Och-Ziff Capital Management

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Och-Ziff Capital Management
Type Public company
Traded as NYSEOZM
Industry Hedge funds
Founded 1994
Founder(s) Daniel Och
Headquarters Solow Building
New York City, New York, United States
Key people Daniel Och, Chief Executive Officer
David Windreich,Head of U.S. and European Investing
Joel M. Frank, Chief Financial Officer and Senior Chief Operating Officer
Total assets $40.6 billion as of Jan 1, 2014
Employees 400+
Website www.ozcap.com

Och-Ziff Capital Management Group is an American hedge fund manager and global alternative asset management firm.[1] In early 2013, the firm had more than $40 billion in assets under management.[2][3] It is the 5th largest hedge fund in the world as end of 2011.

The firm operates multiple investment strategies, including merger arbitrage, convertible arbitrage, equity restructuring, credit and distressed investments, private investments, and real estate.[4] It has 400 employees worldwide including offices in New York, London, Hong Kong, Mumbai, and Beijing.[5]

History[edit]

The firm was founded in 1994 by Daniel Och with financial support from the Ziff family, founders of Ziff Davis Media. William Ziff's sons Dirk, Robert, and Daniel manage the family's investments through Ziff Brothers Investments. Prior to founding the firm, Och was Head of Proprietary Trading in the Equities division at Goldman Sachs.[6]

The company completed an initial public offering in 2007, listing its shares on the New York Stock Exchange at $32. The firm was one of the few hedge funds and private equity companies that completed IPOs before the market downturn of 2007. The company's stock has declined significantly since the IPO, reaching a 2008 year-to-date low of $4.02.[7] On September 30, 2010, the stock was trading at $14.90.[8]

The firm is reported to have avoided large losses during the financial crisis of 2008[9] and institutional capital continued to allocate funds to the company through 2010.[9]

Structure[edit]

According to company website,[10] Daniel Och is Chairman of the Board, and Chief Executive Officer.

OZ Management is a subsidiary of Och-Ziff Capital Management.[11] In January 2008 OZ Management, Tokyo Sexwale’s Mvelaphanda (Mvela) Holdings and Walter Hennig’s Palladino Holdings announced the creation of a new joint venture, Africa Management Limited.[11] As part of the joint venture, Africa Management Limited established African Global Capital, as a vehicle for investment in both the private and public markets across Africa, focusing on natural resources and related opportunities.[11] Tokyo Sexwale, founder of Mvela, said: "We intend to build on our already strong foothold in African investments in partnership with Och-Ziff. The partnership with Och-Ziff in African Global Capital will help us accelerate in building the leading African investment firm.”[11] Mvela Holdings is a privately owned investment company founded in 1998 by Tokyo Sexwale, Mikki Xayiya and Mark Willcox. Mvela Holdings is the controlling shareholder of Mvelaphanda Group and has a significant interests in Mvelaphanda Resources.[11]

Criticism[edit]

In August 2012 the Mail & Guardian reported that Mvelaphanda (Mvela) Holdings, a joint venture between Tokyo Sexwale and OZ Management, was behind a USD100 million loan to the Zimbabwean political party Zanu-PF.[12]

Och-Ziff Capital Management Group is one of the companies accused of threatening to block the European attempt to save Greece from defaulting unless they are guaranteed a significant payout.[13] In response, Och-Ziff issued a statement, saying that it did not have a material investment in Greek sovereign debt, nor had it been involved in the debt negotiations.[14][15]

Palladino Holdings and Mvelaphanda Holdings, affiliates of OZ Management, are connected to a $25 million loan that Palladino lent to the state of Guinea in order to start up a state mining company.[16]

References[edit]

External links[edit]