EFTA01113787.pdf

Och-Ziff Institutional Credit Strategies: U.S. CLO Management September 2015 OCH-ZIFF CAP,. MANAGEMENT GROUP EFTA01113787 Imoortant Notice This material is provided to you for informational purposes only. This is neither an offer to sell nor a solicitation of any offer to buy any securities in any fund managed by Och-Ziff Capital Management Group LLC and its affiliates (the "Company"). Any offering is made only pursuant to the relevant offering documents and the relevant subscription application (collectively, the "Offering Documents"), all of which must be read in their entirety. The information contained herein will be superseded by, and is qualified in its entirety by reference to, the Offering Documents, which will contain information about the investment objectives, terms and conditions of the Fund and will also contain tax information and risk disclosures that are important to any investment decision regarding the Fund. No offer to purchase securities will be made or accepted prior to receipt by the offeree of these documents and the completion of all appropriate documentation. This document is not an advertisement and is not intended for public use or distribution. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any purpose, nor may it be disclosed, without prior written consent of the Company. Notwithstanding anything to the contrary herein, each investor (and each employee, representative, or other agent of each such investor) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of (i) the Fund and (ii) any of its transactions, and all materials of any kind (including opinions or other tax analyses) that are provided to the investor relating to such tax treatment and tax structure. While hedge funds offer investors the potential for attractive returns and diversification, they pose greater risks than more traditional investments. Investors may lose all or a substantial portion of their investment. Investors should consider the risks inherent with investing in hedge funds, which include, but are not limited to, leveraged and speculative investments, limited liquidity, higher fees and expenses and complex tax structures. This presentation and the information contained herein does not constitute an offer of any Och-Ziff fund. The Company has in place policies and procedures designed to prevent market abuse and insider dealing. These policies and procedures are reviewed on a regular basis. Cautionary Note Reg_ardino Forward-Looking Statements The information contained herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect the Company's current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as "outlook," "believe," "expect," "potential," "continue," "may," "will," "should," "could," "seek," "approximately," "predict," "intend," "plan," "estimate," "anticipate," "opportunity," "comfortable," "assume," "remain," "maintain," "sustain," "achieve," "see," "think," "position" or the negative version of those words or other comparable words. Any forward-looking statements contained herein are based upon historical information and on the Company's current plans, estimates and expectations. The inclusion of this or other forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates or expectations contemplated by the Company will be achieved. The Company cautions that forward-looking statements are subject to numerous assumptions, estimates, risks and uncertainties, including but not limited to the following: global economic, business, market and geopolitical conditions; U.S. and foreign regulatory developments relating to, among other things, financial institutions and markets, government oversight, fiscal and tax policy; conditions impacting the alternative asset management industry; the Company's ability to retain existing investor capital; the Company's ability to successfully compete for investors, assets, professional talent and investment opportunities; the Company's ability to retain its executive managing directors, managing directors and other investment professionals; the Company's successful formulation and execution of its business and growth strategies; the Company's ability to appropriately manage conflicts of interest and tax and other regulatory factors relevant to the Company's business; and assumptions relating to the Company's operations, investment performance, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company's assumptions or estimates prove to be incorrect, the actual results may vary materially from those indicated in these statements. These factors are not and should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risks that are included in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2014 dated February 23, 2015 and filed with the SEC. There may be additional risks, uncertainties and factors that the Company does not currently view as material or that are not known. The Company does not undertake to update any forward-looking statement, because of new information, future developments or otherwise. EFTA01113788  ck OCH-ZIFF CAPITAL Table of Contents MANAGEMENT GROUP I. Och-Ziff Capital Management Group Page 1 II. Och-Ziff Institutional Credit Strategies Page 5 III. U.S. CLO Performance Page 17 IV. Appendix Page 40 Biographies of Key Professionals OCH-ZIFF CAPITAL MANAGEMENT GROUP 1 EFTA01113789  ft OCH-Z1FF CAPITAL Och-Ziff Capital Management Group MANAGEMENT GROUP A leading global institutional alternative asset manager Profile Assets Under Management Across Four Primary Global Business Units': Founded 1994 AUM (billions) $46.1 Real Estate, Energy Convertible and Equities Credit and Other Derivative Arbitrage Employees 638 AUM: $25.2 billion AUM: $16.6 billion Private Investments AUM: S2.3 billion AUM: S3.2 billion Investment Professionals 182 Key Attributes Global Footprint In Eight Offices Worldwide: ■ Seek to achieve consistent, positive absolute returns across London Office Beijing Office market cycles Established 19 Established 2007 • Opportunistic and value-oriented 'New York ....--4hinghai Office I r e -- Established 2013 approach to capital allocation Headquarters Established 1994 •— Hong Kong Office • Expertise across multiple Established 2001 Houston Office strategies and geographies Established 2015 I I Murtha' Office - Established 2005 • Institutional quality risk 'originallyin management Bangalore' Dubai Offic Established 2013 As of September 1.2015 imless otherwise noted ' As of July 1,2015. Neese see page 3 for additional information regarding the Firm's AUM information. OCH-ZIFF CAPITAL MANAGEMENT GROUP 3 EFTA01113790 Och-Ziff Capital Management Group ft OCH-Z1FF CAPITAL Multi-Strategy Approach MANAGEMENT GROUP ■ Och-Ziff has four core businesses in the U.S., Europe and Asia ■ Investment professionals across all businesses collaborate on research, industry views and investment ideas Och-Ziff Capital Management Group AUM: $46.1 billion' Convertible / Real Estate and Och-Ziff Credit Strategies Equities Derivative Other Private $16.6 billion2 $25.2 billion2 Arbitrage Investments $2.3 billion2 $3.2 billion2 ■ Management changes ■ Mathematical approach ■ Multiple property types ■ Capital structure changes ■ Hedging of credit and ■ Direct equity Opportunistic Credit Institutional Credit Strategies currency ■ Spin•offs/split-offs ■ Joint ventures ■ Single company credit ■ Recapitalizations/ ■ REITs/REOCs arbitrage reorganizations Customized ■ Relativevalue of different ■ Corporate divestitures Corporate Credit Structured Credit CLO Management Solutions ■ Liquidations/divestitures structured products ■ Structured capital solutions ■ Corporate distressed and ■ Active strategies across ■ Senior secured loans ■ Commingled loan vehicles ■ Share class discrepancies opportunistic investing securitized products managed in a CLO structure ■ Industryfocused ■ Senior secured loans in ■ Mergers/tender offers deals/platforms ■ Other dislocated single name ■ Asset-based securities separate accounts ■ Proxy contests strategies and loans ■ Energy and ■ Rights offerings/exchange infrastructure offers ' As of September 1,2015 unless otherwise noted. The information contained herein is estimated based on unaudited data. Numbers are subject to rounding. z AUM information represents assets under management of OZ Management LP and its affiliates invested in each of the strategies shown as of July I, 2015. The AUM information includes combined assets invested through mulb-strategy funds and accounts, which engage in more than one of the strategies shown, assets invested through funds or accounts dedicated to a single strategy and CLOs. Strategy allocations of multi-strategy funds and accounts change over time and there can be no assurance that the information shown will not change materially. AUM infomiabon for funds and accounts engaging in multiple strategies has been calculated by adjusting to exclude leverage based on the following assumptions: Convertible/Derivative Arbitrage generally assumes a leverage ratio of 31 and Portfolio Finance, which is a sub-strategy of Convertible/Derivative Arbitrage, assumes a leverage ratio of 10:1. which approximates the historic leverage in these strategies. Synthetic Structured Credit, which is a sub-strategy of Structured Credit, assumes a leverage ratio of SI Share Class Long/ShimMich is a sub-strategy of tonglShort Equity Special Situations, assumes a leverage ratio of 31 for Asia and 10:1 for Europe. Certain non-recourse financing subsidiaries reflect capital at risk rather than the gross long market value of these entities, given the non-recourse nature of these entities. AUM information lit is presented gross of accrued incentive compensation. CO) for funds and accounts engaging in multiple strategies does not include capital allocated to cash and (iii) includes invested capital plus unfunded commitments. The Investment Manager may determine that the characteristics of a particular investment (i.e., risk, exposure, asset class, or other characteristics' are best represented by more than one strategy. In these situations, an investment may be divided into more than one strategy for purposes of this presentation. OCH-ZIFF CAPITAL MANAGEMENT GROUP 3 EFTA01113791  OCH-Z1FF CAPITAL A Differentiated Business Model MANAGEMENT GROUP ■ Leading institutional alternative asset manager with $46.1 billion in AUM Global Footprint ■ Established investment capability in all major markets ■ Strong international presence with eight offices globally ■ 21 years generating absolute returns for institutional investors Proven Track ■ Senior investment team has worked together for approximately 17 years at Och-Ziff Record ■ Disciplined, consistent investment and risk management processes ■ Core focus on financial, operational and compliance-related controls Institutional ■ Third party verification processes Infrastructure ■ Operations, Legal and Compliance professionals are integrated into investment process ■ Comprehensive reporting about each portfolio on a regular basis Transparency ■ Qualitative and quantitative information about investment processes ■ Regular meetings with investors ■ Investments by partners and employees comprise 7% of Och-Ziff's AUMI Alignment of ■ Och-Ziff's partners receive a substantial majority of their compensation from Interests distributions tied to profitability As of September I. 2015 unless otheryerse noted. As of July L 2015. OCH-ZIFF CAPITAL MANAGEMENT GROUP 4 EFTA01113792  ck OCH-Z1FF CAPITAL Table of Contents MANAGEMENT GROUP I. Och-Ziff Capital Management Group II. Och-Ziff Institutional Credit Strategies III. U.S. CLO Performance IV. Appendix Biographies of Key Professionals OCH-ZIFF CAPITAL MANAGEMENT GROUP 5 EFTA01113793  OCH-ZIFF CAPITAL Experienced Credit Manager MANAGEMENT GROUP Experience and Capabilities Och-Ziff has extensive experience investing in leveraged loans, bonds and credit derivatives Dedicated team of 61 credit investment professionals globally Experienced in par, stressed and distressed segments of the fixed income market Investment professionals across the capital structure regularly collaborate on research, industry views and investment ideas Critical mass and global reach results in sourcing and purchasing opportunities for all clients Ability to analyze all parts of a capital structure, focusing on downside scenarios, valuation and risk management Highlights Successfully closed 12 U.S. CLOs with a total transaction value of approximately $7.0 billion Led by Brett Klein, Head of U.S. Corporate Credit, and Donald Young, Senior Portfolio Manager, Institutional Credit Strategies, with significant and broad expertise investing and managing loan, credit and CLO portfolios Raised over $4.5 billion in dedicated credit funds' Leveraged loan fund with TRS financing — launched in 2008 and successfully managed through the crisis Managed credit vehicles with multiple structures through market cycles As of September 1,2015 unless othemvse noted. Includes committed capital which has not been invested. Amount raised does not include assets external' managed by an affiliated investment adviser pursuant to a joint venture arrangement for the period from 2001 through 2004. OCH-ZIFF CAPITAL MANAGEMENT GROUP 6 EFTA01113794  OCH-Z1FF CAPITAL ICS — Overview MANAGEMENT GROUP Launched in May 2012, Institutional Credit Strategies (`ICS') is Och-Ziff's asset management platform that invests in performing credit via CLOs and other customized solutions for clients Institutional Credit Strategies Growth in Och-Ziff ICS AUM (S billion) 13 ■ Leverages Och-Ziff's: — Extensive, global corporate credit expertise — Multi-strategy platform, including in-house S52 fundamental research across industries and asset classes — Robust risk management and operational infrastructure, both core to Och-Ziff ■ Today, Och-Ziff manages over $6 billion of loans, including 12 CLOs, an institutional income fund and customized solutions 2011 S1.0 2012 2013 2014 ■1-Aug-15 1 1AUM in CLOs AUM in Customized Solutions AUM in Loan Funds -Number of Vehicles ICS has a robust and integrated loan management platform with proprietary technology and processes As of September I, 2015 unless otherwrse noted. OCH-ZIFF CAPITAL MANAGEMENT GROUP 7 EFTA01113795  ft OCH-ZI FF CAPITAL ICS Global Team MANAGEMENT GROUP ICS Investment Committee — U.S. ICS Investment Committee — Europe David Windreich—EMD, Head of U.S. and European Investing, Member of Partner Management Committee Brett Klein—EMD, Head of U.S. Corporate Credit Harold Kelly— EMD, Head of Global Convertible and Derivative Arbitrage and Risk Management, Member of Partner Donald Young—MD, Senior Portfolio Manager,ICS - U.S. Management Committee Ad eel Shafiqullah—MD, Senior Portfolio Manager, ICS - Europe Brett Klein—EMD, Head of U.S. Corporate Credit Mathieu Clavel —MD, Head of European Corporate Credit Donald Young—MD, Senior Portfolio Manager, ICS — U.S. Taj Sidhu—MD, Head of European Private Investments Brett Klein Executive ManagingDirector Portfolio Management Global Corporate Credit Research Trading Asian Research & Trading U.S. Research U.S. Trading 3Professionals Michael Barnett Neal Goldman Jason Abbruzzese Jonathan Abramson Managing Director. Special Situations Managing Director, Restructuring Retail U.S. Loans Global Portfolio Specialists Donald Young Christopher Ballard Joshua Eisenberger Scott Macklin Brendan McCourt Peter Polanskyj Managing Director Resources Gaming. Lodging. Leisure Shipping. Financials U.S. Credit Managing Director, Rordolio Structuring & Analytics Myles McGreevy Ryan Mingo Ed Moak Daniel Reed Rebecca Lim Institutional Credit Strategies Energy/ Power Technology, Media, Telecom Healthcare U.S. Credit Portfolio Analytic: U.S. Sam Newman Joshua Pinkerton Kristofer Rodgers Anna Song Energy Industrials, Aerospace Energy Po✓tfolo Analy6cs Ross Rosenfelt Daven Shastri Robert Takacs Pierre Orient Restructuring/ Documentation Specialist Generalist Consumer/Retail Po✓tfolo Analy6cs Jing Wu Systems Specialist European Research European Trading Legal Specialists Mathieu Claval Dylan Szymanski Andy Paradis Francesco de Simone Rossi Julie Siegel Adeel Shafiqullah Managing Director Managing Director, Financials Consumer/Retail, Food& Beverage Building Products, Gaming Managing Director, European Credit Managing Director, Legal Pawel Pawlowski Nick Partinnon line Chen Gabriel Eners James Sutton Institutional Credit Strategies Energy, Chemicals Technology, Merka, Telecom; Cade Healthcare, industrials European Credit Legal/European General Counsel Europe Kinali Joshi Daniel Bley European Credit Legal / &woofing Deirdre Brady Legal/ Structuring Global Systems and Financial Controls Portfolio Finance Legal & Compliance Operations & Accounting 9 Professionals 51 Professionals 141 Professionals As of September 1.2015. The orofessionals listed on this nape dedicate a nonion of their orofessional tree and attention to MS There is no guarantee that any particular individual will be involved in the management of the anatomy for env given nerved of time if at all OCH-ZIFF CAPITAL MANAGEMENT GROUP 8 EFTA01113796  ft OCH-Z1FF CAPITAL Extensive In-House Analytical Resources MANAGEMENT GROUP ICS — Collaborative Investment Approach Investment Analysts Portfolio Manager ICS Investment Committee Throughout the investment process, the firm's extensive network of industry resources is utilized Credit Selection Portfolio Management Credit Monitoring Transaction Compliance ■ Leverage relationships with ■ ICS Team led by experienced ■ Dedicated credit analysts ■ Experienced collateral team sponsors, advisors and loan and credit managers ■ Active consultation with ■ Legal expertise of the Och- others ■ Benefit of global perspective global Och-Ziff industry Ziff team ■ Global industry network to of managers across various specialists ■ Utilizes Wall Street Office optimize diligence and Och-Ziff strategies ■ In-house restructuring and proprietary in-house research ■ Dedicated corporate credit professionals systems ■ Participation across markets group with full research, ■ Active and dedicated ■ Experience managing trading and management ■ Diverse industry coverage corporate trading platform structured portfolios through capabilities market cycles ■ Daily meeting with analysts and portfolio manager to reassess investments and review new opportunities OCH-ZIFF CAPITAL MANAGEMENT GROUP 9 EFTA01113797  ft OCH-Z1FF CAPITAL Investment Process MANAGEMENT GROUP ICS Team Investment analysts ICS Investment Committee Investment Analysts ■ Global footprint across all major markets ■ Industryevaluation and assessment ■ U.S.: ■ Dedicated credit analysts ■ Core strategies across performing credit, ■ Financial modeling and free cash flow David Windreich ■ Ongoing interaction with Och•Zitf industry distressed, special situations, structured and analysis Harold Kelly specialists private investments ■ Asset valuation and relative value analysis Brett Klein ■ In•house restructuring and recovery Donald Young expertise utilized in relevant situations ■ Active dialogue between credit analysts, ■ Consultation with trading team to understand industry coverage and portfolio manager technical factors ■ Europe: Portfolio Manager Brett Klein ■ Critical mass and global reach results in ■ Daily meeting with analysts and portfolio Portfolio Manager Donald Young unique sourcing and purchasing review Adeel Shafiqullah opportunities ■ Daily meetings with analysts ■ Surveillance of portfolio concentrations, Mathieu Clavel ■ Leverage relationships wi