Another hedge fund giant is going public. Och-Ziff Capital Management, one of the world’s largest hedge fund managers with some $27 billion in assets under management, has filed for an initial public offering that will raise as much as $2 billion.
The New York firm is the latest alternatives titan seeking to raise money in the public markets—following recent IPOs and IPO announcements from the Blackstone Group, Fortress Investment Group, GLG Partners and Third Point.
The firm explained that its move is part of an effort to attract and retain its investment talent. The IPO will also facilitate an expansion into new strategies—the firm’s flagship OZ Master Fund specializes in distressed debt and restructuring and holds about 65% of the firm’s total assets—and serve as a payday for Och-Ziff senior management.
Och-Ziff was quick to note that those beneficiaries will “reinvest all of their after-tax proceeds into certain of our funds.”
“One of the principal purposes of this offering is to further increase the investment of our existing partners in our funds which will further align the interests of our existing partners and our fund investors,” Och-Ziff said in its filing statement.
The firm plans to list its shares on the New York Stock Exchange, under the ticker symbol “OZM.”