Och-Ziff Capital posts 2Q profit; revenue climbs

Och-Ziff Capital turns 2nd-quarter profit on lower costs; management fee revenue rises

Associated Press

NEW YORK (AP) -- Och-Ziff Capital returned to a profitable second quarter and beat Wall Street expectations after the investment manager spent heavily restructuring itself around this time last year.

The company lost more than $300 million a year ago because of those costs.

This year, revenue climbed 16 percent and assets under management also grew.

Och-Ziff earned $93.2 million, or 3 cents per share, after losing $308.6 million, or 82 cents per share, in the second quarter of 2012. The company said its distributable earnings totaled 16 cents per Class A share if special items are excluded. Revenue grew to $207.8 million from $178.4 million.

Analysts expected net income of 13 cents per share and $142.6 million in revenue, according to FactSet.

Och-Ziff's revenue from management fees grew 9 percent to $139.5 million and income from consolidated funds rose 40 percent to $45.2 million. Its assets under management totaled $36.6 million at the end of the quarter, up from $29.3 billion a year ago.

As of Aug. 1, the company had $36.7 billion in assets under management.

Shares of Och-Ziff Capital Management Group lost 11 cents to $11.38 in morning trading amid a broader sell-off on the market to weaker than expected jobs numbers.

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