Och-Ziff Capital Management Group

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Och-Ziff Capital Management Group LLC Reports 2010 Second Quarter Results
2010 Second Quarter Dividend of $0.11 per Class A Share

NEW YORK, Aug 03, 2010 /PRNewswire via COMTEX/ --

Och-Ziff Capital Management Group LLC (NYSE: OZM) (the "Company" or "Och-Ziff") today reported a GAAP Net Loss(1) of $89.4 million, or $1.05 per basic and diluted Class A Share, for the second quarter ended June 30, 2010. The Company also declared a $0.11 per share 2010 second quarter cash dividend on its Class A Shares.

Summary Highlights

  • Distributable Earnings of $57.0 million, or $0.14 per Adjusted Class A Share, for the 2010 second quarter compared to $12.6 million, or $0.03 per Adjusted Class A Share, for the 2009 second quarter
  • Assets under management of $25.3 billion as of July 1, 2010, unchanged from April 1, 2010 and up from $20.7 billion as of July 1, 2009
  • Estimated assets under management of $25.9 billion on August 1, 2010, reflecting year-to-date capital net inflows of $2.2 billion and performance-related appreciation of $600 million
  • Year-to-date estimated net returns through July 31, 2010 of the OZ Master Fund of 2.8%, the OZ Europe Master Fund of 2.6%, the OZ Asia Master Fund of 3.6% and the OZ Global Special Investments Master Fund of 5.0%

"The value of our investment process, our multi-strategy model and our international capabilities was again readily apparent as we generated strong risk-adjusted returns for our fund investors during the second quarter and in July," said Daniel Och, Chairman and Chief Executive Officer of Och-Ziff. "Our performance demonstrates the benefits of our active risk management process, investment portfolio diversity and consistently low use of leverage.

"We remain confident that the long-term, secular growth drivers of assets under management remain intact for the hedge fund industry. Despite recent market volatility, we believe the capital allocation cycle is underway and confidence among institutional investors in this sector remains strong. We believe that our investment track record and the institutional structure of our business continue to differentiate us in the marketplace, increasing our ability to gain market share and grow assets under management over time."

(1) References to the Company's GAAP Net Loss throughout this press release refer to the Company's GAAP net loss allocated to Class A shareholders.

GAAP NET LOSS ALLOCATED TO CLASS A SHAREHOLDERS

For the 2010 second quarter, Och-Ziff reported a GAAP Net Loss of $89.4 million, or $1.05 per basic and diluted Class A Share, compared to a GAAP Net Loss of $88.3 million, or $1.15 per basic and diluted Class A Share, for the 2009 second quarter. For the 2010 first half, Och-Ziff reported a GAAP Net Loss of $178.1million, or $2.12 per basic and diluted Class A Share, compared to a GAAP Net Loss of $170.2 million, or $2.22 per basic and diluted Class A Share, for the 2009 first half. The increase in the GAAP Net Loss for both periods was primarily driven by an increase in the Company's interest in its principal operating subsidiaries (the "Och-Ziff Operating Group") due to the vesting of Class A Restricted Share Units ("RSUs") and the exchange of Och-Ziff Operating Group A Units ("Group A Units") for Class A Shares. As a result, a larger share of the losses of the Och-Ziff Operating Group was allocated to the Company. Offsetting these increases in the GAAP Net Loss was an increase in management fees as a result of higher assets under management and lower compensation and benefits expenses, as the accrual for estimated discretionary cash bonuses taken in the 2009 second quarter did not recur in the 2010 second quarter.

The GAAP Net Loss in the 2010 second quarter and first half primarily resulted from non-cash expenses of $411.8 million and $836.6 million, respectively, associated with the Company's reorganization in connection with its initial public offering ("IPO") in November 2007. These expenses are related to the amortization of Group A Units, which represent equity interests in the Och-Ziff Operating Group that were issued to the Company's pre-IPO owners in exchange for their pre-IPO interests in those subsidiaries. The Group A Units generally vest annually over five years until November 2012. Accordingly, the amortization of these expenses is expected to result in a GAAP Net Loss on an annual basis through 2012. Once vested, the Group A Units may be exchanged on a one-to-one basis for Class A Shares.

Additionally, the GAAP Net Loss in the 2010 second quarter and first half were driven by non-cash expenses of $28.5 million and $59.4 million, respectively, for the amortization of equity-based compensation. This expense relates primarily to RSUs awarded to all of the Company's employees in connection with the IPO, which vest annually over four years until November 2011, and subsequent compensation-related grants. 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 "Non-GAAP and Segment Financial Measures" at the end of this press release.

DISTRIBUTABLE EARNINGS (NON-GAAP)

The Company's Distributable Earnings for the 2010 second quarter were $57.0 million, or $0.14 per Adjusted Class A Share, compared to $12.6 million, or $0.03 per Adjusted Class A Share, in the 2009 second quarter. Distributable Earnings for the 2010 first half were $106.2 million, or $0.26 per Adjusted Class A Share, compared to $39.8 million, or $0.10 per Adjusted Class A Share, in the 2009 first half. The year-over-year increase in both periods was primarily attributable to higher management fees as a result of higher assets under management and lower compensation and benefits expenses, as the accrual for estimated discretionary cash bonuses taken in the 2009 second quarter did not recur in the 2010 second quarter.

Distributable Earnings is a non-GAAP measure. For reconciliations of Distributable Earnings to the respective GAAP Net Losses for the periods described above, please see Exhibits 3 through 6 that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

ASSETS UNDER MANAGEMENT

Och-Ziff's assets under management were $25.5 billion as of June 30, 2010, 3% higher than the $24.8 billion in assets under management as of March 31, 2010 and 16% higher than the $21.9 billion in assets under management as of June 30, 2009. The $3.6 billion year-over-year increase was driven by performance-related appreciation of $2.4 billion and capital net inflows of $1.2 billion during the period. During the 2010 second quarter, the $647.2 million increase in assets under management was driven by capital net inflows of $1.0 billion, partially offset by performance-related depreciation of $388.2 million.

    Assets under management by fund:


                                                          % Change (1)
                                                          ------------
    (dollars in                                      Jun. 2010   Jun. 2010
     billions)          June 30, March 31, June 30,     vs.         vs.
                            2010      2010     2009 Mar. 2010   Jun. 2009
                            ----      ----     ---- ---------   ---------

    OZ Master Fund          18.4      18.1     14.4          2%         27%
    OZ Europe Master
     Fund                    2.9       3.0      3.0         -2%         -2%
    OZ Asia Master Fund      1.3       1.3      1.4          0%         -4%
    OZ Global Special
     Investments             1.2       1.2      1.9         -5%        -39%
       Master Fund
    Other (1) (2)            1.7       1.2      1.2         36%         47%



    (1) Rounding differences may occur.
    (2) Includes real estate funds, managed accounts and other funds not
    significant to the Company's assets under management.


Estimated assets under management as of August 1, 2010 were $25.9 billion, which reflected August 1, 2010 capital net inflows of approximately $300 million and performance-related appreciation of approximately $300 million. For the year-to-date period from December 31, 2009 through August 1, 2010, estimated capital net inflows totaled approximately $2.2 billion and estimated performance-related appreciation totaled approximately $600 million.

INVESTMENT PERFORMANCE

For the first half of 2010, performance-related appreciation was principally driven by credit related strategies, convertible arbitrage and private investments.

    Performance by fund(1):


                                                              2010
                                                              ----
                          April   May     June     2Q     1H -2010
                          -----   ---     ----    ---     --------

    OZ Master Fund          0.88%  -1.71%  -0.53%  -1.37%     1.31%
    OZ Europe Master Fund   0.64%  -2.50%  -0.90%  -2.76%     1.52%
    OZ Asia Master Fund     1.15%  -3.11%   0.03%  -1.97%     2.95%
    OZ Global Special
     Investments            1.11%  -1.39%   0.09%  -0.21%     3.60%
       Master Fund


    (1) Please see important disclosures on Exhibit 10 of the financial
    supplement accompanying this press release.

ECONOMIC INCOME FOR THE OCH-ZIFF FUNDS SEGMENT

The Company conducts substantially all of its business through the Och-Ziff Funds segment, which is currently the Company's only reportable segment under GAAP. This segment provides investment management and advisory services to the Company's hedge funds and separately managed accounts.

The measures discussed below are presented on an Economic Income basis. For reconciliations of these segment measures to the respective GAAP measures, please see Exhibits 3through 6 that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

Total Revenues - Segment

Total revenues for the 2010 second quarter were $113.0 million, a 33% increase from total revenues for the 2009 second quarter of $85.0 million. Management fees were $107.0 million, 27% higher than management fees in the prior year period of $84.5 million.

Total revenues for the 2010 first half were $213.1 million, a 20% increase from total revenues of $177.7 million in the 2009 first half. Management fees were $206.6 million, 17% higher than management fees of $176.9 million in the 2009 first half.

Total revenues increased year-over-year in both periods due primarily to higher management fees resulting from the growth in assets under management. This growth was driven by performance-related appreciation and capital net inflows.

Compensation and Benefits - Segment

Compensation and benefits for the 2010 second quarter totaled $16.7 million, 61% lower than compensation and benefits of $42.6 million for the 2009 second quarter. Compensation and benefits for the 2010 first half totaled $34.8 million, 45% lower than compensation and benefits of $63.0 million for the 2009 first half.

The year-over-year decrease in both periods was principally attributable to the accrual for estimated discretionary cash bonuses taken in the 2009 second quarter which did not recur in the 2010 second quarter.

Non-Compensation Expenses - Segment

Non-compensation expenses for the 2010 second quarter were $21.7 million, a slight decline from non-compensation expenses of $21.8 million for the 2009 second quarter. Non-compensation expenses in the 2010 first half were $41.3 million, a 10% decrease from non-compensation expenses of $45.9 million in the 2009 first half.

In both periods, an increase in professional services fees was more than offset by lower interest expense on the Company's variable rate borrowings resulting from the decline in LIBOR rates and the early retirement of an aggregate of $105 million of the Company's term loan in 2009. Lower insurance costs also contributed to the decline.

Economic Income - Segment

Economic Income for the Och-Ziff Funds segment for the 2010 second quarter was $74.6 million, compared to $20.6 million for the 2009 second quarter. Economic Income for the 2010 first half was $136.7 million, compared to $68.8 million for the 2009 first half. The increase in both periods was driven primarily by a combination of higher management fees and lower compensation and benefits expenses.

ECONOMIC INCOME FOR THE COMPANY'S OTHER OPERATIONS (NON-GAAP)

The Company's Other Operations are comprised of its real estate business, which manages and provides advisory services to its real estate funds, and investments in new businesses established to expand certain of the Company's private investment platforms. The businesses within the Company's Other Operations are currently in their early development stages and are not included in the results of the Och-Ziff Funds segment.

Economic Income for the Company's Other Operations for the 2010 second quarter was a net loss of $2.9 million, compared to a net loss of $4.8 million for the 2009 second quarter. Economic Income for the Company's Other Operations for the 2010 first half was a net loss of $7.2 million, compared to a net loss of $8.5 million for the 2009 first half. The decrease in the net loss in both periods was principally the result of lower non-compensation expenses due to the reimbursement of organization expenses related to the Company's new real estate fund.

Economic Income for the Company's Other Operations is a non-GAAP measure. For reconciliations of Economic Income for the Company's Other Operations to the respective GAAP Net Losses for the periods described above, please see Exhibits 3 through 6 that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

ECONOMIC INCOME FOR THE COMPANY (NON-GAAP)

Economic Income for the Company for the 2010 second quarter was $71.6 million, compared to $15.8 million for the 2009 second quarter. Economic Income for the Company for the 2010 first half was $129.5 million, compared to $60.3 million for the 2009 first half. The increase for both periods was primarily attributable to higher management fees and lower compensation and benefits expenses in the Och-Ziff Funds segment.

Economic Income for the Company is a non-GAAP measure. For reconciliations of Economic Income for the Company to the respective GAAP Net Losses for the periods described above, please see Exhibits 3 through 6 that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

CAPITAL

As of June 30, 2010, the number of Class A Shares outstanding was 87,973,809. For purposes of calculating Distributable Earnings per Share, the Company assumes that all partner interests in the Och-Ziff Operating Group ("Partner Units") and RSUs outstanding during the period have been converted on a one-to-one basis into Class A Shares. For the second quarter and first half ended June 30, 2010, the total weighted-average Adjusted Class A Shares outstanding were 409,073,936 and 408,607,532, respectively.

DIVIDEND

The Board of Directors of Och-Ziff authorized a 2010 second quarter dividend of $0.11 per Class A Share. The dividend is payable on August 19, 2010 to holders of record as of the close of business on August 12, 2010. The ex-dividend date will be August 10, 2010.

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 2010 second 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.


     * * * *


Och-Ziff will host a conference call today, August 3, 2010, at 8:30 a.m. Eastern Time to discuss the Company's 2010 second quarter results. The call will be open to the public and can be accessed by dialing (888) 713-4211 (callers inside the U.S.) or (617) 213-4864 (callers outside the U.S.). The number should be dialed at least ten minutes prior to the start of the call. The passcode for the call will be 74499372. A simultaneous webcast of the call will be available to the public on a listen-only basis on the For Shareholders page of the Company's website at www.ozcap.com.

For those unable to listen to the live broadcast, a replay will be available by dialing (888) 286-8010 (callers inside the U.S.) or (617) 801-6888 (callers outside the U.S.), passcode 56717130, beginning approximately two hours after the event for two weeks. A webcast replay of the event will also be available on the For Shareholders page of the Company's website.


     * * * *


Non-GAAP and Segment Financial Measures

In addition to analyzing the Company's results on a GAAP basis, Och-Ziff's management also reviews the Company's results on an "Economic Income basis." Economic Income for the Company, the Och-Ziff Funds segment and Other Operations 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 performance of the Company in any given period. Management, therefore, uses Economic Income as the basis on which it evaluates the performance of the Company's business and makes resource allocation and other operating decisions. In addition, management believes that Economic Income provides a more comparable view of the Company's operating performance from period to period. 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 partners and Ziff Brothers Investments (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 gain on early retirement of debt, as management does not consider these items to be reflective of operating performance;
  • Net earnings on the deferred balances and net gains (losses) on investments in Och-Ziff funds, as these amounts primarily relate to amounts due to the Company's partners and the Ziffs for pre-IPO deferred incentive income, and amounts due to employees under deferred cash compensation arrangements, as management does not consider these items to be reflective of operating performance; and
  • 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 from all of the Och-Ziff funds in relation to total assets under management and fund performance.

In addition, deferred cash compensation expense is recognized in full in the period in which it is awarded, as management determines the total amount of compensation based on the Company's performance in the year of the award.

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 Other Operations is a non-GAAP measure that is calculated on the same basis as the methodology that is used to calculate Economic Income for the Och-Ziff Funds segment. Management also evaluates Economic Income for the Company, which is a non-GAAP measure that equals the sum of Economic Income for the Och-Ziff Funds segment and for the Company's Other Operations.

As a result of the adjustments described above, management fees, compensation and benefits, non-compensation expenses and net loss (income) allocated to partners' and others' interests in consolidated subsidiaries are presented on an Economic Income basis for the Company's Other Operations and the Company, and are also non-GAAP measures. No adjustments to the GAAP basis have been made for incentive income, other revenues and net earnings (losses) on joint ventures. For reconciliations of these non-GAAP measures to the respective GAAP measures, please see Exhibits 3 through 6 that accompany this press release.

Distributable Earnings is a non-GAAP measure of after-tax operating performance and equals Economic Income for the Company 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. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners 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 partners and the Ziffs, including the Group A Units and other non-equity profit interests in the Och-Ziff Operating Group that automatically convert into Group A Units upon the occurrence of certain events. Distributable Earnings per Share is equal to Distributable Earnings divided by the weighted-average number of Adjusted Class A Shares. Adjusted Class A Shares are determined assuming all Partner Units and RSUs are converted on a one-to-one basis into Class A Shares. Management uses Distributable Earnings, among other financial data, to determine the earnings available to distribute as dividends to holders of the Company's Class A Shares and to the Company's partners and the Ziffs with respect to their Partner Units.

The Company's non-GAAP measures should not be considered as alternatives to the Company's GAAP Net 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.

Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in Exhibits 3 through 6 attached to this press release.


     * * * *


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, strategies and expectations, including but not limited to statements regarding the Company's financial performance and results, including its ability to increase assets under management, generate positive returns, preserve capital and identify investment opportunities and enhance the Company's investment platforms. 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," "pipeline," "comfortable," "assume," "remain," "maintain," "sustain," "achieve" 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. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including but not limited to global economic, business and market conditions, the conditions impacting the hedge fund industry, the Company's ability to successfully compete for fund investors, professional investment talent and investment opportunity, its successful formulation and execution of business and growth strategies and its ability to appropriately manage conflicts of interest and tax and other regulatory factors relevant to the Company's business, as well as assumptions relating to the Company's operations, 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 underlying assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2009 filed on March 4, 2010. There may be additional risks, uncertainties and factors that the Company does not currently view as material or that are not known. The forward-looking statements included in this document are made only as of the date of this document and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result 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 world's largest institutional alternative asset managers with offices in New York, London, Hong Kong, Mumbai and Beijing. Och-Ziff's funds seek to deliver consistent, positive, risk-adjusted returns throughout market cycles, with a strong focus on capital preservation. Och-Ziff's multi-strategy approach combines global investment strategies, including long/short equity special situations, convertible and derivative arbitrage, structured credit, other credit, private investments and merger arbitrage. As of August 1, 2010, Och-Ziff had approximately $25.9 billion in assets under management with approximately 600 investor relationships. For more information, please visit Och-Ziff's website at www.ozcap.com.

                                       Exhibit 1
                         OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                   Consolidated Statements of Operations (Unaudited)
                    (dollars in thousands, except per share amounts)



                                              Three Months Ended
                                                   June 30,
                                                ------------------
                                               2010             2009
                                               ----             ----

    Revenues
      Management fees                      $110,214          $86,166
      Incentive income                        5,536              265
      Other revenues                            720              285
      Income of consolidated Och-Ziff
       funds                                  7,454            8,887
      Total Revenues                        123,924           95,603
                                            -------           ------

    Expenses
      Compensation and benefits              51,729           76,025
      Allocations to non-equity
       partner interests                          -            4,915
      Reorganization expenses               411,789          424,736
      Profit sharing                              -              308
      Interest expense                        1,936            4,060
      General, administrative and other      23,538           21,132
      Expenses of consolidated Och-
       Ziff funds                             4,297            1,142
      Total Expenses                        493,289          532,318
                                            -------          -------

    Other Income
      Net earnings on deferred balances           -           14,723
      Net gains (losses) on investments
       in                                      (602)             560
       Och-Ziff funds and joint
        ventures
      Net gain on early retirement of
       debt                                       -            2,013
      Net gains (losses) of
       consolidated Och-Ziff funds           16,151             (375)
      Total Other Income                     15,549           16,921
                                             ------           ------

    Loss before Income Taxes               (353,816)        (419,794)
    Income taxes                              7,744              449
                                              -----              ---
    Consolidated Net Loss                 $(361,560)       $(420,243)
                                          =========        =========

    Net Loss Allocated to Partners'
     and Others'                          $(272,139)       $(331,930)
       Interests in Consolidated
        Subsidiaries                      =========        =========

    Net Loss Allocated to Class A
     Shareholders                          $(89,421)        $(88,313)
                                           ========         ========

    Net Loss per Class A Share
      Basic and Diluted                      $(1.05)          $(1.15)
                                             ======           ======

    Weighted-Average Class A Shares
     Outstanding
      Basic and Diluted (1)              85,432,135       76,804,771
                                         ==========       ==========





                                            Six Months Ended June
                                                       30,
                                              ----------------------
                                                2010             2009
                                                ----             ----

    Revenues
      Management fees                       $211,956         $180,471
      Incentive income                         5,722              265
      Other revenues                           1,111              553
      Income of consolidated Och-Ziff
       funds                                  14,570           11,502
      Total Revenues                         233,359          192,791
                                             -------          -------

    Expenses
      Compensation and benefits              104,921          127,901
      Allocations to non-equity
       partner interests                           -            4,575
      Reorganization expenses                836,595          844,685
      Profit sharing                               -              291
      Interest expense                         3,893            8,655
      General, administrative and other       46,130           43,382
      Expenses of consolidated Och-
       Ziff funds                              5,379            1,896
      Total Expenses                         996,918        1,031,385
                                             -------        ---------

    Other Income
      Net earnings on deferred balances            -            3,430
      Net gains (losses) on investments
       in                                       (549)             306
       Och-Ziff funds and joint
        ventures
      Net gain on early retirement of
       debt                                        -            2,013
      Net gains (losses) of
       consolidated Och-Ziff funds            22,342              (98)
      Total Other Income                      21,793            5,651
                                              ------            -----

    Loss before Income Taxes                (741,766)        (832,943)
    Income taxes                              16,543            3,278
                                              ------            -----
    Consolidated Net Loss                  $(758,309)       $(836,221)
                                           =========        =========

    Net Loss Allocated to Partners'
     and Others'                           $(580,249)       $(666,054)
       Interests in Consolidated
        Subsidiaries                       =========        =========

    Net Loss Allocated to Class A
     Shareholders                          $(178,060)       $(170,167)
                                           =========        =========

    Net Loss per Class A Share
      Basic and Diluted                       $(2.12)          $(2.22)
                                              ======           ======

    Weighted-Average Class A Shares
     Outstanding
      Basic and Diluted (1)               84,078,032       76,676,699
                                          ==========       ==========



    (1)  Includes fully vested RSUs that have not been exchanged into
    Class A Shares as of the end of the period.

                                         Exhibit 2
                           OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                            Economic Income Summary (Unaudited)
                                   (dollars in thousands)




                                   Three Months Ended June 30, 2010
                                   --------------------------------
    Economic Income
     Basis                  Och-Ziff             Other              Total
                         Funds Segment
    ---------------             (1)            Operations          Company
                                               (Non-GAAP)         (Non-GAAP)
                         --------------             (2)                (2)
                                              -----------        -----------

    Management fees            $107,035               $999           $108,034
    Incentive income              5,536                  -              5,536
    Other revenues                  448                272                720
    Total Economic
     Income revenues            113,019              1,271            114,290

    Compensation and
     benefits                    16,739              4,583             21,322
    Non-compensation
     expenses                    21,704               (875)            20,829
    Total Economic
     Income expenses             38,443              3,708             42,151

    Net earnings
     (losses) on joint
     ventures (3)                     -                  9                  9
    Net loss (income)
     allocated to
     partners' and
     others'                          -               (508)              (508)
       interests in
        consolidated
        subsidiaries (4)
    Economic Income              74,576             (2,936)            71,640


                                 Three Months Ended June 30, 2009
                                 --------------------------------
    Economic Income
     Basis                  Och-Ziff             Other              Total
                         Funds Segment
    ---------------             (1)            Operations          Company
                                               (Non-GAAP)         (Non-GAAP)
                         --------------             (2)                (2)
                                              -----------        -----------

    Management fees             $84,523             $1,311            $85,834
    Incentive income                265                  -                265
    Other revenues                  231                 54                285
    Total Economic
     Income revenues             85,019              1,365             86,384

    Compensation and
     benefits                    42,587              4,990             47,577
    Non-compensation
     expenses                    21,801                886             22,687
    Total Economic
     Income expenses             64,388              5,876             70,264

    Net earnings
     (losses) on joint
     ventures (3)                     -               (444)              (444)
    Net loss (income)
     allocated to
     partners' and
     others'                          -                122                122
       interests in
        consolidated
        subsidiaries (4)
    Economic Income              20,631             (4,833)            15,798


                                  Six Months Ended June 30, 2010
                                  ------------------------------
    Economic Income
     Basis                  Och-Ziff             Other              Total
                         Funds Segment
    ---------------             (1)            Operations          Company
                                               (Non-GAAP)         (Non-GAAP)
                         --------------             (2)                (2)
                                              -----------        -----------

    Management fees            $206,609             $1,876           $208,485
    Incentive income              5,722                  -              5,722
    Other revenues                  732                379              1,111
    Total Economic
     Income revenues            213,063              2,255            215,318

    Compensation and
     benefits                    34,770              8,383             43,153
    Non-compensation
     expenses                    41,335                671             42,006
    Total Economic
     Income expenses             76,105              9,054             85,159

    Net losses on
     joint ventures
     (3)                           (235)               (81)              (316)
    Net loss (income)
     allocated to
     partners' and
     others'                          -               (321)              (321)
       interests in
        consolidated
        subsidiaries (4)
    Economic Income             136,723             (7,201)           129,522


                                  Six Months Ended June 30, 2009
                                  ------------------------------
    Economic Income
     Basis                  Och-Ziff             Other              Total
                         Funds Segment
    ---------------             (1)            Operations          Company
                                               (Non-GAAP)         (Non-GAAP)
                         --------------             (2)                (2)
                                              -----------        -----------

    Management fees            $176,947             $2,641           $179,588
    Incentive income                265                  -                265
    Other revenues                  445                108                553
    Total Economic
     Income revenues            177,657              2,749            180,406

    Compensation and
     benefits                    62,963              8,417             71,380
    Non-compensation
     expenses                    45,894              1,906             47,800
    Total Economic
     Income expenses            108,857             10,323            119,180

    Net losses on
     joint ventures
     (3)                              -               (992)              (992)
    Net loss (income)
     allocated to
     partners' and
     others'                          -                 75                 75
       interests in
        consolidated
        subsidiaries (4)
    Economic Income              68,800             (8,491)            60,309




    (1) The Och-Ziff Funds segment is the Company's only reportable
    segment under U.S. GAAP. Management uses Economic Income to
    evaluate the financial performance of and to make operating decisions
    for the segment. For reconciliations of these segment measures
    to the nearest U.S. GAAP measures, see Exhibits 3 through 6.
    (2) Each of the measures presented is a non-GAAP measure, with the
    exception of incentive income, other revenues and net
    earnings (losses) on joint ventures, for which no adjustments to the
    U.S. GAAP basis have been made. Management calculates
    non-GAAP measures on an Economic Income basis for the Company's
    Other Operations and for the Company as a whole to
    assess the financial performance of the Company's entire business.
    For reconciliations of these non-GAAP measures to the nearest U.S.
    GAAP measures, see Exhibits 3 through 6.
    (3) Represents the Company's earnings (losses) in joint ventures
    established to expand certain of the Company's private investments
    platforms.
    (4) Represents the residual interests in the domestic real estate
    management business not owned by the Company.

                                 Exhibit 3
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S.
                               GAAP Measures
              (dollars in thousands, except per share amount)





                                            OCH-ZIFF FUNDS SEGMENT
                                            ----------------------
                                                     Reconciling Adjustments
                                                                 (1)
                                                    ------------------------
    Three Months Ended June 30, 2010      Economic            Funds
    --------------------------------       Income         Consolidation
                                         Basis (2)        -------------
                                         ---------

    Management fees                        $107,035                     $(60)
    Incentive income                          5,536                        -
    Other revenues                              448                        -
    Income of consolidated Och-Ziff
     funds                                        -                        -
    Total revenues                          113,019                      (60)

    Compensation and benefits                16,739                        -
    Allocations to non-equity partner
     interests                                    -                        -
    Reorganization expenses                       -                        -
    Profit sharing                                -                        -
    Interest expense                          1,936                        -
    General, administrative and other        19,768                        -
    Expenses of consolidated Och-Ziff
     funds                                        -                       25
    Total expenses                           38,443                       25

    Net earnings on deferred balances             -                        -
    Net gains (losses) on investments in          -                        -
       Och-Ziff funds and joint ventures
    Net gain on early retirement of debt          -                        -
    Net gains (losses) of consolidated
     Och-Ziff funds                               -                     (544)

    Income taxes                                  -                        -

    Net loss (income) allocated to
     partners' and                                -                      629
       others' interests in consolidated
        subsidiaries

    Net income (loss) allocated to           74,576                        -
       Class A shareholders




                                      OCH-ZIFF FUNDS SEGMENT
                                      ----------------------
                                 Reconciling Adjustments
                                            (1)
                                ------------------------
    Three Months Ended June
     30, 2010                             Other                 U.S. GAAP
    -----------------------            Adjustments                Basis
                                       -----------                -----

    Management fees                               $2,240  (a)     $109,215
    Incentive income                                   -             5,536
    Other revenues                                     -               448
    Income of consolidated
     Och-Ziff funds                                    -                 -
    Total revenues                                 2,240           115,199

                                                           (b)
    Compensation and benefits                     26,579    (c)     43,318
    Allocations to non-
     equity partner interests                          -                 -
    Reorganization expenses                      411,789   (e)     411,789
    Profit sharing                                     -                 -
    Interest expense                                   -             1,936
    General, administrative                                (a)
     and other                                     4,459    (g)     24,227
    Expenses of consolidated
     Och-Ziff funds                                    -                25
    Total expenses                               442,827           481,295

    Net earnings on deferred
     balances                                          -                 -
    Net gains (losses) on
     investments in                                 (611)  (h)        (611)
       Och-Ziff funds and joint
        ventures
    Net gain on early
     retirement of debt                                -                 -
    Net gains (losses) of
     consolidated Och-Ziff
     funds                                             -              (544)

    Income taxes                                   6,574   (g)       6,574

    Net loss (income)
     allocated to partners'
     and                                         291,728   (i)     292,357
       others' interests in
        consolidated
        subsidiaries

    Net income (loss)
     allocated to                               (156,044)          (81,468)
       Class A shareholders




                                               OTHER OPERATIONS
                                               ----------------
                                                     Reconciling Adjustments
                                                                 (1)
                                                    ------------------------
    Three Months Ended June 30,
     2010                            Economic                 Funds
    ---------------------------       Income              Consolidation
                                      Basis               -------------
                                    (Non-GAAP)
                                         (3)
                                   -----------

    Management fees                       $999                            $-
    Incentive income                         -                             -
    Other revenues                         272                             -
    Income of consolidated Och-
     Ziff funds                              -                         7,454
    Total revenues                       1,271                         7,454

    Compensation and benefits            4,583                             -
    Allocations to non-equity
     partner interests                       -                             -
    Reorganization expenses                  -                             -
    Profit sharing                           -                             -
    Interest expense                         -                             -
    General, administrative and
     other                                (875)                            -
    Expenses of consolidated Och-
     Ziff funds                              -                         4,272
    Total expenses                       3,708                         4,272

    Net earnings on deferred
     balances                                -                             -
    Net gains (losses) on
     investments in                          9                          (195)
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement
     of debt                                 -                             -
    Net gains (losses) of
     consolidated Och-Ziff funds             -                        16,695

    Income taxes                             -                             -

    Net loss (income) allocated to
     partners' and                        (508)                      (19,682)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to      (2,936)                            -
       Class A shareholders




                                          OTHER OPERATIONS
                                          ----------------
                                   Reconciling Adjustments
                                              (1)
                                  ------------------------
    Three Months Ended June 30,
     2010                                   Other               U.S. GAAP
    ---------------------------          Adjustments              Basis
                                         -----------              -----

    Management fees                                     $-            $999
    Incentive income                                     -               -
    Other revenues                                       -             272
    Income of consolidated Och-
     Ziff funds                                          -           7,454
    Total revenues                                       -           8,725

    Compensation and benefits                        3,828  (c)      8,411
    Allocations to non-equity
     partner interests                                   -               -
    Reorganization expenses                              -               -
    Profit sharing                                       -               -
    Interest expense                                     -               -
    General, administrative and
     other                                             186  (g)       (689)
    Expenses of consolidated
     Och-Ziff funds                                      -           4,272
    Total expenses                                   4,014          11,994

    Net earnings on deferred
     balances                                            -               -
    Net gains (losses) on
     investments in                                    195  (h)          9
       Och-Ziff funds and joint
        ventures
    Net gain on early
     retirement of debt                                  -               -
    Net gains (losses) of
     consolidated Och-Ziff
     funds                                               -          16,695

    Income taxes                                     1,170  (g)      1,170

    Net loss (income) allocated
     to partners' and                                  (28) (i)    (20,218)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated
     to                                             (5,017)         (7,953)
       Class A shareholders




                                                     TOTAL COMPANY
                                                     -------------

    Three Months Ended June 30, 2010           Economic       U.S. GAAP
    --------------------------------            Income           Basis
                                                Basis            -----
                                              (Non-GAAP)
                                                   (3)
                                             -----------

    Management fees                             $108,034        $110,214
    Incentive income                               5,536           5,536
    Other revenues                                   720             720
    Income of consolidated Och-Ziff funds              -           7,454
    Total revenues                               114,290         123,924

    Compensation and benefits                     21,322          51,729
    Allocations to non-equity partner
     interests                                         -               -
    Reorganization expenses                            -         411,789
    Profit sharing                                     -               -
    Interest expense                               1,936           1,936
    General, administrative and other             18,893          23,538
    Expenses of consolidated Och-Ziff funds            -           4,297
    Total expenses                                42,151         493,289

    Net earnings on deferred balances                  -               -
    Net gains (losses) on investments in               9            (602)
       Och-Ziff funds and joint ventures
    Net gain on early retirement of debt               -               -
    Net gains (losses) of consolidated Och-
     Ziff funds                                        -          16,151

    Income taxes                                       -           7,744

    Net loss (income) allocated to
     partners' and                                  (508)        272,139
       others' interests in consolidated
        subsidiaries

    Net income (loss) allocated to                71,640         (89,421)
       Class A shareholders
    Adjusted Income Taxes - Non-GAAP (4)         (14,596)
    Distributable Earnings - Non-GAAP            $57,044
                                                 =======

    Weighted-Average Class A Shares
     Outstanding                              85,432,135
    Weighted-Average Partner Units           309,641,157
    Weighted-Average Class A Restricted
     Share Units (RSUs)                       14,000,644
    Weighted-Average Adjusted Class A
     Shares                                  409,073,936
                                             ===========

    Distributable Earnings Per Adjusted            $0.14
       Class A Share - Non-GAAP                    =====




    (1) See Exhibit 7 for a description of the adjustments made to arrive
    at the Company's results on a U.S. GAAP basis.
    (2) The Och-Ziff Funds segment is the Company's only reportable
    segment under U.S. GAAP. Management uses Economic
    Income to evaluate the financial performance of and to make operating
    decisions for the segment.
    (3) Each of the measures presented is a non-GAAP measure, with the
    exception of incentive income, other
    revenues and net earnings (losses) on joint ventures, for which no
    adjustments to the U.S. GAAP basis have been made.
    Management calculates non-GAAP measures on an Economic Income basis
    for the Company's Other Operations
    and for the Company as a whole to assess the financial performance of
    the Company's entire business.
    (4) 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. 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
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S.
                               GAAP Measures
              (dollars in thousands, except per share amount)




                                     OCH-ZIFF FUNDS SEGMENT
                                     ----------------------
                                              Reconciling Adjustments
                                                          (1)
                                             ------------------------
    Three Months Ended June
     30, 2009                Economic                  Funds
    -----------------------   Income               Consolidation
                             Basis (2)             -------------
                             ---------

    Management fees             $84,523                          $(55)
    Incentive income                265                             -
    Other revenues                  231                             -
    Income of consolidated
     Och-Ziff funds                   -                             -
    Total revenues               85,019                           (55)

    Compensation and
     benefits                    42,587                             -
    Allocations to non-
     equity partner
     interests                        -                             -
    Reorganization expenses           -                             -
    Profit sharing                    -                             -
    Interest expense              4,060                             -
    General, administrative
     and other                   17,741                             -
    Expenses of consolidated
     Och-Ziff funds                   -                             8
    Total expenses               64,388                             8

    Net earnings on deferred
     balances                         -                             -
    Net gains (losses) on
     investments in                   -                             -
       Och-Ziff funds and
        joint ventures
    Net gain on early
     retirement of debt               -                             -
    Net gains (losses) of
     consolidated Och-Ziff
     funds                            -                          (395)

    Income taxes                      -                             -

    Net loss (income)
     allocated to partners'
     and                              -                           458
       others' interests in
        consolidated
        subsidiaries

    Net income (loss)
     allocated to                20,631                             -
       Class A shareholders






                                OCH-ZIFF FUNDS SEGMENT
                                ----------------------
                             Reconciling Adjustments
                                         (1)
                            ------------------------
    Three Months Ended
     June 30, 2009                    Other                 U.S. GAAP
    ------------------             Adjustments                Basis
                                   -----------                -----

    Management fees                             $387  (a)      $84,855
    Incentive income                               -               265
    Other revenues                                 -               231
    Income of consolidated
     Och-Ziff funds                                -                 -
    Total revenues                               387            85,351

    Compensation and                                   (b)
     benefits                                 22,654    (c)     65,241
    Allocations to non-
     equity partner
     interests                                 4,915   (d)       4,915
    Reorganization
     expenses                                424,736   (e)     424,736
    Profit sharing                               308   (f)         308
    Interest expense                               -             4,060
    General,
     administrative and                                (a)
     other                                     2,319    (g)     20,060
    Expenses of
     consolidated Och-
     Ziff funds                                    -                 8
    Total expenses                           454,932           519,328

    Net earnings on
     deferred balances                        14,723   (h)      14,723
    Net gains (losses) on
     investments in                            1,004   (h)       1,004
       Och-Ziff funds and
        joint ventures
    Net gain on early
     retirement of debt                        2,013   (g)       2,013
    Net gains (losses) of
     consolidated Och-
     Ziff funds                                    -              (395)

    Income taxes                                 387   (g)         387

    Net loss (income)
     allocated to
     partners' and                           339,275   (i)     339,733
       others' interests in
        consolidated
        subsidiaries

    Net income (loss)
     allocated to                            (97,917)          (77,286)
       Class A shareholders




                                                 OTHER OPERATIONS
                                                 ----------------
                                                             Reconciling
                                                           Adjustments (1)
                                                          ----------------
    Three Months Ended June 30,
     2009                                  Economic             Funds
    ---------------------------             Income          Consolidation
                                            Basis           -------------
                                          (Non-GAAP)
                                               (3)
                                         -----------

    Management fees                           $1,311                    $-
    Incentive income                               -                     -
    Other revenues                                54                     -
    Income of consolidated Och-
     Ziff funds                                    -                 8,887
    Total revenues                             1,365                 8,887

    Compensation and benefits                  4,990                     -
    Allocations to non-equity
     partner interests                             -                     -
    Reorganization expenses                        -                     -
    Profit sharing                                 -                     -
    Interest expense                               -                     -
    General, administrative and
     other                                       886                     -
    Expenses of consolidated Och-
     Ziff funds                                    -                 1,134
    Total expenses                             5,876                 1,134

    Net earnings on deferred
     balances                                      -                     -
    Net gains (losses) on
     investments in                             (444)                  (83)
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement of
     debt                                          -                     -
    Net gains (losses) of
     consolidated Och-Ziff funds                   -                    20

    Income taxes                                   -                     -

    Net loss (income) allocated to
     partners' and                               122                (7,690)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to            (4,833)                    -
       Class A shareholders




                                        OTHER OPERATIONS
                                        ----------------
                                       Reconciling
                                     Adjustments (1)
                                    ----------------
    Three Months Ended June 30,
     2009                                 Other              U.S. GAAP
    ---------------------------        Adjustments              Basis
                                       -----------              -----

    Management fees                                  $-          $1,311
    Incentive income                                  -               -
    Other revenues                                    -              54
    Income of consolidated Och-
     Ziff funds                                       -           8,887
    Total revenues                                    -          10,252

    Compensation and benefits                     5,794  (c)     10,784
    Allocations to non-equity
     partner interests                                -               -
    Reorganization expenses                           -               -
    Profit sharing                                    -               -
    Interest expense                                  -               -
    General, administrative and
     other                                          186  (g)      1,072
    Expenses of consolidated Och-
     Ziff funds                                       -           1,134
    Total expenses                                5,980          12,990

    Net earnings on deferred
     balances                                         -               -
    Net gains (losses) on
     investments in                                  83  (h)       (444)
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement of
     debt                                             -               -
    Net gains (losses) of
     consolidated Och-Ziff funds                      -              20

    Income taxes                                     62  (g)         62

    Net loss (income) allocated to
     partners' and                                 (235) (i)     (7,803)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to               (6,194)        (11,027)
       Class A shareholders




                                                        TOTAL COMPANY
                                                        -------------

    Three Months Ended June 30, 2009             Economic         U.S. GAAP
    --------------------------------              Income            Basis
                                                   Basis            -----
                                                (Non-GAAP)
                                                     (3)
                                               -----------

    Management fees                                 $85,834          $86,166
    Incentive income                                    265              265
    Other revenues                                      285              285
    Income of consolidated Och-Ziff funds                 -            8,887
    Total revenues                                   86,384           95,603

    Compensation and benefits                        47,577           76,025
    Allocations to non-equity partner
     interests                                            -            4,915
    Reorganization expenses                               -          424,736
    Profit sharing                                        -              308
    Interest expense                                  4,060            4,060
    General, administrative and other                18,627           21,132
    Expenses of consolidated Och-Ziff
     funds                                                -            1,142
    Total expenses                                   70,264          532,318

    Net earnings on deferred balances                     -           14,723
    Net gains (losses) on investments in               (444)             560
       Och-Ziff funds and joint ventures
    Net gain on early retirement of debt                  -            2,013
    Net gains (losses) of consolidated
     Och-Ziff funds                                       -             (375)

    Income taxes                                          -              449

    Net loss (income) allocated to
     partners' and                                      122          331,930
       others' interests in consolidated
        subsidiaries

    Net income (loss) allocated to                   15,798          (88,313)
       Class A shareholders
    Adjusted Income Taxes - Non-GAAP (4)             (3,216)
    Distributable Earnings - Non-GAAP               $12,582
                                                    =======

    Weighted-Average Class A Shares
     Outstanding                                 76,804,771
    Weighted-Average Partner Units              310,830,111
    Weighted-Average Class A Restricted
     Share Units (RSUs)                          15,362,190
                                                 ----------
    Weighted-Average Adjusted Class A
     Shares                                     402,997,072
                                                ===========

    Distributable Earnings Per Adjusted               $0.03
       Class A Share - Non-GAAP                       =====




    (1) See Exhibit 7 for a description of the adjustments made to arrive
    at the Company's results on a U.S. GAAP
    basis.
    (2) The Och-Ziff Funds segment is the Company's only reportable
    segment under U.S. GAAP.  Management
    uses Economic Income to evaluate the financial performance of and to
    make operating decisions for the segment.
    (3) Each of the measures presented is a non-GAAP measure, with the
    exception of incentive income,
    other revenues and net earnings (losses) on joint ventures, for which
    no adjustments to the U.S. GAAP basis
    have been made. Management calculates non-GAAP measures on an
    Economic Income basis for the
    Company's Other Operations and for the Company as a whole to assess
    the financial performance of the
    Company's entire business.
    (4) 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. 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 5
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S.
                               GAAP Measures
              (dollars in thousands, except per share amount)





                                            OCH-ZIFF FUNDS SEGMENT
                                            ----------------------
                                                     Reconciling Adjustments
                                                                 (1)
                                                    ------------------------
    Six Months Ended June 30, 2010   Economic                 Funds
    ------------------------------    Income              Consolidation
                                    Basis (2)             -------------
                                    ---------

    Management fees                   $206,609                         $(120)
    Incentive income                     5,722                             -
    Other revenues                         732                             -
    Income of consolidated Och-
     Ziff funds                              -                             -
    Total revenues                     213,063                          (120)

    Compensation and benefits           34,770                             -
    Allocations to non-equity
     partner interests                       -                             -
    Reorganization expenses                  -                             -
    Profit sharing                           -                             -
    Interest expense                     3,893                             -
    General, administrative and
     other                              37,442                             -
    Expenses of consolidated Och-
     Ziff funds                              -                            31
    Total expenses                      76,105                            31

    Net earnings on deferred
     balances                                -                             -
    Net gains (losses) on
     investments in                       (235)                            -
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement of
     debt                                    -                             -
    Net gains of consolidated Och-
     Ziff funds                              -                           159

    Income taxes                             -                             -

    Net loss (income) allocated to
     partners' and                           -                            (8)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to     136,723                             -
       Class A shareholders







                                     OCH-ZIFF FUNDS SEGMENT
                                     ----------------------
                                 Reconciling Adjustments
                                            (1)
                                ------------------------
    Six Months Ended June 30,
     2010                                 Other                 U.S. GAAP
    -------------------------          Adjustments                 Basis
                                       -----------                 -----

    Management fees                               $3,591  (a)     $210,080
    Incentive income                                   -             5,722
    Other revenues                                     -               732
    Income of consolidated
     Och-Ziff funds                                    -                 -
    Total revenues                                 3,591           216,534

                                                           (b)
    Compensation and benefits                     54,153    (c)     88,923
    Allocations to non-
     equity partner interests                          -                 -
    Reorganization expenses                      836,595   (e)     836,595
    Profit sharing                                     -                 -
    Interest expense                                   -             3,893
    General, administrative                                (a)
     and other                                     7,646    (g)     45,088
    Expenses of consolidated
     Och-Ziff funds                                    -                31
    Total expenses                               898,394           974,530

    Net earnings on deferred
     balances                                          -                 -
    Net gains (losses) on
     investments in                                 (233)  (h)        (468)
       Och-Ziff funds and joint
        ventures
    Net gain on early
     retirement of debt                                -                 -
    Net gains of consolidated
     Och-Ziff funds                                    -               159

    Income taxes                                  14,126   (g)      14,126

    Net loss (income)
     allocated to partners'
     and                                         611,729   (i)     611,721
       others' interests in
        consolidated
        subsidiaries

    Net income (loss)
     allocated to                               (297,433)         (160,710)
       Class A shareholders




                                                OTHER OPERATIONS
                                                ----------------
                                                      Reconciling Adjustments
                                                                 (1)
                                                     ------------------------
    Six Months Ended June 30, 2010    Economic                 Funds
    ------------------------------     Income              Consolidation
                                       Basis               -------------
                                     (Non-GAAP)
                                          (3)
                                    -----------

    Management fees                      $1,876                            $-
    Incentive income                          -                             -
    Other revenues                          379                             -
    Income of consolidated Och-
     Ziff funds                               -                        14,570
    Total revenues                        2,255                        14,570

    Compensation and benefits             8,383                             -
    Allocations to non-equity
     partner interests                        -                             -
    Reorganization expenses                   -                             -
    Profit sharing                            -                             -
    Interest expense                          -                             -
    General, administrative and
     other                                  671                             -
    Expenses of consolidated Och-
     Ziff funds                               -                         5,348
    Total expenses                        9,054                         5,348

    Net earnings on deferred
     balances                                 -                             -
    Net gains (losses) on
     investments in                         (81)                         (315)
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement of
     debt                                     -                             -
    Net gains of consolidated Och-
     Ziff funds                               -                        22,183

    Income taxes                              -                             -

    Net loss (income) allocated to
     partners' and                         (321)                      (31,090)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to       (7,201)                            -
       Class A shareholders




                                              OTHER OPERATIONS
                                              ----------------
                                     Reconciling Adjustments
                                                 (1)
                                    ------------------------
    Six Months Ended June 30, 2010            Other                U.S. GAAP
    ------------------------------          Adjustments               Basis
                                            -----------               -----

    Management fees                                        $-          $1,876
    Incentive income                                        -               -
    Other revenues                                          -             379
    Income of consolidated Och-
     Ziff funds                                             -          14,570
    Total revenues                                          -          16,825

    Compensation and benefits                           7,615  (c)     15,998
    Allocations to non-equity
     partner interests                                      -               -
    Reorganization expenses                                 -               -
    Profit sharing                                          -               -
    Interest expense                                        -               -
    General, administrative and
     other                                                371  (g)      1,042
    Expenses of consolidated Och-
     Ziff funds                                             -           5,348
    Total expenses                                      7,986          22,388

    Net earnings on deferred
     balances                                               -               -
    Net gains (losses) on
     investments in                                       315  (h)        (81)
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement of
     debt                                                   -               -
    Net gains of consolidated Och-
     Ziff funds                                             -          22,183

    Income taxes                                        2,417  (g)      2,417

    Net loss (income) allocated to
     partners' and                                        (61) (i)    (31,472)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to                    (10,149)        (17,350)
       Class A shareholders




                                               TOTAL COMPANY
                                               -------------

    Six Months Ended June 30, 2010             Economic       U.S. GAAP
    ------------------------------              Income           Basis
                                                Basis            -----
                                              (Non-GAAP)
                                                   (3)
                                             -----------

    Management fees                             $208,485        $211,956
    Incentive income                               5,722           5,722
    Other revenues                                 1,111           1,111
    Income of consolidated Och-Ziff
     funds                                             -          14,570
    Total revenues                               215,318         233,359

    Compensation and benefits                     43,153         104,921
    Allocations to non-equity partner
     interests                                         -               -
    Reorganization expenses                            -         836,595
    Profit sharing                                     -               -
    Interest expense                               3,893           3,893
    General, administrative and other             38,113          46,130
    Expenses of consolidated Och-Ziff
     funds                                             -           5,379
    Total expenses                                85,159         996,918

    Net earnings on deferred balances                  -               -
    Net gains (losses) on investments in            (316)           (549)
       Och-Ziff funds and joint ventures
    Net gain on early retirement of debt               -               -
    Net gains of consolidated Och-Ziff
     funds                                             -          22,342

    Income taxes                                       -          16,543

    Net loss (income) allocated to
     partners' and                                  (321)        580,249
       others' interests in consolidated
        subsidiaries

    Net income (loss) allocated to               129,522        (178,060)
       Class A shareholders
    Adjusted Income Taxes - Non-GAAP (4)         (23,294)
    Distributable Earnings - Non-GAAP           $106,228
                                                ========

    Weighted-Average Class A Shares
     Outstanding                              84,078,032
    Weighted-Average Partner Units           310,194,307
    Weighted-Average Class A Restricted
     Share Units (RSUs)                       14,335,193
                                              ----------
    Weighted-Average Adjusted Class A
     Shares                                  408,607,532
                                             ===========

    Distributable Earnings Per Adjusted            $0.26
       Class A Share - Non-GAAP                    =====




    (1) See Exhibit 7 for a description of the adjustments made to arrive
    at the Company's results on a U.S. GAAP basis.
    (2) The Och-Ziff Funds segment is the Company's only reportable
    segment under U.S. GAAP. Management uses
    Economic Income to evaluate the financial performance of and to make
    operating decisions for the segment.
    (3) Each of the measures presented is a non-GAAP measure, with the
    exception of incentive income, other
    revenues and net earnings (losses) on joint ventures, for which no
    adjustments to the U.S. GAAP basis have been
    made. Management calculates non-GAAP measures on an Economic Income
    basis for the Company's Other
    Operations and for the Company as a whole to assess the financial
    performance of the Company's entire business.
    (4) 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. 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 6
                   OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
     Reconciliation of Non-GAAP and Segment Financial Measures to U.S.
                               GAAP Measures
              (dollars in thousands, except per share amount)





                                            OCH-ZIFF FUNDS SEGMENT
                                            ----------------------
                                                     Reconciling Adjustments
                                                                 (1)
                                                     ------------------------
    Six Months Ended June 30, 2009   Economic                 Funds
    ------------------------------    Income               Consolidation
                                    Basis (2)              -------------
                                    ---------

    Management fees                   $176,947                          $(111)
    Incentive income                       265                              -
    Other revenues                         445                              -
    Income of consolidated Och-Ziff
     funds                                   -                              -
    Total revenues                     177,657                           (111)

    Compensation and benefits           62,963                              -
    Allocations to non-equity
     partner interests                       -                              -
    Reorganization expenses                  -                              -
    Profit sharing                           -                              -
    Interest expense                     8,655                              -
    General, administrative and
     other                              37,239                              -
    Expenses of consolidated Och-
     Ziff funds                              -                              8
    Total expenses                     108,857                              8

    Net earnings on deferred
     balances                                -                              -
    Net gains (losses) on
     investments in                          -                              -
       Och-Ziff funds and joint
        ventures
    Net gain on early retirement of
     debt                                    -                              -
    Net gains (losses) of
     consolidated Och-Ziff funds             -                         (1,687)

    Income taxes                             -                              -

    Net loss (income) allocated to
     partners' and                           -                          1,806
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated to      68,800                              -
       Class A shareholders







                                      OCH-ZIFF FUNDS SEGMENT
                                      ----------------------
                                  Reconciling Adjustments
                                              (1)
                                  ------------------------
    Six Months Ended June 30,
     2009                                  Other                  U.S. GAAP
    -------------------------            Adjustments                 Basis
                                         -----------                 -----

    Management fees                                 $1,013  (a)     $177,849
    Incentive income                                     -               265
    Other revenues                                       -               445
    Income of consolidated
     Och-Ziff funds                                      -                 -
    Total revenues                                   1,013           178,559

                                                             (b)
    Compensation and benefits                       45,468    (c)    108,431
    Allocations to non-equity
     partner interests                               4,575   (d)       4,575
    Reorganization expenses                        844,685   (e)     844,685
    Profit sharing                                     291   (f)         291
    Interest expense                                     -             8,655
    General, administrative                                  (a)
     and other                                       3,866    (g)     41,105
    Expenses of consolidated
     Och-Ziff funds                                      -                 8
    Total expenses                                 898,885         1,007,750

    Net earnings on deferred
     balances                                        3,430   (h)       3,430
    Net gains (losses) on
     investments in                                  1,298   (h)       1,298
       Och-Ziff funds and joint
        ventures
    Net gain on early
     retirement of debt                              2,013   (g)       2,013
    Net gains (losses) of
     consolidated Och-Ziff
     funds                                               -            (1,687)

    Income taxes                                     3,175   (g)       3,175

    Net loss (income)
     allocated to partners'
     and                                           675,484   (i)     677,290
       others' interests in
        consolidated subsidiaries

    Net income (loss)
     allocated to                                 (218,822)         (150,022)
       Class A shareholders




                                              OTHER OPERATIONS
                                              ----------------
                                                    Reconciling Adjustments
                                                                (1)
                                                   ------------------------
    Six Months Ended June 30,
     2009                           Economic                 Funds
    -------------------------        Income              Consolidation
                                     Basis               -------------
                                   (Non-GAAP)
                                        (3)
                                  -----------

    Management fees                    $2,641                          $(19)
    Incentive income                        -                             -
    Other revenues                        108                             -
    Income of consolidated Och-
     Ziff funds                             -                        11,502
    Total revenues                      2,749                        11,483

    Compensation and benefits           8,417                             -
    Allocations to non-equity
     partner interests                      -                             -
    Reorganization expenses                 -                             -
    Profit sharing                          -                             -
    Interest expense                        -                             -
    General, administrative and
     other                              1,906                             -
    Expenses of consolidated
     Och-Ziff funds                         -                         1,888
    Total expenses                     10,323                         1,888

    Net earnings on deferred
     balances                               -                             -
    Net gains (losses) on
     investments in                      (992)                         (117)
       Och-Ziff funds and joint
        ventures
    Net gain on early
     retirement of debt                     -                             -
    Net gains (losses) of
     consolidated Och-Ziff
     funds                                  -                         1,589

    Income taxes                            -                             -

    Net loss (income) allocated
     to partners' and                      75                       (11,067)
       others' interests in
        consolidated subsidiaries

    Net income (loss) allocated
     to                                (8,491)                            -
       Class A shareholders




                                     OTHER OPERATIONS
                                     ----------------
                              Reconciling Adjustments
                                         (1)
                             ------------------------
    Six Months Ended June
     30, 2009                          Other               U.S. GAAP
    ---------------------           Adjustments               Basis
                                    -----------               -----

    Management fees                                $-          $2,622
    Incentive income                                -               -
    Other revenues                                  -             108
    Income of consolidated
     Och-Ziff funds                                 -          11,502
    Total revenues                                  -          14,232

    Compensation and
     benefits                                  11,053  (c)     19,470
    Allocations to non-
     equity partner
     interests                                      -               -
    Reorganization expenses                         -               -
    Profit sharing                                  -               -
    Interest expense                                -               -
    General, administrative
     and other                                    371  (g)      2,277
    Expenses of consolidated
     Och-Ziff funds                                 -           1,888
    Total expenses                             11,424          23,635

    Net earnings on deferred
     balances                                       -               -
    Net gains (losses) on
     investments in                               117  (h)       (992)
       Och-Ziff funds and
        joint ventures
    Net gain on early
     retirement of debt                             -               -
    Net gains (losses) of
     consolidated Och-Ziff
     funds                                          -           1,589

    Income taxes                                  103  (g)        103

    Net loss (income)
     allocated to partners'
     and                                         (244) (i)    (11,236)
       others' interests in
        consolidated
        subsidiaries

    Net income (loss)
     allocated to                             (11,654)        (20,145)
       Class A shareholders




                                                 TOTAL COMPANY
                                                 -------------

    Six Months Ended June 30, 2009               Economic       U.S. GAAP
    ------------------------------                Income           Basis
                                                  Basis            -----
                                                (Non-GAAP)
                                                     (3)
                                               -----------

    Management fees                               $179,588        $180,471
    Incentive income                                   265             265
    Other revenues                                     553             553
    Income of consolidated Och-Ziff funds                -          11,502
    Total revenues                                 180,406         192,791

    Compensation and benefits                       71,380         127,901
    Allocations to non-equity partner
     interests                                           -           4,575
    Reorganization expenses                              -         844,685
    Profit sharing                                       -             291
    Interest expense                                 8,655           8,655
    General, administrative and other               39,145          43,382
    Expenses of consolidated Och-Ziff
     funds                                               -           1,896
    Total expenses                                 119,180       1,031,385

    Net earnings on deferred balances                    -           3,430
    Net gains (losses) on investments in              (992)            306
       Och-Ziff funds and joint ventures
    Net gain on early retirement of debt                 -           2,013
    Net gains (losses) of consolidated
     Och-Ziff funds                                      -             (98)

    Income taxes                                         -           3,278

    Net loss (income) allocated to
     partners' and                                      75         666,054
       others' interests in consolidated
        subsidiaries

    Net income (loss) allocated to                  60,309        (170,167)
       Class A shareholders
    Adjusted Income Taxes - Non-GAAP (4)           (20,541)
    Distributable Earnings - Non-GAAP              $39,768
                                                   =======

    Weighted-Average Class A Shares
     Outstanding                                76,676,699
    Weighted-Average Partner Units             310,964,074
    Weighted-Average Class A Restricted
     Share Units (RSUs)                         15,414,422
                                                ----------
    Weighted-Average Adjusted Class A
     Shares                                    403,055,195
                                               ===========

    Distributable Earnings Per Adjusted              $0.10
       Class A Share - Non-GAAP                      =====




    (1) See Exhibit 7 for a description of the adjustments made to arrive
    at the Company's results on a U.S. GAAP basis.
    (2) The Och-Ziff Funds segment is the Company's only reportable
    segment under U.S. GAAP. Management uses Economic
    Income to evaluate the financial performance of and to make operating
    decisions for the segment.
    (3) Each of the measures presented is a non-GAAP measure, with the
    exception of incentive income,
    other revenues and net earnings (losses) on joint ventures, for which
    no adjustments to the U.S. GAAP basis have
    been made. Management calculates non-GAAP measures on an Economic
    Income basis for the Company's
    Other Operations and for the Company as a whole to assess the
    financial performance of the Company's entire business.
    (4) 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. 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 7
                         OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
          Description of Adjustments Made to Reconcile Economic Income to the
                         Company's Results on a U.S. GAAP Basis


Funds Consolidation

Economic Income excludes the impacts of the consolidated Och-Ziff funds, including the related eliminations.

Other Adjustments

(a) Economic Income presents management fees net of recurring placement and related service fees on assets under management, as management considers these fees a reduction in management fees, not an expense.

(b) Economic Income recognizes deferred cash compensation expense in full in the period in which it is awarded, as management determines the total amount of compensation based on the Company's performance in the year of the award.

(c) Economic Income excludes equity-based compensation expenses, as management does not consider these non-cash expenses to be reflective of the operating performance of the Company. The Company includes the number of shares granted in its Adjusted Class A Share count when determining Distributable Earnings Per Share.

(d) Economic Income excludes allocations to non-equity partner interests. Management reviewed the performance of the Company before it made any allocations to the Company's non-equity partners for periods prior to the Reorganization. For these periods, allocations to the partners, other than Mr. Och, were treated as expenses for U.S. GAAP purposes. Following the Reorganization, only allocations to the partners, other than Mr. Och, that are related to earnings on deferred balances are incurred and these allocations are excluded from Economic Income.

(e) Economic Income excludes Reorganization expenses, which are non-cash expenses directly attributable to the reclassification of interests held by the partners and the Ziffs prior to the Reorganization as Och-Ziff Operating Group A Units.

(f) Economic Income excludes the profit sharing expenses related to the Ziffs' interest in the Company. Management reviewed the performance of the Company before it made any allocations to the Ziffs for periods prior to the Reorganization. Following the Reorganization, only profit sharing expenses related to the allocations of earnings on deferred balances are incurred and these allocations are excluded from Economic Income.

(g) Economic Income excludes depreciation and amortization, changes in the tax receivable agreement liability and net gain on early retirement of debt, as management does not consider these items to be reflective of the operating performance of the Company. Economic Income also excludes income taxes as it is a measure of pre-tax performance.

(h) Economic Income excludes the net earnings on the deferred balances and net gains (losses) on investments in Och-Ziff funds, as these amounts primarily relate to amounts due to affiliates for deferred balances, and amounts due to employees under deferred cash compensation arrangements that are indexed to the returns of certain funds.

(i) Economic Income excludes amounts allocated to the partners and the Ziffs on their interests in the Och-Ziff Operating Group, as management reviews the 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.

                                   Exhibit 8
                     OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                       Financial Supplement (Unaudited)
                             (dollars in millions)

                                       Three Months       Six Months
                                      Ended June 30,   Ended June 30,
                                      --------------   --------------
                                                 2010             2010
                                                 ----             ----

    Total Assets Under Management (1)
      Beginning of period balance             $24,850          $23,080
      Net flows                                 1,035            2,061
      Appreciation (depreciation) (2)            (388)             356
      End of period balance                   $25,497          $25,497
                                              =======          =======

    Total Assets Under Management by
     Fund
      OZ Master Fund                                           $18,360
      OZ Europe Master Fund                                      2,892
      OZ Asia Master Fund                                        1,331
      OZ Global Special Investments
       Master Fund                                               1,184

    Och-Ziff Funds - Net Returns (3)
      OZ Master Fund                             -1.4%             1.3%
      OZ Europe Master Fund                      -2.8%             1.5%
      OZ Asia Master Fund                        -2.0%             3.0%
      OZ Global Special Investments
       Master Fund                               -0.2%             3.6%




                                      Year Ended December 31,
                                      -----------------------
                                         2009     2008     2007     2006
                                         ----     ----     ----     ----

    Total Assets Under Management
     (1)
      Beginning of period balance     $26,955  $33,387  $22,621  $15,627
      Net flows                        (8,053)    (722)   7,591    4,135
      Appreciation (depreciation) (2)   4,178   (5,710)   3,175    2,859
      End of period balance           $23,080  $26,955  $33,387  $22,621
                                      =======  =======  =======  =======

    Total Assets Under Management
     by Fund
      OZ Master Fund                  $15,577  $16,396  $19,771  $15,449
      OZ Europe Master Fund             2,957    5,084    6,416    3,481
      OZ Asia Master Fund               1,246    2,439    3,852    2,332
      OZ Global Special Investments
       Master Fund                      1,999    1,910    2,082      195

    Och-Ziff Funds - Net Returns
     (3)
      OZ Master Fund                     23.1%   -15.9%    11.5%    14.8%
      OZ Europe Master Fund              16.4%   -17.4%    14.8%    22.3%
      OZ Asia Master Fund                34.0%   -30.9%    12.2%    14.0%
      OZ Global Special Investments
       Master Fund                        8.4%    -8.3%    17.2%    13.9%



    (1) Includes the deferred incentive income receivable from the
    offshore funds and amounts invested by the Company,
    its partners and certain other affiliated 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 certain unrealized
    private investments that could reduce returns on these investments at
    the time of realization), and includes the
    reinvestment of all dividends and income. Management fees and
    incentive income vary by product. Past
    performance is no guarantee of future results.
    (3) Reflects a composite of the monthly return and year-to-date
    return for the feeder funds comprising each of the
    Company's most significant master funds and is presented on a total
    return basis, net of all fees and expenses of
    the relevant fund (except incentive income on certain unrealized
    private investments that could reduce returns at
    the time of realization), and includes the reinvestment of all
    dividends and income. Performance includes realized
    and unrealized gains and losses attributable to certain private and
    initial public offering investments that are not
    allocated to all investors in the funds. Investors that do not
    participate in such investments, or that pay different
    fees, may experience materially different returns. Past performance
    is no guarantee of future results.

                                    Exhibit 9
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                                   (Unaudited)


    Returns of OZ Master Fund During Negative
    Return Months of S&P 500 Index
    ------------------------------


                                 Total Return of    Total Return of OZ Master
                 Number of           S&P 500                   Fund
                  Months of
                  Negative       During Negative         During Negative
               Returns of S&P
                     500          Return Months     Return Months of S&P 500
              ---------------     -------------     ------------------------
                Year
                ----
      1994                  3                -8.5%                        1.7%
      1995                  1                -0.4%                        0.1%
      1996                  2                -6.4%                        3.9%
      1997                  3               -13.1%                        4.0%
      1998                  3               -17.2%                       -2.7%
      1999                  5               -11.8%                        6.2%
      2000                  8               -27.1%                       12.0%
      2001                  6               -33.2%                        0.4%
      2002                  8               -41.8%                       -5.0%
      2003                  3                -5.2%                        4.6%
      2004                  3                -6.4%                        1.1%
      2005                  5                -8.7%                        0.7%
      2006                  1                -2.9%                        0.5%
      2007                  5               -11.6%                        1.4%
      2008                  8               -51.8%                      -16.3%
      2009                  3               -20.9%                        4.1%
      1H -
       2010                 3               -16.8%                       -1.1%

    Distribution of Net Monthly Returns since
     April 1, 1994

                 Net Monthly
                   Return           Number of
                of OZ Master
                    Fund             Months
                 ------------        ------
                less than -3%                  5
                   -2% to -3%                  2
                   -1% to -2%                  4
                    0% to -1%                 18
                     0% to 1%                 65
                     1% to 2%                 49
                     2% to 3%                 31
                     3% to 4%                 13
                     4% to 5%                  5
              greater than 5%                  3



    Total net return for the OZ Master Fund (the "Fund") represents a
    composite of the average return of the feeder
    funds that comprise the Fund.  Returns are presented on a total
    return basis, net of all fees and expenses (except
    incentive income on certain unrealized private investments that could
    reduce returns on these investments at the
    time of realization), and include the reinvestment of all dividends
    and income.  Performance includes realized and
    unrealized gains and losses attributable to certain private and
    initial public offering investments that are not
    allocated to all investors in the Fund.  Investors that do not
    participate in such investments or that pay different
    fees may experience materially different returns.  Past performance
    is no guarantee of future results.
    For the period from 1994 through 1997, performance represents the
    performance of Och-Ziff Capital
    Management, L.P., a Delaware limited partnership that was managed by
    Daniel Och following an investment
    strategy that is substantially similar to that of the Fund.  In
    addition, during this period, performance was
    calculated by deducting management fees on a quarterly basis and
    incentive income on a monthly basis.
    Beginning January 1998, performance has been calculated by deducting
    both management fees and incentive
    income on a monthly basis from the composite returns of the Fund.
    Readers should not assume that there is any material overlap between
    those securities in the portfolio of the Fund
    and those that comprise the S&P 500 Index.  It is not possible to
    invest directly in the S&P 500 Index.  Returns of
    the S&P 500 Index have not been reduced by fees and expenses
    associated with investing in securities and
    include the reinvestment of dividends.  The S&P 500 Index is an
    equity index owned and maintained by Standard
    & Poor's, a division of McGraw-Hill, whose value is calculated as
    the free float-weighted average of the share
    prices of 500 large-capitalization corporations listed on the NYSE
    and Nasdaq.  The comparison of S&P 500
    Index performance relative to the Fund's performance during months in
    which the S&P 500 Index declined is for
    the limited purpose of illustrating how the Fund has performed during
    periods of declines in the broad equity
    market.  It should not be considered an indication of how the Fund
    will perform relative to the S&P 500 Index in
    the future.
    Please note that the Fund's investment objective is not to beat the
    S&P 500 Index.  Furthermore, the Fund's
    performance has frequently trailed that of the S&P 500 Index in
    periods of positive performance.

                                        Exhibit 10
                           OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                             Fund Performance (Unaudited) (1)



                                                                       2009
                                                                       ----
                                 January   February  March   April    May
                                 -------   --------  -----   -----    ---

    Och-Ziff Funds - Net Returns
    OZ Master Fund                   3.09%     0.35%   0.88%    1.86%  3.42%
    OZ Europe Master Fund            0.98%    -1.09%  -0.04%    2.48%  3.32%
    OZ Asia Master Fund              2.70%     1.22%   0.38%    3.09%  4.62%
    OZ Global Special
     Investments Master Fund         0.84%    -0.49%   0.35%    0.00%  1.97%

    S&P 500 Index -Total Return
     (2)                            -8.43%   -10.65%   8.76%    9.57%  5.59%




                                                                        2009
                                                                        ----
                                 June    July    August   September  October
                                 ----    ----    ------   ---------  -------

    Och-Ziff Funds - Net Returns
    OZ Master Fund                 2.14%   3.26%    1.37%      2.51%    0.68%
    OZ Europe Master Fund          1.24%   2.36%    2.06%      3.28%    0.09%
    OZ Asia Master Fund            0.58%   9.50%    0.24%      1.53%    1.16%
    OZ Global Special
     Investments Master Fund       0.88%   1.55%    0.33%      1.47%    0.02%

    S&P 500 Index -Total Return
     (2)                           0.20%   7.56%    3.61%      3.73%   -1.86%




                                                                      2009
                                                                      ----
                                      November       December      FY2009
                                      --------       --------      ------

    Och-Ziff Funds - Net Returns
    OZ Master Fund                         0.34%         1.14%       23.11%
    OZ Europe Master Fund                  0.31%         0.43%       16.43%
    OZ Asia Master Fund                    2.98%         1.94%       33.96%
    OZ Global Special
     Investments Master Fund               0.19%         1.03%        8.42%

    S&P 500 Index -Total Return
     (2)                                   6.00%         1.93%       26.46%




                                                               2010
                                                               ----
                                 January   February  March    1Q
                                 -------   --------  -----   ---

    Och-Ziff Funds - Net Returns
    OZ Master Fund                   1.09%     0.40%   1.21%   2.72%
    OZ Europe Master Fund            2.47%     0.95%   0.93%   4.41%
    OZ Asia Master Fund              0.74%     0.43%   3.80%   5.02%
    OZ Global Special
     Investments Master Fund         1.61%     0.98%   1.18%   3.82%

    S&P 500 Index -Total Return
     (2)                            -3.60%     3.10%   6.03%   5.39%

                                                                       2010
                                                                       ----
                                                                      1H -
                                  April       May     June    2Q      2010
                                  -----       ---     ----   ---     -----

    Och-Ziff Funds - Net Returns
    OZ Master Fund                   0.88%    -1.71%  -0.53%  -1.37%   1.31%
    OZ Europe Master Fund            0.64%    -2.50%  -0.90%  -2.76%   1.52%
    OZ Asia Master Fund              1.15%    -3.11%   0.03%  -1.97%   2.95%
    OZ Global Special
     Investments Master Fund         1.11%    -1.39%   0.09%  -0.21%   3.60%

    S&P 500 Index -Total Return
     (2)                             1.58%    -7.99%  -5.23% -11.43%  -6.65%



    (1) Fund performance reflects a composite of the return for the
    feeder funds comprising each of the Company's most significant
    master
    funds and is presented on a total return basis, net of all fees and
    expenses of the relevant fund (except incentive income on certain
    unrealized private investments that could reduce returns on these
    investments at the time of realization), and includes the
    reinvestment
    of all dividends and income. Performance includes realized and
    unrealized gains and losses attributable to certain private and
    initial
    public offering investments that are not allocated to all investors
    in the funds. Investors that do not participate in such investments
    or
    that pay different fees may experience materially different returns.
    Past performance is no guarantee of future results.
    (2) Readers should not assume that there is any material overlap
    between those securities in the portfolios of the funds and those
    that
    comprise the S&P 500 Index. It is not possible to invest directly in
    the S&P 500 Index. Returns of the S&P 500 Index have not been
    reduced by fees and expenses associated with investing in securities
    and include the reinvestment of dividends. The S&P 500 Index is
    an equity index owned and maintained by Standard & Poor's, a division
    of McGraw-Hill, whose value is calculated as the free float-
    weighted average of the share prices of 500 large-capitalization
    corporations listed on the NYSE and Nasdaq. The comparison of S&P
    500 Index performance relative to the funds' performance should not
    be considered an indication of how the fund will perform relative
    to the S&P 500 Index in the future. Please note that the funds'
    investment objective is not to beat the S&P 500 Index. Furthermore,
    the
     funds' performance has frequently trailed that of the S&P 500 Index
     in periods of positive performance.

SOURCE Och-Ziff Capital Management Group LLC

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