The Wizard of OZ Heads for IPO

Och-Ziff Capital Management filed for a $2 billion initial public offering today, becoming the latest alternative asset management group to sell equity to the investing public.
One question that keeps arising when these offerings are discussed is whether it makes sense for an outsider to get in on a business that the insiders are getting out of. Och-Ziff has a strong reply: they aren’t getting out. In fact, they promise to re-invest the proceeds from the IPO in Och-Ziff funds, with a mandatory five-year lock-up.
We can’t help wonder if there’s not some kind of tax arbitrage behind this scheme. With plans afoot on Capitol Hill to tax hedge fund and private equity partnerships as corporations, this move might allow the owners of Och-Ziff to convert some of their carried-interest into investment capital subject to capital gains taxes.
The firm will remain under the tight control of founder Daniel Och. The current owners will control a majority of the voting rights, and they will sign an agreement giving Och an irrevocable proxy to vote their shares. The Wall Street Journal notes that Market Beat notes the fate of the fund is very much tied to Och himself. Investors in its funds are “entitled to a ‘one-time special redemption right’ allowing them to cash out of the fund if Mr. Och is unexpectedly unavailable to the firm for 90 days for any reason — death, disability, alien abuduction, whatever ,” according to Market Beat.
The role of Goldman Sachs as a lead underwriter of the IPO has prompted Deal Journal’s Dana Cimilluca to put forward something of nepotism theory to explain why Goldman has been landing lead roles in the big hedge fund IPOs but missing out on the private equity offerings.

At Och-Ziff…three of seven executive officers and directors listed in the SEC filing heralding the deal have Goldman on their resume. They include co-founder Daniel Och, who spent more than 11 years at Goldman before starting the eponymous investment firm in 1994. According to the filing, he was in Goldman’s Risk Arbitrage department and later ran proprietary trading in equities and was co-head of U.S. stock trading. At Fortress, the hedge fund and private-equity firm that started the present U.S. trend of alternative asset managers going public in February, three of its 12 chieftains are old Goldmanites.
Meanwhile, Goldman isn’t mentioned anywhere in the section of the Blackstone IPO prospectus that discusses the backgrounds of its 10 honchos, and KKR’s founders are all Bear Stearns alumni.

A yet unremarked connection between the Blackstone IPO and the Och-Ziff IPO is the role of Skadden Arps corporate finance partner, Jennifer Bensch. On Blackstone, Bensch was listed as the second partner at Skadden (who acted as outside counsel to Blackstone) working on the transaction. She’s in the same position in the Och-Ziff IPO. From our experience with big law firms, the placement of law firm partners usually works like this: the first name has the client relationship, and the second name does the work. This raises the possibility that Bensch may be the legal brain at the center of the recent push into the public capital markets by hedge funds and private equity firms. Bensch could not be reached for comment.
IPO Prospectus [SEC]
Och-Ziff Capital Hedge Fund Files for $2 Billion IPO [Bloomberg]
Midday Tidbits: Doc Och [Market Beat]
Goldman’s Hedge Fund Alumni Network [Deal Journal]

66 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (66)

  1. Posted by Jerry Denis | May 10, 2012 at 1:47 AM

    Originally posted by zarb: “what do i do to recover ssaved passwords? i just didnt get it i was puzzled”

  2. Posted by Carol Ramrirez | July 13, 2012 at 1:37 PM

    I’ve recently started a website, the info you offer on this web site has helped me tremendously. Thank you for all of your time & work. “The very ink with which history is written is merely fluid prejudice.” by Mark Twain.

  3. Posted by Lester Cristina | August 25, 2012 at 8:45 AM

    Hiya, I’m really glad I’ve found this information. Today bloggers publish just about gossips and internet and this is actually annoying. A good site with exciting content, this is what I need. Thank you for keeping this web site, I will be visiting it. Do you do newsletters? Cant find it.

  4. Posted by Anonymous | August 25, 2012 at 10:25 PM

    …Check this out…

    [...] The overall look of your website is excellent, let neatly as the content material! http://michaelkors.net.br [...]…

  5. Posted by Phlebotomy Certification HQ | August 29, 2012 at 8:48 AM

    A robust discuss, I merely given this on to the co-worker who had been doing fairly examination with this. In case achievable, because you turn into know-how, do you thoughts modernizing your blog post with an increase of information? It’s very useful for myself. http://www.phlebotomycertificationhq.com

  6. Posted by sexshop | August 30, 2012 at 2:51 PM

    Hiya! I just wish to give a huge thumbs up for the good data you’ve here on this post. I will likely be coming back to your weblog for extra soon.

  7. Posted by cool belly button rings | August 31, 2012 at 2:12 PM

    Thanks so much pertaining to giving my family an update on this matter on your web page. Please realise that if a fresh post becomes available or when any modifications occur to the current posting, I would be thinking about reading a lot more and learning how to make good use of those approaches you write about. Thanks for your efforts and consideration of other men and women by making your blog available.

  8. Posted by bluesquare casino | September 3, 2012 at 8:32 PM

    i dont agree with what you said in your post, but do agree on most points!

  9. Posted by SILKROAD | September 4, 2012 at 6:14 AM

    I simply found your blog as well as wanted to claim that We have really liked exploring your website blogposts. A great internet site with thrilling articles, this is just what We need. I think this article content this is rattling fantastic, appreciate it for your effort. You ought to continue forever! http://www.silkroadgoldbuy.com/

  10. Posted by phlebotomy jobs salary | September 4, 2012 at 12:36 PM

    You undoubtedly allow it to become seem so simple using your display however locate this particular subject being really the another thing i do think I would individually certainly not recognize. The idea sort of seems way too complicated and intensely wide i think. http://www.phlebotomycertificationhq.com/

  11. Posted by prestamos | September 6, 2012 at 4:01 PM

    I like what you guys are up also. Such smart work and reporting! Keep up the excellent works guys I¡¦ve incorporated you guys to my blogroll. I think it’ll improve the value of my site :)

  12. Posted by spss training | September 7, 2012 at 4:02 PM

    It is appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I wish to suggest you few interesting things or tips. Perhaps you can write next articles referring to this article. I wish to read more things about it!

  13. Posted by go to my blog | September 7, 2012 at 5:40 PM

    Keep up the superb piece of work, I read few blog posts on this web site and I believe that your web site is real interesting and contains lots of superb information.

  14. Posted by iss pyaar ko kya naam doon holi | September 7, 2012 at 5:59 PM

    I must show some thanks to you just for bailing me out of this circumstance. After browsing through the search engines and coming across ways which were not helpful, I figured my entire life was over. Being alive devoid of the approaches to the difficulties you’ve solved by way of your entire article content is a crucial case, and the ones which could have in a wrong way affected my career if I had not noticed your website. Your capability and kindness in controlling the whole lot was very helpful. I don’t know what I would have done if I hadn’t come upon such a stuff like this. I’m able to at this time look ahead to my future. Thanks a lot very much for the skilled and results-oriented help. I won’t be reluctant to propose the sites to anybody who should get assistance on this subject.

  15. Posted by effektiv Gewichtabnehmen mithilfe Hypnoseanwendung | September 8, 2012 at 4:47 AM

    After looking аt a few of the blog posts on уour webѕite, I really lіke youг teсhniquе of blogging.
    I book-marked it to my booκmarκ site lіst anԁ will be chеcking
    back soon. Take a looκ at my website as well and tell me yοur oрinіon.

  16. Posted by www.SLIDINGDOORSIDEAS.com/ | September 8, 2012 at 11:18 AM

    Hello there, this is a very good quality article. The theory is that I’d love to publish this way as well * slacking along with genuine effort to produce a great post. http://www.slidingdoorsideas.com/sliding-closet-doors

  17. Posted by HTTP://www.slidingdoorsideas.com/ | September 8, 2012 at 2:09 PM

    Thanks for finding the time to go over this particular, I’m firmly regarding it as well as adore mastering on this specific matter. When possible, as you achieve expertise, do you head modernizing your blog with an increase of information? I’m very interesting to reading through your blog post. Many thanks, looking forward to the supply revisions. http://www.slidingdoorsideas.com/japanese-sliding-doors

  18. Posted by Luisa Tuller | September 8, 2012 at 2:19 PM

    We can consider alongside two or three recommendations which can assist you to get moving down, plus recognized you along the way to save ones own bond.

  19. Posted by bosanke primaju kurac | September 8, 2012 at 3:33 PM

    I was studying some of your blog posts on this internet site and I think this web site is real informative! Continue posting.

  20. Posted by download free movies download free movies | September 8, 2012 at 6:37 PM

    Hello there! This аrticle could not be written much better!
    Loоking through thіs post reminds me of
    my previous гoommate! He always kept preaching about this.

    I will forwaгd thіѕ post to him. Faiгly
    cеrtain he will haνe а grеat rеаԁ.
    Thank you foг shаring!

  21. Posted by fat loss factor | September 8, 2012 at 10:45 PM

    There are a lot of great tips here.

  22. Posted by www.seoassistant.org | September 9, 2012 at 10:41 PM

    …Visitor recommendations…

    [...]The overall look of your website is excellent, let neatly as the content material! http://michaelkors.net.br [...]…

  23. Posted by mamino tucanje video | September 10, 2012 at 3:42 AM

    I gotta bookmark this site it seems handy handy

  24. Posted by crork | September 11, 2012 at 6:32 AM

    3LUFUz Thanks so much for the blog.Really thank you! Cool.

  25. Posted by Pensionsöverblick | September 11, 2012 at 8:49 AM

    You made good quality points there. I was able to a search on the topic and located the majority will are in agreement with yuor web blog.

  26. Posted by stockholm innovation and growth | September 11, 2012 at 1:17 PM

    I’m pretty happy about this examine, thank you very much

  27. Posted by Elton Fortner | September 12, 2012 at 1:56 AM

    Hi there just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Internet explorer. I’m not sure if this is a formatting issue or something to do with web browser compatibility but I thought I’d post to let you know. The layout look great though! Hope you get the issue solved soon. Cheers

  28. Posted by Darcy Marlborough | September 12, 2012 at 11:17 PM

    you’re in reality a just right webmaster. The site loading velocity is amazing. It seems that you are doing any unique trick. Moreover, The contents are masterpiece. you’ve done a fantastic process on this topic!

  29. Posted by Kapitalförsäkring | September 13, 2012 at 6:26 AM

    I appreciate you for getting to be simple to deal with also to obtain this sort of amazing information that a majority of men and women are very keen to be aware of.

  30. Posted by hypnosbehandling skåne | September 13, 2012 at 6:42 AM

    thanks !! beneficial post!

  31. Posted by test | September 13, 2012 at 5:14 PM

    Great job over again. Thank you!

  32. Posted by 31 day fat loss | September 13, 2012 at 6:15 PM

    hi!,I love your writing so so much! proportion we communicate more approximately your article on AOL? I need an expert on this house to solve my problem. Maybe that is you! Having a look forward to peer you.

  33. Posted by harga hp | September 13, 2012 at 6:30 PM

    I don’t even understand how I finished up right here, but I thought this publish was once good. I do not understand who you are however definitely you are going to a famous blogger for those who aren’t already ;) Cheers!

  34. Posted by angry birds | September 14, 2012 at 4:38 AM

    Angry birds is the best game ever, that’s what I think

  35. Posted by Hellen4478GS | September 14, 2012 at 9:52 PM

    ÿþT

  36. Posted by Webcam Models | September 15, 2012 at 3:36 AM

    wikipedia reference…

    You have brought up a very great details , regards for the post….

  37. Posted by Sextoys | September 15, 2012 at 7:34 AM

    Read Full Article…

    Merely a smiling visitor here to share the love (:, btw great style. “Individuals may form communities, but it is institutions alone that can create a nation.” by Benjamin Disraeli….

  38. Posted by How To Make Beaded Bracelets | September 15, 2012 at 10:33 PM

    I’d personally prefer to many thanks for expressing your own tips along with positioning time in the content a person publish! I recently couldn’t abandon your web site ahead of recommending which i highly appreciated the common data somebody give you to your viewers? Will probably be back on a regular basis as a way to validate high on brand-new posts. http://www.silkroadgoldbuy.com/how-to-make-beaded-bracelets.html

  39. Posted by Grace Tims | September 16, 2012 at 4:35 PM

    Possible call for all types of led tourdates with some other fancy car applications. Many also provide historic packs and other requires to order take into your lending center, and for a holiday in upstate New York. ???

  40. Posted by oil companies nj | September 16, 2012 at 4:41 PM

    What i don’t understood is actually how you’re not really much more neatly-appreciated than you might be now. You’re so intelligent. You recognize therefore significantly with regards to this topic, produced me in my opinion imagine it from so many various angles. Its like women and men are not fascinated unless it¡¦s one thing to accomplish with Lady gaga! Your own stuffs great. All the time take care of it up!

  41. Posted by mens beaded bracelets | September 16, 2012 at 7:01 PM

    Hey I stumbled on to the works! Even when searching out the website for arbitrary downloading. Thanks expressing myself will e-mail my personal associates about this additionally? http://www.silkroadgoldbuy.com/mens-beaded-bracelets.html

  42. Posted by pain behind the knee | September 17, 2012 at 12:40 AM

    An impressive share! I have just forwarded this onto a co-worker who has been conducting a little homework on this. And he in fact ordered me breakfast due to the fact that I discovered it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanks for spending some time to talk about this topic here on your internet site.

  43. Posted by EUG | September 17, 2012 at 10:39 AM

    I am looking for any competent author, extended time within this region. Outstanding article!

  44. Posted by pua pickup | September 17, 2012 at 8:07 PM

    Definitely, what a fantastic website and revealing posts, I will bookmark your blog.Best Regards!

  45. Posted by pickup artist | September 17, 2012 at 8:49 PM

    Useful information. Lucky me I discovered your site accidentally, and I am surprised why this coincidence didn’t came about earlier! I bookmarked it.

  46. Posted by tu bep go | September 18, 2012 at 11:34 AM

    I have to show thanks to the writer just for rescuing me from such a dilemma. After researching through the search engines and finding principles which were not productive, I believed my life was gone. Living without the presence of strategies to the issues you have resolved through your good posting is a serious case, as well as those which might have badly affected my entire career if I had not discovered the website. That know-how and kindness in maneuvering all the pieces was precious. I don’t know what I would have done if I had not encountered such a point like this. I’m able to at this point look ahead to my future. Thank you very much for your professional and amazing help. I won’t be reluctant to propose your blog post to anyone who needs to have direction about this subject matter.

  47. Posted by hosting | September 19, 2012 at 7:50 PM

    not everyone be familiar with identical

  48. Posted by thuong hieu so | September 21, 2012 at 3:32 AM

    wonderful points altogether, you just received a brand new reader. What might you recommend about your publish that you just made a few days ago? Any certain?

  49. Posted by Hobert Seilheimer | September 22, 2012 at 2:47 PM

    Woah this blog is excellent i really like reading your posts. Keep up the great work! You already know, many individuals are searching round for this information, you can help them greatly.

  50. Posted by work from home | September 23, 2012 at 5:35 AM

    Hi! I know this is kinda off topic but I was wondering which blog platform are you using for this website? I’m getting tired of WordPress because I’ve had issues with hackers and I’m looking at options for another platform. I would be awesome if you could point me in the direction of a good platform.

  51. Posted by Antoine Kohls | September 23, 2012 at 1:33 PM

    I seldom comment, however i did a few searching and wound up here The Wizard of OZ Heads for IPO Dealbreaker: Wall Street Insider – Financial News, Headlines, Commentary and Analysis – Hedge Funds, Private Equity, Banks. And I do have some questions for you if you tend not to mind. Is it only me or does it give the impression like a few of the comments appear like written by brain dead people? :-P And, if you are writing at other social sites, I would like to keep up with everything new you have to post. Could you make a list of the complete urls of all your community pages like your Facebook page, twitter feed, or linkedin profile?

  52. Posted by http://www.autoapproveclub.com | September 24, 2012 at 11:27 AM

    …Click here for or more Information…

    [...]The entire glance of your site is wonderful, let smartly as the content! http://tagheuer.net.br [...]…

  53. Posted by Host gator vps coupons | September 24, 2012 at 12:34 PM

    When might you post once more? You actually advise a number of people!

  54. Posted by host gator 1 cent coupon | September 24, 2012 at 5:55 PM

    We’ve noticed some points using your post. One other stuff I have to show is there are many video games that you can buy which can be designed specially with regard to preschool age youngsters. They will include routine identification, shades, loved ones dogs and cats, and forms. These kinds of typically focus on familiarization as opposed to recall skills. This can keep youngsters filled with out sensation like they’re studying. Cheers

  55. Posted by menaka malayalam actress | September 25, 2012 at 7:01 AM

    Thanks for another wonderful post. Where else could anyone get that type of info in such an ideal approach of writing? I have a presentation subsequent week, and I’m at the search for such information.

  56. Posted by http://www.autoapproveclub.com | September 25, 2012 at 10:57 AM

    …Click here for or more Information…

    [...]I am now not sure where you are getting your info, however good topic.http://tagheuer.net.br [...]…

  57. Posted by business opportunities page | September 26, 2012 at 8:47 AM

    Please let me know if you’re looking for a article author for your weblog. You have some really great articles and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some articles for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Thanks!

  58. Posted by ativan | October 7, 2012 at 9:07 AM

    http://www.adderallonlinestore.com

    It�s hard to find knowledgeable people on this topic, but you sound like you know what you�re talking about! Thanks…

  59. Posted by Dwayne Poetker | October 8, 2012 at 4:02 AM

    I’ve recently started a web site, the info you provide on this web site has helped me greatly. Thanks for all of your time & work.

  60. Posted by elevated roofing | October 10, 2012 at 5:29 AM

    Thanks for the strategies presented. One thing I should also believe is that often credit cards giving a 0% monthly interest often lure consumers together with zero rate, instant approval and easy internet balance transfers, but beware of the real factor that will certainly void the 0% easy streets annual percentage rate and as well as throw one out into the very poor house rapidly.

  61. Posted by Poles Marmer | October 11, 2012 at 1:11 AM

    Thank u very much guys.Love u… :-)

  62. Posted by AtorihomiBiow | October 11, 2012 at 4:29 AM

    btjdhobk dyurybqj [url=http://frloboutinnchaussuresales.com/]louboutin pas cher[/url] ekdgxhun louboutin soldes jqlouruj nqvngfec http://frloboutinnchaussuresales.com/

  63. Posted by Duane Laramie | October 13, 2012 at 10:10 PM

    on . April 19th, 2012 at . 6:15 am

  64. Posted by affärsänglar | October 15, 2012 at 5:53 AM

    It is the best time to make some plans for the long run and it is time to be happy. I have read this submit and if I may I want to recommend you few fascinating things or tips. Maybe you could write next articles regarding this article. I desire to learn more issues about it!

  65. Posted by my site | October 15, 2012 at 1:29 PM

    Thanks for every other informative website. Where else may I am getting that type of info written in such an ideal manner? I’ve a challenge that I’m simply now running on, and I’ve been at the glance out for such info.

  66. Posted by Chauncey Kahahane | October 15, 2012 at 7:52 PM

    Wow, fantastic blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your site is magnificent, let alone the content!. Thanks For Your article about 302 Found .