Och-Ziff Capital Management Group’s assets under management totaled $48 billion as of June 30, up 4.6% on a year-to-year comparison, but down 0.6% for the three-month period.
The alternative investment manager’s earnings report, released Tuesday, said growth in total assets in the year ended June 30 was driven by performance gains of $2.9 billion and net inflows of $129.9 million, which were offset by $1 billion of distributions from Och-Ziff’s closed-end opportunistic credit and real estate funds.
Among the firm’s four main investment categories, institutional credit strategies exhibited the strongest growth during the year — 65% to $6.6 billion, and the quarter — 11.9%. Och-Ziff said in its report that growth in this area was primarily from four collateralized-loan obligation funds that closed during the 12 months.
Och-Ziff’s real estate funds also showed strong growth of 58.4% for the year to $2 billion as of June 30. Real estate assets increased 11.1% in the quarter.
Och-Ziff’s credit opportunities strategies totaled $5.1 billion as of June 30, up a modest 2% for the 12-month period, and down 1.9% over three months. The increase for the one-year period was from $286 million of performance gains and net inflows of $633.8 million, offset by distributions of $809.3 million from closed-end opportunistic credit funds.
Finally, assets managed in Och-Ziff’s multistrategy hedge funds totaled $33 billion as of June 30, down 2.9% for the 12 months and down 2.4% in the quarter. The company reported net outflows from the funds of $3.5 billion and performance gains of $1 billion during the year.
“We believe we have built a significant competitive advantage in each of our strategies, which in turn has enabled us to diversify our business and build scale in these areas in a short period of time,” said Daniel S. Och, chairman and CEO, in the earnings report.
