Friday, 1 August 2014
Last updated 15 hours ago
Sep 20 2007 | 7:11am ET
Daniel Och is willing to part with a slice of his hedge fund, but the founder of Och-Ziff Capital Management won’t be sharing in the decision-making.
In filings with the U.S. Securities and Exchange Commission, New York-based Och-Ziff—with nearly $30 billion in assets the country’s fifth-largest hedge fund manager—offered details of its planned initial public offering. And those details promised that precious few particulars will be offered once Och-Ziff becomes a public concern. That’s because the hedge fund manager plans to sell some $2 billion as a partnership, a structure which requires far less disclosure than traditional public companies as well as big tax breaks.
In addition to maintaining a certain level of secrecy, Och will be maintaining total control: He will continue to control all matter requiring shareholder approval, and will have the authority to nominate five of the seven members of a future board of directors.
While none of the proceeds of the IPO will go directly to the management company, most of the money will be reinvested in Och-Ziff, the firm said. The Ziff family, for one, plans to reinvest some 50% of the money it makes in the stock sale.
Och-Ziff plans to list on the New York Stock Exchange. Goldman Sachs and Lehman Brothers are serving as co-lead managers of the IPO.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…