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.