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Money Management

Och-Ziff reports AUM fell in quarter, but rose 1% for year

Multistrategy hedge funds see net outflows of $1.1 billion

Och-Ziff Capital Management Group assets under management were $33 billion as of Sept. 30, down 2.7% from the June 30 figure and up 1% from Sept. 30, 2017, according to the alternative investment firm's earnings report released Friday.

Och-Ziff estimated its AUM as of Nov. 1 was $32.3 billion.

The firm said its increase in AUM for the 12 months ended Sept. 30 was primarily due to performance-related appreciation and the closing of additional collateralized loan obligations as well as an aircraft securitization by its credit business. These gains were partially offset by net outflows in Och-Ziff's multistrategy funds and distributions from some multistrategy funds that the firm closed.

The firm had total net inflows of $500 million in the quarter, compared to $1.25 billion of net inflows in the quarter ended June 30.

The company's multistrategy hedge funds continued to have net outflows of $1.1 billion, compared with net outflows of $367 million in the prior quarter and $1.8 billion in the quarter ended Sept. 30, 2017.

Och-Ziff's institutional credit funds continued a run of net inflows with $526 million in the third quarter, compared to net inflows of $1.6 billion and $924 million, respectively in the June 30 and year-earlier quarter. The firm's real estate funds attracted net inflows of $4.7 million in the quarter, compared to net inflows of $78 million in the second quarter and net inflows of $8.1 million in the quarter ended Sept. 30, 2017.

Opportunistic credit funds continued to have net outflows of $34.6 million in the third quarter compared to net outflows of $51 million and $10 million, respectively, for the quarter ended June 30 and year-earlier quarter.

Institutional credit funds managed a total of $11.5 billion as of Sept. 30, down 9.8% from $12.75 billion as of June 30 and down 22% from $14.6 billion as of Sept. 30, 2017. Multistrategy funds managed $11.5 billion as of Sept. 30, down 11.8% from $12.7 billion as of June 30 and down 21.2% from $14.6 billion at the end of the year-earlier quarter.

Opportunistic credit funds ran a total of $5.6 billion at the end of the third quarter, up from 1.8% from $5.5 billion as of June 30 and up 3.7% from $5.4 billion as of Sept. 30, 2017. Real estate fund AUM was $2.5 billion as of Sept. 30, flat from $2.5 billion as of June 30 and down 4% from $2.6 billion at the end of the year-earlier quarter.

Och-Ziff reported a net loss of $14.5 million in the third quarter compared to a net loss of $12.3 million the previous quarter and a net gain of $5.7 million in the third quarter of 2017.