Och-Ziff Didn’t Tell Investors About Probe

Aug 7 2014 | 4:15pm ET

When Och-Ziff Capital Management learned it faced two federal probes into its dealings with Libya’s sovereign wealth fund, the publicly-traded hedge fund manager notified one set of its investors—but not the other.

New York-based Och-Ziff informed its shareholders about the civil and criminal probes, The Wall Street Journal reports. But it did not tell investors in its funds.

Some of those investors called Och-Ziff following the March disclosure to express their displeasure. One even redeemed from the firm, according to the Journal. Still, the lapse doesn’t appear to have unduly harmed Och-Ziff, which reported a record level of assets this week.

Och-Ziff said it was limited in what it could say about the ongoing investigation. “We’re as transparent as we can be” with clients, CFO Joel Frank said in May.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...

 

From the current issue of