Och-Ziff Capital Shares May Rise After $1.15 Billion Share Sale

Och-Ziff Capital Management Group LLC may climb in its first day of trading after raising $1.15 billion in the largest initial public offering by a U.S. hedge- fund manager.

The New York-based investment firm, run by former Goldman Sachs Group Inc. trader Daniel Och, sold 36 million shares at $32 apiece, just above the mid-point of its $30-to-$33 target, the firm said yesterday in a statement. It will also sell 38.1 million shares to Dubai International Capital LLC, the investment firm controlled by the emirate's ruler. Och will receive about $1.1 billion in proceeds and keep a 48.5 percent stake valued at $5.9 billion.

The deal follows IPOs earlier this year by Blackstone Group LP, manager of the world's largest leveraged buyout fund, and Fortress Investment Group LLC, a New York-based hedge-fund and LBO firm. New York-based Blackstone's shares have fallen 26.5 percent since the company went public in June, while Fortress has declined 5.4 percent since its February debut.

``The success of the sale reflects an ongoing interest in alternative managers, because they will lead the growth in the asset-management industry,'' said Aaron Dorr, a managing director at Putnam Lovell in New York, a unit of Jefferies Group Inc.

The sale gives Och-Ziff, founded in 1996 with money from the Ziff family, a market value of about $12.3 billion.

Och-Ziff will have two share classes after the offering. The public will own about 9 percent of the firm through Class A stock, and Dubai International will own an additional 9.9 percent.
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