Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

Q2 2011 Earnings Call Company Participants

Tina Madon Dan S. Och Joel Martin Frank

Other Participants
Cynthia Mayer Roger Anthony Freeman William R. Katz Daniel T. Fannon Kenneth B. Worthington Marc S. Irizarry

MANAGEMENT DISCUSSION SECTION

Operator
Good morning, everyone, and welcome to the Och-Ziff Capital Management Group 2011 Second Quarter Earnings Conference Call. My name is Onica, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. All lines have been placed on mute to prevent any background noise. [Operator Instructions] I would now like to turn the call over to Tina Madon, Head of Investor Relations at Och-Ziff.

Tina Madon
Great. Thanks, Onica. Good morning, everyone and welcome. With me today are Dan Och, our Chairman and CEO; and Joel Frank, our Chief Financial Officer and Senior Chief Operating Officer. I'd like to remind you that today's call may include forward-looking statements. These statements reflect the current views of management about, among other things, assumptions with respect to levels of assets under management, future events, certain expense levels, and financial performance, many of which, by their nature, are inherently uncertain and outside of our control. Och-Ziff's actual results and financial condition may differ, possibly materially, from the anticipated results and financial conditions indicated in these forward-looking statements. For a discussion of the risk that could affect our results, please see the risk factors described in our 2010 annual report. The company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise. During today's call, we'll be referring to economic income, distributable earnings and other financial measures, which are not prepared in accordance with U.S. Generally Accepted Accounting Principles. Information about and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release which is posted on the Class A Shareholders page of our website.

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Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

Furthermore, no statements made during this call should be construed as an offer to purchase shares of the company or an interest in any Och-Ziff fund. Today's call is being recorded and is a copyrighted material of Och-Ziff Capital Management Group LLC. Telephonic and web cast replays will be made available later today. You can find the details for both on our website at www.ozcap.com. With that let me now turn the call over to Dan.

Dan S. Och
Thanks, Tina. Good morning, everyone. We appreciate you joining our call today. This morning I'll give you a brief update on our year-to-date investment performance as of July 31 and assets under management as of August 1. I'll also share our perspective on the current the environment for capital flows and touch on the investment landscape as we see it. As you're all aware, market conditions globally become more difficult and volatile during the second quarter and that has persisted into the summer. Economic conditions in the U.S. and Europe, in particular, have become more fragile and investor uncertainty has increased as a result. Against this backdrop, we continue to preserve our fund investors' capital and generate consistent risk-adjusted returns during the second quarter and through July. As always, our performance is a function of our disciplined approach to investing and actively managing risk as well as our low use of leverage. Our multi-strategy approach and international capabilities continue to enable us to be nimble in adjusting our portfolio allocations to take advantage of investment opportunities despite rapidly-changing market conditions. These attributes are integral to maintaining broadly diversified portfolios. As a result, we have continued to build on our long history of generating profits for our fund investors. We're able to capitalize on a broad range of opportunities in multiple geographies without excessive exposure in any one area. We believe that institutional investor interest in Och-Ziff remains strong relative to the hedge fund industry. Investors continue to actively seek access to investment managers that generate risk-adjusted returns which have a low correlation with the equity markets and have also consistently protected capital. We believe that this has led to increased allocations to the hedge fund industry and to Och-Ziff in the first half of this year, and we believe that this acceleration will continue. Now let me briefly review our business results. As we announced this morning, our assets under management as of August 1 totaled $29.9 billion, reflecting year-to-date growth of 7% or $2 billion from December 31. Of this amount, $1.1 billion was attributable to capital net inflows and $900 million to performance-related appreciation. These amounts included $600 million of net inflows on August 1. We have maintained an active dialog with a broad range of fund investors, and we continue to see strong interest from a diverse mix of investors globally. Consistent with the last several quarters, we have seen particular interests from pension funds and private bank platforms. However, we anticipate the capital flows will continue to vary significantly month to month as institutions remain cautious and deliberate in their selection of managers. Now for a quick update on our fund's investment performance. Year-to-date through July 31, our Master Fund was up 3.4% net, our Europe Master Fund was up 0.2% net, our Asia Master Fund was up 2.2% net, and our Global Special Investments Fund was up 6.1% net. These returns were generated with less than half the volatility of the S&P 500 Index. Our year-to-date performance was primarily driven by our credit related and equity long/short strategies, as we saw a diverse range of high-quality investment opportunities world-wide. As I mentioned earlier, our performance reflects the benefits to our fund investors of our active risk management process and the flexibility of our multi-strategy model.

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Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

In response to the higher level of economic uncertainty during the second quarter, we reduced exposures and increased our allocation to cash on the Master Fund to 7% as of July 1 from nearly 0% as of April 1. We are continuing to see attractive opportunities in credit and equities, although we are being more selective. We believe that our global presence, flexibility and expertise provide us with an advantage in identifying and capitalizing on investment themes as they evolve in this dynamic market environment. With that, let me now turn the call over to Joel.

Joel Martin Frank

Thanks, Dan. Today I will review our 2011 second-quarter results and discuss how we are thinking about expenses for the third quarter. For the 2011 second quarter, we reported a GAAP net loss of $93 million, or $0.96 per basic and diluted Class A Share. For your reference, a discussion of our GAAP results is contained in our press release. Now, let's turn to the details behind our 2011 second quarter economic income beginning with revenues. Management fees totaled $125 million, of which approximately $120 million was attributable to the Funds segment and $5 million to other operations, a 6% increase from the 2011 first quarter. This increase was attributable to approximately $1.4 billion of growth in our assets under management from January 1 to April 1. From April 1 to July 1, our assets under management grew an addition of $300 million to approximately $29.3 billion. Our average management fee remained at approximately 1.7%. This is a blended rate that includes the effect of our non-fee paying assets. Incentive income totaled $7 million during the second quarter and was all attributable to the Funds segment. This total related to redemptions. Now, let me turn to the 2011 second-quarter expenses. Comp and benefits totaled $23 million, with $22 million attributable to the Funds segment and $1 million to other operations. Of the total, salaries and benefits were approximately $17 million attributable to the Funds segment and $1 million to other operations. This amount reflected a 5% increase from the 2011 first quarter. Second quarter comp and benefits also included $5 million of bonus expense, primarily related to guaranteed bonuses, which was essentially all attributable to the Funds segment. The ratio of salaries and benefits to management fees remained at 15% in the second quarter. We expect this ratio to remain at approximately 15% to 17% for the third quarter of this year. Now, turning to non-compensation expenses, non-comp expenses totaled $22 million in the second quarter, 6% higher than in 2011 first quarter, with approximately $21 million attributable to the Funds segment and $1 million to other operations. The ratio of non-comp expenses to management fees remained at 18% in the second quarter, and we expect this ratio to remain at approximately 18% to 20% for the third quarter of this year. Our 2011 second quarter effective tax rate was 22%, compared to 19% in the 2011 first quarter. For the third quarter, we estimate that our effective tax rate will remain in the range of 19% to 22%. As a reminder, our 2011 full-year effective tax rate is subject to variables that we can't determine until the fourth quarter of this year. As a result, our full-year tax rate could vary significantly from our estimate. Our 2011 second quarter distributable earnings were $68 million or $0.16 per adjusted Class A Share. As you saw in our press release this morning, our dividend for the 2011 second quarter is $0.14 per Class A Share. As we do each quarter, we use cash to fund items related to the operation of our business. The most significant of these continue to be, withholding taxes to be paid on the vesting of RSUs and principal repayments on our variable rate borrowings. Before closing, I'd like to emphasize that we believe it's most meaningful to evaluate year-to-date net capital flows in order to identify any trend in our organic asset growth. As we've said previously, our monthly net flows can vary,

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Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

sometimes significantly, and are therefore not the best measure of growth [ph] to measure (10:34) from our business. Growth in assets under management is also a function of investment performance, including our ability to preserve capital in volatile or declining market conditions. Growth in our assets under management drives growth in management fees and incentive income, as we continue to generate consistent positive risk-adjusted returns across market cycles. As I have said before, we anticipate that growth in our total revenues will continue to more than offset any increase in our operating expenses over time. This operating leverage has been and will continue to be an important driver of earnings power of our business. With that, we'll be happy to take your questions.

Q&A
Operator
Thank you. [Operator Instructions] Your first question comes from the line of Cynthia Mayer with Bank of America Merrill Lynch. Please proceed. <Q - Cynthia Mayer>: Hi. Good morning. Thank you. Could you give us just some color on the types of fee schedules that are most popular these days in terms of a three-year lockup versus the more basic type of fee schedule? <A - Joel Martin Frank>: In the fees range, as you know, from 1.5% up to 2.5%, they're all popular. It all depends on investors' preference and where they want to invest. So there is not any one particular focus on any fee structure. It's more on the overall structure and what they're interested in investing in. <Q - Cynthia Mayer>: So in terms of the, for instance, the inflows you have this month, is it just should we think of the mix as sort of 80%/20%, 50%/50%. Is there a way to look forward in terms of what do you think the mix will be? <A - Dan S. Och>: We don't disclose the mix on a monthly basis, Cynthia, but no significant change from what you've seen historically. <Q - Cynthia Mayer>: Okay. And then I guess, just one more fee question, which is could you maybe give us a sense of whether there are any changes in trend in terms of sales and redemptions as opposed to just fund flows, net flows? And then, for instance, in the July number where you had a greater outflow than usual following greater inflow, was that maybe a function of lower sales, or was there a particular redemption in there? Thanks. <A - Joel Martin Frank>: No dramatic change, I mean, I think for the past 12 months or so, maybe even longer, it's been clear that the flows are choppier than they've been historically. But the real key for us is, both in the numbers we see in terms of inflows and in terms of the meetings we have and in terms of the product we're delivering, our focus is always, are we giving investors reasons to stay with us and to join us, that's the focus. And we think that everything that we're doing is making us stronger and stronger in that front. We think you're seeing it in the numbers. As I said, sometimes they're choppier. We always say don't get too focused on months to months, but obviously, plus $600 million for this month is something we're very pleased with. But most importantly, whether it's in the numbers themselves or the meetings we're having, or more importantly, how we're measuring ourselves and what we're delivering, we think the recent market volatility, the recent global uncertainty, our ability to navigate that, our 17-year history of performing throughout that is becoming more and more differentiative. <Q - Cynthia Mayer>: Great. Thanks a lot. <A - Dan S. Och>: Thank you.

Page 4 of 11

Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

Operator
Your next question comes from the line of Roger Freeman [Barclays Capital]. Please proceed. <Q - Roger Anthony Freeman>: Hi. Good morning. Just maybe to follow up on Cynthia's flow question, can you maybe give us a sense of, with the inflows that came in here for July, the August $1 billion plus, maybe how many investors total that included, maybe what percentage of those were new to Och-Ziff versus existing? And then, for those of who were new, when did that when did those discussions began? How long would you say the, sort of, lead time is now? <A - Joel Martin Frank>: Look, we are not going to disclose we don't disclose the details, but I will tell you it's mixed across the board in types of investors who came in, so and it's mixed amongst new and additions. So it's actually a good mix amongst all, and I think that's the way it's been all year, and I think it's going to continue to be that way. <A - Dan S. Och>: And, Roger, in terms of on your question about lead time, look, that varies and that's why it's so crucial for us to just continue to be in front of the best investors to be continuing to deliver. We've been very consistent that the main marketing focus of Och-Ziff is delivering the product and being clear about what that product is. And so, we feel very confident that we're doing that and people are seeing it. And in terms of month-to-month flows, we don't really have a good reason as to why they are a little bit choppier. We think it's a combination of reasons we mentioned, but the most important thing is that these numbers are there, and the investors are there. <Q - Roger Anthony Freeman>: In the last couple of months, as we've kind of gotten into a higher degree of risk aversion with the for the macro issues, have you noticed any change? And so and on the one hand, there seems there have been some pullback on alternative flows across the industry, not necessarily with you, but given what you sell, i.e. low volatility returns and protection of principal, does that do you find that actually resonates more with people in this kind of environment? <A - Dan S. Och>: I would say that's likely to be the case. I mean, when you say this environment, as I said, I don't want to get too wrapped up in month-to-month, but there is no doubt that difficult periods tend to accentuate the value of what we do. And we think that investors, the longer investors tend to focus, the more experience they have in the market, not just with us, within the market, the more they tend to understand the value of what we do, the more they tend to understand that not everyone who says they deliver it can deliver it. The more the longevity, the track record matters, the more the the more they understand the value of our international franchises, of our ability to move the capital around, et cetera. So you are correct. We have heard anecdotally some of the things you mentioned about flows being somewhat difficult in this environment. We think that the numbers that we put up on the performance and the numbers that we put up in terms of the flows continue to differentiate. <Q - Roger Anthony Freeman>: Okay. And I guess just lastly on your AUM mix. Can you give that by asset class? I'm just curious where you are with respect to and also your cash holdings, I believe you have taken some risk off... <A - Dan S. Och>: Sure. <Q - Roger Anthony Freeman>: ...earlier in the quarter? <A - Joel Martin Frank>: So long/short equity is about 35%; convertible arbitrage, 16%; structured credit, 19%; other credit, 15%; our private investment is just 7%; merger arb is 2%; and as Dan mentioned, cash is 7%. <Q - Roger Anthony Freeman>: Cash was 7%. Okay. And then just last, by customer by investor type? <A - Joel Martin Frank>: Sure. Pension, 25%; fund of fund, 20%; foundation and endowments, 14%; corporate and institutional, 13%; private banks, 12%; affiliated capital, 9%; and family office and individuals, 7%.

Page 5 of 11

Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

<Q - Roger Anthony Freeman>: Okay. All right. Thanks a lot. <A - Dan S. Och>: Thank you.

Operator
Your next question comes from the line of Bill Katz with Citigroup. Please proceed. <Q - William R. Katz>: Okay. Thank you. Just to come back to the flows for another moment. It seems that we're talking in circles a little bit in terms of the outlook, but just qualitatively or quantitatively, specific to Och-Ziff, how is your RFP pipeline today versus either three months ago or six months ago? Is it higher, lower, or sideways? <A - Dan S. Och>: Well, I am not sure RFP pipeline is something that can be measured. That's not really how it works in our business. As an example, if we meet with an investor, we can meet with one investor who says we've made a decision to allocate to a hedge fund, we're likely to do something in the next three to six months. We can meet with another investor who says our board is about to focus on the issues in three months, and the ultimate investment could come in 12 months and then that process could vary. So we don't have and I hope I'm clear about that, we don't have a forward-looking pipeline that we can delineate month to month. But I will say this in terms of the number of quality institutional investors we are meeting with globally, what we're hearing from consultants that pipeline as you call it, looks very good. And so we believe that if we can continue to execute and perform and offer the other things that are relevant, let's not forget, transparency, infrastructure, controls, reputation et cetera that we're very well positioned. <Q - William R. Katz>: Okay. It's helpful. <A - Dan S. Och>: We are optimistic about the future flows. I want to be clear about that. Everything that we're seeing caused us to optimistic about the future flows. This period is a great example. This is obviously a difficult period in the market, but our going back to what we've shown over years and years and years, we always show people not just our performance, but also our performance during down months. There is a reason why that matters and investors know that. <Q - William R. Katz>: Okay. It's helpful. Just a couple of more questions, just given what's turning out to be a relatively normal return backdrop at the moment and maybe if you sort of combine in the specter of low rates, it's a two-part question, one, is there any thoughts notwithstanding your discussion on sort of new business, but is there any thoughts of potentially closing any of the funds to try and bolster returns at all and/or how are you thinking about returns against, sort of, budgeting on a go-forward basis? What kind of absolute returns might be reasonable to conclude? <A - Dan S. Och>: The first part of your question about the absolute level of returns, that's a function of the environment. It's a function of the binary nature in certain markets. When one is looking to preserve capital in an environment where events in Europe have the potential to be very, very negative if they go one way or the potential to be very positive if they go another way. And then events in Washington have the potential to be very negative if they go one way and the potential to be very positive if they go another way. When one's primary goal is to preserve capital that's a difficult environment to, especially when market has ultimately declined, that's a difficult environment to generate the positive absolute returns and that's generally more of a preservation of the capital environment. We constantly evaluate where we are in our funds. I mean, Joel gave you the numbers, and one thing that hasn't changed at all, our nimbleness. When you look at how much we have allocated to each strategy and how much we have allocated to each geography, we recognize that our total AUM makes us one of the largest firms in the world. But in each area, and we monitor this very, very closely, in each area, our resources, our level of personnel, the capabilities that the firm has, we believe is amongst the highest in the world. And in each area our dollars allocated is nowhere near that level. So our what we are that ratio, which we basically call our capability to our flexibility, remains extraordinarily high.

Page 6 of 11

Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

<Q - William R. Katz>: Okay. It's helpful. And just one last one, thanks for taking all my questions. For Joel perhaps, in terms of the guaranteed bonus, I think it's about $5 million, where are you in terms of head count and what might that look like and what are the plans over the next six or 12 months? Is there any kind of sort of impact on incremental margins as a result of that? <A - Joel Martin Frank>: About 421 people overall in the firm, obviously that's grown a bit, and the scalability of the model, I think, is important because as you've seen the ratios for expenses have stayed pretty much static, which means as assets grow management fees grow to cover most of those expenses. We will hire as the business needs people, because that's what we do. As the business grows, we will hire. But, as I said, the growth in assets and the growth in management fees will cover those fixed more than cover those fixed expenses. <Q - William R. Katz>: Okay. Thank you. <A - Dan S. Och>: Thank you.

Operator
Your next question comes from the line of Dan Fannon with Jefferies. Please proceed. <Q - Daniel T. Fannon>: Hi. Good morning. I guess, looking at the flows again slightly differently maybe, trying to get a sense of what some of the negatives are the clients are seeing, are you getting any pushback potentially on capacity issues or your size? Is that a limiting factor for some potential new clients? <A - Dan S. Och>: No. I mean, if you look at our flows, our flows have been very good. And we think the not just the meetings with the potential, the actual numbers have been very good. I mean, as I said, as one of your colleagues alluded, in an environment that's been difficult for flows and flows into alternatives, we still took in a large amount of capital. So, if anything, investors are more and more understanding of the differentiation of what we do. They also understand that when you mention capacity, we're not just one strategy or one geography. And as I said this capability, the flexibility is really important. And they see that we just keep doing it, and we're very transparent. Every month our investors get a transparent report, where it shows them where the portfolio is allocated. And so, they see that our capacity capabilities in each region, in each investment discipline, they see that our nimbleness has not changed, and we think that's actually a strength, and they are seeing that as a strength. <Q - Daniel T. Fannon>: Okay. Great. And then, I think the question was asked earlier that there was no change in kind of the fee range. But I believe you've given the percentage before of the longer-term lockup versus the traditional, and I assume that's still kind of in the 12% 11%, 12 % range. Is that about right? <A - Joel Martin Frank>: Well, actually in the last Q, it was up to 15%. It's around 16% right now. <Q - Daniel T. Fannon>: Okay. Thank you.

Operator
Your next question comes from the line of Ken Worthington with JPMorgan. Please proceed. <Q - Kenneth B. Worthington>: Hi. Good morning. I think we've beaten the sales to death. So maybe I'll turn to returns. Returns in the quarter were reasonably good. Returns in July look to be very good. I think you guys mentioned that long/short and credit were really the drivers. Any flavor you can give us on why things are doing particularly well on those strategies for you right now, any color on how you are positioned? I don't know to what extent you can give us a little flavor without giving away too much, it would be helpful too. Thanks.

Page 7 of 11

Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

<A - Dan S. Och>: Right. In the credit area I think it's a combination of our breadth and our capabilities and that's it's a great segue from the question about capacity and flexibility. We have capabilities in all three geographic regions. We're doing a lot in the U.S. and a lot in Europe. We're not doing a lot in Asia on the credit side right now because of the supply, but our capabilities there are still quite strong. We have capabilities not only in the corporate distressed area, but over the past four years, we've built what we think is one of the strongest capabilities, both in the U.S. and Europe in the structured credit area. And so that gives us so much to choose from. In addition, our size is often an advantage. The size becomes often an advantage in that area because in some of those areas, getting the call, being in the flow, and having the capability is very, very important. So all of that comes to play and works to the advantage of our investors. The teams have also done a good job in terms of the portfolio. I'm sure you've read certain areas of credit declined dramatically during certain parts of May, June, and July. And we I think our teams did a very good job on an individual security selection basis in avoiding most of those areas. On the long/short equity side, the key is our resources. We've got a very long history of combining our industry analysts with our event-driven analysts. We're very good at hedging the portfolio. So it's about generating alpha as opposed to taking any directional exposure. And the current volatility that you're seeing works to create opportunities for us. The dislocations often create opportunities for us. So it's just blocking and tackling. It's the strength and breadth of the team, it's adherence to our investment discipline, and it's utilizing all of the resources of the organization to bring opportunities to the individual teams to make them stronger. <Q - Kenneth B. Worthington>: Okay. And then, can you just give us maybe your macro outlook for the second half of the year? What you are, kind of, positioning your fund and your portfolio for as you look out into the second half? Thanks. <A - Dan S. Och>: Sure. You know our firm we don't so much have a macro outlook as much as our focus on understanding what are all the variables and pieces, where are the risks, what are others maybe too concerned about, what are others not as concerned about, what are some things going on globally that are very important. We're worried about a lot of the same things others are worried about. We clearly noted that the U.S. economy over the past two or three months appears to be weaker than it had been. You see that in jobs numbers, you see that in GDP revisions, you see that in some other numbers. That is something that is that's a very important area of focus for us. We see that as while everyone tends to focus on what's right in front of them, whether it's the Greek debt crisis and what will happen next week at the meeting in Europe or the U.S. debt ceiling and what will happen over the weekend in Washington. While, of course, we're very focused on that, we try and look ahead and think about what else is going on. And the world is not synchronized. So while in the U.S. a lot of the focus is on the declining the recent decline in economic growth, in Asia, the focus tends to be economic growth perhaps being too strong, inflation being higher than they would like and their currencies being too strong. So having all of these international capabilities is incredibly important to letting us get ahead in not so much predicting what's going to happen, but in understanding where the dislocations are going to be. <Q - Kenneth B. Worthington>: Great. Thank you very much.

Operator
Your next question comes from the line of Marc Irizarry. Please proceed. <Q - Marc S. Irizarry>: Great. Thanks. Dan, can you just give a little more color on what's happening for flows for Europe Master, and it looks like a couple of a difficult months there? How sort of your European exposures in Master Fund held up i.e. are you pretty much seeing the same impact on Master from sort of the European exposures, maybe you can just take us through what's happening there?

Page 8 of 11

Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

<A - Dan S. Och>: Look in terms of performance, you could see the arithmetic. The European fund is roughly flat on the year. So you can do the arithmetic. Obviously, that at the margin has reduced the overall performance in the Master Fund when you blend the three regions. Having said that, our European business has been a very important part of the firm since we opened the office back in the late 1990s. We've got about 65 people. We think we have perhaps the strongest franchise in the region. And right now investor interest in Europe is relatively low because of all the uncertainty and all the issues. Having said that, we're already beginning to see some of the forward-thinking investors start to ask, okay, if everyone [ph] is underweight in (00:33:05) Europe and everyone is afraid of Europe and everyone [ph] wants (00:33:08) to be out of Europe, usually that's where smart people can make money. And they are starting to come to us and ask, how should we be thinking about this. How should we be looking at all the assets that are held by European banks? How should we be looking all the changes that are occurring? How should we be looking at equity markets which have suffered relative to global equity markets? So it's early to get it's early to start thinking about allocations being made, but we do believe that investors will start thinking that way, and we believe that we're extremely well positioned. I will say that, obviously, the performance of the fund being flat is not as good as being up, but when one looks at what's happened in that region, we think the team there has done an excellent job, and we're extremely confident of the capabilities. <Q - Marc S. Irizarry>: Okay. Great. And then, can you just just staying along with the theme of non-U.S. investors, how much of your AUM is sourced overseas? And then I guess relatedly, maybe you can give us an update on UCITS and also maybe distribution efforts outside the U.S. and how those are progressing? <A - Dan S. Och>: Yeah, let me give you the investor breakdown by geography so that it can give you a sense about the AUM breakdown by geography, it's about 71%, North America; 18%, Europe and then the remainder is throughout Asia, Middle East and mixed amongst that. And in terms of UCITS, UCITS is a slow process. We knew that when we went into it, that's what we've been told by the outside advisors, that's been the case historically. We view that as a long-term opportunity to expand Och-Ziff brand amongst a universe that didn't have exposure to us prior to the UCITS product. <Q - Marc S. Irizarry>: And then how about investments to grow your distribution with investors outside North America and Europe? I mean, you see sort of head count or relationship-driven distribution efforts in the future? <A - Dan S. Och>: We haven't made any significant change there. I mean, we over time we have an investor relations presence in our Hong Kong office. Some number of years ago we didn't have that. We have a dedicated capability in our London office. Some number of years ago we didn't have that. So international continues to be important. We have invested in and grown our business there, but we have not made any dramatic changes in that area. <Q - Marc S. Irizarry>: Okay. And then just, Joel, on the incentive fee that came through this quarter, how should we think about the incentives outside of the year-end? Is this sort of just redemption related, and should we expect that to continue to next quarter as well? <A - Joel Martin Frank>: Well, yes it was redemption related, and I wouldn't assume anything in relation to what's happened in this quarter. So nothing to predict, it's just related to redemptions or past redemptions this quarter. <Q - Marc S. Irizarry>: Okay. Great. Thanks.

Operator
Your next question comes from the line of Roger Freeman. Please proceed.

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Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

<Q - Roger Anthony Freeman>: Hi. I just had two follow-ups. I guess, Dan, you partly answered this, but I just want to go in a little more detail. Just on structured credit, as you noted there were some pretty dramatic declines. I'm just looking at ABS for example, off the highs earlier in the year, 15% to 20%, it never really seem to impact your returns too significantly, and I believe you've been a buyer of some of the European structured credits that's been sold out to banks there. Is it related has this been a function of, kind of, your risk management around that? Because I know the credit is kind of the one area where you have a net long exposure as opposed to the hedging, all right. It's just hard to reconcile the decline in the asset and relative lack of impact of your overall returns. <A - Dan S. Och>: I think you just highlighted another of the capabilities and resources that works for our investor. The combination of security, selection, and risk management by the teams in those areas worked well. You call it alpha generation, you call it securities, selection, you can call it anything in that area, but it did work well, and I think it's noted by investors. And I think investors also note that here an area that's part of the crisis we did not have a business in. We have methodically and carefully built in both the U.S. and Europe what we think is one of the best businesses in that area. That's manifesting itself in terms of our ability to make a significant allocation to the portfolio, the returns we're generating, where we are and have positioned ourselves in terms of flow and in terms of the calls that we're receiving, and hopefully the outperformance that you mentioned will continue to work to the benefit of our investors. <Q - Roger Anthony Freeman>: Okay. That's helpful. Thanks. And then just the last question is, on Global Special, I was just looking at the returns there, I mean it has really been pretty solid returns, positive every single month. Can you just remind us what's in that? I believe that that had more emerging markets in it, but I take it back it was negative in July, but all the other months are positive. What is that comprised of at this point? <A - Dan S. Och>: That fund, as you remember, is a longer-term lockup fund. So it tends to be more weighted towards credits and other private investments with a longer-term lockup. <Q - Roger Anthony Freeman>: Okay. Do you think that you would I believe, correct me if I am wrong, that you had moved that's largely the partner principal in there at this point, I don't think there's a lot of third-party client money in there, but given how well that has done, is that anything that you'd look to sort of resume capital raising forward some point. <A - Dan S. Och>: Well, if investors if that's where investors wanted to put capital, of course, they've always had the ability to do it. We are definitely seeing interest in some of our credit capabilities. We're seeing interest in because investors are noticing what you're noticing that our ability is not just on a multi-strategy approach, and not just on the equity approach, but also in the credit and structured area, are quite strong. So we are seeing some interest by investors in our credit and structured credit products. Whether that manifests itself into the special investment fund or in other vehicles is going to be up to the clients and what they want to do. <Q - Roger Anthony Freeman>: Okay. Great. Thanks a lot.

Operator
That concludes the question-and-answer session today. I will now turn the call over to Ms. Madon.

Tina Madon
Thanks, Onica. Thanks, everyone for joining us today and for your interest in Och-Ziff. If you have any questions, please don't hesitate to contact me at 212-719-7381. Media enquiries should be directed to George Sard or Jonathan Gasthalter at 212-687-8080.

Page 10 of 11

Company Name: Och-ziff Capital MGMT Company Ticker: OZM US Date: 2011-08-02 Event Description: Q2 2011 Earnings Call

Market Cap: 4,565.20 Current PX: 12.29 YTD Change($): -3.29 YTD Change(%): -21.117

Bloomberg Estimates - EPS Current Quarter: 0.151 Current Year: 1.265 Bloomberg Estimates - Sales Current Quarter: 127.200 Current Year: 947.800

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