Och-Ziff Capital Management

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Och-Ziff Capital Management Group LLC (DBA: OZ Management)
Public company
Traded asNYSEOZM
IndustryHedge funds
Founded1994; 24 years ago (1994)
FounderDaniel Och
HeadquartersSolow Building
New York City, New York, United States
Key people
Robert Shafir, Chief Executive Officer
Daniel Och, Chairman of the Board
David Windreich, Co-CIO
Jimmy Levin, Co-CIO and Head of Global Credit
Wayne Cohen, President and Chief Operating Officer
Alesia Haas, Chief Financial Officer
David Levine, Chief Legal Officer[1][2]
Total assets$31 Billion as of July, 2017
Number of employees
400+
Websitewww.ozm.com

Och-Ziff Capital Management Group (OZ Management) is an American hedge fund manager and global alternative asset management firm.[3] The firm operates multiple investment strategies, including multi-strategy, credit, real estate and energy.[4] It has nearly 500 employees worldwide including offices in New York City, London, founded in 1998, Hong Kong, founded in 2001, Mumbai, founded in 2005, Beijing, founded in 2007 and Houston founded in 2015.[5][6]

As of July 1, 2017, the firm has $31.8 billion in assets under management.[7][8]

Structure[edit]

According to the company website,[9] Daniel Och is Chairman of the Board, and former Chief Executive Officer. On February 5, 2018, Robert Shafir replaced Och as Chief Executive Officer.[10]

The firm is managed by the Partner Management Committee, that consists of nine executives, including Och, Shafir, Jimmy Levin, Co-CIO and Head of Global Credit, David Windreich, Co-CIO, and Wayne Cohen, President and Chief Operating Officer.[5]

Jimmy Levin is the former waterskiing instructor of Dan Och's son.[11][12][13]

The Company currently manages multi-strategy funds, dedicated credit funds, including opportunistic credit funds and Institutional Credit Strategies products, real estate funds and other alternative investment vehicles. Through Institutional Credit Strategies, the Company’s asset management platform that invests in performing credits, the Company manages collateralized loan obligations (“CLOs”) and other customized solutions for its clients.[3][4][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 Bernard Ziff Jr.'s sons Dirk Edward Ziff, Robert D. Ziff, and Daniel Ziff 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.[14]

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. Also in 2007 it became a founder member of the Hedge Fund Standards Board which sets a voluntary code of standards of best practice endorsed by its members.[15] The company's stock has declined significantly since the IPO, reaching a 2008 year-to-date low of $4.02.[16] On April 20, 2018, the stock was trading at $2.33.[17]

The firm is reported to have avoided large losses during the financial crisis of 2008 and institutional capital continued to allocate funds to the company through 2010.[18] As of January 2018, the share price is less than 10% of the initial public offering price in 2007.[19]

Criticism[edit]

In September 2016, the firm entered into settlement agreements with the United States Securities and Exchange Commission and Department of Justice, ending a five-year investigation into violations of the Federal Corrupt Practices Act. As part of the deferred prosecution agreement that settled civil and criminal charges, the firm agreed to pay a $413 million fine. The African subsidiary of the firm also plead guilty to one count of conspiracy.[20]

In January 2018, Michael Cohen, former head of Och Ziff’s European operations was charged with fraud relating to activities of the company in Africa. He was charged with ten counts of fraud including investment adviser fraud and conspiracy to commit wire fraud while employed by Och Ziff.[21][22] The Securities and Exchange Commission (SEC) sued Michael Cohen as part of their probe into Och Ziff, specifically relating to an Och Ziff bribery scheme in the Democratic Republic of Congo, Chad and Libya, to win business for the company.[23]

See also[edit]

References[edit]

  1. ^ "Company Overview of Och-Ziff Capital Management Group LLC". Bloomberg. 18 September 2017.
  2. ^ "Och-Ziff Announces Chief Financial Officer and Chief Legal Officer Transitions". GlobeNewswire. December 13, 2016.
  3. ^ a b "Company Profile for Och-Ziff Capital Management Group LLC (OZM)". Bloomberg. Retrieved 3 June 2013.
  4. ^ a b OZ Management (company website)
  5. ^ a b c Form 10-Q filing as with the U.S. Securities and Exchange Commission. December 31, 2015
  6. ^ Svea Herbst-Bayliss (October 26, 2015). "Hedge fund Och-Ziff opens Houston office to focus on energy bets". Reuters.
  7. ^ [1]. March 17, 2011
  8. ^ "The 2011 Hedge Fund 100 Ranking". Institutional Investor, Inc. May 12, 2011.
  9. ^ Och-Ziff: Team (company website)
  10. ^ "Och-Ziff taps outsider as CEO, replacing founder". Reuters. January 30, 2018.
  11. ^ https://dealbreaker.com/2018/01/dan-och-adrenaline-junkie/
  12. ^ https://dealbreaker.com/2018/04/och-ziff-so-messed-up-top-exec-is-fleeing-to-the-comparative-calm-of-cryptocurrencies/
  13. ^ https://www.wsj.com/articles/clash-between-founder-and-protege-plunges-och-ziff-into-crisis-1516743916
  14. ^ "Our Firm - Leadership - Partner Management Committee and Executive Officers - Daniel S. Och - Och-Ziff Capital Management Group". www.ozcap.com. Retrieved 2017-04-25.
  15. ^ "Hedge Fund Standards Board". www.hfsb.org. Retrieved 2017-04-25.
  16. ^ https://finance.google.com/finance?q=NYSE%3AOZM&ei=IPzKWfjRK4mGmAHHyqqIBA
  17. ^ "OZM Historical Prices | Och-Ziff Capital Management Gro Stock - Yahoo Finance". Retrieved 2018-04-20.
  18. ^ "Analysis | HFM Week | An HFM network". www.hfmweek.com. Retrieved 2017-04-25.
  19. ^ http://finance.google.com/finance?q=XNYS%3AOZM&ei=e2hvWuiDK8basQHxgYqoCw
  20. ^ Alexandra Stevenson (September 29, 2016). "Och-Ziff to Pay Over $400 Million in Bribery Settlement". The New York Times.
  21. ^ "Michael Cohen, Once of Och-Ziff, Charged With Fraud by U.S." Bloomberg.com. 2018-01-03. Retrieved 2018-01-23.
  22. ^ "Subscribe to read". Financial Times. Retrieved 2018-01-23.
  23. ^ "Two Ex-Och-Ziff Executives Accused by SEC in Bribery Scheme". Bloomberg.com. 2017-01-26. Retrieved 2018-01-23.

External links[edit]