Och-Ziff Capital Management put a five-year-long investigation by Department of Justice and Securities and Exchange Commission to rest last year when it agreed to pay a $412 million fine to settle allegations that its Africa unit violated the Foreign Corrupt Practices Act by paying more than $100 million in bribes to corrupt government officials. But even after slashing its management fee following a wave of customer redemptions, the publicly traded hedge fund is in rough shape. Its shares are languishing around $3, well below their peak of $26, and investors have pulled nearly a third of their assets from the fund, which had $32 billion AUM in May, down from more than $50 billion at its peak in 2015.
With the firm in dire need of rebranding, Dan Och, CEO and chairman of his eponymous firm, announced a major management shakeup back in February hoping it would help revive the firm’s battered image. While Och retained his titles, much of the firm’ day-to-day operations would be handled by Jimmy Levin, the former star of its credit business, who would take over as co-chief investment officer. Och personally contributed 30 million of his shares – about one-third – to Levin’s $280 million incentive package, a massive sum that Bloomberg noted is a rarity in Wall Street today.