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8-K - FORM 8-K - GLG Partners, Inc. | y86018e8vk.htm |
EX-99.2 - EX-99.2 - GLG Partners, Inc. | y86018exv99w2.htm |
Exhibit 99.1
GLG PARTNERS REPORTS Q2 2010 EARNINGS
Highlights
| First half 2010 dollar-weighted average returns(1) of 3.8% for the alternative strategies, 2.1% for the 130/30 strategies and (4.2%) for the long only strategies, versus MSCI World Index return of (7.1%) and S&P 500 Index return of (6.9%) for the same period | ||
| Net inflows of approximately $1.5 billion and $2.5 billion for Q2 2010 and the six months ended June 30, 2010, respectively | ||
| Previously announced agreement to merge with Man Group plc on track to close near the end of the third quarter 2010 | ||
| Non-GAAP adjusted net loss of $3.0 million, or $0.01 per non-GAAP weighted average fully diluted share, for Q2 2010 reflects $12.0 million, or $0.04 per non-GAAP weighted average fully diluted share(2), of expenses related to the proposed merger with Man Group plc | ||
| GAAP net loss attributable to common stockholders of $74.6 million, or $0.32 per fully diluted share, for Q2 2010 |
New York, August 9, 2010 GLG Partners, Inc. (GLG) (NYSE: GLG) today reported a GAAP net loss
attributable to common stockholders for the quarter ended June 30, 2010 of $74.6 million, or $0.32
per fully diluted share. Non-GAAP adjusted net loss was $3.0 million, or $0.01 per non-GAAP
weighted average fully diluted share, for the three months ended June 30, 2010, inclusive of $12.0
million, or $0.04 per non-GAAP weighted average fully diluted share(2), of expenses
related to the proposed merger with Man Group plc.
We continued to deliver for our investing clients in the first half of 2010 with our alternative
strategies up 3.8% and many of our long only strategies well ahead of the leading market
benchmarks, said Noam Gottesman, GLG Chairman and Co-Chief Executive. Given our strong track
record and platform, we are well positioned to benefit as the capital allocation cycle gains
momentum. Our net AUM inflows have risen each quarter over the past year, culminating in net
inflows of $1.0 billion in Q1 2010 and $1.5 billion in Q2 2010.
It is our industry leading investment team and our established track record of delivering
long-term performance across our broad platform of investment products which allows us to continue
to attract investors, added Emmanuel Roman, Co-CEO of GLG. Looking ahead, we expect to be
positioned strongly with increased scale, broader distribution and an unwavering focus on
investment performance for our clients.
1 Performance is typically measured by the longest running share class in each fund.
See the Appendix for a description of how dollar-weighted average returns are calculated.
2 See Non-GAAP Financial Measures for further detail.
1
Table 1: Financial Highlights
(US$ in millions except per share amounts)
(US$ in millions except per share amounts)
Q2 2010 | Q2 2009 | YoY Δ | H1 2010 | H1 2009 | YoY Δ | |||||||||||||||||||
Closing net assets under management (AUM) |
22,956 | 19,094 | 20 | % | 22,956 | 19,094 | 20 | % | ||||||||||||||||
Net revenues |
77.2 | 86.1 | (10 | %) | 130.9 | 137.9 | (5 | %) | ||||||||||||||||
GAAP net (loss) attributable to common
stockholders |
(74.6 | ) | (24.4 | ) | | (135.4 | ) | (144.6 | ) | (6 | %) | |||||||||||||
GAAP fully diluted EPS |
(0.32 | ) | (0.11 | ) | | (0.59 | ) | (0.67 | ) | (12 | %) | |||||||||||||
Non-GAAP adjusted net (loss) / income |
(3.0 | ) | 85.3 | (104 | %) | (6.1 | ) | 90.6 | (107 | %) | ||||||||||||||
Non-GAAP adjusted net (loss) / income
per non-GAAP weighted average fully
diluted share(3) |
(0.01 | ) | 0.26 | (104 | %) | (0.02 | ) | 0.29 | (107 | %) |
3 Shares associated with the convertible notes have been excluded from the non-GAAP
weighted average fully diluted share count for Q2 2010 and H1 2010 due to their anti-dilutive
impact and no convertible note interest was added back to non-GAAP adjusted net loss for the
periods. In Q2 2009 and H1 2009, however, the shares associated with the convertible notes
have been included in the non-GAAP weighted average fully diluted share counts due to their
dilutive impact and convertible note interest in the amount of $1.6 million was added back to
non-GAAP adjusted net income for the periods.
The June 2010 quarter and first half 2010 results include $12.0 million (pre and after-tax),
or $0.04 per non-GAAP weighted average fully diluted share(2), of expenses related to
the proposed merger with Man Group plc.
The June 2009 quarter and first half 2009 results reflected the following significant items: an
$84.8 million gain on the extinguishment of debt (or approximately $75 million on an after-tax
basis), $4.1 million of acquisition and restructuring costs associated with the acquisition of
Société Générale Asset Management UK (SGAM UK) ($3.2 million on an after-tax basis) and a $2.0
million operating loss on a pre and after-tax basis from SGAM UK.
GAAP net loss attributable to common stockholders for the first half of 2010 was $135.4 million, or
$0.59 per fully diluted share. Non-GAAP adjusted net loss was $6.1 million, or $0.02 per non-GAAP
weighted average fully diluted share, for the six months ended June 30, 2010.
GLGs GAAP results include certain significant and largely non-cash expenses associated with its
reverse acquisition transaction with Freedom Acquisition Holdings in November 2007
(Acquisition-related compensation expense). GLGs management assesses the underlying performance
of its business based on certain non-GAAP metrics which exclude Acquisition-related compensation
expense. These metrics are discussed in detail under Non-GAAP Financial Measures.
Merger with Man Group plc
GLG announced on May 17, 2010 that it had agreed to be acquired by Man Group plc (Man). The
proposed acquisition will be made through two concurrent transactions: a cash merger under a merger
agreement entered into among GLG, Man and a Man merger subsidiary; and a share exchange under an
agreement entered into among Man and GLGs principals (Noam Gottesman, Pierre Lagrange and Emmanuel
Roman, together with their related trusts and affiliated entities) and two limited partnerships
that held shares for the benefit of key personnel who are participants in GLGs equity
participation plan or permitted transferees of the partnerships.
2
The transaction is subject to closing conditions, including approval by both Man and GLG
shareholders. The closing of the transaction is expected to take place near the end of the third
quarter of 2010.
Transaction costs associated with the proposed merger with Man of $12.0 million (pre and
after-tax), or $0.04 per non-GAAP weighted average fully diluted share(2), have been
recognized during the second quarter of 2010 within the statement of operations.
Assets under Management Summary
GLGs total net assets under management (AUM) as of June 30, 2010 were approximately $23.0
billion (net of assets invested from other GLG managed funds), down 3.0% from March 31, 2010, up
3.5% from December 31, 2009, and up 20.2% from June 30, 2009.
Positive net inflows of approximately $1.5 billion for the three months ended June 30, 2010 ($0.5
billion of which came from alternative strategies and $1.0 billion of which came from long only
strategies) were offset by performance driven reductions in AUM during a period in which broad
stock market indices such as the MSCI World and S&P 500 registered declines of 11.2% and 11.6%,
respectively. The effect of currency translation related to the decline of the Euro and British
Pound Sterling relative to the U.S. Dollar decreased net AUM by $725 million in the quarter ended
June 30, 2010. (See Table 2 for a net AUM roll forward and Table 3 for investment performance by
strategy.)
Positive net inflows of approximately $2.5 billion for the six months ended June 30, 2010 ($1.3
billion of which came from alternative strategies and $1.2 billion of which came from long only
strategies) were partially offset by the effect of currency translation which decreased net AUM by
roughly $1.5 billion in the first half of 2010. Performance reduced net AUM by approximately $0.2
billion for the six months ended June 30, 2010, a period in which broad stock market indices such
as the MSCI World and S&P 500 registered declines of 7.1% and 6.9%, respectively. (See Table 2 for
a net AUM roll forward and Table 3 for investment performance by strategy.)
GLGs total gross AUM (including assets invested from other GLG managed funds) was $24.9 billion as
of June 30, 2010, down 3.6% from March 31, 2010, up 2.2% from December 31, 2009, and up 15.5% from
June 30, 2009.
3
Table 2: Assets Under Management
(US$ in millions)
(US$ in millions)
As of June 30, | ||||||||
2010 | 2009 | |||||||
Alternative strategies4 |
$ | 12,088 | $ | 10,441 | ||||
Long only strategies5 |
12,820 | 11,131 | ||||||
Gross AUM |
$ | 24,908 | $ | 21,572 | ||||
YoY % Change |
15.5 | % | (22.7 | %) | ||||
Less: alternative strategy investments in GLG Funds |
$ | (956 | ) | $ | (1,456 | ) | ||
Less: long only strategy investments in GLG Funds |
(996 | ) | (1,022 | ) | ||||
Net AUM |
$ | 22,956 | $ | 19,094 | ||||
YoY % Change |
20.2 | % | (19.3 | %) | ||||
Quarterly average net AUM6 |
$ | 23,312 | $ | 18,840 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Opening Net AUM |
$ | 23,668 | $ | 14,031 | $ | 22,175 | $ | 15,039 | ||||||||
Inflows (net of redemptions)7 |
1,537 | 2,226 | 2,491 | 2,276 | ||||||||||||
Performance (gains net of losses and fees) |
(1,524 | ) | 1,797 | (232 | ) | 990 | ||||||||||
Currency translation impact (non-US$ AUM
expressed in US$) |
(725 | ) | 1,040 | (1,477 | ) | 789 | ||||||||||
Closing Net AUM |
$ | 22,956 | $ | 19,094 | $ | 22,956 | $ | 19,094 | ||||||||
% of Opening Net AUM |
||||||||||||||||
Net inflows (net of redemptions) |
6.5 | % | 15.9 | % | 11.2 | % | 15.1 | % | ||||||||
Net performance (gains net of losses and fees)8 |
(6.4 | %) | 12.8 | % | (1.0 | %) | 6.6 | % | ||||||||
Net currency translation impact (non-US$
expressed in US$) |
(3.1 | %) | 7.4 | % | (6.7 | %) | 5.2 | % |
Note: Managed accounts amounted to $11.6 billion in net AUM at June 30, 2010 and $8.6 billion in
net AUM at June 30, 2009.
4 Alternative strategy gross AUM includes all alternative strategy funds, all 130/30
strategy funds, all managed accounts managed in accordance with alternative and 130/30 strategies,
and cash and other holdings.
5 Long only strategy gross AUM includes all long only funds and managed accounts managed
in accordance with a long only strategy.
6 Quarterly average net AUM for a given period is calculated as a 2 point (quarter open
and close) average. Average net AUM for Q2 2009 excludes the approximately $3 billion mandate
pursuant to the sub-advisory arrangement with SGAM UK which terminated upon the completion of its
acquisition on April 3, 2009 and includes net AUM of approximately $7 billion acquired from SGAM UK
on April 3, 2009 as if the assets were acquired on April 1, 2009.
7 Inflows for the second quarter and first half of 2009 include SGAM UK net inflows of
approximately $2.6 billion.
8 Performance as a percentage of opening net AUM is based on both opening AUM and
inflows and outflows during the period and can be influenced by significant inflows or outflows.
4
Table 3: Investment Performance
YTD through July | ||||||||||||||||
July 20109 | 20109 | |||||||||||||||
Q2 2010 | H1 2010 | (Estimated) | (Estimated) | |||||||||||||
GLG dollar-weighted average returns: |
||||||||||||||||
Alternative strategies |
(1.4 | %) | 3.8 | % | 1.7 | % | 5.6 | % | ||||||||
130/30 strategies |
(3.9 | %) | 2.1 | % | 2.7 | % | 4.8 | % | ||||||||
Long only strategies |
(9.6 | %) | (4.2 | %) | 6.1 | % | 1.6 | % | ||||||||
MSCI World Index |
(11.2 | %) | (7.1 | %) | 6.1 | % | (1.4 | %) | ||||||||
S&P 500 Index |
(11.6 | %) | (6.9 | %) | 7.0 | % | (0.5 | %) |
9 July dollar-weighted average returns are calculated based on estimated July month-end
net asset values (NAVs). See the Appendix for a description of how dollar-weighted average returns
are calculated.
Financial and Operational Summary
Second Quarter 2010
REVENUES
Net revenues and other income were $77.2 million for the quarter ended June 30, 2010, down 10.4%
from the year ago period. Higher management fees and administration, service and distribution fees
on strong net AUM growth were more than offset by lower performance fees and lower other income
generated during the second quarter of 2010.
Second quarter 2010 performance fees were $22.4 million, down $15.6 million from the same period
last year. These fees largely reflect first half performance in keeping with GLGs policy to
recognize performance fees when they crystallize, generally on June 30 and December 31 of each
year. The amount of performance fees generated during the first half of 2010 was limited by the
complexion of GLGs first half 2010 investment returns and the level of AUM in position to earn
performance fees entering 2010.
Management fees and administration, service and distribution fees totalled $54.5 million for the
quarter ended June 30, 2010, up 30.0% year over year. The annualized yield on management fees and
administration, service and distribution fees was 0.94% of average net AUM6, up 7 basis
points (bps) from the first quarter of 2010 and up 5 bps compared to the annualized yield in the
second quarter of 2009. The combination of inflows and performance over the past year has generated
higher net AUM and modestly higher yields on GLGs net AUM.
Other income decreased by $5.9 million from the second quarter of 2009 to $0.3 million for the
three months ended June 30, 2010 reflecting lower foreign exchange gains on non-dollar denominated
cash held on GLGs balance sheet due to the strengthening of the U.S. Dollar during the period.
EXPENSES
GAAP compensation, benefits and profit share for the quarter ended June 30, 2010 decreased to
$121.6 million compared to $171.9 million in the same quarter last year on significantly lower
Acquisition-related compensation expense, primarily a function of shares vesting under the
Agreement Among Principals and Trustees (see Non-GAAP Financial Measures for further detail) and
share awards vesting in the fourth quarter of 2009.
5
Non-GAAP compensation, benefits and profit share (non-GAAP CBP) decreased in the quarter ended
June 30, 2010 by $1.9 million from the year ago period to $41.1 million. GAAP compensation,
benefits and profit share and non-GAAP CBP for the second quarter of 2010 include $2.2 million of
share-based compensation attributable to the change in the share price between the date the
proposed merger with Man was announced and June 30, 2010, with respect to those share awards
accounted for on a variable basis. Non-GAAP CBP is a financial measure not prepared under GAAP, and
includes compensation, benefits and profit share but excludes Acquisition-related compensation
expense described below under Non-GAAP Financial Measures.
The total level of non-GAAP CBP when expressed as a percentage of revenues and other income rose 3
percentage points to 53.3% in the quarter ended June 30, 2010 from the same period last year.
Share-based compensation associated with the proposed merger with Man (as described above), when
expressed as a percentage of revenues and other income, was 2.8% for the three months ended June
30, 2010. Absent the expenses related to the proposed merger with Man, the second quarter 2010
non-GAAP CBP ratio was flat year over year. The non-GAAP CBP to revenue ratio in the second quarter
of 2010 reflects the expenses related to the proposed merger with Man, reduced payroll liabilities
(as a result of the positive conclusion of a statutory audit) and a relatively low level of
performance fees.
Please note that GLGs compensation, benefits and profit share and non-GAAP CBP have large
discretionary components and are finalized based primarily on full year performance as at December
31 of each year.
General, administrative, and other expenses for the quarter ended June 30, 2010 increased $6.9
million from the year ago period to $32.3 million and includes $9.8 million of expenses related to
the proposed merger with Man. These merger-related expenses drove the increase versus the year ago
period, and were partially offset by ongoing expense reduction measures and foreign exchange effects.
Net interest expense was $2.5 million during the quarter ended June 30, 2010 versus $3.3 million in
the same period a year ago. Net interest expense reflects the cost of borrowings under GLGs term
loan, revolving credit facilities and convertible notes, offset by the amortization of the deferred
portion of the gain on debt restructuring and interest income on cash balances.
Realized losses on available-for-sale investments were $1.0 million in the second quarter of 2010
and $0 in the same period a year ago. The realized loss on available-for sale investments relates
to investments made in GLG funds on behalf of participants in the equity participation plan. These
investments are consolidated on GLGs balance sheet under GAAP but are excluded from the
calculation of non-GAAP adjusted net income, as the gains or losses on these investments ultimately
flow to the participants in the plan.
In the second quarter of 2009, a net gain of approximately $75.0 million was recognized on the
extinguishment of debt as $284.5 million in debt was repurchased in the period for $170.7 million
(the difference between the $113.8 million discount paid to face value on the repurchase and the
recorded gain in the statement of operations of $84.8 million is being amortized as a reduction of
interest expense over 28 months). There was also a gain in the quarter ended June 30, 2009 of $21.1
million reflecting negative goodwill from the acquisition of SGAM UK (intangibles of $33.3 million
associated with the acquisition are being amortized over 9 years). The negative goodwill gain,
related amortization and associated tax benefit are excluded from the calculation of non-GAAP
adjusted net income as these items are not factored into managements assessment of the underlying
performance of GLGs business.
TAXES
GAAP income tax expense decreased by $0.6 million from the year ago period to $1.3 million as a
result of the increase in GAAP net loss in the second quarter of 2010.
6
First Half 2010
REVENUES
Net revenues and other income for the first half of 2010 were $130.9 million, down 5.0% from the
year ago period. Higher management fees and administration, service and distribution fees on strong
net AUM growth were more than offset by lower performance fees and other income.
First half 2010 performance fees were $25.1 million, down $23.7 million from the same period last
year. These fees largely reflect first half performance in keeping with GLGs policy to recognize
performance fees when they crystallize, generally on June 30 and December 31 of each year. The
amount of performance fees generated during the first half of 2010 was limited by the complexion of
GLGs first half 2010 investment returns and the level of AUM in position to earn performance fees
entering 2010.
Management fees and administration, service and distribution fees totalled $104.6 million for the
six months ended June 30, 2010, up 27.7% year over year. The annualized yield on management,
administration, service and distribution fees was 0.91% of average net AUM10, down 17
bps compared to the annualized yield in the first half of 2009. The decrease in the annualized
yield compared to the first half of 2009 reflects the addition of lower yielding SGAM UK long only
net AUM in April 2009 partially offset by significant performance and inflow-related increases of
net AUM and the resultant modest rise in the yield of GLGs net AUM since June 30, 2009.
Other income decreased by $5.9 million from the first half of 2009 to $1.3 million for the six
months ended June 30, 2010 reflecting lower foreign exchange gains on non-dollar denominated cash
held on GLGs balance sheet due to the strengthening of the U.S. Dollar during the period.
EXPENSES
GAAP compensation, benefits and profit share for the six months ended June 30, 2010 decreased to
$223.0 million compared to $318.6 million for the same period last year on significantly lower
Acquisition-related compensation expense, primarily a function of shares vesting under the
Agreement Among Principals and Trustees (see Non-GAAP Financial Measures for further detail) and
share awards vesting in the fourth quarter of 2009.
Non-GAAP CBP increased in the first half of 2010 by $13.1 million from the year ago period to $76.1
million. GAAP compensation, benefits and profit share and non-GAAP CBP for the first half of 2010
include $2.2 million of share-based compensation attributable to the change in the share price
between the date the proposed merger with Man was announced and June 30, 2010, with respect to
those share awards accounted for on a variable basis.
The total level of non-GAAP CBP when expressed as a percentage of revenues and other income rose
12.4 percentage points to 58.1% in the six months ended June 30, 2010 from the same period last
year. Share-based compensation associated with the proposed merger with Man (as described above),
when expressed as a percentage of revenues and other income, was 1.6% for the six months ended June
30, 2010. The non-GAAP CBP to revenue ratio in the first half of 2010 reflects expenses related to
the proposed merger with Man, reduced payroll liabilities (as a result of the positive conclusion
of a statutory audit) and first half performance fee levels.
General, administrative, and other expenses for the six months ended June 30, 2010 increased $11.3
million from the year ago period to $59.1 million and includes $9.8 million of expenses related to
the proposed merger with Man. These merger-related expenses, as well as the $4.1 million one-time
charge on losses related to a sublease rental in London, drove the increase versus the year ago
period.
10 Average net AUM for a given period is calculated as a 3 point average for a half.
Average net AUM for H1 2009 excludes the approximately $3 billion mandate pursuant to the
sub-advisory arrangement with SGAM UK which terminated upon the completion of its acquisition on
April 3, 2009 and includes net AUM of approximately $7 billion acquired from SGAM UK on April 3,
2009 as if the assets were acquired on April 1, 2009.
7
Excluding these costs, general administrative and other expenses decreased when compared to
the same period last year, primarily due to ongoing expense reduction measures and foreign exchange
effects.
Net interest expense was $5.6 million during the six months ended June 30, 2010 versus $5.9 million
in the same period a year ago. Net interest expense reflects the cost of borrowings under GLGs
term loan, revolving credit facilities and convertible notes, offset by the amortization of the
deferred portion of the gain on debt restructuring and interest income on cash balances.
Realized losses on available-for-sale investments were $0.9 million in the first half of 2010
versus $21.2 million in the year ago period. The realized loss on available-for sale investments
relates to investments made in GLG funds on behalf of participants in the equity participation
plan. These investments are consolidated on GLGs balance sheet under GAAP but are excluded from
the calculation of non-GAAP adjusted net income, as the gains or losses on these investments
ultimately flow to the participants in the plan.
During the first half of 2009, a net gain of approximately $75.0 million was recognized on the
extinguishment of debt as $284.5 million in debt was repurchased in the period for $170.7 million
(the difference between the $113.8 million discount paid to face value on the repurchase and the
recorded gain in the statement of operations of $84.8 million is being amortized as a reduction of
interest expense over 28 months). There was also a gain in the six months ended June 30, 2009 of
$21.1 million reflecting negative goodwill from the acquisition of SGAM UK (intangibles of $33.3
million associated with the acquisition are being amortized over 9 years). The negative goodwill
gain, related amortization and associated tax benefit are excluded from the calculation of non-GAAP
adjusted net income as these items are not factored into managements assessment of the underlying
performance of GLGs business.
TAXES
GAAP income tax expense decreased by $10.5 million from the year ago period to reflect a credit of
$8.0 million. The decrease in income tax expense was mainly due to a one-time tax credit of $7.3
million recognized in the first half of 2010.
Capital
As of June 30, 2010, there were 262.8 million common shares, 58.9 million FA Sub 2 Limited
Exchangeable Shares, convertible notes convertible into 61.4 million common shares, and 54.5
million warrants outstanding (251.1 million common shares, 58.9 million Exchangeable Shares,
convertible notes convertible into 61.4 million common shares and 54.5 million warrants,
respectively, at March 31, 2010 and 250.3 million common shares, 58.9 million Exchangeable Shares,
convertible notes convertible into 61.4 million common shares and 54.5 million warrants,
respectively, at June 30, 2009). Approximately 40,000 shares were repurchased and no warrants were
repurchased or exercised during the second quarter of 2010.
About GLG
GLG Partners, Inc. is a global asset management company offering its clients a wide range of
performance-oriented investment products and managed account services. Founded in 1995 and listed
on the New York Stock Exchange in 2007 under the ticker symbol GLG, GLG is dedicated to achieving
consistent, superior investment returns through traditional, alternative and hybrid investment
strategies. The performance GLG generates for its clients is driven by the proven expertise of its
team of investment professionals underpinned by a rigorous approach to investment analysis and a
strong focus on risk management. GLG managed estimated net AUM of approximately $23.0 billion as of
June 30, 2010. GLG maintains an Investor Relations website at www.glgpartners.com and routinely
posts important information on its website for investors. Additionally, GLG uses the website as a
means of disclosing
8
material non-public information and for complying with its disclosure
obligations under Regulation FD promulgated by the SEC. These disclosures are included on GLGs
website under the section Investor Relations Overview. Accordingly, investors should monitor
this portion of GLGs website, in addition to following its press releases, SEC filings and public
conference calls and webcasts.
Forward-looking Statements
This press release contains statements relating to future results that are forward-looking
statements. Words such as will and other statements that are not statements of historical fact
are intended to identify forward-looking statements. Actual results may differ materially from
those projected as a result of certain risks and uncertainties. These risks and uncertainties
include, but are not limited to: the volatility in the financial markets; GLGs financial
performance; market conditions for GLG managed investment funds and accounts; performance of GLG
managed investment funds and accounts, the related performance fees and the associated impacts on
revenues, net income, cash flows and fund inflows/outflows; the impact of net inflows on GLGs mix
of assets under management and the associated impacts on revenues; the cost of retaining GLGs key
investment and other personnel or the loss of such key personnel; risks associated with the
expansion of GLGs business in size and geographically; operational risk, including counterparty
risk; satisfaction of the conditions of the pending acquisition transaction with Man Group plc,
including the approval of a majority of unaffiliated stockholders; the costs and expenses
associated with the pending acquisition transaction; contractual restrictions on the conduct of
GLGs business included in the merger agreement; the potential loss of key personnel, disruption of
its business and operations or any impact on GLGs relationships with third parties as a result of
the pending acquisition transaction; any delay in consummating the proposed acquisition transaction
or the failure to consummate the transaction; and the outcome of, or expenses associated with, any
litigation which may arise in connection with the pending acquisition transaction, including the
purported class action civil suits filed in Delaware Chancery Court and New York Supreme Court;
litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and
demands on GLGs resources; risks related to the use of leverage, investment in derivatives,
availability of credit, interest rates and currency fluctuations; as well as other risks and
uncertainties, including those set forth in GLGs filings with the Securities and Exchange
Commission. These forward-looking statements are made only as of the date hereof, and GLG
undertakes no obligation to update or revise the forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
Nothing in this press release should be construed as or is intended to be a solicitation for or an
offer to provide investment advisory services.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any offer or sale of securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
Additional Information
GLG has filed with the SEC a preliminary proxy statement and intends to mail a definitive proxy
statement and other relevant documents to GLG stockholders in connection with the proposed
acquisition of GLG by Man Group plc through two concurrent transactions: the merger of a wholly
owned subsidiary of Man with and into GLG and a share exchange transaction in which certain GLG
stockholders will exchange their GLG shares for Man ordinary shares. GLG stockholders and other
interested persons are advised to read GLGs preliminary proxy statement, and when available,
amendments thereto and the definitive proxy statement in connection with GLGs solicitation of
proxies for the special meeting to be held to approve the proposed merger because the preliminary
proxy statement contains and the definitive proxy statement will contain important information
about GLG and the proposed transaction. The definitive proxy statement will be mailed to
stockholders as of a record date established for voting on the proposed merger. Stockholders may
obtain a free copy of these materials (when they are available) and other documents filed with the
SEC from the SECs website at www.sec.gov. A free copy of the preliminary proxy statement and, when
it becomes available, the definitive proxy statement also may be obtained by contacting Investor
Relations, GLG Partners, Inc., 399 Park Avenue, 38th floor, New York, New York
9
10022, telephone
(212) 224-7200 and through GLGs website at www.glgpartners.com. GLG and its directors and
executive officers may be deemed participants in the solicitation of
proxies from GLGs stockholders. GLGs stockholders may obtain information about GLGs directors and executive
officers, their ownership of GLG shares and their interests in the proposed transaction by reading
GLGs preliminary proxy statement and, when it becomes available, definitive proxy statement for
the special meeting. A free copy of these documents (when they are available) may be obtained from
the SEC website or by contacting GLG as indicated above.
Contacts
Investors / Analysts:
|
Jeffrey Rojek Chief Financial Officer +1 212 224 7245 jeffrey.rojek@glgpartners.com Michael Hodes Director of Public Markets +1 212 224 7223 michael.hodes@glgpartners.com Shirley Chan Associate of Public Markets +1 212 224 7257 shirley.chan@glgpartners.com |
|
Media:
|
David Waller Director of Communications +44 207 016 7015 david.waller@glgpartners.com Matthew Newton / Talia Druker Finsbury +44 207 251 3801 glg@finsbury.com Andy Merrill / Astrid Josephson Finsbury +1 212 303 7600 glg@finsbury.com |
10
Non-GAAP Financial Measures
GLG presents certain financial measures that are not prepared in accordance with U.S. generally
accepted accounting principles (GAAP), in addition to financial results prepared in accordance with
GAAP.
Non-GAAP compensation, benefits and profit share: GLGs management assesses its personnel-related
expenses based on the measure non-GAAP compensation, benefits and profit share, or non-GAAP CBP.
Non-GAAP CBP reflects GAAP compensation, benefits and profit share adjusted to exclude
Acquisition-related compensation expense in connection with the acquisition by Freedom Acquisition
Holdings Inc. (Freedom) of GLG Partners LP and associated entities in November 2007 (the
Acquisition). A reconciliation of non-GAAP CBP to GAAP compensation, benefits and profit share is
provided in the following pages.
Acquisition-related compensation expense reflects GAAP accounting for two primary items: (1) the
Agreement Among Principals and Trustees, which is a retention-driven agreement that requires GLGs
three principals and their related trusts to forfeit a formula-based percentage of their ownership
interests in GLG to the remaining principals and their related trusts if one of them were to leave
GLG prior to the fifth anniversary of the Acquisition (i.e., November 2012); and (2) the broadening
of key personnel and employee ownership in GLG with respect to: (i) 15% of the total consideration
paid for the GLG business in the Acquisition (i.e.; $150 million in cash and 33 million shares)
which was awarded to fully consolidated partnerships (Sage Summit LP and Lavender Heights Capital
LP) whose limited partners are key personnel of GLG; (ii) ten million shares issued in the
Acquisition which were allocated to awards for the benefit of employees, service providers and
certain key personnel under the 2007 Restricted Stock Plan; and (iii) approximately 250,000 shares
which were allocated for the benefit of employees and certain key personnel under the 2007
Long-Term Incentive Plan at the closing of the Acquisition.
The expenses associated with the Agreement Among Principals and Trustees are non-cash, have been
the largest component of the Acquisition-related compensation expense and will end in 2012. Any
forfeited shares will not return to nor benefit GLG.
Management believes Acquisition-related compensation expense does not reflect GLGs ongoing core
business operations and compensation expense and excludes such amounts for assessing GLGs ongoing
core business performance.
Non-GAAP CBP is not a measure of financial performance under GAAP and should not be considered as
an alternative to GAAP compensation, benefits and profit share.
Non-GAAP Adjusted Net Income: GLGs management assesses the underlying performance of its business
based on the measure non-GAAP adjusted net income, which adjusts GAAP net loss before
non-controlling interests for: (1) the Acquisition-related compensation expense; (2) to the extent
that GLG records a tax benefit in connection with Acquisition-related compensation expense that is
tax deductible for GAAP purposes, the impact of that tax benefit in calculating non-GAAP adjusted
net income; (3) any gains or losses realized from investments in GLG Funds held for the benefit of
equity participation plan participants in connection with the Acquisition; (4) the cumulative
dividends payable to the holders of exchangeable shares of GLGs FA Sub 2 Limited subsidiary in
respect of its estimate of the net taxable income of FA Sub 2 Limited allocable to such holders
multiplied by an assumed tax rate; and (5) amortization of the intangible assets recognized in
relation to the acquired management contracts of SGAM UK and its associated tax effect. The
definition of non-GAAP adjusted net income was modified in the second quarter of 2009 to reflect
certain additional adjustments arising from the SGAM UK acquisition, as these items are not
factored into managements assessment of the underlying performance of GLGs business. A
reconciliation of non-GAAP adjusted net income to GAAP net loss before non-controlling interests is
provided in the following pages.
For periods in which the conversion of the convertible notes would be dilutive and the underlying
shares are included in the non-GAAP weighted average fully diluted share count, GLGs management
further adjusts the non-GAAP adjusted net income measure to add back the amount of the convertible
note interest expense for the period for purposes of the non-GAAP adjusted net income per non-GAAP
weighted average fully diluted share calculation.
11
Non-GAAP adjusted net income is not a measure of financial performance under GAAP and should not be
considered as an alternative to GAAP net loss as an indicator of GLGs operating performance or any
other measures of performance derived in accordance with GAAP.
Non-GAAP Weighted Average Fully Diluted Shares: GLGs management assesses business performance per
share based on the measure non-GAAP weighted average fully diluted shares, which adjusts average
fully diluted shares outstanding under GAAP for (1) the unvested shares issued pursuant to GLGs
equity participation plan, which are recorded under GAAP as treasury shares, but upon which it will
pay dividends to the extent it pays them on vested shares; (2) unvested shares awarded under GLGs
2007 Restricted Stock Plan and Long-Term Incentive Plans upon which it will pay dividends to the
extent it pays them on vested shares; (3) the exchange of the FA Sub 2 Limited Exchangeable Shares;
(4) the conversion of the convertible notes, if the conversion is dilutive; and (5) the number of
shares issuable upon exercise of the warrants under the treasury stock method.
GLG is providing these non-GAAP financial measures to enable investors, securities analysts and
other interested parties to perform additional financial analysis of GLGs personnel-related costs
and its earnings from operations and because GLG believes that they will be helpful to investors in
understanding all components of personnel-related costs of GLGs business. GLGs management
believes that non-GAAP financial measures also enhance comparisons of GLGs core results of
operations with historical periods. In particular, GLG believes that the non-GAAP adjusted net
income measure better represents economic income than does GAAP net loss primarily because of the
adjustments described under Non-GAAP Adjusted Net Income above. In addition, GLG uses these
non-GAAP financial measures in its evaluation of its core results of operations and trends between
fiscal periods and believes these measures are an important component of its internal performance
measurement process. GLG also prepares forecasts for future periods on a basis consistent with
these non-GAAP financial measures.
In addition, GLGs management is presenting the non-GAAP weighted average fully diluted share
impact of expenses related to the proposed merger with Man (the GAAP $12.0 million expense divided
by the non-GAAP weighted average fully diluted share count presented in the attached Share Count
Reconciliation) because GLG believes that it is important information for the reader of its
financial statements to understand GLGs core operating results excluding the expenses related to
the proposed merger with Man.
Investors should consider these non-GAAP financial measures in addition to, and not as a substitute
for, or superior to, measures of performance prepared in accordance with GAAP. The non-GAAP
financial measures presented by GLG may be different from financial measures used by other
companies.
12
APPENDIX
Alternative Strategy Dollar-Weighted Average Returns
GLG alternative strategy dollar-weighted average returns are calculated as the composite
performance of the alternative strategy funds listed below and funds that have closed, in addition
to managed accounts managed in accordance with alternative strategies, weighted by the sum of
month-end AUM and net inflows on the subsequent dealing day:
GLG ALPHA SELECT FUND
GLG ATLAS GLOBAL MACRO FUND
GLG ATLAS VALUE & RECOVERY FUND
GLG CONSUMER FUND
GLG CONVERTIBLE OPPORTUNITY FUND
GLG CREDIT FUND
GLG EMERGING CURRENCY AND FIXED INCOME FUND
GLG EMERGING EQUITY FUND
GLG EMERGING MARKETS CREDIT OPPORTUNITY FUND
GLG EMERGING MARKETS FUND
GLG EMERGING MARKETS OPPORTUNITIES FUND
GLG ESPRIT FUND
GLG EUROPEAN DISTRESSED FUND
GLG EUROPEAN LONG-SHORT FUND
GLG EUROPEAN OPPORTUNITY FUND
GLG EVENT DRIVEN FUND
GLG FINANCIALS FUND
GLG GLOBAL CONVERTIBLE FUND
GLG GLOBAL EQUITY TACTICAL FUND
GLG GLOBAL MINING FUND
GLG GLOBAL UTILITIES FUND
GLG MARKET NEUTRAL FUND
GLG NORTH AMERICAN OPPORTUNITY FUND
GLG SELECT OPPORTUNITIES FUND
GLG TECHNOLOGY FUND
GLG ATLAS GLOBAL MACRO FUND
GLG ATLAS VALUE & RECOVERY FUND
GLG CONSUMER FUND
GLG CONVERTIBLE OPPORTUNITY FUND
GLG CREDIT FUND
GLG EMERGING CURRENCY AND FIXED INCOME FUND
GLG EMERGING EQUITY FUND
GLG EMERGING MARKETS CREDIT OPPORTUNITY FUND
GLG EMERGING MARKETS FUND
GLG EMERGING MARKETS OPPORTUNITIES FUND
GLG ESPRIT FUND
GLG EUROPEAN DISTRESSED FUND
GLG EUROPEAN LONG-SHORT FUND
GLG EUROPEAN OPPORTUNITY FUND
GLG EVENT DRIVEN FUND
GLG FINANCIALS FUND
GLG GLOBAL CONVERTIBLE FUND
GLG GLOBAL EQUITY TACTICAL FUND
GLG GLOBAL MINING FUND
GLG GLOBAL UTILITIES FUND
GLG MARKET NEUTRAL FUND
GLG NORTH AMERICAN OPPORTUNITY FUND
GLG SELECT OPPORTUNITIES FUND
GLG TECHNOLOGY FUND
For the month of July 2010, dollar-weighted average returns are based on estimated month-end NAVs
of the funds listed above as at July 30, 2010. AUMs are estimated as at August 2, 2010.
13
Long Only Strategy Dollar-Weighted Average Returns
GLG long only strategy dollar-weighted average returns are calculated as the composite performance
of the long only strategy funds listed below and funds that have closed, in addition to managed
accounts managed in accordance with a long only strategy (except those over which GLG does not
exercise full control), weighted by the sum of month-end AUM and net inflows on the subsequent
dealing day:
GLG AMERICAN GROWTH FUND
GLG ASIA-PACIFIC FUND
GLG BALANCED FUND
GLG CAPITAL APPRECIATION (DIST) FUND
GLG CAPITAL APPRECIATION FUND
GLG EAFE (INST) II FUND
GLG ENVIRONMENT FUND
GLG ESPRIT CONTINENTAL EUROPE FUND
GLG EUROPEAN EQUITY FUND
GLG EUROPEAN EQUITY (INST) FUND
GLG GLOBAL CONVERTIBLE UCITS (DIST) FUND
GLG GLOBAL CONVERTIBLE UCITS FUND
GLG GLOBAL EMERGING MARKET FUND
GLG INTERNATIONAL SMALL CAP FUND
GLG JAPAN CORE ALPHA EQUITY (DUBLIN) FUND
GLG JAPAN CORE ALPHA EQUITY FUND
GLG JAPAN CORE ALPHA FUND
GLG NORTH AMERICAN EQUITY FUND
GLG PERFORMANCE (DIST) FUND
GLG PERFORMANCE (INST) II FUND
GLG PERFORMANCE FUND
GLG TECHNOLOGY EQUITY FUND
GLG UK GROWTH FUND
GLG UK INCOME FUND
GLG UK SELECT EQUITY FUND
GLG UK SELECT FUND
GLG US RELATIVE VALUE FUND
OCEAN EQUITY EASTERN EUROPE FUND*
OCEAN EQUITY MENA OPPORTUNITIES FUND*
OCEAN EQUITY GCC OPPORTUNITIES FUND*
SGAM EQUITY CONCENTRATED EUROLAND FUND*
SGAM EQUITY CONCENTRATED EUROPE FUND*
SGAM EQUITY EMERGING EUROPE FUND*
SGAM EQUITY EUROLAND FUND*
SGAM EQUITY GLOBAL EMERGING FUND*
SGAM EQUITY JAPAN CORE ALPHA FUND*
SGAM EQUITY MENA FUND*
SGAM INVEST EURO ACTION FUND*
SGAM INVEST EUROPE ACTION FUND*
SGAM INVEST GLOBAL TECHNOLOGY FUND*
SGAM OASIS MENA FUND*
GLG ASIA-PACIFIC FUND
GLG BALANCED FUND
GLG CAPITAL APPRECIATION (DIST) FUND
GLG CAPITAL APPRECIATION FUND
GLG EAFE (INST) II FUND
GLG ENVIRONMENT FUND
GLG ESPRIT CONTINENTAL EUROPE FUND
GLG EUROPEAN EQUITY FUND
GLG EUROPEAN EQUITY (INST) FUND
GLG GLOBAL CONVERTIBLE UCITS (DIST) FUND
GLG GLOBAL CONVERTIBLE UCITS FUND
GLG GLOBAL EMERGING MARKET FUND
GLG INTERNATIONAL SMALL CAP FUND
GLG JAPAN CORE ALPHA EQUITY (DUBLIN) FUND
GLG JAPAN CORE ALPHA EQUITY FUND
GLG JAPAN CORE ALPHA FUND
GLG NORTH AMERICAN EQUITY FUND
GLG PERFORMANCE (DIST) FUND
GLG PERFORMANCE (INST) II FUND
GLG PERFORMANCE FUND
GLG TECHNOLOGY EQUITY FUND
GLG UK GROWTH FUND
GLG UK INCOME FUND
GLG UK SELECT EQUITY FUND
GLG UK SELECT FUND
GLG US RELATIVE VALUE FUND
OCEAN EQUITY EASTERN EUROPE FUND*
OCEAN EQUITY MENA OPPORTUNITIES FUND*
OCEAN EQUITY GCC OPPORTUNITIES FUND*
SGAM EQUITY CONCENTRATED EUROLAND FUND*
SGAM EQUITY CONCENTRATED EUROPE FUND*
SGAM EQUITY EMERGING EUROPE FUND*
SGAM EQUITY EUROLAND FUND*
SGAM EQUITY GLOBAL EMERGING FUND*
SGAM EQUITY JAPAN CORE ALPHA FUND*
SGAM EQUITY MENA FUND*
SGAM INVEST EURO ACTION FUND*
SGAM INVEST EUROPE ACTION FUND*
SGAM INVEST GLOBAL TECHNOLOGY FUND*
SGAM OASIS MENA FUND*
For the month of July 2010, dollar-weighted average returns are based on final and estimated
month-end NAVs of the funds listed above as at July 30, 2010. AUMs are estimated as at August 2,
2010.
*Funds managed by a SGAM entity and sub-advised by GLG.
14
130 / 30 or Similar Strategy Dollar-Weighted Average Returns
GLG 130 / 30 or similar strategy dollar-weighted average returns (including all UCITS III products)
are calculated as the composite performance of the funds listed below, in addition to managed
accounts managed in accordance with a 130 / 30 or similar strategy, weighted by the sum of
month-end AUM and net inflows on the subsequent dealing day:
GLG ALPHA SELECT (UCITS III) FUND
GLG EMERGING MARKETS FIXED INCOME & CURRENCY (UCITS III) FUND
GLG EMERGING MARKETS EQUITY (UCITS III) FUND
GLG EMERGING MARKETS EQUITY II (UCITS III) FUND
GLG EMERGING MARKETS CREDIT OPPORTUNITY (UCITS III) FUND
GLG EMERGING MARKETS (UCITS III) FUND
GLG PURE ALPHA (UCITS III) FUND
GLG EMERGING MARKETS FIXED INCOME & CURRENCY (UCITS III) FUND
GLG EMERGING MARKETS EQUITY (UCITS III) FUND
GLG EMERGING MARKETS EQUITY II (UCITS III) FUND
GLG EMERGING MARKETS CREDIT OPPORTUNITY (UCITS III) FUND
GLG EMERGING MARKETS (UCITS III) FUND
GLG PURE ALPHA (UCITS III) FUND
For the month of July 2010, dollar-weighted average returns are based on estimated month-end NAVs
of the funds listed above as at July 30, 2010. AUMs are estimated as at August 2, 2010.
SOURCE: GLG Partners, Inc.
15
GLG Partners, Inc.
Unaudited Consolidated Balance Sheets
(US$ in thousands, except per share amounts; US GAAP)
Unaudited Consolidated Balance Sheets
(US$ in thousands, except per share amounts; US GAAP)
As of June 30, | As of December 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 201,338 | $ | 263,782 | ||||
Restricted cash |
25 | 5,746 | ||||||
Fees receivable |
68,073 | 104,541 | ||||||
Unsettled funds receivable |
12,903 | 8,948 | ||||||
Prepaid expenses and other assets |
35,113 | 36,892 | ||||||
Total Current Assets |
317,452 | 419,909 | ||||||
Non-Current Assets |
||||||||
Investments (at fair value) |
29,551 | 22,048 | ||||||
Intangible assets |
29,931 | 34,153 | ||||||
Goodwill |
587 | 587 | ||||||
Other non-current assets |
9,595 | 11,228 | ||||||
Property, plant and equipment, net |
12,901 | 12,856 | ||||||
Total Non-Current Assets |
82,565 | 80,872 | ||||||
Total Assets |
$ | 400,017 | $ | 500,781 | ||||
Liabilities and Stockholders Deficit |
||||||||
Current Liabilities |
||||||||
Rebates and sub-administration fees payable |
$ | 15,813 | $ | 19,717 | ||||
Accrued compensation, benefits and profit share |
44,982 | 138,686 | ||||||
Income taxes payable |
3,399 | 9,095 | ||||||
Distribution payable |
10,062 | 6,840 | ||||||
Unsettled funds payable |
16,142 | 9,819 | ||||||
Accounts payable and other accruals |
41,975 | 42,187 | ||||||
Revolving credit facility |
12,281 | 12,281 | ||||||
Other liabilities |
15,862 | 13,886 | ||||||
Total Current Liabilities |
$ | 160,516 | $ | 252,511 | ||||
Non-Current Liabilities |
||||||||
Deferred Tax Liability |
8,607 | 10,448 | ||||||
Loans Payable |
288,027 | 292,891 | ||||||
Convertible notes |
228,500 | 228,500 | ||||||
Total Non-Current Liabilities |
525,134 | 531,839 | ||||||
Total Liabilities |
$ | 685,650 | $ | 784,350 | ||||
Stockholders Deficit |
||||||||
Common stock, $.0001 par value; 1,000,000,000 authorized, 251,883,013 issued and
outstanding (2009: 252,358,619 issued and outstanding) |
$ | 24 | $ | 24 | ||||
Additional Paid in Capital |
1,583,021 | 1,450,151 | ||||||
Treasury Stock, 14,101,424 (2009: 14,101,424) shares of common stock(1) |
(193,189 | ) | (193,189 | ) | ||||
Series A voting preferred stock; 150,000,000 authorized, 58,904,993 issued and
outstanding (2009: 58,904,993 issued and outstanding) |
6 | 6 | ||||||
Accumulated deficit |
(1,697,453 | ) | (1,562,009 | ) | ||||
Accumulated other comprehensive income |
5,097 | 7,250 | ||||||
Total Controlling Stockholders Deficit |
(302,494 | ) | (297,767 | ) | ||||
Non-controlling Interests |
16,861 | 14,198 | ||||||
Total Stockholders Deficit |
(285,633 | ) | (283,569 | ) | ||||
Total Liabilities and Stockholders Deficit |
$ | 400,017 | $ | 500,781 | ||||
(1) | Represents stock held by GLG subsidiaries to be delivered in respect of future service obligations of equity participation plan participants and included in common stock issued and outstanding. |
16
GLG Partners, Inc.
Unaudited Consolidated Statement of Operations
(US$ in thousands, except per share amounts; US GAAP)
Unaudited Consolidated Statement of Operations
(US$ in thousands, except per share amounts; US GAAP)
Three Months Ended | ||||||||||||
June 30, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Net revenues and other income |
||||||||||||
Management fees, net |
$ | 46,868 | $ | 36,031 | 30.1 | % | ||||||
Performance fees, net |
22,371 | 37,942 | (41.0 | %) | ||||||||
Administration, service and distribution fees, net |
7,672 | 5,937 | 29.2 | % | ||||||||
Other |
308 | 6,232 | (95.1 | %) | ||||||||
Total net revenues and other income |
77,219 | 86,142 | (10.4 | %) | ||||||||
Expenses |
||||||||||||
Compensation, benefits and profit share |
121,612 | 171,930 | (29.3 | %) | ||||||||
General, administrative and other |
32,302 | 25,426 | 27.0 | % | ||||||||
Amortization of intangible assets |
853 | 833 | 2.4 | % | ||||||||
Third party distribution, administration and service fees |
811 | 665 | 22.0 | % | ||||||||
Total expenses |
155,578 | 198,854 | (21.8 | %) | ||||||||
Loss from operations |
(78,359 | ) | (112,712 | ) | (30.5 | %) | ||||||
Gain on debt extinguishment |
| 84,821 | | |||||||||
Gain on business combination negative goodwill |
| 21,122 | | |||||||||
Realized loss on available-for-sale investments |
(955 | ) | | | ||||||||
Fair value movements in trading securities |
(455 | ) | | | ||||||||
Interest expense, net |
(2,535 | ) | (3,328 | ) | (23.8 | %) | ||||||
Loss before income taxes |
(82,304 | ) | (10,097 | ) | 715.1 | % | ||||||
Income tax benefit / (expense) |
(1,315 | ) | (1,934 | ) | (32.0 | %) | ||||||
Net loss |
$ | (83,619 | ) | $ | (12,031 | ) | 595.0 | % | ||||
Less non-controlling interests: |
||||||||||||
Share of loss |
10,079 | (1,794 | ) | | ||||||||
Cumulative dividends on exchangeable shares |
(1,057 | ) | (10,552 | ) | | |||||||
Net loss attributable to common stockholders |
$ | (74,597 | ) | $ | (24,377 | ) | 206.0 | % | ||||
Weighted average shares outstanding, basic and diluted
(in thousands) |
230,675 | 216,814 | ||||||||||
Net loss per common share, basic and diluted |
$ | (0.32 | ) | $ | (0.11 | ) | 190.9 | % |
17
GLG Partners, Inc.
Unaudited Consolidated Statement of Operations
(US$ in thousands, except per share amounts; US GAAP)
Unaudited Consolidated Statement of Operations
(US$ in thousands, except per share amounts; US GAAP)
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Net revenues and other income |
||||||||||||
Management fees, net |
$ | 89,545 | $ | 70,458 | 27.1 | % | ||||||
Performance fees, net |
25,088 | 48,759 | (48.5 | %) | ||||||||
Administration, service and distribution fees, net |
15,016 | 11,410 | 31.6 | % | ||||||||
Other |
1,290 | 7,229 | (82.2 | %) | ||||||||
Total net revenues and other income |
130,939 | 137,856 | (5.0 | %) | ||||||||
Expenses |
||||||||||||
Compensation, benefits and profit share |
222,952 | 318,586 | (30.0 | %) | ||||||||
General, administrative and other |
59,050 | 47,743 | 23.7 | % | ||||||||
Amortization of intangible assets |
1,737 | 833 | 108.5 | % | ||||||||
Third party distribution, administration and service fees |
2,142 | 665 | | |||||||||
Total expenses |
285,881 | 367,827 | (22.3 | %) | ||||||||
Loss from operations |
(154,942 | ) | (229,971 | ) | (32.6 | %) | ||||||
Realized loss on available-for-sale investments |
(917 | ) | (21,217 | ) | | |||||||
Gain on debt extinguishment |
| 84,821 | | |||||||||
Gain on business combination-negative goodwill |
| 21,122 | | |||||||||
Fair value movements in trading securities |
22 | | | |||||||||
Interest expense, net |
(5,581 | ) | (5,918 | ) | (5.7 | %) | ||||||
Loss before income taxes |
(161,418 | ) | (151,163 | ) | 6.8 | % | ||||||
Income tax benefit/(expense) |
7,964 | (2,552 | ) | | ||||||||
Net loss |
$ | (153,454 | ) | $ | (153,715 | ) | (0.2 | %) | ||||
Less non-controlling interests: |
||||||||||||
Share of loss |
19,067 | 20,227 | (5.7 | %) | ||||||||
Cumulative dividends on exchangeable shares |
(1,057 | ) | (11,147 | ) | (90.5 | %) | ||||||
Net loss attributable to common stockholders |
$ | (135,444 | ) | $ | (144,635 | ) | (6.4 | %) | ||||
Weighted average shares outstanding, basic and diluted
(in thousands) |
230,006 | 216,789 | ||||||||||
Net loss per common share, basic and diluted |
$ | (0.59 | ) | $ | (0.67 | ) | (11.9 | %) |
18
GLG Partners, Inc.
Unaudited Consolidated Statements of Cash Flows
(US$ in thousands; US GAAP)
Unaudited Consolidated Statements of Cash Flows
(US$ in thousands; US GAAP)
Six Months Ended June 30, | ||||||||
2010 | 2009 | |||||||
Net cash used in operating activities |
$ | (47,943 | ) | $ | (89,010 | ) | ||
Net cash (used in) / provided by investing activities |
(6,806 | ) | 42,053 | |||||
Net cash used in financing activities |
(1,688 | ) | (18,105 | ) | ||||
Net decrease in cash and cash equivalents |
(56,437 | ) | (65,062 | ) | ||||
Effect of foreign currency translation on cash |
(6,007 | ) | 7,156 | |||||
Cash and cash equivalents at beginning of period |
263,782 | 316,195 | ||||||
Cash and cash equivalents at end of period |
$ | 201,338 | $ | 258,289 | ||||
19
GLG Partners, Inc.
Non-GAAP Adjusted Net Income for Three Months ended June 30, 2010 and June 30, 2009
(US$ in thousands)
Non-GAAP Adjusted Net Income for Three Months ended June 30, 2010 and June 30, 2009
(US$ in thousands)
Three Months Ended | ||||||||||||
June 30, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Derivation of non-GAAP adjusted net income |
||||||||||||
GAAP net loss |
$ | (83,619 | ) | $ | (12,031 | ) | | |||||
Less: Cumulative dividends |
(1,057 | ) | (10,552 | ) | (90.0 | %) | ||||||
Add: Acquisition-related compensation expense |
80,466 | 128,851 | (37.6 | %) | ||||||||
Less: Tax effect of Acquisition-related compensation expense |
(403 | ) | (441 | ) | (8.6 | %) | ||||||
Less: Gain on business combination negative goodwill |
| (21,122 | ) | | ||||||||
Add: Amortization of intangible assets |
853 | 833 | 2.4 | % | ||||||||
Add: Realized loss on available-for-sale investments |
955 | | | |||||||||
Less: Tax effect of amortization of intangible assets |
(238 | ) | (233 | ) | 2.1 | % | ||||||
Non-GAAP adjusted net (loss) / income |
$ | (3,043 | ) | $ | 85,305 | (103.6 | %) | |||||
Non-GAAP weighted average fully diluted shares (in thousands) |
306,312 | 338,426 | ||||||||||
Non-GAAP adjusted net income |
||||||||||||
per non-GAAP weighted average fully diluted share(1) |
(0.01 | ) | 0.26 | (103.8 | %) |
GLG Partners, Inc.
Non-GAAP Expenses for Three Months ended June 30, 2010 and June 30, 2009
(US$ in thousands)
Non-GAAP Expenses for Three Months ended June 30, 2010 and June 30, 2009
(US$ in thousands)
Three Months Ended | ||||||||||||
June 30, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Non-GAAP expenses |
||||||||||||
Compensation, benefits and profit share |
$ | 121,612 | $ | 171,930 | (29.3 | %) | ||||||
Less: Acquisition-related compensation expense |
(80,466 | ) | (128,851 | ) | (37.6 | %) | ||||||
Non-GAAP compensation, benefits and profit share (CBP) |
$ | 41,146 | $ | 43,079 | (4.5 | %) | ||||||
Third party distribution, service and advisory |
811 | 665 | 22.0 | % | ||||||||
GAAP general, administrative and other |
32,302 | 25,426 | 27.0 | % | ||||||||
Non-GAAP total expenses |
$ | 74,259 | $ | 69,170 | 7.4 | % | ||||||
(1) | For Q2 2010, the shares associated with the convertible notes have been excluded from the non-GAAP weighted average fully diluted share count due to their anti-dilutive impact and no convertible note interest was added back to non-GAAP adjusted net loss for the period. In Q2 2009, however, the shares associated with the convertible notes have been included in the non-GAAP weighted average fully diluted share count due to their dilutive impact and convertible note interest in the amount of $1.6 million was added back to non-GAAP adjusted net income for the period. |
20
GLG Partners, Inc.
Non-GAAP Adjusted Net Income for Six Months ended June 30, 2010 and June 30, 2009
(US$ in thousands, except per share amounts)
Non-GAAP Adjusted Net Income for Six Months ended June 30, 2010 and June 30, 2009
(US$ in thousands, except per share amounts)
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Derivation of non-GAAP adjusted net income |
||||||||||||
GAAP net loss |
$ | (153,454 | ) | $ | (153,715 | ) | (0.2 | %) | ||||
Less: Cumulative dividends |
(1,057 | ) | (11,147 | ) | (90.5 | %) | ||||||
Add: Realized loss on available-for-sale investments |
917 | 21,217 | (95.7 | %) | ||||||||
Add: Acquisition-related compensation expense |
146,873 | 255,588 | (42.5 | %) | ||||||||
Less: Tax effect of Acquisition-related compensation expense |
(627 | ) | (796 | ) | (21.2 | %) | ||||||
Less: Gain on business combination negative goodwill |
| (21,122 | ) | | ||||||||
Add: Amortization of intangible assets |
1,737 | 833 | 108.5 | % | ||||||||
Less: Tax effect of amortization of intangible assets |
(486 | ) | (233 | ) | 108.6 | % | ||||||
Non-GAAP adjusted net income |
$ | (6,097 | ) | $ | 90,624 | (106.7 | %) | |||||
Non-GAAP weighted average fully diluted shares (in thousands) |
305,628 | 323,399 | ||||||||||
Non-GAAP adjusted net income |
||||||||||||
per non-GAAP weighted average fully diluted share(1) |
$ | (0.02 | ) | $ | 0.29 | (106.9 | %) |
GLG Partners, Inc.
Non-GAAP Expenses for Six Months ended June 30, 2010 and June 30, 2009
(US$ in thousands)
Non-GAAP Expenses for Six Months ended June 30, 2010 and June 30, 2009
(US$ in thousands)
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Non-GAAP expenses |
||||||||||||
Compensation, benefits and profit share |
$ | 222,952 | $ | 318,586 | (30.0 | %) | ||||||
Add: Acquisition-related compensation expense |
(146,873 | ) | (255,588 | ) | (42.5 | %) | ||||||
Non-GAAP compensation, benefits and profit share (CBP) |
$ | 76,079 | $ | 62,999 | 20.8 | % | ||||||
Third party distribution, service and advisory |
2,142 | 665 | 222.1 | % | ||||||||
GAAP general, administrative and other |
59,050 | 47,743 | 23.7 | % | ||||||||
Non-GAAP total expenses |
$ | 137,271 | $ | 111,407 | 23.2 | % | ||||||
(1) | For H1 2010, the shares associated with the convertible notes have been excluded from the non-GAAP weighted average fully diluted share count due to their anti-dilutive impact and no convertible note interest was added back to non-GAAP adjusted net loss for the period. In H1 2009, however, the shares associated with the convertible notes have been included in the non-GAAP weighted average fully diluted share count due to their dilutive impact and convertible note interest in the amount of $1.6 million was added back to non-GAAP adjusted net income for the period. |
21
GLG Partners, Inc.
Financial Supplement
Financial Supplement
TTM to | |||||||||||||||||||||||||||
($ in millions) | H1 2010 | H1 2009 | Q2 2010 | Q2 2009 | 6/30/10 | 6/30/09 | |||||||||||||||||||||
Opening Net AUM |
$ | 22,175 | $ | 15,039 | $ | 23,668 | $ | 14,031 | $ | 19,094 | $ | 23,668 | |||||||||||||||
Inflows (net of redemptions) |
2,491 | 2,276 | 1,537 | 2,226 | 3,429 | 865 | |||||||||||||||||||||
Performance (gains net of losses and fees) |
(232 | ) | 990 | (1,524 | ) | 1,797 | 1,670 | (4,797 | ) | ||||||||||||||||||
Currency translation impact (non-US$ AUM expressed in US$) |
(1,477 | ) | 789 | (725 | ) | 1,040 | (1,236 | ) | (642 | ) | |||||||||||||||||
Closing Net AUM |
22,956 | 19,094 | 22,956 | 19,094 | 22,956 | 19,094 | |||||||||||||||||||||
Closing Gross AUM |
24,908 | 21,572 | 24,908 | 21,572 | 24,908 | 21,572 | |||||||||||||||||||||
Average net AUM(1) |
22,933 | 15,179 | 23,312 | 18,840 | 21,030 | 17,727 | |||||||||||||||||||||
(US$ in thousands, except per share amounts) |
|||||||||||||||||||||||||||
Management fees, net |
$ | 89,545 | $ | 70,458 | $ | 46,868 | $ | 36,031 | $ | 171,615 | $ | 198,889 | |||||||||||||||
Performance fees, net |
25,088 | 48,759 | 22,371 | 37,942 | 90,934 | 73,347 | |||||||||||||||||||||
Administration, service and distribution fees, net |
15,016 | 11,410 | 7,672 | 5,937 | 29,291 | 37,858 | |||||||||||||||||||||
Other |
1,290 | 7,229 | 308 | 6,232 | 2,117 | 2,563 | |||||||||||||||||||||
Total net revenues and other income |
$ | 130,939 | $ | 137,856 | $ | 77,219 | $ | 86,142 | $ | 293,957 | $ | 312,657 | |||||||||||||||
Compensation, benefits and profit share(2) |
222,952 | 318,586 | 121,612 | 171,930 | 592,678 | 721,761 | |||||||||||||||||||||
General, administrative and other(3) |
59,050 | 47,743 | 32,302 | 25,426 | 92,664 | 110,259 | |||||||||||||||||||||
Third party distribution, service and advisory |
2,142 | 665 | 811 | 665 | 4,753 | 665 | |||||||||||||||||||||
Amortization of intangible assets |
1,737 | 833 | 853 | 833 | 3,672 | 833 | |||||||||||||||||||||
Total expenses |
$ | 285,881 | $ | 367,827 | $ | 155,578 | $ | 198,854 | $ | 703,585 | $ | 833,518 | |||||||||||||||
Loss from operations |
$ | (154,942 | ) | $ | (229,971 | ) | $ | (78,359 | ) | $ | (112,712 | ) | $ | (409,628 | ) | $ | (520,861 | ) | |||||||||
Interest expense, net |
(5,581 | ) | (5,918 | ) | (2,535 | ) | (3,328 | ) | (11,365 | ) | (14,406 | ) | |||||||||||||||
Realized gain / (loss) on available-for-sale investments |
(917 | ) | (21,217 | ) | (955 | ) | | (1,555 | ) | (21,217 | ) | ||||||||||||||||
Fair value movements in trading securities |
22 | | (455 | ) | | 22 | | ||||||||||||||||||||
Gain on debt extinguishment |
| 84,821 | | 84,821 | | 84,821 | |||||||||||||||||||||
Gain on business combination negative goodwill |
| 21,122 | | 21,122 | | 21,122 | |||||||||||||||||||||
Income tax expense / (benefit) |
7,964 | (2,552 | ) | (1,315 | ) | (1,934 | ) | 13,716 | (7,287 | ) | |||||||||||||||||
GAAP net income before non-controlling interests |
$ | (153,454 | ) | $ | (153,715 | ) | $ | (83,619 | ) | $ | (12,031 | ) | $ | (408,810 | ) | $ | (457,828 | ) | |||||||||
Less / Add: Realized (gain) / loss on available-for-sale investments |
917 | 21,217 | 955 | | 1,555 | 21,217 | |||||||||||||||||||||
Add: Acquisition-related compensation expense |
146,873 | 255,588 | 80,466 | 128,851 | 338,895 | 611,731 | |||||||||||||||||||||
Less: Tax effect of Acquisition-related compensation expense |
(627 | ) | (796 | ) | (403 | ) | (441 | ) | (40 | ) | 1,327 | ||||||||||||||||
Less: Cumulative dividends |
(1,057 | ) | (11,147 | ) | (1,057 | ) | (10,552 | ) | 1,173 | (16,610 | ) | ||||||||||||||||
Less: Gain on business combination negative goodwill |
| (21,122 | ) | | (21,122 | ) | | (21,122 | ) | ||||||||||||||||||
Add: Amortization of intangible assets |
1,737 | 833 | 853 | 833 | 3,672 | 833 | |||||||||||||||||||||
Less: Tax effect of amortization of intangible assets |
(486 | ) | (233 | ) | (238 | ) | (233 | ) | (1,028 | ) | (233 | ) | |||||||||||||||
Non-GAAP adjusted net (loss) / income(4) |
$ | (6,097 | ) | $ | 90,624 | $ | (3,043 | ) | $ | 85,305 | $ | (64,583 | ) | $ | 139,315 | ||||||||||||
Non-GAAP weighted average fully diluted shares (in thousands) |
305,628 | 323,399 | 306,312 | 338,426 | 305,628 | 323,399 | |||||||||||||||||||||
Non-GAAP adjusted net (loss) / income
per non-GAAP weighted average fully diluted share(5) |
(0.02 | ) | 0.29 | (0.01 | ) | 0.26 | (0.21 | ) | 0.44 | ||||||||||||||||||
Management fees and Administration, service and distribution fees / Average net AUM(1)(6) |
0.91% | 1.08% | 0.94% | 0.89% | 0.96% | 1.34% | |||||||||||||||||||||
Total net revenues and other income / Average net AUM(1)(6) |
1.14% | 1.82% | 1.32% | 1.83% | 1.40% | 1.76% | |||||||||||||||||||||
Compensation, benefits and profit share less acquisition-related compensation expense (CBP) / Total net revenues and
other income |
58.1% | 45.7% | 53.3% | 50.0% | 86.3% | 35.2% | |||||||||||||||||||||
General, administrative and other expenses / Average net AUM(1)(6) |
0.5% | 0.6% | 0.6% | 0.5% | 0.4% | 0.6% | |||||||||||||||||||||
Non-GAAP adjusted net income(4)/ Total net revenues and other income |
(4.7%) | 65.7% | (3.9%) | 99.0% | (22.0%) | 44.6% | |||||||||||||||||||||
Effective tax rate(7) |
48.7% | 14.0% | (10043.3%) | 13.4% | (2.7%) | 13.9% | |||||||||||||||||||||
(1) | Average net AUM for a given period is calculated as a 2 point average for the quarters, a 3 point average for the halves and a 5 point average for the 12-month periods. Q2 2009, H1 2009 and TTM to Q2 2009 average net AUMs exclude the approximately $3 billion of AUM mandated in December 2008 pursuant to a sub-advisory arrangement with SGAM UK which terminated upon the acquisition of SGAM UK on April 3, 2009 and include net AUM of approximately $7 billion acquired with SGAM UK on April 3, 2009 as if the AUM were acquired on April 1, 2009. | |
(2) | Includes $2.2 million of expenses related to the proposed merger with Man which were recognized during Q2 2010. | |
(3) | Includes $9.8 million of expenses related to the proposed merger with Man which were recognized during Q2 2010. | |
(4) | See Non-GAAP Financial Measures for further detail. | |
(5) | Shares associated with the convertible notes issued in May 2009 have been included in the non-GAAP weighted average fully diluted share count for the Q2 2009, H1 2009 and TTM to Q2 2010 periods due to their dilutive impact and convertible note interest in the amount of $1.6 million has been added back to non-GAAP adjusted net income for these periods. In Q2 2010, H1 2010 and TTM to Q2 2010, however, the shares associated with the convertible notes have been excluded from the non-GAAP weighted average fully diluted share count due to their anti-dilutive impact and no convertible note interest was added back to non-GAAP adjusted net loss for the periods. | |
(6) | Ratios are annualized for quarterly periods. | |
(7) | Equals the sum of income taxes, cumulative dividends and tax effect of Acquisition-related compensation expense and amortization of intangible assets divided by the sum of adjusted net income, income taxes, cumulative dividends and tax effect of Acquisition-related compensation expense and amortization of intangible assets. The Q2 2010 effective tax rate is impacted by non-deductible expenses related to the proposed merger with Man of $9.8 million recognized during Q2 2010. Excluding the impact of these non-deductible expenses, the effective tax rate for Q2 2010 would be 30.8%. |
22
GLG Partners, Inc.
Share Count Reconciliation: GAAP Weighted Average Fully Diluted Shares to
Non-GAAP Weighted Average Fully Diluted Share Count
(Share count in thousands)
Share Count Reconciliation: GAAP Weighted Average Fully Diluted Shares to
Non-GAAP Weighted Average Fully Diluted Share Count
(Share count in thousands)
H1 2010 | H1 2009 | Q2 2010 | Q2 2009 | |||||||||||||
Outstanding |
||||||||||||||||
Common stock (including Treasury Stock) |
251,883 | 238,262 | 251,883 | 238,262 | ||||||||||||
Unvested shares |
10,929 | 11,993 | 10,929 | 11,993 | ||||||||||||
Total issued and outstanding common stock |
262,812 | 250,255 | 262,812 | 250,255 | ||||||||||||
FA Sub 2 Limited Exchangeable Shares |
58,905 | 58,905 | 58,905 | 58,905 | ||||||||||||
Warrants |
54,485 | 54,485 | 54,485 | 54,485 | ||||||||||||
Convertible Notes |
61,425 | 61,425 | 61,425 | 61,425 | ||||||||||||
Weighted Average Outstanding |
||||||||||||||||
Common stock (excluding Treasury Stock) |
230,006 | 216,789 | 230,675 | 216,764 | ||||||||||||
Unvested shares |
8,351 | 8,345 | 6,554 | 8,342 | ||||||||||||
FA Sub 2 Limited Exchangeable Shares |
58,905 | 58,905 | 58,905 | 58,905 | ||||||||||||
Warrants |
54,485 | 54,485 | 54,485 | 54,485 | ||||||||||||
Convertible Notes |
61,425 | 15,093 | 61,425 | 30,021 | ||||||||||||
GAAP Weighted Average Fully Diluted Share Count |
||||||||||||||||
Common stock |
230,006 | 216,789 | 230,675 | 216,814 | ||||||||||||
Unvested shares |
| | | | ||||||||||||
FA Sub 2 Limited Exchangeable Shares |
| | | | ||||||||||||
Warrants |
| | | | ||||||||||||
Total |
230,006 | 216,789 | 230,675 | 216,814 | ||||||||||||
Non-GAAP adjustments to weighted average fully diluted share count |
||||||||||||||||
Common stock: |
||||||||||||||||
GAAP weighted average fully diluted share count |
230,006 | 216,789 | 230,675 | 216,814 | ||||||||||||
add: unvested shares issued pursuant to our equity participation plan, Restricted Stock
Plan and LTIP on which dividends will be paid to the extent we pay them on vested shares |
16,717 | 32,612 | 16,732 | 32,686 | ||||||||||||
Non-GAAP weighted average fully diluted share count |
246,723 | 249,401 | 247,407 | 249,500 | ||||||||||||
FA Sub 2 Limited Exchangeable Shares: |
||||||||||||||||
GAAP weighted average fully diluted share count |
| | | | ||||||||||||
add: inclusion of Exchangeable shares as dilutive under non-GAAP |
58,905 | 58,905 | 58,905 | 58,905 | ||||||||||||
Non-GAAP weighted average fully diluted share count |
58,905 | 58,905 | 58,905 | 58,905 | ||||||||||||
Warrants: |
||||||||||||||||
GAAP weighted average fully diluted share count |
| | | | ||||||||||||
Non-GAAP weighted average fully diluted share count outstanding |
| | | | ||||||||||||
Convertible Notes |
||||||||||||||||
GAAP weighted average fully diluted share count |
| | | | ||||||||||||
add: inclusion of weighted average convertible notes as dilutive under non-GAAP |
| 15,093 | | 30,021 | ||||||||||||
Non-GAAP weighted average fully diluted share count outstanding |
| 15,093 | | 30,021 | ||||||||||||
Non-GAAP Weighted Average Fully Diluted Share Count(1) |
||||||||||||||||
Common stock |
246,723 | 249,401 | 247,407 | 249,500 | ||||||||||||
FA Sub 2 Limited Exchangeable Shares |
58,905 | 58,905 | 58,905 | 58,905 | ||||||||||||
Warrants |
| | | | ||||||||||||
Convertible Notes |
| 15,093 | | 30,021 | ||||||||||||
Total |
305,628 | 323,399 | 306,312 | 338,426 | ||||||||||||
Equity Market Capitalization (US$ in Thousands) |
||||||||||||||||
Common equity market capitalization(2) |
$ | 1,409,120 | $ | 1,264,464 | $ | 1,409,120 | $ | 1,264,464 | ||||||||
Warrant market capitalization |
5,993 | 19,615 | 5,993 | 19,615 | ||||||||||||
Total equity capitalization(2) |
$ | 1,415,114 | $ | 1,284,079 | $ | 1,415,113 | $ | 1,284,079 | ||||||||
(1) | Reflects weighted average diluted shares outstanding eligible to receive common dividends or the equivalent, plus diluted warrants outstanding under the Treasury Stock method. | |
(2) | Assumes conversion of FA Sub 2 Limited Exchangeable Shares. |
23
GLG Partners, Inc.
Composition of Assets Under Management
Composition of Assets Under Management
As of | As of | As of | As of | As of | ||||||||||||||||
June 30, 2010 | March 31, 2010 | December 31, 2009 | September 30, 2009 | June 30, 2009 | ||||||||||||||||
Alternative strategies(1) |
12,088 | 12,504 | 11,501 | 10,924 | 10,441 | |||||||||||||||
Long only strategies(2) |
12,820 | 13,340 | 12,864 | 13,069 | 11,131 | |||||||||||||||
Gross AUM |
$ | 24,908 | $ | 25,844 | $ | 24,365 | $ | 23,993 | $ | 21,572 | ||||||||||
Less: alternative strategy investments in GLG Funds |
(956 | ) | (1,078 | ) | (1,088 | ) | (1,266 | ) | (1,456 | ) | ||||||||||
Less: long only strategy investments in GLG Funds |
(996 | ) | (1,098 | ) | (1,103 | ) | (1,099 | ) | (1,022 | ) | ||||||||||
Net AUM |
$ | 22,956 | $ | 23,668 | $ | 22,175 | $ | 21,628 | $ | 19,094 | ||||||||||
Quarterly average gross AUM |
$ | 25,376 | $ | 25,104 | $ | 24,179 | $ | 22,782 | $ | 18,495 | ||||||||||
Quarterly average net AUM(3) |
$ | 23,312 | $ | 22,921 | $ | 21,901 | $ | 20,361 | $ | 18,840 |
Three months ended | Three months ended | Three months ended | Three months ended | Three months ended | ||||||||||||||||
June 30, 2010 | March 31, 2010 | December 31, 2009 | September 30, 2009 | June 30, 2009 | ||||||||||||||||
Opening net AUM |
$ | 23,668 | $ | 22,175 | $ | 21,628 | $ | 19,094 | $ | 14,031 | ||||||||||
Inflows (net of redemptions)(4) |
1,537 | 954 | 723 | 216 | 2,226 | |||||||||||||||
Performance (gains net of losses and fees) |
(1,524 | ) | 1,292 | 18 | 1,883 | 1,797 | ||||||||||||||
Currency translation impact (non-US$ AUM expressed in US$) |
(725 | ) | (753 | ) | (194 | ) | 435 | 1,040 | ||||||||||||
Closing net AUM |
$ | 22,956 | $ | 23,668 | $ | 22,175 | $ | 21,628 | $ | 19,094 | ||||||||||
(1) | Alternative strategy gross AUM includes all alternative strategy funds, all 130/30 strategy funds, all managed accounts managed in accordance with alternative and 130/30 strategies and cash and other holdings. | |
(2) | Long only strategy gross AUM includes all long only funds and managed accounts managed in accordance with a long only strategy. | |
(3) | Quarterly average net AUM for a given period is calculated as a 2 point (quarter open and close) average; Q2 2009 average net AUM excludes the approximately $3 billion of AUM mandated in December 2008 pursuant to a sub-advisory arrangement with SGAM UK which terminated upon the acquisition of SGAM UK on April 3, 2009 and includes net AUM of approximately $7 billion acquired with SGAM UK on April 3, 2009 as if the AUM were acquired on April 1, 2009. | |
(4) | Inflows for Q2 2009 include SGAM UK net inflows of approximately $2.6 billion. |
24