Och-Ziff Capital Management Group LLC Reports 2013 Third Quarter Results

Och-Ziff Capital Management Group LLC Reports 2013 Third Quarter Results 
2013 Third Quarter Dividend of $0.25 per Class A Share 
NEW YORK, NY  -- (Marketwired) -- 11/05/13 --  Och-Ziff Capital
Management Group LLC (NYSE: OZM) (the "Company" or "Och-Ziff") today
reported GAAP Net Income(1) of $24.9 million, or $0.16 per basic and
$0.14 per diluted Class A Share, for the third quarter ended
September 30, 2013. The Company also declared a $0.25 per share cash
dividend on its Class A Shares for the 2013 third quarter. 
Summary Highlights 


 
--  Distributable Earnings of $130.3 million, or $0.27 per Adjusted Class A
    Share, for the 2013 third quarter, 111% higher than $61.7 million, or
    $0.14 per Adjusted Class A Share, for the 2012 third quarter.
--  Estimated assets under management of $38.5 billion as of November 1,
    2013, which reflected cumulative performance-related appreciation of
    $3.5 billion and capital net inflows of approximately $2.4 billion from
    December 31, 2012.
--  Estimated year-to-date net returns through October 31, 2013 of the OZ
    Master Fund of 10.9%, the OZ Europe Master Fund of 10.1% and the OZ Asia
    Master Fund of 10.5%.

 
"During the third quarter and again in October, we generated strong
performance with low volatility for our fund investors," said Daniel
S. Och, Chairman and Chief Executive Officer of Och-Ziff. "We
extended the strong absolute returns we generated in the first half
of this year, and the flexibility we have to move capital across our
strategies and geographies to capitalize on investment opportunities
globally was again evident. 
"Pension funds and private banks remain the largest sources of our
net inflows year-to-date, and we continue to experience strong
interest from fund investors across our platforms. In addition to
attracting new capital from our existing fund investors, we have made
solid progress in establishing relationships with new investors. We
believe that we are well-positioned to attract additional capital not
only to our multi-strategy platforms, but also to our growing credit,
real estate and long/short equity platforms." 
(1) References to the Company's GAAP Net Income (Loss) throughout
this press release refer to the Company's GAAP Net Income (Loss)
Allocated to Class A Shareholders. 
GAAP NET INCOME (LOSS) ALLOCATED TO CLASS A SHAREHOLDERS 
For the 2013 third quarter, Och-Ziff reported GAAP Net Income of
$24.9 million, or $0.16 per basic and $0.14 per diluted Class A
Share, compared to a GAAP Net Loss of $127.5 million, or $0.89 per
basic and diluted Class A Share, for the 2012 third quarter. For the
first nine months of 2013, Och-Ziff reported GAAP Net Income of $55.9
million, or $0.36 per basic and diluted Class A Share, compared to a
GAAP Net Loss of $366.5 million, or $2.58 per basic and diluted Class
A Share, for the first nine months of 2012. 
The year-over-year improvement in the Company's GAAP results was
driven by lower non-cash expenses associated with the Company's
reorganization ("reorganization expenses"). These reorganization
expenses resulted from the Company's initial public offering ("IPO")
in November 2007, as further discussed below. Higher incentive income
and management fees also contributed to the improvement in both
periods, as discussed in the "Economic Income Revenues (Non-GAAP)"
section of this press release. 
The Company's GAAP results in the 2013 third quarter and first nine
months were impacted by reorganization expenses of $4.0 million and
$12.1 million, respectively, compared to $398.5 million and $1.2
billion, respectively, in the prior-year periods. These expenses are
related to the amortization of Och-Ziff Operating Group A Units
("Group A Units"), which represent equity interests in the Company's
principal operating subsidiaries (the "Och-Ziff Operating Group")
that were issued to the limited partners of the Och-Ziff Operating
Group at the time of the IPO in exchange for their pre-IPO interests
in those subsidiaries. The primary driver of the year-over- year
decline in these expenses was the completion of the vesting of
substantially all of those Group A Units in November 2012. These
Units generally vested annually over the five-year period from the
time of the Company's IPO through November 2012. The amortization of
these expenses over the vesting period resulted in a GAAP Net Loss on
an annual basis through the end of 2012. Vested Group A Units may be
exchanged on a one-to-one basis for Class A Shares, subject to
transfer restrictions and minimum retained ownership requirements. 
Additionally, the Company's GAAP results in the 2013 third quarter
and first nine months were impacted by non-cash expenses of $36.4
million and $99.4 million, respectively, for equity-based
compensation. These expenses primarily relate to Group A Units
granted to executive managing directors subsequent to the IPO, as
well as Class A Restricted Share Units ("RSUs") granted to employees
and executive managing directors. Each RSU represents the right to
receive one Class A Share upon vesting. 
Throughout this press release, the Company presents financial
measures that are not prepared in accordance with GAAP. For a
discussion of these non-GAAP measures, please see the discussion of
"Non-GAAP Financial Measures" at the end of this press release. 
DISTRIBUTABLE EARNINGS (NON-GAAP) 
The Company's Distributable Earnings for the 2013 third quarter were
$130.3 million, or $0.27 per Adjusted Class A Share, 111% higher than
$61.7 million, or $0.14 per Adjusted Class A Share, for the 2012
third quarter. Distributable Earnings for the first nine months of
2013 were 
$344.7 million, or $0.72 per Adjusted Class A Share, 85% higher than
$186.1 million, or $0.41 per Adjusted Class A Share, for the first
nine months of 2012. 
The year-over-year increase in Distributable Earnings for both
periods was primarily due to higher incentive income and management
fees, partially offset by increases in non-compensation expenses,
compensation and benefits and Adjusted Income Taxes. See the
"Economic Income (Non-GAAP)" section of this press release
 for a
discussion of the drivers impacting the Company's revenues and
operating expenses. 
Distributable Earnings is a non-GAAP measure. For reconciliations of
Distributable Earnings to the respective GAAP Net Income (Loss) for
the periods discussed above, please see Exhibits 2 and 3 that
accompany this press release. Additionally, please see the discussion
of "Non-GAAP Financial Measures" at the end of this press release,
including the definitions of Distributable Earnings, Adjusted Income
Taxes and Adjusted Class A Shares. 
ASSETS UNDER MANAGEMENT 
Assets under management by fund: 


 
                                                            % Change (1)    
                                                        --------------------
                                                          Sep.       Sep.   
                                                        2013 vs.   2013 vs. 
                        September  December  September    Dec.       Sep.   
 (dollars in billions)  30, 2013   31, 2012  30, 2012     2012       2012   
                       ---------- --------- ----------  ---------  ---------
  Multi-strategy funds                                                      
  OZ Master Fund       $     23.5 $    21.8 $     21.4         8%        10%
  OZ Europe Master Fund       1.5       2.0        2.0       -23%       -24%
  OZ Asia Master Fund         1.3       1.4        1.4        -8%       -12%
  Other multi-strategy                                                      
   funds                      3.6       2.7        2.5        35%        46%
Credit funds                  4.2       2.4        2.1        76%       103%
CLOs                          2.1       1.0        0.5       116%       365%
Real estate funds             0.9       0.9        0.9        -4%        -3%
Other                         0.7       0.4        0.5        39%        37%
                       ---------- --------- ----------                      
Total                  $     37.8 $    32.6 $     31.3        16%        21%
                       ========== ========= ==========                      

 
(1) Rounding differences may occur. 
Year-to-date through September 30, 2013, assets under management
totaled $37.8 billion, an increase of $5.2 billion, or 16%, from
December 31, 2012, which was driven by performance-related
appreciation of $3.1 billion and capital net inflows of $2.1 billion.
These capital net inflows included $1.2 billion related to two CLOs
that the Company closed in the 2013 first half. 
During the month of September, the Company had approximately $78.4
million of intra-month capital net inflows, which are included in the
$37.8 billion of assets under management as of September 30, 2013.
Assets under management increased an additional $689.6 million since
September 30, 2013, to an estimated $38.5 billion as of November 1,
2013. This increase reflected estimated performance-related
appreciation of approximately $453.7 million in October and capital
net inflows of approximately $235.9 million, which was comprised of
approximately $50.0 million of net inflows on October 1, 2013 and
$185.9 million of net inflows from October 2, 2013 to November 1,
2013. 
INVESTMENT PERFORMANCE 
For the first nine months of 2013, performance was driven primarily
by the funds' long/short equity special situations and credit-related
strategies. 


 
Net returns by fund(1):                                                     
                                                   2013                     
                              ----------------------------------------------
                                                                      YTD   
                                July    August   September    3Q     Sept.  
                              ----------------------------------------------
                                                                            
OZ Master Fund                    1.07%    0.07%      1.91%   3.07%    9.74%
OZ Europe Master Fund             1.67%   -0.45%      1.53%   2.76%    7.84%
OZ Asia Master Fund              -0.51%    0.31%      1.54%   1.34%    9.96%

 
(1) Please see important disclosures on Exhibit 7 that accompanies
this press release. 
ECONOMIC INCOME (NON-GAAP) 
In addition to analyzing the Company's results on a GAAP basis,
management also reviews the Company's results on an "Economic Income"
basis. Economic Income excludes certain adjustments that are required
for presentation of the Company's results on a GAAP basis, but that
management does not consider when evaluating operating performance in
any given period. 
For reconciliations of Economic Income and its components to the
respective GAAP measures, please see Exhibits 2 through 5 that
accompany this press release. Additionally, please see the discussion
of "Non-GAAP Financial Measures" at the end of this press release. 
Economic Income Revenues (Non-GAAP) 
Economic Income revenues for the 2013 third quarter were $210.7
million, increasing 62% from $130.4 million for the 2012 third
quarter. Management fees were $138.2 million, 13% higher than
management fees of $122.0 million for the prior-year period.
Incentive income was $72.3 million, compared to $8.1 million for the
prior-year period. 
Economic Income revenues for the first nine months of 2013 were
$597.3 million, up 52% from $391.7 million for the first nine months
of 2012. Management fees were $399.4 million, 10% higher than
management fees of $363.1 million for the prior-year period.
Incentive income was $196.5 million, compared to $27.7 million for
the prior-year period. 
The year-over-year increase in Economic Income revenues for the
quarter-to-date period was primarily due to higher incentive incom
e,
driven primarily by the crystallization of incentive income on a
portion of the Company's multi-strategy assets under management for
which the three-year performance measurement period expired during
the 2013 third quarter. Also contributing to the increase for the
quarter-to-date period was higher incentive income related to fund
investor redemptions and increased management fees resulting from the
year-over-year growth in assets under management. 
The average management fee rate was 1.50% for the 2013 third quarter,
lower than the 1.62% for the 2012 third quarter. This decline was due
primarily to an increase in assets under management in the Company's
dedicated credit platforms and CLOs, which earn lower management fees
as is reflective of the market for these products. 
The year-over-year increase in Economic Income revenues for the
year-to-date period through September 30, 2013 was primarily due to
higher incentive income. This increase was principally attributable
to two drivers. First, and the most significant of these drivers, was
the crystallization of incentive income on certain of the Company's
credit assets due to the restructuring of the terms and the expansion
of a relationship with an existing investor during the 2013 first
quarter. The second driver was the crystallization of incentive
income on a portion of the Company's multi-strategy assets under
management for which the three-year performance measurement period
expired during the year-to-date period. Also contributing to the
increase for the year-to- date period was higher incentive income
related to fund investor redemptions and increased management fees
resulting from the year-over-year growth in assets under management. 
The average management fee rate was 1.53% for the first nine months
of 2013, lower than the average of 1.65% for the first nine months of
2012 due primarily to an increase in assets under management in the
Company's dedicated credit platforms and CLOs, as discussed above. 
Compensation and Benefits (Non-GAAP) 
Compensation and benefits for the 2013 third quarter totaled $27.5
million, up 18% from compensation and benefits of $23.3 million for
the 2012 third quarter. Salaries and benefits totaled $22.9 million,
14% higher than salaries and benefits of $20.2 million in the
prior-year period, due primarily to the Company's hiring activities
globally. 
Compensation and benefits for the first nine months of 2013 totaled
$76.3 million, up 16% from compensation and benefits of $66.0 million
for the first nine months of 2012. Salaries and benefits totaled
$66.1 million, 12% higher than salaries and benefits of $59.0 million
in the prior-year period, due primarily to the Company's hiring
activities globally. 
The ratio of salaries and benefits to management fees was 17% in the
2013 third quarter and first nine months of 2013, respectively,
compared to 17% in the 2012 third quarter and 16% in the first nine
months of 2012. The increase in the ratio for the 2013 year-to-date
period was due to salaries and benefits growing at a faster rate than
management fees. 
Non-Compensation Expenses (Non-GAAP) 
Non-compensation expenses for the 2013 third quarter totaled $29.1
million, up 14% from non- compensation expenses of $25.6 million for
the 2012 third quarter. Non-compensation expenses for the first nine
months of 2013 totaled $93.9 million, up 28% from non-compensation
expenses of $73.3 million for the prior-year period. The increase in
non-compensation expenses for both periods was driven primarily by
higher professional services fees and information processing and
communication expenses. Also contributing to the increase in the
year-to-date period were higher occupancy and equipment costs. 
The ratio of non-compensation expenses to management fees was 21% in
the 2013 third quarter and 24% in first nine months of 2013, compared
to 21% in the 2012 third quarter and 20% in the first the nine months
of 2012. The increase in the ratio for the 2013 year-to-date period
was due to non-compensation expenses growing at a faster rate than
management fees. 
Economic Income (Non-GAAP) 
Economic Income for the 2013 third quarter was $154.2 million, up 90%
from Economic Income of $81.3 million in the 2012 third quarter.
Economic Income for the first nine months of 2013 was $426.9 million,
up 70% from Economic Income of $251.2 million in the first nine
months of 2012. 
The year-over-year increase in Economic Income for both periods was
principally driven by higher incentive income and management fees,
partially offset by increases in non-compensation expenses and
compensation and benefits. 
CAPITAL 
As of September 30, 2013, the number of Class A Shares outstanding
was 159,554,643. For purposes of calculating Distributable Earnings
per Share, the Company assumes that all the interests held by its
executive managing directors and Ziff Investors Partnership, L.P. II
and certain of its affiliates and control persons (the "Ziffs") in
the Och-Ziff Operating Group (collectively, "Partner Units"), as well
as RSUs outstanding during the applicable period, have been converted
on a one-to-one basis into Class A Shares ("Adjusted Class A
Shares"). For the third quarter and first nine months ended September
30, 2013, the total weighted-average Adjusted Class A Shares
outstanding were 484,414,534 and 480,980,273, respectively. 
DIVIDEND 
The Board of Directors of Och-Ziff declared a 2013 third-quarter
dividend of $0.25 per Class A Share. The dividend is payable on
November 22, 2013 to holders of record as of the close of business on
November 15, 2013. 
For U.S. federal income tax purposes, the dividend will be treated as
a partnership distribution. Based on the best information currently
available, the Company estimates that when calculating withholding
taxes, the entire amount of the 2013 third-quarter dividend will be
treated as U.S. source dividend income. 
Non-U.S. holders of Class A Shares are generally subject to U.S.
federal withholding tax at a rate of 30% (subject to reduction by
applicable treaty or other exception) on their share of U.S. source
dividends and certain other types of U.S. source income realized by
the Company. With respect to interest, however, no withholding is
generally required if proper certification (on an IRS Form W-8) of a
beneficial owner's foreign status has been filed with the withholding
agent. Non-U.S. holders must generally provide the withholding agent
with a properly completed IRS Form W-8 to obtain any reduction in
withholding. 
The Company will host a conference call today, November 5, 2013, at
8:30 a.m. Eastern Time to discuss its 2013 third-quarter results. The
call will be open to the public and can be accessed by dialing
+1-888-713-4205 (callers inside the U.S.) or +1-617-213-4862 (callers
outside the U.S.). The number should be dialed at least ten minutes
prior to the start of the call and the passcode will be 61092241. A
simultaneous webcast of the call will be available to the public on a
listen- only basis through the Class A Shareholders section of the
Company's website (www.ozcap.com). 
For those unable to listen to the live broadcast, a replay will be
available by dialing +1-888-286-8010 (callers inside the U.S.) or
+1-617-801-6888 (callers outside the U.S.), passcode 33229622,
beginning approximately two hours after the event for two weeks. A
webcast replay of the event will also be available on the Company's
website as noted above. 
Non-GAAP Financial Measures 
Management evaluates Economic Income for the Och-Ziff Funds segment,
the Company's only reportable segment under GAAP, and for the
Company's Other Operations. Economic Income for the Company equals
the sum of Economic Income for the Och-Ziff Funds segment and the
Company's Other Operations. 
The Company conducts substantially all of its business through the
Och-Ziff Funds segment, which provides asset management services to
its multi-strategy funds, credit funds, CLOs and other alternative
investment vehicles. The Company's Other Operations are primarily
comprised of its real estate business, which provides asset
management services to its real estate funds. 
The Company's non-GAAP measures should not be considered as
alternatives to the Company's GAAP Net Income (Loss) or cash flow
from operations, or as indicative of liquidity or the cash available
to fund operations. The Company's non-GAAP measures may not be
comparable to similarly titled measures used by other companies. 
For reconciliations of the Company's non-GAAP measures to the most
directly comparable GAAP measures, please see Exhibits 2 through 5
that accompany this press release. 
Economic Income 
In addition to analyzing the Company's results on a GAAP basis,
management also reviews the Company's results on an "Economic Income"
basis. Economic Income excludes the adjustments described below that
are required for presentation of the Company's results on a GAAP
basis, but that management does not consider when evaluating the
operating performa
nce of the Company in any given period. Management,
therefore, uses Economic Income as the basis on which it evaluates
the financial performance of the Company and makes resource
allocation and other operating decisions. Management considers it
important that investors review the same operating information that
it uses. 
Economic Income is a measure of pre-tax operating performance that
excludes the following from the Company's results on a GAAP basis: 


 
--  Income allocations to the Company's executive managing directors and the
    Ziffs on their direct interests in the Och-Ziff Operating Group.
    Management reviews operating performance at the Och-Ziff Operating Group
    level, where substantially all of the Company's operations are
    performed, prior to making any income allocations.
    
--  Reorganization expenses related to the Company's IPO, equity-based
    compensation expenses and depreciation and amortization expenses, as
    management does not consider these non-cash expenses to be reflective of
    operating performance.
    
--  Changes in the tax receivable agreement liability and net gains (losses)
    on investments in Och-Ziff funds, as management does not consider these
    items to be reflective of operating performance.
    
--  Amounts related to the consolidated Och-Ziff funds, including the
    related eliminations of management fees and incentive income, as
    management reviews the total amount of management fees and incentive
    income earned in relation to total assets under management and fund
    performance.

 
In addition, expenses related to compensation arrangements based on
fund investment performance are recognized at the end of the relevant
measurement period (generally in the fourth quarter of each year), as
management determines the total amount of compensation under these
arrangements once the investment performance of the relevant fund
over the applicable performance measurement period is known. 
As a result of the adjustments described above, as well as an
adjustment to present management fees net of recurring placement and
related service fees (rather than considering these fees an expense),
management fees, incentive income, compensation and benefits,
non-compensation expenses and net income (loss) allocated to
noncontrolling interests as presented on an Economic Income basis are
also non-GAAP measures. 
Distributable Earnings 
Distributable Earnings is a non-GAAP measure of after-tax operating
performance and equals Economic Income less Adjusted Income Taxes.
Adjusted Income Taxes are estimated assuming the conversion of all
outstanding Partner Units into Class A Shares, on a one-to-one basis,
and include the impact of payments under the tax receivable
agreement. Therefore, all income (loss) of the Och-Ziff Operating
Group allocated to the Partner Units is treated as if it were
allocated to Och-Ziff Capital Management Group LLC. Partner Units
represent interests in the Och-Ziff Operating Group held by the
Company's executive managing directors and the Ziffs, including the
Group A Units and Group D Units. Distributable Earnings per Share is
equal to Distributable Earnings divided by the weighted-average
number of Adjusted Class A Shares. 
Management believes Distributable Earnings provides useful
information to investors because it uses Distributable Earnings,
among other financial information, to determine the earnings
available to distribute as dividends to holders of the Company's
Class A Shares and to the Company's executive managing directors and
the Ziffs with respect to their Partner Units. 
Forward-Looking Statements 
This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, that
reflect the Company's current views with respect to, among other
things, future events and financial performance. The Company
generally identifies forward-looking statements by terminology such
as "outlook," "believe," "expect," "potential," "continue," "may,"
"will," "should," "could," "seek," "approximately," "predict,"
"intend," "plan," "estimate," "anticipate," "opportunity,"
"comfortable," "assume," "remain," "maintain," "sustain," "achieve,"
"see," "think," "position" or the negative version of those words or
other comparable words. 
Any forward-looking statements contained in this press release are
based upon historical information and on the Company's current plans,
estimates and expectations. The inclusion of this or any other
forward-looking information should not be regarded as a
representation by the Company or any other person that the future
plans, estimates or expectations contemplated by the Company will be
achieved. The Company cautions that forward-looking statements are
subject to numerous assumptions, estimates, risks and uncertainties,
including but not limited to the following: global economic,
business, market and geopolitical conditions, including Euro- zone
sovereign debt issues; U.S. and foreign regulatory developments
relating to, among other things, financial institutions and markets,
government oversight, fiscal and tax policy; the conditions impacting
the alternative asset management industry; the Company's ability to
successfully compete for fund investors, assets, professional talent
and investment opportunities; the Company's ability to retain its
executive managing directors, managing directors and other investment
professionals; the Company's successful formulation and execution of
its business and growth strategies; the Company's ability to
appropriately manage conflicts of interest and tax and other
regulatory factors relevant to the Company's business; and
assumptions relating to the Company's operations, investment
performance, financial results, financial condition, business
prospects, growth strategy and liquidity. 
If one or more of these or other risks or uncertainties materialize,
or if the Company's assumptions or estimates prove to be incorrect,
the Company's actual results may vary materially from those indicated
in these statements. These factors are not and should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements and risks that are included in the
Company's filings with the Securities and Exchange Commission
("SEC"), including but not limited to the Company's Annual Report on
Form 10-K for the year ended December 31, 2012 filed with the SEC on
February 28, 2013. There may be additional risks, uncertainties and
factors that the Company does not currently view as material or that
are not known. The Company does not undertake to update any
forward-looking statement, because of new information, future
developments or otherwise. 
This press release does not constitute an offer of any Och-Ziff fund. 
About Och-Ziff Capital Management Group LLC 
Och-Ziff Capital Management Group LLC is one of the largest
institutional alternative asset managers in the world with offices in
New York, London, Hong Kong, Mumbai, Beijing and Dubai. Och-Ziff
provides asset management services to institutional investors
globally through its multi-strategy funds, credit funds, CLOs, real
estate funds and other alternative investment vehicles. Och-Ziff
seeks to generate consistent, positive, absolute returns across
market cycles, with low volatility compared to the broader markets,
and with an emphasis on preservation of capital. Och-Ziff's funds
invest across multiple strategies and geographies, consistent with
the investment objectives for each fund. The global investment
strategies Och-Ziff employs include convertible and derivative
arbitrage, corporate credit, long/short equity special situations,
merger arbitrage, private investments and structured credit. As of
November 1, 2013, Och-Ziff had approximately $38.5 billion in assets
under management. For more information, please visit Och-Ziff's
website (www.ozcap.com). 


 
          
                                                                  
                                  EXHIBIT 1                                 
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                    
     Consolidated Statements of Comprehensive Income (Loss) (Unaudited)     
              (dollars in thousands, except per share amounts)              
 

 
                            Three Months Ended         Nine Months Ended    
                               September 30,             September 30,      
                        ------------------------- ------------------------- 
                                                                            
                             2013         2012         2013         2012    
                        ------------ ------------ ------------ ------------ 
                                                                            
Revenues                                                                    
  Management fees       $    143,518 $    125,896 $    413,427 $    375,470 
  Incentive income            72,338        8,081      195,403       27,716 
  Other revenues                 203          291        1,386          875 
  Income of consolidated                                                    
   Och-Ziff funds             40,812       33,705      124,861       83,258 
                        ------------ ------------ ------------ ------------ 
  Total Revenues             256,871      167,973      735,077      487,319 
                        ------------ ------------ ------------ ------------ 
                                                                            
Expenses                                                                    
  Compensation and                                                          
   benefits                   68,238       44,934      188,936      127,125 
  Reorganization                                                            
   expenses                    4,022      398,503       12,064    1,195,335 
  Interest expense             1,827        1,793        5,292        4,248 
  General,                                                                  
   administrative and                                                       
   other                      36,387       30,642      115,983       91,842 
  Expenses of                                                               
   consolidated Och-Ziff                                                    
   funds                       4,296        2,268       12,158        7,319 
                        ------------ ------------ ------------ ------------ 
  Total Expenses             114,770      478,140      334,433    1,425,869 
                        ------------ ------------ ------------ ------------ 
                                                                            
Other Income                                                                
  Net gains on                                                              
   investments in Och-                                                      
   Ziff funds                                                               
  and joint ventures             531          317        1,253           29 
  Change in deferred                                                        
   income of                                                                
   consolidated Och-Ziff                                                    
   funds                     (12,942)     (16,450)     (51,242)     (38,877)
  Net gains of                                                              
   consolidated Och-Ziff                                                    
   funds                      30,733       56,286      169,750      141,562 
                        ------------ ------------ ------------ ------------ 
  Total Other Income          18,322       40,153      119,761      102,714 
                        ------------ ------------ ------------ ------------ 
                                                                            
Income (Loss) before                                                        
 Income Taxes                160,423     (270,014)     520,405     (835,836)
  Income taxes                14,786       19,127       49,803       46,022 
                        ------------ ------------ ------------ ------------ 
Consolidated Net Income                                                     
 (Loss)                      145,637     (289,141)     470,602     (881,858)
                        ------------ ------------ ------------ ------------ 
                                                                            
Other Comprehensive                                                         
 Income, Net of Tax                                                         
  Foreign currency                                                          
   translation                                                              
   adjustment                      -            -            -          229 
                        ------------ ------------ ------------ ------------ 
Total Comprehensive                                                         
 Income (Loss)          $    145,637 $   (289,141)$    470,602 $   (881,629)
                        ------------ ------------ ------------ ------------ 
                                                                            
Allocation of                                                               
 Consolidated Net Income                                                    
 (Loss)                                                                     
  Class A Shareholders  $     24,895 $   (127,509)$     55,861 $   (366,495)
  Noncontrolling                                                            
   interests                 120,742     (161,632)     414,741     (515,363)
                        ------------ ------------ ------------ ------------ 
                        $    145,637 $   (289,141)$    470,602 $   (881,858)
                        ============ ============ ============ ============ 
                                                                            
Allocation of Total                                                         
 Comprehensive Income                                                       
 (Loss)                                                                     
  Class A Shareholders  $     24,895 $   (127,509)$     55,861 $   (366,446)
  Noncontrolling                                                            
   interests                 120,742     (161,632)     414,741     (515,183)
                        ------------ ------------ ------------ ------------ 
                        $    145,637 $   (289,141)$    470,602 $   (881,629)
                        ============ ============ ============ ============ 
                                                                            
Earnings (Loss) Per                                                         
 Class A Share                                                              
  Basic                 $       0.16 $      (0.89)$       0.36 $      (2.58)
  
                      ------------ ------------ ------------ ------------ 
  Diluted               $       0.14 $      (0.89)$       0.36 $      (2.58)
                        ============ ============ ============ ============ 
                                                                            
Weighted-Average Class A                                                    
 Shares Outstanding                                                         
  Basic                  156,752,496  143,477,776  153,160,992  142,036,892 
                        ------------ ------------ ------------ ------------ 
  Diluted                475,281,312  143,477,776  156,667,500  142,036,892 
                        ============ ============ ============ ============ 
 
                                                                            
                                                                            
 

 
                                                                            
                                                                            
                                  EXHIBIT 2                                 
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                   
     Reconciliation of Non-GAAP Measures to the Respective GAAP Measures    
                                 (Unaudited)                                
              (dollars in thousands, except per share amounts)              
----------------------------------------------------------------------------
                                                                            
                                      Three Months Ended September 30, 2013 
                                     -------------------------------------- 
                                       Och-Ziff                             
                                        Funds        Other         Total    
                                       Segment     Operations     Company   
                                     ----------  ------------  ------------ 
                                                                            
Net income (loss) allocated to Class                                        
 A Shareholders -- GAAP              $   24,274  $        621  $     24,895 
Net income (loss) allocated to the                                          
 Och-Ziff Operating Group A Units        69,089             -        69,089 
Equity-based compensation                36,389             -        36,389 
Income taxes                             14,786             -        14,786 
Adjustment for expenses related to                                          
 compensation arrangements based on                                         
 fund investment performance              4,324             -         4,324 
Reorganization expenses                   4,022             -         4,022 
Depreciation and amortization             1,833           189         2,022 
Allocations to Och-Ziff Operating                                           
 Group D Units                                -             -             - 
Changes in tax receivable agreement                                         
 liability                               (1,071)            -        (1,071)
Other                                      (111)         (124)         (235)
                                     ----------  ------------  ------------ 
Economic Income -- Non-GAAP          $  153,535  $        686       154,221 
                                     ==========  ============               
Adjusted Income Taxes -- Non-GAAP(1)                                (23,957)
                                                               ------------ 
Distributable Earnings -- Non-GAAP                             $    130,264 
                                                               ============ 
                                                                            
Weighted-Average Class A Shares                                             
 Outstanding                                                    156,752,496 
Weighted-Average Partner Units                                  313,251,327 
Weighted-Average Class A Restricted                                         
 Share Units (RSUs)                                              14,410,711 
                                                               ------------ 
Weighted-Average Adjusted Class A                                           
 Shares                                                         484,414,534 
                                                               ============ 
                                                                            
Distributable Earnings Per Adjusted                                         
Class A Share -- Non-GAAP                                      $       0.27 
                                                               ============ 
                                                                            
 

 
                                         Three Months Ended September 30,   
                                                       2012                 
                                      ------------------------------------- 
                                        Och-Ziff                            
                                         Funds        Other        Total    
                                        Segment    Operations     Company   
                                      ----------  -----------  ------------ 
                                                                            
Net income (loss) allocated to Class                                        
 A Shareholders -- GAAP               $ (128,661) $     1,152  $   (127,509)
Net income (loss) allocated to the                                          
 Och-Ziff Operating Group A Units       (231,234)           -      (231,234)
Equity-based compensation                 16,200           19        16,219 
Income taxes                              19,126            1        19,127 
Adjustment for expenses related to                                          
 compensation arrangements based on                                         
 fund investment performance               3,643            -         3,643 
Reorganization expenses                  398,503            -       
398,503 
Depreciation and amortization              2,217          189         2,406 
Allocations to Och-Ziff Operating                                           
 Group D Units                             1,812            -         1,812 
Changes in tax receivable agreement                                         
 liability                                (1,519)           -        (1,519)
Other                                        (45)        (117)         (162)
                                      ----------  -----------  ------------ 
Economic Income -- Non-GAAP           $   80,042  $     1,244        81,286 
                                      ==========  ===========               
Adjusted Income Taxes -- Non-GAAP(1)                                (19,613)
                                                               ------------ 
Distributable Earnings -- Non-GAAP                             $     61,673 
                                                               ============ 
                                                                            
Weighted-Average Class A Shares                                             
 Outstanding                                                    143,477,776 
Weighted-Average Partner Units                                  302,566,624 
Weighted-Average Class A Restricted                                         
 Share Units (RSUs)                                               8,459,279 
                                                               ------------ 
Weighted-Average Adjusted Class A                                           
 Shares                                                         454,503,679 
                                                               ============ 
                                                                            
Distributable Earnings Per Adjusted                                         
Class A Share -- Non-GAAP                                      $       0.14 
                                                               ============ 

 
(1) Presents an estimate of income tax expense by assuming the
conversion of all Partner Units into Class A Shares, on a one-to-one
basis, as well as the impact of payments under the tax receivable
agreement. Therefore, all income (loss) of the Och-Ziff Operating
Group allocated to the Partner Units is treated as if it were
allocated to Och-Ziff Capital Management Group LLC. 


 
                                                                            
                                                                            
                                                                            
                                  EXHIBIT 3                                 
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                   
     Reconciliation of Non-GAAP Measures to the Respective GAAP Measures    
                                 (Unaudited)                                
              (dollars in thousands, except per share amounts)              
------------------------------
----------------------------------------------
                                                                            
                                          Nine Mon
ths Ended September 30,   
                                                        2013                
                                       -------------------------------------
                                        Och-Ziff                            
                                          Funds       Other        Total    
                                         Segment   Operations     Company   
                                       ---------- ------------ -------------
                                                                            
Net income (loss) allocated to Class A                                      
 Shareholders -- GAAP                  $  53,146  $     2,715  $     55,861 
Net income (loss) allocated to the                                          
 Och-Ziff Operating Group A Units        192,362            -       192,362 
Equity-based compensation                 99,426            -        99,426 
Income taxes                              49,803            -        49,803 
Reorganization expenses                   12,064            -        12,064 
Adjustment for expenses related to                                          
 compensation arrangements based on                                         
 fund investment performance               7,603            -         7,603 
Depreciation and amortization              5,784          560         6,344 
Allocations to Och-Ziff Operating                                           
 Group D Units                             5,590            -         5,590 
Changes in tax receivable agreement                                         
 liability                                (1,054)           -        (1,054)
Other                                       (263)        (788)       (1,051)
                                       ---------  -----------  ------------ 
Economic Income -- Non-GAAP            $ 424,461  $     2,487       426,948 
                                       =========  ===========               
Adjusted Income Taxes -- Non-GAAP(1)                                (82,291)
                                                               ------------ 
Distributable Earnings -- Non-GAAP                             $    344,657 
                                                               ============ 
                                                                            
Weighted-Average Class A Shares                                             
 Outstanding                                                    153,160,992 
Weighted-Average Partner Units                                  314,731,925 
Weighted-Average Class A Restricted                                         
 Share Units (RSUs)                                              13,087,356 
                                                               ------------ 
Weighted-Average Adjusted Class A                                           
 Shares                                                         480,980,273 
                                                               ============ 
                                                                            
Distributable Earnings Per Adjusted                                         
Class A Share -- Non-GAAP                                      $       0.72 
                                                               ============ 
                                                                            
 

 
                                       Nine Months Ended September 30, 2012 
                                      ------------------------------------- 
                                        Och-Ziff                            
                                         Funds                              
                                        Segment       Other        Total    
                                                   Operations     Company   
                                      ----------- -----------  ------------ 
                                                                            
Net income (loss) allocated to Class                                        
 A Shareholders -- GAAP               $ (368,727) $     2,232  $   (366,495)
Net income (loss) allocated to the                                          
 Och-Ziff Operating Group A Units       (689,883)           -      (689,883)
Equity-based compensation                 50,236           58        50,294 
Income taxes                              46,013            9        46,022 
Reorganization expenses                1,195,335            -     1,195,335 
Adjustment for expenses related to                                          
 compensation arrangements based on                                         
 fund investment performance               6,608            -         6,608 
Depreciation and amortization              6,523          562         7,085 
Allocations to Och-Ziff Operating                                           
 Group D
 Units                             4,244            -         4,244 
Changes in tax receivable agreement                                         
 liability                                (1,570)           -        (1,570)
Other                                        (88)        (397)         (485)
                                      ----------  -----------  ------------ 
Economic Income -- Non-GAAP           $  248,691  $     2,464       251,155 
                                      ==========  ===========               
Adjusted Income Taxes -- Non-GAAP(1)                                (65,023)
                                                               ------------ 
Distributable Earnings -- Non-GAAP                             $    186,132 
                                                               ============ 
                                                                            
Weighted-Average Class A Shares                                             
 Outstanding                                                    142,036,892 
Weighted-Average Partner Units                                  303,819,425 
Weighted-Average Class A Restricted                                         
 Share Units (RSUs)                                               8,176,044 
                                                               ------------ 
Weighted-Average Adjusted Class A                                           
 Shares                                                         454,032,361 
                                                               ============ 
                                                                            
Distributable Earnings Per Adjusted                                         
Class A Share -- Non-GAAP                                      $       0.41 
                                                               ============ 

 
(1) Presents an esti
mate of income tax expense by assuming the
conversion of all Partner Units into Class A Shares, on a one-to-one
basis, as well as the impact of payments under the tax receivable
agreement. Therefore, all income (loss) of the Och-Ziff Operating
Group allocated to the Partner Units is treated as if it were
allocated to Och-Ziff Capital Management Group LLC. 


 
                                                                            
                                                                            
                                                                            
                                  EXHIBIT 4                                 
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                   
 Components of Economic Income and Reconciliation of These Non-GAAP Measures
                 to the Respective GAAP Measures (Unaudited)                
                           (dollars in thousands)                           
----------------------------------------------------------------------------
                                                                            
                                           Three Months Ended September 30, 
                                                         2013               
                                          ----------------------------------
                                             Och-             
              
                                             Ziff                           
                                            Funds       Other        Total  
                                           Segment    Operations    Company 
                                          --------- ------------- ----------
                                                                            
Management fees -- GAAP                   $140,833  $      2,685  $ 143,518 
Adjustment to management fees(1)            (5,347)            -     (5,347)
                                          --------  ------------  --------- 
Management Fees -- Economic Income Basis                                    
 -- Non-GAAP                               135,486         2,685    138,171 
                                          --------  ------------  --------- 
Incentive income(2)                         72,338             -     72,338 
Other revenues(2)                              197             6        203 
                                          --------  ------------  --------- 
Total Revenues -- Economic Income Basis                                     
 -- Non-GAAP                              $208,021  $      2,691  $ 210,712 
                                          ========  ============  ========= 
                                                                            
Compensation and benefits -- GAAP         $ 67,133  $      1,105  $  68,238 
Adjustment to compensation and                                              
 benefits(3)                               (40,713)            -    (40,713)
                                          --------  ------------  --------- 
Compensation and Benefits -- Economic                                       
 Income Basis -- Non-GAAP                 $ 26,420  $      1,105  $  27,525 
                                          ========  ============  ========= 
                                                                            
Interest expense and general,                                               
 administrative and other expenses --                                       
 GAAP                                     $ 37,438  $        776  $  38,214 
Adjustment to interest expense and                                          
 general, administrative and other                                          
 expenses(4)                                (8,953)         (190)    (9,143)
                                          --------  ------------  --------- 
Non-Compensation Expenses -- Economic                                       
 Income Basis -- Non-GAAP                 $ 28,485  $        586  $  29,071 
                                          ========  ============  ========= 
                                                                            
Net gains on investments in Och-Ziff                                        
 funds and joint ventures -- GAAP         $    531  $          -  $     531 
Adjustment to net gains on investments in                                   
 Och-Ziff funds and joint ventures(5)         (111)            -       (111)
                                          --------  ------------  --------- 
Net Gains on Joint Ventures -- GAAP(6)    $    420  $          -  $     420 
                                          ========  ============  ========= 
                                                                            
Net income (loss) allocated to                                              
 noncontrolling interests -- GAAP         $ 89,369  $     31,373  $ 120,742 
Adjustment to net income (loss) allocated                                   
 to noncontrolling interests(7)            (89,368)      (31,059)  (120,427)
                                          --------  ------------  --------- 
Net Income (Loss) Allocated to                                              
 Noncontrolling Interests -- Economic                                       
 Income Basis -- Non-GAAP                 $      1  $        314  $     315 
                                          ========  ============  ========= 
                                                                            
 

 
                        
                   Three Months Ended September 30, 
                                                         2012               
                                          ----------------------------------
                                           Och-Ziff                         
                                             Funds       Other       Total  
                                            Segment   Operations    Company 
                                          ---------- ------------ ----------
                                                                            
Management fees -- GAAP                   $ 122,973  $     2,923  $ 125,896 
Adjustment to management fees(1)             (3,886)           -     (3,886)
                                          ---------  -----------  --------- 
Management Fees -- Economic Income Basis                                    
 -- Non-GAAP                                119,087        2,923    122,010 
                                          ---------  -----------  --------- 
Incentive income(2)                           8,081            -      8,081 
Other revenues(2)                               289            2        291 
                                          ---------  -----------  --------- 
Total Revenues -- Economic Income Basis                                     
 -- Non-GAAP                              $ 127,457  $     2,925  $ 130,382 
                                          =========  ===========  ========= 
                                                                            
Compensation and benefits -- GAAP         $  43,976  $       958  $  44,934 
Adjustment to compensation and                                              
 benefits(3)                                (21,654)         (19)   (21,673)
                                          ---------  -----------  --------- 
Compensation and Benefits -- Economic                                       
 Income Basis -- Non-GAAP                 $  22,322  $       939  $  23,261 
                                          =========  ===========  ========= 
                                                                            
Interest expense and general,                                               
 administrative and other expenses --                                       
 GAAP                                     $  32,006  $       429  $  32,435 
Adjustment to interest expense and                                          
 general, administrative and other                                          
 expenses(4)                                 (6,654)        (189)    (6,843)
                                          ---------  -----------  --------- 
Non-Compensation Expenses -- Economic                                       
 Income Basis -- Non-GAAP                 $  25,352  $       240  $  25,592 
                                          =========  ===========  ========= 
                                                                            
Net gains on investments in Och-Ziff                                        
 funds and joint ventures -- GAAP         $     317  $         -  $     317 
Adjustment to net gains on investments in                                   
 Och-Ziff funds and joint ventures(5)           (59)           -        (59)
                
                          ---------  -----------  --------- 
Net Gains on Joint Ventures -- GAAP(6)    $     258  $         -  $     258 
                                          =========  ===========  ========= 
                                                                            
Net income (loss) allocated to                                              
 noncontrolling interests -- GAAP         $(187,039) $    25,407  $(161,632)
Adjustment to net income (loss) allocated                                   
 to noncontrolling interests(7)             187,038      (24,905)   162,133 
                                          ---------  -----------  --------- 
Net Income (Loss) Allocated to                                              
 Noncontrolling Interests -- Economic                                       
 Income Basis -- Non-GAAP                 $      (1) $       502  $     501 
                                          =========  ===========  ========= 

 
(1) Adjustment to present management fees net of recurring placement
and related service fees, as management considers these fees a
reduction in management fees, not an expense. The impact of
eliminations related to the consolidated Och-Ziff funds is also
removed. 
(2) These items are presented on a GAAP basis, accordingly no
adjustment to or reconciliation of these items are presented. 
(3) Adjustment to exclude equity-based compensation, as management
does not consider these non-cash expenses to be reflective of the
operating performance of the Company. Further, expenses related to
compensation arrangements based on fund investment performance are
recognized at the end of the relevant performance measurement period
(generally in the fourth quarter of each year), as management
determines the total amount of compensation under these arrangements
once the investment performance of the relevant fund over the
applicable performance measurement period is known. Allocations to
the Och-Ziff Operating Group D Units are also excluded, as management
reviews operating performance at the Och-Ziff Operating Group level,
where substantially all of the Company's operations are performed,
prior to making any income allocations. 
(4) Adjustment to exclude depreciation, amortization and changes in
the tax receivable agreement liability, as management does not
consider these items to be reflective of the operating performance of
the Company. Additionally, recurring placement and related service
fees are excluded, as management considers these fees a reduction in
management fees, not an expense. 
(5) Adjustment to exclude net gains on investments in Och-Ziff funds,
as management does not consider these gains to be reflective of the
operating performance of the Company. 
(6) Represents the net gains (losses) on joint ventures established
to expand certain of the Company's private investments platforms. 
(7) Adjustment to exclude amounts allocated to the executive managing
directors and the Ziffs on their interests in the Och-Ziff Operating
Group, as management reviews the operating performance of the Company
at the Och-Ziff Operating Group level. The Company conducts
substantially all of its activities through the Och-Ziff Operating
Group. Additionally, the impact of the consolidated Och-Ziff funds,
including the allocation of earnings (losses) to investors in those
funds, is also removed. 


 
                                                                            
                                  EXHIBIT 5                                 
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                   
 Components of Economic Income and Reconciliation of These Non-GAAP Measures
                 to the Respective GAAP Measures (Unaudited)                
                           (dollars in thousands)                           
----------------------------------------------------------------------------
                                                                            
                                            Nine Months Ended September 30, 
                                                         2013               
                                          ----------------------------------
                                           Och-Ziff                         
                                             Funds       Other       Total  
                                            Segment   Operations    Company 
                                          ---------- ------------ ----------
                                                                            
Management fees -- GAAP                   $ 405,202  $     8,225  $ 413,427 
Adjustment to management fees(1)            (14,003)           -    (14,003)
                                          ---------  -----------  --------- 
Management Fees -- Economic Income Basis                                    
 -- Non-GAAP                                391,199        8,225    399,424 
                                          ---------  -----------  --------- 
Incentive income -- GAAP                    195,403            -    195,403 
Adjustment to incentive income(2)             1,114            -      1,114 
                                          ---------  -----------  --------- 
Incentive Income -- Economic Income Basis                                   
 -- Non-GAAP                                196,517            -    196,517 
                                          ---------  -----------  --------- 
Other revenues(3)                             1,373           13      1,386 
                                          ---------  -----------  --------- 
Total Revenues -- Economic Income Basis                                     
 -- Non-GAAP                              $ 589,089  $     8,238  $ 597,327 
                                          =========  ===========  ========= 
                                                                            
Compensation and benefits -- GAAP         $ 185,685  $     3,251  $ 188,936 
Adjustment to compensation and                                              
 benefits(4)                               (112,619)           -   (112,619)
                                          ---------  -----------  --------- 
Compensation and Benefits -- Economic                                       
 Income Basis -- Non-GAAP                 $  73,066  $     3,251  $  76,317 
                                          ---------  -----------  --------- 
                                                                            
Interest expense and general,                                               
 administrative and other expenses-GAAP   $ 119,318  $     1,957  $ 121,275 
Adjustment to interest expense and                                          
 general, administrative and other                                          
 expenses(5)                                (26,789)        (560)   (27,349)
                                          ---------  -----------  --------- 
Non-Compensation Expenses -- Economic                                       
 Income Basis -- Non-GAAP                 $  92,529  $     1,397  $  93,926 
                                          =========  ===========  ========= 
                                                                            
Net gains (losses) on investments in Och-                                   
 Ziff funds and joint ventures -- GAAP    $   1,253  $         -  $   1,253 
Adjustment to net gains (losses) on                                         
 investments in Och-Ziff funds and joint                                    
 ventures(6)                                   (293)           -       (293)
                                          ---------  -----------  --------- 
Net Gains (Losses) on Joint Ventures --                                     
 GAAP(7)                                
  $     960  $         -  $     960 
                                          =========  ===========  ========= 
                                                                            
Net income (loss) allocated to                                              
 noncontrolling interests -- GAAP         $ 274,043  $   140,698  $ 414,741 
Adjustment to net income (loss) allocated                                   
 to noncontrolling interests(8)            (274,050)    (139,595)  (413,645)
                                          ---------  -----------  --------- 
Net Income (Loss) Allocated to                                              
 Noncontrolling Interests -- Economic                                       
 Income Basis -- Non-GAAP                 $      (7) $     1,103  $   1,096 
                                          =========  ===========  ========= 
                                                                            
 

 
                                            Nine Months Ended September 30, 
                                                         2012               
                                          ----------------------------------
                                           Och-Ziff                         
                                             Funds       Other       Total  
                                            Segment   Operations    Company 
                                          ---------- ------------ ----------
                                                                            
Management fees -- GAAP                   $ 367,801  $     7,669  $ 375,470 
Adjustment to management fees(1)            (12,359)           -    (12,359)
                                          ---------  -----------  --------- 
Management Fees -- Economic Income Basis                                    
 -- Non-GAAP                                355,442        7,669    363,111 
                                          ---------  -----------  --------- 
Incentive income -- GAAP                     27,716            -     27,716 
Adjustment to incentive income(2)                 -            -          - 
                                          ---------  -----------  --------- 
Incentive Income -- Economic Income Basis                                   
 -- Non-GAAP                                 27,716            -     27,716 
                                          ---------  -----------  --------- 
Other revenues(3)                               770          105        875 
                                          ---------  -----------  --------- 
Total Revenues -- Economic Income Basis                                     
 -- Non-GAAP                              $ 383,928  $     7,774  $ 391,702 
                                          =========  ===========  ========= 
                                                                            
Compensation and benefits -- GAAP         $ 124,211  $     2,914  $ 127,125 
Adjustment to compensation and                                              
 benefits(4)                                (61,088)         (58)   (61,146)
                                          ---------  -----------  --------- 
Compensation and Benefits -- Economic                                       
 Income Basis -- Non-GAAP                 $  63,123  $     2,856  $  65,979 
                                          ---------  -----------  --------- 
                                                                            
Interest expense and general,                                               
 administrative and other expenses-GAAP   $  94,362  $     1,728  $  96,090 
Adjustment to interest expense and                                          
 general, administrative and other                                          
 expenses(5)                                (22,210)        (562)   (22,772)
                                          ---------  -----------  --------- 
Non-Compensation Expenses -- Economic                                       
 Income Basis -- Non-GAAP                 $  72,152  $     1,166  $  73,318 
                                          =========  ===========  ========= 
                                                                            
Net gains (losses) on investments in Och-                                   
 Ziff funds and joint ventures -- GAAP    $     140  $      (111) $      29 
Adjustment to net gains (losses) on                                         
 investments in Och-Ziff funds and joint                                    
 ventures(6)                                   (103)           -       (103)
                                          ---------  -----------  --------- 
Net Gains (Losses) on Joint Ventures --                                     
 GAAP(7)                                  $      37  $      (111) $     (74)
                                          =========  ===========  ========= 
                                                                            
Net income (loss) allocated to                                              
 noncontrolling interests -- GAAP         $(610,998) $    95,635  $(515,363)
Adjustment to net income (loss) allocated                                   
 to noncontrolling interests(8)             610,997      (94,458)   516,539 
                                          ---------  -----------  --------- 
Net Income (Loss) Allocated to                                              
 Noncontrolling Interests -- Economic                                       
 Income Basis -- Non-GAAP                 $      (1) $     1,177  $   1,176 
                                          =========  ===========  ========= 

 
(1) Adjustment to present management fees net of recurring placement
and related service fees, as management considers these fees a
reduction in management fees, not an expense. The impact of
eliminations related to the consolidated Och-Ziff funds is also
removed. 
(2) Adjustment to exclude the impact of eliminations related to the
consolidated Och-Ziff funds. 
(3) These items are presented on a GAAP basis, accordingly no
adjustment to or reconciliation of these items are presented. 
(4) Adjustment to exclude equity-based compensation, as management
does not consider these non-cash expenses to be reflective of the
operating performance of the Company. Further, expenses related to
compensation arrangements based on fund investment performance are
recognized at the end of the relevant performance measurement period
(generally in the fourth quarter of each year), as management
determines the total amount of compensation under these arrangements
once the investment performance of the relevant fund over the
applicable performance measurement period is known. Allocations to
the Och-Ziff Operating Group D Units are also excluded, as management
reviews operating performance at the Och-Ziff Operating Group level,
where substantially all of the Company's operations are performed,
prior to making any income allocations. 
(5) Adjustment to exclude depreciation, amortization and changes in
the tax receivable agreement liability, as management does not
consider these items to be reflective of the operating performance of
the Company. Additionally, recurring placement and related service
fees are excluded, as management considers these fees a reduction in
management fees, not an expense. 
(6) Adjustment to exclude net gains (losses) on investments in
Och-Ziff funds, as management does not consider these gains (losses)
to be reflective of the operating performance of the Company. 
(7) Represents the net gains (losses) on joint ventures established
to expand certain of the Company's private investments platforms. 
(8) Adjustment to exclude amounts allocated to the executive managing
directors and the Ziffs on their interests in the Och-Ziff Operating
Group, as management reviews the operating performance of the Company
at the Och-Ziff Operating Group level. The Company conducts
substantially all of its activities through the Och-Ziff Operating
Group. Additionally, the impact of the consolidated Och-Ziff funds,
including the allocation of earnings (losses) to investors in those
funds, is also removed. 


 
                                                                            
                                 EXHIBIT 6                                  
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                    
                      Financial Supplement (Unaudited)                      
                           (dollars in millions)                            
--------------------------------------------------------------------------- 
                        Three       Nine                                    
                        Months     Months                                   
                   
     Ended      Ended                                    
                      September  September                                  
                         30,        30,         Year Ended December 31,     
                      ---------  ---------  --------------------------------
                                                                            
                         2013       2013       2012       2011       2010   
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Total Assets Under                                                          
 Management(1)                                                              
  Beginning of period                                                       
   balance            $  36,567  $  32,604  $  28,766  $  27,935  $  23,080 
  Net flows                 161      2,147        480      1,116      2,693 
  Appreciation                                                              
   (depreciation)(2)      1,080      3,057      3,358       (285)     2,162 
                      ---------  ---------  ---------  ---------  --------- 
  End of Period                                                             
   Balance            $  37,808  $  37,808  $  32,604  $  28,766  $  27,935 
                      =========  =========  =========  =========  ========= 
                                                                            
Assets Under                                                                
 Management by                                                              
 Fund(1)                                                                    
  OZ Master Fund                 $  23,495  $  21,780  $  20,198  $  19,625 
  OZ Europe Master                                                          
   Fund                              1,504      1,961      2,272      2,958 
  OZ Asia Master Fund                1,275      1,394      1,620      1,535 
                                                                            
Net Returns(3)                                                              
  OZ Master Fund            3.1%       9.7%      11.6%      -0.5%       8.5%
  OZ Europe Master                                                          
   Fund                     2.8%       7.8%       8.6%      -4.9%       7.5%
  OZ Asia Master Fund       1.3%      10.0%       7.0%      -3.8%       9.9%

 
Past performance is no indication or guarantee of future results. 
(1) Includes amounts invested by the Company, its executive managing
directors, employees and certain other related parties for which the
Company charged no management fees and received no incentive income
for the periods presented. Amounts presented in this table are not
the amounts used to calculate management fees and incentive income
for the respective periods. 
(2) Appreciation (depreciation) reflects the aggregate net capital
appreciation (depreciation) for the entire period and is presented on
a total return basis, net of all fees and expenses (except incentive
income on unrealized gains attributable to investments that the
Company, as investment manager, determines lack a readily
ascertainable fair value, are illiquid or otherwise should be held
until the resolution of a special event or circumstance ("Special
Investments") that could reduce returns on these investments at the
time of realization), and includes the reinvestment of all dividends
and other income. Management fees and incentive income vary by
product. 
(3) Net return represents a composite of the average return of the
feeder funds that comprise each of the master funds presented. Net
return is presented on a total return basis, net of all fees and
expenses (except incentive income on Special Investments that could
reduce returns on these investments at the time of realization), and
includes the reinvestment of all dividends and other income.
Performance includes realized and unrealized gains and losses
attributable to Special Investments and initial public offering
investments that are not allocated to all investors in the feeder
funds. Investors that were not allocated Special Investments and/or
initial public offering investments may experience materially
different returns. 


 
                                                                            
                                 EXHIBIT 7                                  
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                    
           Fund Performance of Certain Och-Ziff Funds (Unaudited)           
--------------------------------------------------------------------------- 
                                                                            
                                                        2013                
                                       -------------------------------------
                                        January  February   March      1Q   
                                        -------  --------  -------  ------- 
Net Returns(1)                                                              
  OZ Master Fund                           2.37%     0.41%    1.18%    4.00%
  OZ Europe Master Fund                    3.41%     0.29%    0.14%    3.86%
  OZ Asia Master Fund                      3.64%     0.31%    1.56%    5.58%
  S&P 500 Index(2)                         5.18%     1.36%    3.75%   10.61%
  MSCI World Index(2)                      5.40%     1.53%    2.73%    9.93%
                                                                            
 

 
                                                      2013                  
                                    ----------------------------------------
                                       April      May       June       2Q   
                                     --------- --------- --------- ---------
Net Returns(1)                                                              
  OZ Master Fund                         1.78%     1.28%    -0.69%     2.37%
  OZ Europe Master Fund                 -0.45%     1.51%    -0.01%     1.04%
  OZ Asia Master Fund                    4.68%    -0.93%    -0.90%     2.77%
  S&P 500 Index(2)                       1.93%     2.34%    -1.33%     2.92%
  MSCI World Index(2)                    2.86%     1.53%    -2.38%     1.94%
                                                                            
 

 
                                                    2013                    
 
                           -------------------------------------------------
                             July   August  September    3Q      YTD Sept.  
                            ------  ------  ---------  -----   ------------ 
Net Returns(1)                                                              
  OZ Master Fund              1.07%   0.07%      1.91%  3.07%          9.74%
  OZ Europe Master Fund       1.67%  -0.45%      1.53%  2.76%          7.84%
  OZ Asia Master Fund        -0.51%   0.31%      1.54%  1.34%          9.96%
  S&P 500 Index(2)            5.09%  -2.90%      3.14%  5.24%         19.79%
  MSCI World Index(2)         4.76%  -2.02%      3.77%  6.52%         19.37%
                                                                            
 

 
                                                       2012                 
                                     ---------------------------------------
                                      January   February   March    April   
                                     --------  ---------  -------  -------  
Net Returns(1)                                                              
  OZ Master Fund                         1.59%      1.64%    1.38%    0.40% 
  OZ Europe Master Fund                  1.82%      1.99%    0.97%   -0.02% 
  OZ Asia Master Fund              
      2.64%      2.26%    0.91%   -0.74% 
  S&P 500 Index(2)                       4.48%      4.32%    3.29%   -0.63% 
  MSCI World Index(2)                    4.36%      4.78%    1.82%   -1.46% 
                                                                            
 

 
                                                       2012                 
                                     ---------------------------------------
                                        May      June      July     August  
                                     --------  --------  --------  -------- 
Net Returns(1)                                                              
  OZ Master Fund                        -0.44%     0.23%     0.78%     1.27%
  OZ Europe Master Fund                 -1.81%     0.43%     0.49%     0.75%
  OZ Asia Master Fund                   -2.22%    -0.50%     0.45%     0.37%
  S&P 500 Index(2)                      -6.01%     4.12%     1.39%     2.25%
  MSCI World Index(2)                   -6.67%     4.33%     1.37%     2.05%
 

 
                                                                            
                                                  2012                      
                             ---------------------------------------------- 
                             September  October  November  December  FY2012 
                             ---------  -------  --
------  --------  ------ 
Net Returns(1)                                                              
  OZ Master Fund                  1.43%    0.86%     0.54%     1.33%  11.56%
  OZ Europe Master Fund           1.69%    0.91%     0.71%     0.36%   8.55%
  OZ Asia Master Fund             1.07%   -0.80%     1.05%     2.42%   7.01%
  S&P 500 Index(2)                2.58%   -1.85%     0.58%     0.91%  16.00%
  MSCI World Index(2)             2.19%   -0.43%     1.52%     1.97%  16.42%

 
Past performance is no indication or guarantee of future results. 
(1) Net return represents a composite of the average return of the
feeder funds that comprise each of the master funds presented. Net
return is presented on a total return basis, net of all fees and
expenses (except incentive income on unrealized gains attributable to
investments that the Company, as investment manager, determines lack
a readily ascertainable fair value, are illiquid or otherwise should
be held until the resolution of a special event or circumstance
("Special Investments") that could reduce returns on these
investments at the time of realization), and includes the
reinvestment of all dividends and other income. Performance includes
realized and unrealized gains and losses attributable to Special
Investments and initial public offering investments that are not
allocated to all investors in the feeder funds. Investors that were
not allocated Special Investments and/or initial public offering
investments may experience materially different returns. 
(2) This comparison shows the returns of the S&P 500 Index (SPTR) and
the MSCI World Index (GDDLWI) ("Broader Market Indices") against
certain Och-Ziff funds (the "funds"). This comparison is intended
solely for illustrative purposes to show a historical comparison of
the funds to the broader equity markets, as represented by the
Broader Market Indices, and should not be considered as an indication
of how the funds will perform relative to the Broader Market Indices
in the future. The Broader Market Indices are not performance
benchmarks of the funds. The funds are not managed to correlate in
any way with the returns or composition of the Broader Market
Indices, which are unmanaged. It is not possible to invest in an
unmanaged index. You should not assume that there is any material
overlap between the securities in the funds and those that comprise
the Broader Market Indices. The S&P 500 Index is an equity index
whose value is calculated as the free-float weighted average of the
share prices of the 500 large-cap companies listed on the NYSE and
NASDAQ. The MSCI World Index is a free-float adjusted market
capitalization weighted index that is designed to measure the equity
market performance of developed markets. Returns of the Broader
Market Indices have not been reduced by fees and expenses associated
with investing in securities and include the reinvestment of
dividends. 


 
                                                                            
                                  EXHIBIT 8                                 
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC                    
                      Financial Supplement (Unaudited)                      
                            As of October 1, 2013                           
                                                                            
OZ Master Fund by Investment Strategy                                       
  Long/Short Equity Special Situations                                   55%
  Structured Credit                                                      22%
  Corporate Credit                                                       10%
  Convertible and Derivative Arbitrage                                    8%
  Private Investments                                                     3%
  Merger Arbitrage                                                        2%
  Cash                                                                    0%
                                                                            
Assets Under Management by Geography(2)                                     
  North America                                                          65%
  Europe                                                                 23%
  Asia                                                                   12%
                                                                            
Investors by Type(1)                                                        
  Pensions                                                               32%
  Fund-of-Funds                                                          14%
  Private Banks                                                          14%
  Corporate, Institutional and Other                                     13%
  Foundations and Endowments                                             12%
  Related Parties                                                         8%
  Family Offices and Individuals                                          7%
                                                                            
Investors by Geography(1)                                                   
  North America                                                          73%
  Europe                                                                 16%
  Asia and Other                                                         11%

 
(1) Presents the composition of the Company's fund investor base
across its funds excluding investors in its CLOs. 
(2) The North American exposure includes the United States, Canada,
Central America and South America. The European exposure includes
Africa and the Middle East. The Asian exposure includes Australia and
New Zealand. 
Investor Relations Contact:
Tina Madon 
Managing Director 
Head of Investor Relations
Och-Ziff Capital Management Group LLC 
+1-212-719-7381 
tina.madon@ozcap.com 
Media Relations Contact:
George Sard or Jonathan Gasthalter 
Sard Verbinnen & Co 
+1-212-687-8080