic Income Basis

Total Revenues for the 2009 fourth quarter were $440.6 million, a 214% increase from Total Revenues for the 2008 fourth quarter of $140.4 million. Management Fees were $94.3 million, 29% lower than Management Fees in the prior year period of $133.2 million. Incentive Income was $345.6 million, compared with $6.7 million for the 2008 fourth quarter.

Total Revenues for the 2009 full year were $707.9 million, a 21% increase from Total Revenues for the 2008 full year of $587.0 million. Management Fees were $357.5 million, 37% lower than Management Fees in the prior year period of $571.3 million. Incentive Income was $348.9 million, compared with $12.2 million for the 2008 full year.

Total Revenues were higher year-over-year for both periods as a result of increased Incentive Income due to positive fund performance in 2009 as the Company surpassed the high-water marks on its assets under management during the second half of 2009. This increase was partially offset by lower Management Fees due to the decline in average assets under management, resulting from investor redemptions in the fourth quarter of 2008 and first half of 2009.

Compensation and Benefits - Economic Income Basis

Compensation and Benefits expenses for the 2009 fourth quarter were $107.4 million, 67% higher than $64.3 million for the 2008 fourth quarter. Compensation and Benefits expenses for the 2009 full year were $193.9 million, 37% higher than $141.3 million for the 2008 full year.

Compensation and Benefits expenses increased year-over-year for both periods due primarily to increased discretionary cash bonuses related to the increase in Incentive Income. Partially offsetting this increase was the year-over-year decline in salaries and benefits expense due to lower headcount.

Non-compensation Expenses - Economic Income Basis

Non-compensation Expenses for the 2009 fourth quarter were $21.8 million, a 38% decrease from Non-compensation Expenses for the 2008 fourth quarter of $35.0 million.

Non-compensation Expenses for the 2009 full year were $90.0 million, a 31% decrease from $130.0 million for the 2008 full year.

The decrease in both periods was driven principally by lower professional services fees, and, in the full-year period, by a decline in business development costs. Also contributing to the decrease in both periods was lower interest expense on the Company's variable rate borrowings due to the decline in LIBOR. The overall decline in Non-compensation Expenses in both periods was partially offset by higher occupancy expense related to the expansion of leased office space, and, in the full-year period, by higher insurance costs.

Economic Income

Economic Income for the 2009 fourth quarter was $311.4 million, compared with $41.1 million for the 2008 fourth quarter. Economic Income for the 2009 full year was $424.0 million, a 34% increase from $315.8 million for the 2008 full year.

ECONOMIC INCOME OF THE COMPANY'S OTHER OPERATIONS (NON-GAAP)

The Company's Other Operations are 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. The businesses within Other Operations are currently in early growth stages, and are not included in the results of the Och-Ziff Funds segment.

Economic Income for the Company's Other Operations for the 2009 fourth quarter was a net loss of $7.5 million, compared with a net loss of $6.4 million for the 2008 fourth quarter. Economic Income for the 2009 full year was a net loss of $20.3 million, compared with a net loss of $11.4 million for the 2008 full year. The increase in the Economic Income net loss for both periods was principally the result of compensation costs associated with the Company's Asia real estate business, which began operations in September 2008, and the Company's domestic real estate business. The overall increase in net loss in both periods was partially offset by a year-over-year decline in the Company's share of the start-up costs associated with its African joint venture.

Economic Income for Other Operations as discussed above is a non-GAAP measure. For reconciliations of Economic Income of the Company's Other Operations to the respective GAAP Net Loss for the periods described above, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

ECONOMIC INCOME OF THE TOTAL COMPANY (NON-GAAP)

Economic Income for the Total Company for the 2009 fourth quarter was $303.8 million, compared with $34.7 million for the 2008 fourth quarter. Economic Income for the Total Company for the 2009 full year was $403.7 million, a 33% increase from $304.4 million for the 2008 full year.

Economic Income for the Total Company as discussed above is a non-GAAP measure. For reconciliations of Economic Income for the Total Company to the respective GAAP Net Loss for the periods described above, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

CAPITAL

As of December 31, 2009, the number of Class A Shares outstanding was 81,823,915. For purposes of calculating Distributable Earnings per Share, the Company assumes that all Partner Units (as defined below) and RSUs outstanding as of December 31, 2009 have been converted on a one-to-one basis into Class A Shares. For the fourth quarter and full year ended December 31, 2009, the total weighted-average Adjusted Class A Shares outstanding were 406,611,760 and 404,086,835, respectively.

DIVIDEND

The Board of Directors of Och-Ziff declared a 2009 fourth quarter cash dividend of $0.58 per Class A Share, to be paid on February 18, 2010 to holders of record at the close of business on December 31, 2009.

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, $0.14 of the 2009 fourth quarter 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, February 11, 2010, at 8:30 a.m. Eastern Time to discuss the Company's 2009 fourth quarter and full year results. The call will be open to the public and can be accessed by dialing 888-679-8018 (callers inside the U.S.) or 617-213-4845 (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 49523803. 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 57791938, 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.

Non-GAAP and Segment Financial Measures

In addition to analyzing the Company's results on a GAAP basis, Och-Ziff's management also reviews the Company's results on an "Economic Income basis." Economic Income excludes the adjustments described below that are required for presentation of the Company's results on a GAAP basis, but that management does not consider when evaluating the operating performance of the Company in any given period. Management therefore uses Economic Income as the basis on which it evaluates the performance of the Company's business and makes resource allocation and other operating decisions. In addition, management believes that Economic Income provides a more comparable view of the Company's operating performance from period to period. Management considers it important that investors review the same operating information that it uses.

Economic Income is a measure of pre-tax operating performance that excludes the following from the Company's GAAP Net Loss:

  • income allocations to the Company's partners and Ziff Brothers Investments (the "Ziffs") on their direct interests in the Och-Ziff Operating Group. Management reviews operating performance at the Och-Ziff Operating Group level, where substantially all of the Company's operations are performed, prior to making any income allocations;
  • reorganization expenses related to amortization of the Och-Ziff Operating Group A Units, equity-based compensation expenses and depreciation and amortization expenses, as management does not consider these non-cash expenses when evaluating operating performance;
  • changes in the tax receivable agreement liability and net gains on early retirement of debt, as management does not consider these items to be reflective of the Company's operating performance;
  • net earnings (losses) on the deferred balances and net gains (losses) on investments in Och-Ziff funds, as these amounts primarily relate to earnings (losses) on amounts due to the Company's partners and the Ziffs for pre-IPO deferred or reinvested incentive income, and gains (losses) on amounts due to employees under deferred cash compensation arrangements, and as such, are not reflective of the Company's operating performance; and
  • amounts related to the consolidated Och-Ziff funds, including the related eliminations of management fees and incentive income, as management reviews the total amount of management fees and incentive income earned from the Och-Ziff funds in relation to total assets under management and fund performance.

 

In addition, deferred cash compensation expense is recognized 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.

Management evaluates Economic Income for the Och-Ziff Funds segment, the Company's one reportable segment under GAAP, and for the Company's Other Operations. Economic Income for Other Operations is a non-GAAP measure that is calculated on the same basis as the methodology that is used to calculate Economic Income for the Och-Ziff Funds segment. Management also evaluates Economic Income for the Total Company, which is a non-GAAP measure that equals the sum of Economic Income for the Och-Ziff Funds segment and Other Operations. In addition, as a result of the adjustments described above, Management Fees, Compensation and Benefits, Non-compensation Expenses and Net Loss (Income) Allocated to Partners' and Others' Interests in Income of Consolidated Subsidiaries are presented on an Economic Income basis for Other Operations and the Total Company and are also non-GAAP measures. No adjustments to the GAAP basis have been made for Incentive Income, Other Revenues and Net Losses on Joint Ventures. For reconciliations of these non-GAAP measures to the respective GAAP measures, please see Exhibits 3 through 6 of the financial tables that accompany this press release.

Distributable Earnings is a non-GAAP measure of after-tax operating performance and equals Economic Income for the Total Company (as defined above) less Adjusted Income Taxes. Adjusted Income Taxes are estimated assuming the conversion of all outstanding Partner Units into Class A Shares, on a one-to-one basis. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners is treated as if it were allocated to Och-Ziff Capital Management Group LLC. Partner Units represent interests in the Och-Ziff Operating Group held by the partners and the Ziffs, including the Group A Units and other non-equity interests. Distributable Earnings per Share is equal to Distributable Earnings divided by the weighted-average number of Adjusted Class A Shares. Adjusted Class A Shares are determined assuming all Partner Units and RSUs were converted on a one-to-one basis into Class A Shares. 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 the Ziffs with respect to their Partner Units.

The Company's non-GAAP financial measures should not be considered as alternatives to the Company's GAAP Net Loss or cash flow from operations, or as indicative of liquidity or the cash available to fund operations.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the tables attached to this press release.

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, 2008. 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, 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 February 1, 2010, Och-Ziff had approximately $24.0 billion in assets under management with approximately 600 investor relationships. For more information, please visit www.ozcap.com.

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


                               Three Months Ended           Year Ended
                                  December 31,              December 31,
                               ------------------           -----------
                                2009        2008         2009         2008
                                ----        ----         ----         ----

    Revenues
      Management fees          $96,307    $134,495     $364,905     $576,265
      Incentive income         345,579       6,718      348,915       12,201
      Other revenues               831         930        1,739        4,109
      Income of consolidated
       Och-Ziff funds            6,100       4,155       27,729       11,809
                                 -----       -----       ------       ------
      Total Revenues           448,817     146,298      743,288      604,384
                               -------     -------      -------      -------

    Expenses
      Compensation and
       benefits                152,457     106,442      344,432      261,830
      Allocations to
       non-equity partner
       interests                 5,626     (37,463)      18,253      (38,328)
      Reorganization
       expenses                442,582     422,236    1,704,753    1,698,989
      Profit sharing               368      (3,015)       1,322       (4,751)
      Interest expense           1,974       9,157       12,797       33,948
      General, administrative
       and other               (11,259)     18,451       72,810      102,222
      Expenses of consolidated
       Och-Ziff funds            1,293       1,594        4,069        3,994
                                 -----       -----        -----        -----
      Total Expenses           593,041     517,402    2,158,436    2,057,904
                               -------     -------    ---------    ---------

    Other Income (Loss)
      Net earnings (losses)
       on deferred balances     29,868    (122,925)      54,138     (141,900)
      Net gains (losses)
       on investments in
       Och-Ziff funds and
       joint ventures              753      (5,417)       1,789      (11,437)
      Net gains on early
       retirement of debt       19,784           -       21,797            -
      Net gains (losses)
       of consolidated
       Och-Ziff funds            4,095     (18,421)       3,950      (17,634)
                                 -----     -------        -----      -------
      Total Other Income (Loss) 54,500    (146,763)      81,674     (170,971)
                                ------    --------       ------     --------

    Loss before Income Taxes   (89,724)   (517,867)  (1,333,474)  (1,624,491)
    Income taxes                55,314      17,370       37,703       40,066
                                ------      ------       ------       ------
    Consolidated Net Loss    $(145,038)  $(535,237) $(1,371,177) $(1,664,557)
                             =========   =========  ===========  ===========

    Net Loss Allocated to
     Partners' and Others'
     Interests in Income of
     Consolidated
     Subsidiaries             $(97,803)  $(423,004) $(1,073,748) $(1,153,961)
                              ========   =========  ===========  ===========

    Net Loss Allocated to
     Class A Shareholders     $(47,235)  $(112,233)   $(297,429)   $(510,596)
                              ========   =========    =========    =========

    Net Loss per Class A Share
      Basic and Diluted         $(0.58)     $(1.49)      $(3.79)      $(6.86)
                                ======      ======       ======       ======

    Weighted-Average Class A Shares Outstanding
      Basic and Diluted (1) 81,321,978  75,171,980   78,387,368   74,398,336
                            ==========  ==========   ==========   ==========

    (1)  Includes fully-vested RSUs that have not been exchanged into Class A
         Shares as of the end of the period.



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




                                     Three Months Ended December 31, 2009
                                     ------------------------------------
                                     Och-Ziff       Other          Total
                                      Funds      Operations       Company
    Economic Income Basis          Segment (1) (Non-GAAP) (2)  (Non-GAAP) (2)
    ---------------------          ----------- --------------  --------------

    Management fees                    $94,308           $992         $95,300
    Incentive income                   345,579              -         345,579
    Other revenues                         734             97             831
    Total Economic Income revenues     440,621          1,089         441,710

    Compensation and benefits          107,409          7,675         115,084
    Non-compensation expenses           21,838          1,422          23,260
    Total Economic Income expenses     129,247          9,097         138,344

    Net losses on joint ventures (3)         -           (218)           (218)
    Net loss allocated to partners'
     and others' interests in income
     of consolidated subsidiaries (4)        -            696             696
    Economic Income                    311,374         (7,530)        303,844


                                     Three Months Ended December 31, 2008
                                     ------------------------------------
                                     Och-Ziff       Other          Total
                                      Funds      Operations       Company
    Economic Income Basis          Segment (1) (Non-GAAP) (2)  (Non-GAAP) (2)
    ---------------------          ----------- --------------  --------------

    Management fees                   $133,240         $1,317        $134,557
    Incentive income                     6,718              -           6,718
    Other revenues                         405            525             930
    Total Economic Income revenues     140,363          1,842         142,205

    Compensation and benefits           64,266          6,396          70,662
    Non-compensation expenses           35,003            604          35,607
    Total Economic Income expenses      99,269          7,000         106,269

    Net losses on joint ventures (3)         -         (1,500)         (1,500)
    Net loss allocated to partners'
     and others' interests in income
     of consolidated subsidiaries (4)        -            273             273
    Economic Income                     41,094         (6,385)         34,709


                                         Year Ended December 31, 2009
                                         ----------------------------
                                     Och-Ziff       Other          Total
                                      Funds      Operations       Company
    Economic Income Basis          Segment (1) (Non-GAAP) (2)  (Non-GAAP) (2)
    ---------------------          ----------- --------------  --------------

    Management fees                   $357,517         $4,945        $362,462
    Incentive income                   348,915              -         348,915
    Other revenues                       1,447            292           1,739
    Total Economic Income revenues     707,879          5,237         713,116

    Compensation and benefits          193,911         20,670         214,581
    Non-compensation expenses           89,987          4,139          94,126
    Total Economic Income expenses     283,898         24,809         308,707

    Net losses on joint ventures (3)         -         (1,454)         (1,454)
    Net loss (income) allocated to
     partners' and others' interests
     in income of consolidated
     subsidiaries (4)                        -            724             724
    Economic Income                    423,981        (20,302)        403,679


                                         Year Ended December 31, 2008
                                         ----------------------------
                                     Och-Ziff       Other          Total
                                      Funds      Operations       Company
    Economic Income Basis          Segment (1) (Non-GAAP) (2)  (Non-GAAP) (2)
    ---------------------          ----------- --------------  --------------

    Management fees                   $571,274         $5,251        $576,525
    Incentive income                    12,201              -          12,201
    Other revenues                       3,554            555           4,109
    Total Economic Income revenues     587,029          5,806         592,835

    Compensation and benefits          141,255          8,070         149,325
    Non-compensation expenses          129,970          1,236         131,206
    Total Economic Income expenses     271,225          9,306         280,531

    Net losses on joint ventures (3)         -         (7,644)         (7,644)
    Net loss (income) allocated to
     partners' and others' interests
     in income of consolidated
     subsidiaries (4)                        -           (251)           (251)
    Economic Income                    315,804        (11,395)        304,409

    (1) The Och-Ziff Funds segment is the Company's only reportable segment.
        Management uses Economic Income to evaluate the financial
        performance of and to make operating decisions for the segment.
        For reconciliations of these segment measures to the nearest U.S. GAAP
        measures, see Exhibits 3 through 6.
    (2) Each of the measures below is a non-GAAP financial measure, with the
        exception of incentive income, other revenues and net losses on joint
        ventures, for which no adjustments to the U.S. GAAP basis have been
        made. Management calculates non-GAAP financial measures on an
        Economic Income basis for the Company's Other Operations and for the
        Company as a whole to assess the financial performance of the
        Company's entire business. For reconciliations of these non-GAAP
        measures to the nearest U.S. GAAP measures, see Exhibits 3 through 6.
    (3) Represents the Company's losses in joint ventures established to
        expand certain of the Company's private investments platforms.
    (4) Represents the residual interests in the domestic real estate
        management business not owned by the Company.



                                    Exhibit 3
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP
                                     Measures
                 (dollars in thousands, except per share amount)

                                       OCH-ZIFF FUNDS SEGMENT
                                       ----------------------
                                    Reconciling Adjustments (1)
                                    ---------------------------
                          Economic     Funds
    Three Months Ended     Income    Consoli-        Other        U.S. GAAP
     December 31, 2009   Basis (2)    dation      Adjustments       Basis
    ------------------   ---------   --------     -----------     ---------

    Management fees         $94,308      $(60)   $1,067   (a)       $95,315
    Incentive income        345,579         -         -             345,579
    Other revenues              734         -         -                 734
    Income of consolidated
     Och-Ziff funds               -         -         -                   -
    Total revenues          440,621       (60)    1,067             441,628

    Compensation
     and benefits           107,409         -    33,430   (b)(c)    140,839
    Allocations to
     non-equity partner
     interests                    -         -     5,626   (d)         5,626
    Reorganization
     expenses                     -         -   442,582   (e)       442,582
    Profit sharing                -         -       368   (f)           368
    Interest expense          1,974         -         -               1,974
    General,
     administrative
     and other               19,864         -   (32,734)  (a)(g)    (12,870)
    Expenses of
     consolidated
     Och-Ziff funds               -        42         -                  42
    Total expenses          129,247        42   449,272             578,561

    Net earnings on
     deferred balances            -         -    29,868   (h)        29,868
    Net gains (losses)
     on investments
     in Och-Ziff
     funds and
     joint ventures               -         -       971   (h)           971
    Net gains on early
     retirement of debt           -         -    19,784              19,784
    Net gains of
     consolidated
     Och-Ziff funds               -       966         -                 966

    Income taxes                  -         -    54,748   (g)        54,748

    Net loss (income)
     allocated to
     partners' and
     others' interests
     in income of
     consolidated
     subsidiaries                 -      (864)  105,879   (i)       105,015

    Net Income (Loss)
     Allocated to
     Class A
     Shareholders           311,374         -  (346,451)            (35,077)



                                          OTHER OPERATIONS
                                          ----------------
                                    Reconciling Adjustments (1)
                                    ---------------------------
                          Economic
                           Income
                           Basis       Funds
    Three Months Ended  (Non-GAAP)   Consoli-        Other        U.S. GAAP
     December 31, 2009      (3)       dation      Adjustments       Basis
    ------------------  -----------  --------     -----------     ---------

    Management fees            $992        $-        $-                $992
    Incentive income              -         -         -                   -
    Other revenues               97         -         -                  97
    Income of
     consolidated
     Och-Ziff funds               -     6,100         -               6,100
    Total revenues            1,089     6,100         -               7,189

    Compensation
     and benefits             7,675         -     3,943   (c)        11,618
    Allocations to
     non-equity partner
     interests                    -         -         -                   -
    Reorganization
     expenses                     -         -         -                   -
    Profit sharing                -         -         -                   -
    Interest expense              -         -         -                   -
    General,
     administrative
     and other                1,422         -       189   (g)         1,611
    Expenses of
     consolidated
     Och-Ziff funds               -     1,251         -               1,251
    Total expenses            9,097     1,251     4,132              14,480

    Net earnings on
     deferred balances            -         -         -                   -
    Net gains (losses)
     on investments
     in Och-Ziff
     funds and
     joint ventures            (218)      (92)       92   (h)          (218)
    Net gains on early
     retirement of
     debt                         -         -         -                   -
    Net gains of
     consolidated
     Och-Ziff funds               -     3,129         -               3,129

    Income taxes                  -         -       566   (g)           566

    Net loss (income)
     allocated to
     partners' and
     others' interests
     in income of
     consolidated
     subsidiaries               696    (7,886)      (22)  (i)        (7,212)

    Net Income (Loss)
     Allocated to
     Class A
     Shareholders            (7,530)        -    (4,628)            (12,158)


                                                          TOTAL COMPANY
                                                          -------------
                                                       Economic
                                                        Income
                                                         Basis      U.S. GAAP
    Three Months Ended December 31, 2009            (Non-GAAP) (3)    Basis
    ------------------------------------            --------------  ---------

    Management fees                                        $95,300    $96,307
    Incentive income                                       345,579    345,579
    Other revenues                                             831        831
    Income of consolidated Och-Ziff funds                        -      6,100
    Total revenues                                         441,710    448,817

    Compensation and benefits                              115,084    152,457
    Allocations to non-equity partner interests                  -      5,626
    Reorganization expenses                                      -    442,582
    Profit sharing                                               -        368
    Interest expense                                         1,974      1,974
    General, administrative and other                       21,286    (11,259)
    Expenses of consolidated Och-Ziff funds                      -      1,293
    Total expenses                                         138,344    593,041

    Net earnings on deferred balances                            -     29,868
    Net gains (losses) on investments in
     Och-Ziff funds and joint ventures                        (218)       753
    Net gains on early retirement of debt                        -     19,784
    Net gains of consolidated Och-Ziff funds                     -      4,095

    Income taxes                                                 -     55,314

    Net loss (income) allocated to partners' and
     others' interests in income of
     consolidated subsidiaries                                 696     97,803

    Net Income (Loss) Allocated to
     Class A Shareholders                                  303,844    (47,235)
    Adjusted Income Taxes - Non-GAAP (4)                   (22,443)
                                                           -------
    Distributable Earnings - Non-GAAP                     $281,401
                                                          ========

    Weighted-Average Class A Shares Outstanding         81,321,978
    Weighted-Average Partner Units                     310,706,479
    Weighted-Average Class A Restricted Share
     Units (RSUs)                                       14,583,303
                                                        ----------
    Weighted-Average Adjusted Class A Shares           406,611,760
                                                       ===========

    Distributable Earnings Per Adjusted
     Class A Share - Non-GAAP                                $0.69
                                                             =====


    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        Total Company U.S. GAAP Net Loss.
    (2) The Och-Ziff Funds segment is the Company's only reportable segment.
        Management uses Economic Income to evaluate the financial
        performance of and to make operating decisions for the segment.
    (3) Each of the measures below is a non-GAAP financial measure, with the
        exception of incentive income, other revenues and net losses on joint
        ventures, for which no adjustments to the U.S. GAAP basis have been
        made. Management calculates non-GAAP financial measures on an Economic
        Income basis for the Company's Other Operations and for the Company as
        a whole to assess the financial performance of the Company's entire
        business.
    (4) Presents an estimate of income tax expense by assuming the conversion
        of all outstanding Partner Units into Class A Shares, on a one-to-one
        basis. Therefore, all income (loss) of the Och-Ziff Operating Group
        allocated to the partners is treated as if it were allocated to
        Och-Ziff Capital Management Group LLC.



                                    Exhibit 4
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP
                                     Measures
                 (dollars in thousands, except per share amount)

                                       OCH-ZIFF FUNDS SEGMENT
                                       ----------------------
                                    Reconciling Adjustments (1)
                                    ---------------------------
                          Economic     Funds
    Three Months Ended     Income    Consoli-        Other        U.S. GAAP
     December 31, 2008   Basis (2)    dation      Adjustments       Basis
    ------------------   ---------   --------     -----------     ---------

    Management fees        $133,240      $(56)       $-            $133,184
    Incentive income          6,718         -         -               6,718
    Other revenues              405         -         -                 405
    Income of consolidated
     Och-Ziff funds               -         1         -                   1
    Total revenues          140,363       (55)        -             140,308

    Compensation
     and benefits            64,266         -    31,170   (b)(c)     95,436
    Allocations to
     non-equity partner
     interests                    -         -   (37,463)  (d)       (37,463)
    Reorganization
     expenses                     -         -   422,236   (e)       422,236
    Profit sharing                -         -    (3,015)  (f)        (3,015)
    Interest expense          9,157         -         -               9,157
    General,
     administrative
     and other               25,846         -    (8,187)  (g)        17,659
    Expenses of
     consolidated
     Och-Ziff funds               -       145         -                 145
    Total expenses           99,269       145   404,741             504,155

    Net losses on
     deferred balances            -         -  (122,925)  (h)      (122,925)
    Net gains (losses)
     on investments
     in Och-Ziff
     funds and
     joint ventures               -         -    (3,917)  (h)        (3,917)
    Net losses of
     consolidated
     Och-Ziff funds               -    (2,207)        -              (2,207)

    Income taxes                  -         -    17,355   (g)        17,355

    Net loss  (income)
     allocated to
     partners' and
     others'
     interests in
     income of
     consolidated
     subsidiaries                 -     2,407   408,247   (i)       410,654

    Net Income (Loss)
     Allocated to
     Class A
     Shareholders            41,094         -  (140,691)            (99,597)


                                          OTHER OPERATIONS
                                          ----------------
                                    Reconciling Adjustments (1)
                                    ---------------------------
                          Economic
                           Income
                           Basis       Funds
    Three Months Ended  (Non-GAAP)   Consoli-        Other        U.S. GAAP
     December 31, 2008      (3)       dation      Adjustments       Basis
    ------------------  -----------  --------     -----------     ---------

    Management fees          $1,317       $(6)       $-              $1,311
    Incentive income              -         -         -                   -
    Other revenues              525         -         -                 525
    Income of consolidated
     Och-Ziff funds               -     4,154         -               4,154
    Total revenues            1,842     4,148         -               5,990

    Compensation
     and benefits             6,396         -     4,610   (c)        11,006
    Allocations to non-
     equity partner
     interests                    -         -         -                   -
    Reorganization
     expenses                     -         -         -                   -
    Profit sharing                -         -         -                   -
    Interest expense              -         -         -                   -
    General,
     administrative
     and other                  604         -       188   (g)           792
    Expenses of
     consolidated
     Och-Ziff funds               -     1,449         -               1,449
    Total expenses            7,000     1,449     4,798              13,247

    Net losses on
     deferred balances            -         -         -                   -
    Net gains
     (losses) on
     investments
     in Och-Ziff
     funds and
     joint ventures          (1,500)      127      (127)  (h)        (1,500)
    Net losses of
     consolidated
     Och-Ziff funds               -   (16,214)        -             (16,214)

    Income taxes                  -         -        15   (g)            15

    Net loss (income)
     allocated to
     partners' and
     others'
     interests in
     income of
     consolidated
     subsidiaries               273    13,388    (1,311)  (i)        12,350

    Net Income (Loss)
     Allocated to
     Class A
     Shareholders            (6,385)        -    (6,251)            (12,636)


                                                      TOTAL COMPANY
                                                      -------------
                                                   Economic
                                                    Income
                                                     Basis      U.S. GAAP
    Three Months Ended December 31, 2008        (Non-GAAP) (3)    Basis
    ------------------------------------        --------------  ---------

    Management fees                                   $134,557   $134,495
    Incentive income                                     6,718      6,718
    Other revenues                                         930        930
    Income of consolidated Och-Ziff funds                    -      4,155
    Total revenues                                     142,205    146,298

    Compensation and benefits                           70,662    106,442
    Allocations to non-equity partner interests              -    (37,463)
    Reorganization expenses                                  -    422,236
    Profit sharing                                           -     (3,015)
    Interest expense                                     9,157      9,157
    General, administrative and other                   26,450     18,451
    Expenses of consolidated Och-Ziff funds                  -      1,594
    Total expenses                                     106,269    517,402

    Net losses on deferred balances                          -   (122,925)
    Net gains (losses) on investments in
     Och-Ziff funds and joint ventures                  (1,500)    (5,417)
    Net losses of consolidated Och-Ziff funds                -    (18,421)

    Income taxes                                             -     17,370

    Net loss (income) allocated to partners' and
     others' interests in income of
     consolidated subsidiaries                             273    423,004

    Net Income (Loss) Allocated to
     Class A Shareholders                               34,709   (112,233)
    Adjusted Income Taxes - Non-GAAP (4)                (5,767)
                                                        ------
    Distributable Earnings - Non-GAAP                  $28,942
                                                       =======

    Weighted-Average Class A Shares Outstanding     75,171,980
    Weighted-Average Partner Units                 309,430,571
    Weighted-Average Class A Restricted Share
     Units (RSUs)                                   15,394,347
                                                    ----------
    Weighted-Average Adjusted Class A Shares       399,996,898
                                                   ===========

    Distributable Earnings Per Adjusted
       Class A Share - Non-GAAP                          $0.07
                                                         =====


    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        Total Company U.S. GAAP Net Loss.
    (2) The Och-Ziff Funds segment is the Company's only reportable segment.
        Management uses Economic Income to evaluate the financial
        performance of and to make operating decisions for the segment.
    (3) Each of the measures below is a non-GAAP financial measure, with the
        exception of incentive income, other revenues and net losses on joint
        ventures, for which no adjustments to the U.S. GAAP basis have been
        made. Management calculates non-GAAP financial measures on an Economic
        Income basis for the Company's Other Operations and for the Company as
        a whole to assess the financial performance of the Company's entire
        business.
    (4) Presents an estimate of income tax expense by assuming the conversion
        of all outstanding Partner Units into Class A Shares, on a one-to-one
        basis. Therefore, all income (loss) of the Och-Ziff Operating Group
        allocated to the partners is treated as if it were allocated to
        Och-Ziff Capital Management Group LLC.



                                    Exhibit 5
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP
                                     Measures
                 (dollars in thousands, except per share amount)

                                       OCH-ZIFF FUNDS SEGMENT
                                       ----------------------
                                     Reconciling Adjustments (1)
                                     ---------------------------
    Year Ended            Economic     Funds
     December 31,          Income    Consoli-         Other        U.S. GAAP
     2009                Basis (2)    dation       Adjustments       Basis
    -------------        ---------   --------     ------------     ---------

    Management fees        $357,517     $(227)    $2,689  (a)       $359,979
    Incentive income        348,915         -          -             348,915
    Other revenues            1,447         -          -               1,447
    Income of consolidated
     Och-Ziff funds               -         -          -                   -
    Total revenues          707,879      (227)     2,689             710,341

    Compensation and
     benefits               193,911         -    108,095   (b)(c)    302,006
    Allocations to
     non-equity partner
     interests                    -         -     18,253   (d)        18,253
    Reorganization
     expenses                     -         -  1,704,753   (e)     1,704,753
    Profit sharing                -         -      1,322   (f)         1,322
    Interest expense         12,797         -          -              12,797
    General,
     administrative
     and other               77,190         -     (9,268)  (a)(g)     67,922
    Expenses of consolidated
     Och-Ziff funds               -        61          -                  61
    Total expenses          283,898        61  1,823,155           2,107,114

    Net earnings on
     deferred balances            -         -     54,138   (h)        54,138
    Net gains (losses) on
     investments in
     Och-Ziff funds
     and joint ventures           -         -      3,243   (h)         3,243
    Net gains on
     early retirement
     of debt                      -         -     21,797   (g)        21,797
    Net gains (losses)
     of consolidated
     Och-Ziff funds               -      (778)         -                (778)

    Income taxes                  -         -     36,846   (g)        36,846

    Net loss (income)
     allocated to
     partners' and
     others' interests
     in income of
     consolidated
     subsidiaries                 -     1,066  1,100,139   (i)     1,101,205

    Net Income (Loss)
     Allocated to
     Class A
     Shareholders           423,981         -   (677,995)           (254,014)


                                          OTHER OPERATIONS
                                          ----------------
                                     Reconciling Adjustments (1)
                                     ---------------------------
                          Economic
                           Income
    Year Ended             Basis       Funds
     December 31,       (Non-GAAP)   Consoli-         Other        U.S. GAAP
     2009                   (3)       dation       Adjustments       Basis
    -------------       -----------  --------      -----------     ---------

    Management fees          $4,945      $(19)        $-              $4,926
    Incentive income              -         -          -                   -
    Other revenues              292         -          -                 292
    Income of consolidated
     Och-Ziff funds               -    27,729          -              27,729
    Total revenues            5,237    27,710          -              32,947

    Compensation and
     benefits                20,670         -     21,756   (c)        42,426
    Allocations to
     non-equity partner
     interests                    -         -          -                   -
    Reorganization
     expenses                     -         -          -                   -
    Profit sharing                -         -          -                   -
    Interest expense              -         -          -                   -
    General,
     administrative
     and other                4,139         -        749   (g)         4,888
    Expenses of
     consolidated
     Och-Ziff funds               -     4,008          -               4,008
    Total expenses           24,809     4,008     22,505              51,322

    Net earnings on
     deferred balances            -         -          -                   -
    Net gains (losses)
     on investments in
     Och-Ziff funds
     and joint ventures      (1,454)     (308)       308   (h)        (1,454)
    Net gains on
     early retirement
     of debt                      -         -          -                   -
    Net gains (losses)
     of consolidated
     Och-Ziff funds               -     4,728          -               4,728

    Income taxes                  -         -        857   (g)           857

    Net loss (income)
     allocated to
     partners' and
     others' interests
     in income of
     consolidated
     subsidiaries               724   (28,122)       (59)  (i)       (27,457)

    Net Income (Loss)
     Allocated to
     Class A
     Shareholders           (20,302)        -    (23,113)            (43,415)


                                                      TOTAL COMPANY
                                                      -------------
                                                   Economic
                                                    Income
                                                     Basis      U.S. GAAP
    Year Ended December 31, 2009                (Non-GAAP) (3)    Basis
    ----------------------------                --------------  ---------

    Management fees                                   $362,462   $364,905
    Incentive income                                   348,915    348,915
    Other revenues                                       1,739      1,739
    Income of consolidated Och-Ziff funds                    -     27,729
    Total revenues                                     713,116    743,288

    Compensation and benefits                          214,581    344,432
    Allocations to non-equity partner interests              -     18,253
    Reorganization expenses                                  -  1,704,753
    Profit sharing                                           -      1,322
    Interest expense                                    12,797     12,797
    General, administrative and other                   81,329     72,810
    Expenses of consolidated Och-Ziff funds                  -      4,069
    Total expenses                                     308,707  2,158,436

    Net earnings on deferred balances                        -     54,138
    Net gains (losses) on investments in
     Och-Ziff funds and joint ventures                  (1,454)     1,789
    Net gains on early retirement of debt                    -     21,797
    Net gains (losses) of consolidated Och-
     Ziff funds                                              -      3,950

    Income taxes                                             -     37,703

    Net loss (income) allocated to partners'
     and others' interests in income of
     consolidated subsidiaries                             724  1,073,748

    Net Income (Loss) Allocated to
     Class A Shareholders                              403,679   (297,429)
    Adjusted Income Taxes - Non-GAAP (4)               (48,341)
                                                       -------
    Distributable Earnings - Non-GAAP                 $355,338
                                                      ========

    Weighted-Average Class A Shares Outstanding     78,387,368
    Weighted-Average Partner Units                 310,422,848
    Weighted-Average Class A Restricted Share
     Units (RSUs)                                   15,276,619
                                                    ----------
    Weighted-Average Adjusted Class A Shares       404,086,835
                                                   ===========

    Distributable Earnings Per Adjusted
     Class A Share - Non-GAAP                            $0.88
                                                         =====


    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        Total Company U.S. GAAP Net Loss.
    (2) The Och-Ziff Funds segment is the Company's only reportable segment.
        Management uses Economic Income to evaluate the financial
        performance of and to make operating decisions for the segment.
    (3) Each of the measures below is a non-GAAP financial measure, with the
        exception of incentive income, other revenues and net losses on joint
        ventures, for which no adjustments to the U.S. GAAP basis have been
        made. Management calculates non-GAAP financial measures on an Economic
        Income basis for the Company's Other Operations and for the Company as
        a whole to assess the financial performance of the
        Company's entire business.
    (4) Presents an estimate of income tax expense by assuming the conversion
        of all outstanding Partner Units into Class A Shares, on a one-to-one
        basis. Therefore, all income (loss) of the Och-Ziff Operating Group
        allocated to the partners is treated as if it were allocated to
        Och-Ziff Capital Management Group LLC.



                                     Exhibit 6
                       OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
      Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP
                                      Measures
                  (dollars in thousands, except per share amount)

                                         OCH-ZIFF FUNDS SEGMENT
                                         ----------------------
                                      Reconciling Adjustments (1)
                                      ---------------------------
    Year Ended             Economic     Funds
     December               Income    Consoli-        Other         U.S. GAAP
     31, 2008              Basis (2)   dation       Adjustments       Basis
    ----------             ---------  --------      -----------     ---------

    Management fees         $571,274     $(254)        $-            $571,020
    Incentive income          12,201         -          -              12,201
    Other revenues             3,554         -          -               3,554
    Income of consolidated
     Och-Ziff funds                -       107          -                 107
    Total revenues           587,029      (147)         -             586,882

    Compensation and
     benefits                141,255         -    106,600   (b)(c)    247,855
    Allocations to
     non-equity
     partner interests             -         -    (38,328)  (d)       (38,328)
    Reorganization
     expenses                      -         -  1,698,989   (e)     1,698,989
    Profit sharing                 -         -     (4,751)  (f)        (4,751)
    Interest expense          33,948         -          -              33,948
    General,
     administrative
     and other                96,022         -      4,214   (g)       100,236
    Expenses of
     consolidated
     Och-Ziff funds                -       654          -                 654
    Total expenses           271,225       654  1,766,724           2,038,603

    Net losses
     on deferred
     balances                      -         -   (141,900)  (h)      (141,900)
    Net gains
     (losses) on
     investments
     in Och-Ziff
     funds and
     joint ventures                -         -     (3,793)  (h)        (3,793)
    Net losses of
     consolidated
     Och-Ziff funds                -    (4,181)         -              (4,181)

    Income taxes                   -         -     39,825   (g)        39,825

    Net loss (income)
     allocated to
     partners' and
     others' interests
     in income of
     consolidated
     subsidiaries                  -     4,982  1,146,084   (i)     1,151,066

    Net Income (Loss)
     Allocated to Class A
     Shareholders            315,804         -   (806,158)           (490,354)


                                            OTHER OPERATIONS
                                            ----------------
                                      Reconciling Adjustments (1)
                                      ---------------------------
                           Economic
                            Income
    Year Ended               Basis      Funds
     December             (Non-GAAP)  Consoli-         Other        U.S. GAAP
     31, 2008                 (3)      dation       Adjustments       Basis
    ----------            ----------  --------      -----------     ---------

    Management fees           $5,251       $(6)        $-              $5,245
    Incentive income               -         -          -                   -
    Other revenues               555         -          -                 555
    Income of consolidated
     Och-Ziff funds                -    11,702          -              11,702
    Total revenues             5,806    11,696          -              17,502

    Compensation and
     benefits                  8,070         -      5,905   (c)        13,975
    Allocations to
     non-equity
     partner interests             -         -          -                   -
    Reorganization
     expenses                      -         -          -                   -
    Profit sharing                 -         -          -                   -
    Interest expense               -         -          -                   -
    General,
     administrative
     and other                 1,236         -        750   (g)         1,986
    Expenses of
     consolidated
     Och-Ziff funds                -     3,340          -               3,340
    Total expenses             9,306     3,340      6,655              19,301

    Net losses
     on deferred
     balances                      -         -          -                   -
    Net gains
     (losses) on
     investments
     in Och-Ziff
     funds and
     joint ventures           (7,644)       43        (43)  (h)        (7,644)
    Net losses of
     consolidated
     Och-Ziff funds                -   (13,453)         -             (13,453)

    Income taxes                   -         -        241   (g)           241

    Net loss (income)
     allocated to
     partners' and
     others' interests
     in income of
     consolidated
     subsidiaries               (251)    5,054     (1,908)  (i)         2,895

    Net Income (Loss)
     Allocated to Class A
     Shareholders            (11,395)        -     (8,847)            (20,242)


                                                      TOTAL COMPANY
                                                      -------------
                                                   Economic
                                                    Income
                                                     Basis      U.S. GAAP
    Year Ended December 31, 2008                (Non-GAAP) (3)    Basis
    ----------------------------                --------------  ---------

    Management fees                                   $576,525   $576,265
    Incentive income                                    12,201     12,201
    Other revenues                                       4,109      4,109
    Income of consolidated Och-Ziff funds                    -     11,809
    Total revenues                                     592,835    604,384

    Compensation and benefits                          149,325    261,830
    Allocations to non-equity partner interests              -    (38,328)
    Reorganization expenses                                  -  1,698,989
    Profit sharing                                           -     (4,751)
    Interest expense                                    33,948     33,948
    General, administrative and other                   97,258    102,222
    Expenses of consolidated Och-Ziff funds                  -      3,994
    Total expenses                                     280,531  2,057,904

    Net losses on deferred balances                          -   (141,900)
    Net gains (losses) on investments in
     Och-Ziff funds and joint ventures                  (7,644)   (11,437)
    Net losses of consolidated Och-Ziff funds                -    (17,634)

    Income taxes                                             -     40,066

    Net loss (income) allocated to partners'
     and others' interests in income of
     consolidated subsidiaries                            (251) 1,153,961

    Net Income (Loss) Allocated to
       Class A Shareholders                            304,409   (510,596)
    Adjusted Income Taxes - Non-GAAP (4)              (119,231)
                                                      --------
    Distributable Earnings - Non-GAAP                 $185,178
                                                      ========

    Weighted-Average Class A Shares Outstanding     74,398,336
    Weighted-Average Partner Units                 310,680,006
    Weighted-Average Class A Restricted Share
     Units (RSUs)                                   14,923,772
                                                    ----------
    Weighted-Average Adjusted Class A Shares       400,002,114
                                                   ===========

    Distributable Earnings Per Adjusted
       Class A Share - Non-GAAP                          $0.46
                                                         =====

    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        Total Company U.S. GAAP Net Loss.
    (2) The Och-Ziff Funds segment is the Company's only reportable segment.
        Management uses Economic Income to evaluate the financial
        performance of and to make operating decisions for the segment.
    (3) Each of the measures below is a non-GAAP financial measure, with the
        exception of incentive income, other revenues and net losses on joint
        ventures, for which no adjustments to the U.S. GAAP basis have been
        made. Management calculates non-GAAP financial measures on an Economic
        Income basis for the Company's Other Operations and for the Company as
        a whole to assess the financial performance of the Company's entire
        business.
    (4) Presents an estimate of income tax expense by assuming the conversion
        of all outstanding Partner Units into Class A Shares, on a one-to-one
        basis. Therefore, all income (loss) of the Och-Ziff Operating Group
        allocated to the partners is treated as if it were allocated to
        Och-Ziff Capital Management Group LLC.



                                     Exhibit 7
                       OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
       Description of Adjustments Made to Reconcile Economic Income to
                                U.S. GAAP Net Loss

    Funds Consolidation
      Economic Income excludes the impacts of consolidated Och-Ziff funds,
      including the related eliminations.

    Other Adjustments
    (a) Economic Income presents management fees net of recurring placement
        and related service fees on assets under management, as management
        considers these fees a reduction in management fees, not an expense.
    (b) Economic Income recognizes deferred cash compensation expense in full
        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.
    (c) Economic Income excludes equity-based compensation expense, as
        management does not consider these non-cash expenses when evaluating
        the performance of the Company. The Company includes the number of
        shares granted in its Adjusted Class A Share count when determining
        Distributable Earnings Per Share.
    (d) Economic Income excludes allocations to non-equity partner interests.
        Management reviewed the performance of the Company before it made any
        allocations to the Company's non-equity partners for periods prior to
        the Reorganization.  For these periods, allocations to the partners,
        other than Mr. Och, were treated as expenses for U.S. GAAP purposes.
        Following the Reorganization, only allocations to the partners, other
        than Mr. Och, related to earnings on deferred balances are incurred
        and these allocations are excluded from Economic Income.
    (e) Economic Income excludes Reorganization expenses, which are non-cash
        expenses directly attributable to the reclassification of interests
        held by the partners and the Ziffs prior to the Reorganization as
        Och-Ziff Operating Group A Units.
    (f) Economic Income excludes the profit sharing expenses related to the
        Ziffs' interest in the Company.  Management reviewed the performance
        of the Company 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
        deferred balances are incurred and these allocations are excluded from
        Economic Income.
    (g) Economic Income excludes depreciation, changes in the tax receivable
        agreement liability, and net gains on early retirement of debt, as
        management does not consider these items when evaluating the
        performance of the Company. Economic Income also excludes income taxes
        as it is a measure of pre-tax performance.
    (h) Economic Income excludes the net earnings (losses) on the deferred
        balances and net gains (losses) on investments in Och-Ziff funds, as
        these amounts primarily relate to earnings (losses) on amounts due to
        affiliates for deferred balances, and earnings (losses) on amounts
        due to partners and employees under deferred cash compensation
        arrangements that are indexed to the returns of certain funds.
    (i) Economic Income excludes amounts allocated to the partners and the
        Ziffs on their interests in the Och-Ziff Operating Group, as
        management reviews the performance of the Company at the Och-Ziff
        Operating Group level.  The Company conducts substantially all of its
        activities through the Och-Ziff Operating Group.  Additionally,
        Economic Income excludes amounts allocated to investors in
        consolidated Och-Ziff funds, as Economic Income excludes the impacts
        of consolidated Och-Ziff funds.



                                   Exhibit 8
                     OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                       Financial Supplement (Unaudited)
                             (dollars in millions)

                                         ------------------  ------------
                                         Three Months Ended   Year Ended
                                            December 31,     December 31,
                                         ------------------  ------------
                                                       2009          2009
                                                       ----          ----

    Total Assets Under Management (1)
      Beginning of Period Balance                   $22,278       $26,955
      Net Flows                                         305        (8,053)
      Appreciation (Depreciation) (2)                   497         4,178
                                                        ---         -----
      End of Period Balance                         $23,080       $23,080
                                                    =======       =======

    Total Assets Under Management by Fund
      OZ Master Fund                                              $15,577
      OZ Europe Master Fund                                         2,957
      OZ Asia Master Fund                                           1,246
      OZ Global Special Investments Master Fund                     1,999

    Och-Ziff Funds - Net Returns (3)
      OZ Master Fund                                    2.2%         23.1%
      OZ Europe Master Fund                             0.8%         16.4%
      OZ Asia Master Fund                               6.2%         34.0%
      OZ Global Special Investments
       Master Fund                                      1.2%          8.4%


                                               Year Ended December 31,
                                               -----------------------
                                            2008     2007     2006     2005
                                            ----     ----     ----     ----

    Total Assets Under Management (1)
      Beginning of Period Balance        $33,387  $22,621  $15,627  $11,251
      Net Flows                             (722)   7,591    4,135    3,117
      Appreciation (Depreciation) (2)     (5,710)   3,175    2,859    1,259
                                          ------    -----    -----    -----
      End of Period Balance              $26,955  $33,387  $22,621  $15,627
                                         =======  =======  =======  =======

    Total Assets Under Management by Fund
      OZ Master Fund                     $16,396  $19,771  $15,449  $12,001
      OZ Europe Master Fund                5,084    6,416    3,481    1,887
      OZ Asia Master Fund                  2,439    3,852    2,332      605
      OZ Global Special Investments
       Master Fund                         1,910    2,082      195       43

    Och-Ziff Funds - Net Returns (3)
      OZ Master Fund                       -15.9%    11.5%    14.8%     8.8%
      OZ Europe Master Fund                -17.4%    14.8%    22.3%    15.7%
      OZ Asia Master Fund                  -30.9%    12.2%    14.0%    14.2%
      OZ Global Special Investments
       Master Fund                          -8.3%    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 (depreciation) reflects the aggregate net capital
        appreciation (depreciation) 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 9
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                                (Unaudited)

    ------------------------------------------
    Returns of OZ Master Fund During Negative
    Return Months of S&P 500 Index
    ------------------------------------------

                              Total Return        Total Return of
              Number of        of S&P 500          OZ Master Fund
         Months 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%
    2008          8               -51.8%               -16.3%
    2009          3               -20.9%                 4.1%




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

       Net Monthly Return Number of
       of OZ Master Fund    Months
       ------------------ ---------
         less than -3%          5
           -2% to -3%           2
           -1% to -2%           3
           0% to -1%           17
            0% to 1%           63
            1% to 2%           47
            2% to 3%           31
            3% to 4%           13
            4% to 5%            5
        greater than 5%         3

    Total net return for the OZ Master Fund (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 10
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                     Fund Performance (Unaudited) (1)


                                              2008
                          -------------------------------------------
                          January  February   March    April      May
                          -------  --------   -----    -----      ---

    Och-Ziff Funds -
     Net Returns
    OZ Master Fund        -1.12%     1.02%  -0.73%      0.96%    1.11%
    OZ Europe Master
     Fund                 -2.00%     0.81%  -0.54%      0.31%    1.69%
    OZ Asia Master Fund   -1.95%     1.78%  -2.41%     -0.18%   -0.16%
    OZ Global Special
     Investments Master
     Fund                 -0.72%     0.57%  -0.45%      0.64%    0.43%

    S&P 500 Index -
     Total Return (2)     -6.00%    -3.25%  -0.43%      4.87%    1.30%


                                              2008
                            -------------------------------------------
                            June     July    August  September  October
                            ----     ----    ------  ---------  -------

    Och-Ziff Funds -
     Net Returns
    OZ Master Fund        -0.45%    -0.59%  -0.58%     -5.41%   -6.71%
    OZ Europe Master
     Fund                  0.20%    -1.35%  -0.38%     -7.22%   -5.12%
    OZ Asia Master Fund   -2.19%    -1.17%  -4.18%     -7.53%  -11.76%
    OZ Global Special
     Investments Master
     Fund                 -0.34%     0.06%  -0.45%     -2.73%   -2.60%

    S&P 500 Index -
     Total Return (2)     -8.43%    -0.84%   1.45%     -8.91%  -16.80%


                                                           2008
                                                --------------------------
                                                November  December  FY2008
                                                --------  --------  ------

    Och-Ziff Funds - Net Returns
    OZ Master Fund                               -2.35%    -2.02% -15.92%
    OZ Europe Master Fund                        -2.67%    -2.31% -17.39%
    OZ Asia Master Fund                          -1.69%    -4.13% -30.86%
    OZ Global Special Investments Master Fund    -1.72%    -1.22%  -8.27%

    S&P 500 Index - Total Return (2)             -7.18%     1.06% -37.00%


                                              2009
                          -------------------------------------------
                          January  February   March    April      May
                          -------  --------   -----    -----      ---

    Och-Ziff Funds -
     Net Returns
    OZ Master Fund         3.09%     0.35%   0.88%      1.86%    3.42%
    OZ Europe Master
     Fund                  0.98%    -1.09%  -0.04%      2.48%    3.32%
    OZ Asia Master Fund    2.70%     1.22%   0.38%      3.09%    4.62%
    OZ Global Special
     Investments Master
     Fund                  0.84%    -0.49%   0.35%      0.00%    1.97%

    S&P 500 Index -
     Total Return (2)     -8.43%   -10.65%   8.76%      9.57%    5.59%


                                              2009
                            -------------------------------------------
                            June     July    August  September  October
                            ----     ----    ------  ---------  -------

    Och-Ziff Funds -
     Net Returns
    OZ Master Fund         2.14%     3.26%   1.37%      2.51%    0.68%
    OZ Europe
     Master
     Fund                  1.24%     2.36%   2.06%      3.28%    0.09%
    OZ Asia Master Fund    0.58%     9.50%   0.24%      1.53%    1.16%
    OZ Global Special
     Investments Master
     Fund                  0.88%     1.55%   0.33%      1.47%    0.02%

    S&P 500 Index -
     Total Return (2)      0.20%     7.56%   3.61%      3.73%   -1.86%


                                                            2009
                                                --------------------------
                                                November  December  FY2009
                                                --------  --------  ------

    Och-Ziff Funds - Net Returns
    OZ Master Fund                                0.34%     1.14%  23.11%
    OZ Europe Master Fund                         0.31%     0.43%  16.43%
    OZ Asia Master Fund                           2.98%     1.94%  33.96%
    OZ Global Special Investments Master Fund     0.19%     1.03%   8.42%

    S&P 500 Index - Total Return (2)              6.00%     1.93%  26.47%

    (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.



                                    Exhibit 11
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                    Summary Performance Statistics (Unaudited)


                                               As of December 31, 2009
                                               -----------------------
                                                                   Strategy
    Net Annualized Return                1 Year  3 Years  5 Years  Inception
                                         ------  -------  -------  ---------
    OZ Master Fund                         23.1%     4.9%     7.6%      14.5%
    S&P 500 Index                          26.5%    -5.6%     0.4%       8.0%
    Correlation of OZ Master Fund to
     S&P 500 Index                         0.15     0.65     0.65       0.52

    Volatility
    OZ Master Fund Standard Deviation
     (Annualized)                           3.9%     7.4%     6.0%       5.7%
    S&P 500 Index Standard Deviation
     (Annualized)                          22.3%    19.9%    16.1%      15.6%

    Sharpe Ratio
    OZ Master Fund                         5.83     0.29     0.69       1.83
    S&P 500 Index                          1.17    (0.42)   (0.19)      0.25

    Total net return for the OZ Master Fund (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.

    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 should not be
    considered an indication of how the Fund will perform relative to the S&P
    500 Index in the future.

    Correlation to the returns of the S&P 500 Index represents a statistical
    measure of the degree to which the return of one portfolio is correlated
    to the return of another. It is expressed as a factor that ranges from -
    1.0 (perfectly inversely correlated) to +1.0 (perfectly positively
    correlated).

    Standard deviation is a statistical measure of the degree to which an
    individual value in a distribution tends to vary from the mean of the
    distribution.

    Sharpe Ratio represents a measure of the investment returns as adjusted
    for risk. The Sharpe Ratio is calculated by subtracting a "risk-free" rate
    from the composite returns, and dividing that amount by the standard
    deviation of the returns. A higher Sharpe Ratio indicates a portfolio that
    generates a return that is higher than would be expected for the level of
    risk in the portfolio as compared to the risk-free rate. The risk-free
    rate is one-month LIBOR.


SOURCE Och-Ziff Capital Management Group LLC