Hedge Fund Seeks To Raise $2B With IPO
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Och-Ziff Capital Management Group LLC, the investment firm run by former Goldman Sachs Group Inc. trader Daniel Och, filed to raise $2 billion in the largest initial public offering by a American hedge-fund firm.
Mr. Och, 46, and the firm’s other 17 partners will reinvest proceeds from the IPO in the New York-based firm’s funds for five years, according to a regulatory filing yesterday. The firm also will borrow $750 million that will be paid to Mr. Och and other owners before the IPO.
The company, founded in 1994 with money from the Ziff media empire, follows Fortress Investment Group LLC and Blackstone Group LP, which manage buyout and hedge funds, in seeking to raise capital and pay off existing owners by issuing shares. Its earnings more than doubled to $588 million in 2006 while client assets have surged 42% a year to $26.8 billion since the end of 2002.
“Och-Ziff is one of the best names in the market, and the reinvestment provision is a great sign of commitment from the managers toward their own product,” the chief executive officer of Parisbased investment adviser Darius Capital Partners, Mathieu Klein, said yesterday in an interview.
