EX-99.1 2 ozm-8xkdebtfinancialsxex99.htm EXHIBIT 99.1 Exhibit


Unaudited Reconciliation of Financial Data
The following tables present the historical unaudited financial information for the Credit Parties and their consolidated subsidiaries (the “Oz Operating Group”) as of and for the nine months ended September 30, 2017. The Oz Operating Group does not report audited or unaudited financial information on a stand-alone basis. Accordingly, the financial data presented herein for the Oz Operating Group has been reconciled to Och-Ziff Capital Management Group LLC’s financial statements for the relevant periods. You should read this data in conjunction with Och-Ziff Capital Management Group LLC’s financial statements and the related notes included in its Quarterly Report on Form 10-Q for the nine months ended September 30, 2017, which was filed with the U.S. Securities and Exchange Commission on November 2, 2017.
 
September 30, 2017
 
Oz Operating Group
 
Consolidated Funds and Related Eliminations
 
Other(1)
 
Och-Ziff Capital Management Group LLC Consolidated
 
 
 
 
 
 
 
 
 
(dollars in thousands)
Assets
 

 
 
 
 
 
 
Cash and cash equivalents
$
315,879

 
$
—

 
$
2,038

 
$
317,917

Investments
324,031

 
(19,383
)
 
—

 
304,648

Income and fees receivable
77,847

 
—

 
—

 
77,847

Due from related parties
71,905

 
—

 
(49,103
)
 
22,802

Deferred income tax assets
2,168

 
—

 
680,984

 
683,152

Other assets, net
83,411

 
—

 
106

 
83,517

Assets of consolidated funds:
 
 
 
 
 
 
 

Investments of consolidated funds, at fair value
—

 
41,074

 
—

 
41,074

Other assets of consolidated funds
—

 
12,416

 
—

 
12,416

Total Assets
$
875,241

 
$
34,107

 
$
634,025

 
$
1,543,373

 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Due to related parties
$
1,117

 
$
—

 
$
520,831

 
$
521,948

Debt obligations
541,016

 
—

 
—

 
541,016

Compensation payable
53,143

 
—

 
—

 
53,143

Other liabilities
179,956

 
—

 
487

 
180,443

Liabilities of consolidated funds:
 
 
 
 
 
 
 

Other liabilities of consolidated funds
—

 
8,965

 
—

 
8,965

Total Liabilities
775,232

 
8,965

 
521,318

 
1,305,515

 
 
 
 
 
 
 
 
Redeemable Noncontrolling Interests
420,000

 
25,142

 
—

 
445,142

 
 
 
 
 
 
 
 
Shareholders' (Deficit) Equity
 
 
 
 
 
 
 
Class A Shares, no par value
—

 
—

 
—

 
—

Class B Shares, no par value
—

 
—

 
—

 
—

Paid-in capital
12,740,515

 
—

 
(9,653,268
)
 
3,087,247

Accumulated deficit
(13,064,597
)
 
—

 
9,505,964

 
(3,558,633
)
Shareholders' deficit attributable to Class A Shareholders
(324,082
)
 
—

 
(147,304
)
 
(471,386
)
Shareholders' equity attributable to noncontrolling interests
4,091

 
—

 
260,011

 
264,102

Total Shareholders' (Deficit) Equity
(319,991
)
 
—

 
112,707

 
(207,284
)
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' (Deficit) Equity
$
875,241

 
$
34,107

 
$
634,025

 
$
1,543,373

(1)
Includes amounts related to entities not included in the Oz Operating Group or the consolidated funds, including related eliminations.




 
Nine Months Ended September 30, 2017
 
Oz Operating Group
 
Consolidated
Funds
and Related
Eliminations
 
Other(1)
 
Och-Ziff Capital Management Group LLC Consolidated
 
 
 
 
 
 
 
 
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
Management fees
$
243,510

 
$
(2
)
 
$
—

 
$
243,508

Incentive income
168,990

 
—

 
—

 
168,990

Other revenues
4,271

 
(190
)
 
—

 
4,081

Income of consolidated funds
—

 
3,518

 
—

 
3,518

Total Revenues
416,771

 
3,326

 
—

 
420,097

 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
Compensation and benefits
214,112

 
—

 
—

 
214,112

Interest expense
17,043

 
—

 
—

 
17,043

General, administrative and other
114,229

 
—

 
—

 
114,229

Expenses of consolidated funds
—

 
9,368

 
—

 
9,368

Total Expenses
345,384

 
9,368

 
—

 
354,752

 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
Changes in tax receivable agreement liability
—

 
—

 
—

 
—

Net gains on investments in funds and joint ventures
2,048

 
(998
)
 
—

 
1,050

Net gains of consolidated funds
—

 
8,278

 
—

 
8,278

Total Other Income
2,048

 
7,280

 
—

 
9,328

 
 
 
 
 
 
 
 
Income (Loss) Before Income Taxes
73,435

 
1,238

 
—

 
74,673

Income taxes
3,269

 
—

 
13,973

 
17,242

Consolidated and Total Comprehensive Net Income (Loss)
70,166

 
1,238

 
(13,973
)
 
57,431

Less: Income attributable to noncontrolling interests
(535
)
 
—

 
(41,145
)
 
(41,680
)
Less: Income attributable to redeemable noncontrolling interests
—

 
(1,238
)
 
—

 
(1,238
)
Net Income (Loss) Attributable to Och-Ziff Capital Management Group LLC
69,631

 
—

 
(55,118
)
 
14,513

Less: Change in redemption value of Preferred Units
(7,446
)
 
—

 
4,593

 
(2,853
)
Net Income (Loss) Attributable to Class A Shareholders
$
62,185

 
$
—

 
$
(50,525
)
 
$
11,660

(1)
Includes amounts related to entities not included in the Oz Operating Group or the consolidated funds, including related eliminations.