GLG Partners Reports Second Quarter 2007 Earnings



    
    - Net income of $309 million; Adjusted net income of $125 million, up
      106% from Q2 2006

    - Net assets under management of $18.6 billion, up 38% from Q2 2006

    - Total inflows of $1.7 billion during Q2 2007, including managed account
      inflows and gross fund-based inflows
    

    LONDON, Aug. 3 /CNW/ -- GLG Partners (GLG), a leading alternative asset
manager, today reported net income of $309 million for the quarter ended June
30, 2007 and $329 million for the first half of 2007.  Adjusted net income
(net income less limited partner profit share) was $125 million, up 106%
year-over-year, for the quarter ended June 30, 2007 and $139 million, up 89%
year-over-year, for the first half of 2007.
    GLG's net assets under management as of June 30, 2007 reached $18.6
billion (net of assets invested from other GLG managed funds), up 16% from
March 31, 2007 and 38% from June 30, 2006.  GLG's gross assets under
management (including assets invested from other GLG managed funds) were $21.5
billion at June 30, 2007, up 15% from March 31, 2007 and 38% from June 30,
2006.  A combination of strong performance across the GLG managed funds and
healthy inflows drove the growth in assets under management (AUM) as set forth
below in Table 1.
    "The second quarter saw strong performance across the funds we manage, as
well as continued growth in inflows", said Noam Gottesman, Founder, Managing
Director and Co-CEO of GLG.  "This strong performance, together with the
recently announced transaction with Freedom Acquisition Holdings and strategic
investments by Istithmar and Sal. Oppenheim, position us well for the future
expansion and growth of our business."


    
                       Table 1: Assets Under Management
                              (USD in millions)
    

    
                                    As of June 30,
                                   2007        2006
    

    
    Gross Fund-Based AUM       $ 19,485     $ 14,351
    Managed Accounts AUM          1,843          937
    Cash and Other Securities       194          339
    Gross AUM                  $ 21,522     $ 15,627
    YoY %  Change                    38 %
    Net AUM                    $ 18,585     $ 13,467
    YoY %  Change                    38 %
    

    
                                  Three Months Ended    Six Months Ended
                                        June 30,            June 30,
                                   2007        2006     2007       2006
    

    
    Opening Gross Fund-Based
    AUM                        $ 17,060    $ 12,934  $ 16,053  $ 11,484
    Fund-based inflows (net
     of redemptions)              1,393       1,407     1,552     1,613
    Fund-based net performance
     (gains net of losses)        1,032          10     1,880     1,254
    Closing Gross Fund-
     Based AUM                 $ 19,485    $ 14,351  $ 19,485  $ 14,351
    

    
    % of Opening Gross Fund-
     Based AUM
     Gross Fund-based inflows
      (net of redemptions)          8.2 %      10.9 %     9.7%     14.0 %
     Gross Fund-based net
      performance (gains net
      of losses)                    6.0 %       0.1 %    11.7%     10.9 %
    


    
    Opening Managed Accounts
     AUM                        $ 1,398       $ 505   $ 1,233     $ 335
     Inflows (net of
      redemptions)                  351         536       419       670
     Net performance (gains
      net of losses)                 94        (104)      191       (68)
    Closing Managed
     Accounts AUM               $ 1,843       $ 937   $ 1,843     $ 937
    

    
    % of Opening Managed
    Accounts AUM
    Inflows (net of
    redemptions)                  25.1 %     106.1 %    34.0%    200.0 %
    Net Performance (gains
     net of losses)                6.7 %     (20.6%)    15.5%    (20.3%)
    

    
    Note: Net performance is based on both opening AUM and inflows during the
    period and can be influenced by heavy inflows.
    Financial Summary
    
    For Q2 2007, net revenues and other income was up 84% to $418 million
compared to $227 million in the same quarter last year, primarily due to
increased management and performance fees as a result of strong inflows and
solid performance across the GLG managed funds. First half 2007 net revenues
and other income increased 77% over the first half of 2006 to $491 million.
    Performance fees rose 97% year-over-year in Q2 2007 to $341 million on a
37% rise in average net AUM from the same quarter last year. It is our
practice to recognize performance fees when they crystallize, generally on
June 30 and December 31 of each year.  Accordingly, Q2's performance fees
largely reflect first half performance.
    Management and administration fees totaled $77 million, or 1.8% of
average net AUM for Q2 2007, increases of 42% and 6 basis points (bps),
respectively, from Q2 2006.   For the first half of 2007, management and
administration fees totaled $147 million, or 1.8% of average net AUM,
increases of 49% and 10 bps, respectively, over the first half of 2006.
    The total level of comprehensive limited partner profit share,
compensation and benefits ("PSCB") rose by 72% for Q2 2007 to $241 million,
although this represented a reduction of 420 bps to 58% when expressed as a
percentage of revenues for the same period last year.  PSCB is a financial
measure not prepared under U.S. generally accepted accounting principles, or
GAAP, and includes limited partner profit share as described below under "Non-
GAAP Financial Measures." Employee compensation and benefits for Q2 2007 fell
by 36% to $57 million compared to $88 million in the same quarter last year,
as certain key employees ceased to be employees when GLG established its
limited partner profit share arrangement at the end of Q2 2006.
    Please note that compensation expense and limited partner profit share
tied to fund performance is only recognized when the related performance fees
crystallize, generally on June 30 and December 31 of each year.  Consequently,
the portion of Q2's compensation expense and limited partner profit share tied
to performance largely reflects first half performance.
    PSCB for the first half of 2007 rose by 64% to $272 million but fell by
roughly 455 bps to 55% when expressed as a percentage of revenues when
compared with the same period a year ago.  Employee compensation and benefits
for the first half of 2007 fell by 29% year-over-year to $82 million as a
result of certain key personnel ceasing to be employees when GLG established
its limited partner profit share arrangement at the end of June 2006.
    General, administrative, and other expenses for Q2 2007 increased 78%
year-over-year to $28 million but fell slightly as a percentage of revenues to
6.7%.  For the first half of 2007, these expenses rose 97% year-over-year to
$54 million, or by 110 bps to 11% when expressed as a percentage of revenues,
reflecting increases in operating costs due to significant growth in the
business as well as certain one-time costs.
    "We extended our record of strong performance across the funds we manage
while continuing to build the scale of our operations to accommodate growth",
said Emmanuel Roman, Co-CEO and Managing Director of GLG.
    
    Investor/Analyst Conference Call and Webcast
    
    GLG will be hosting a conference call for investors and analysts today at
11:00 AM EDT (New York City) / 4:00 PM BST (Guernsey/London). The dial-in
number for the live conference call is +1 334 323 6203 in the US or +44 (0)20
7162 0125 in the UK. To access a webcast of the conference call, please
register via GLG's website www.glgpartners.com.
    The conference call replay can be accessed by dialing +1 954 334 0342 in
the US or +44 (0)20 7031 4064 in the UK and entering access code No.760644. 
The webcast replay of the conference call will also be available on the
Company's website at www.glgpartners.com. Both the dial-in and webcast replay
of the call will be available beginning on August 3, 2007 at 2pm EDT or 7pm
BST until August 13th.
    
    About GLG
    
    GLG, the largest independent alternative asset manager in Europe and one
of the largest in the world, offers its base of long-standing prestigious
clients a diverse range of investment products and account management
services. GLG's focus is on preserving client's capital and achieving
consistent, superior absolute returns with low volatility and low correlations
to both the equity and fixed income markets. Since its inception in 1995, GLG
has built on the roots of its founders in the private wealth management
industry to develop into one of the world's largest and most recognized
alternative investment managers, while maintaining its tradition of client-
focused product development and customer service. As of June 30, 2007, GLG
managed gross AUM of over $21 billion.
    
    Forward-looking Statements
    
    This press release contains statements relating to future results that
are "forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. 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: market conditions for GLG
managed investment funds; performance of GLG managed investment funds, the
related performance fees and the associated impacts on revenues, net income,
cash flows and fund inflows/outflows; the cost of retaining GLG's key
investment and other personnel or the loss of such key personnel; risks
associated with the expansion of GLG's business in size and geographically;
operational risk; litigation and regulatory enforcement risks, including the
diversion of management time and attention and the additional costs and
demands on GLG's resources; risks related to the use of leverage, the use of
derivatives, interest rates and currency fluctuations; costs related to the
proposed acquisition; failure to obtain the required approvals of stockholders
of Freedom Acquisition Holdings, Inc. for the proposed acquisition
transaction; and risks that the closing of the transaction is substantially
delayed or that the transaction does not close, as well as other risks and
uncertainties, including those set forth in the preliminary proxy statement
filed by Freedom with the Securities and Exchange Commission on July 12, 2007.
 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.



    
                                     GLG
                  Unaudited Combined Statement of Operations
                              (USD in thousands)
    


    
                                                Three Months Ended
                                                      June 30,
                                                 2007         2006   %Change
    

    Net revenues and other income

    
    Management fees                           $62,991      $45,679      38%
    Performance fees                          340,512      172,695      97%
    Administration fees                        14,036        8,500      65%
    Other                                         471         (271)     NM
    

    Total net revenues and other income       418,010      226,603      84%

    Expenses

    
    Employee compensation and benefits        (56,518)     (88,404)    (36%)
    General, administrative and other         (27,979)     (15,696)     78%
                                              (84,497)    (104,100)    (19%)
    

    
    Income from operations                    333,513      122,503     172%
    Interest income, net                          171          939     (82%)
    Income before income taxes                333,684      123,442     170%
    Income taxes                              (25,031)     (11,499)    118%
    

    GAAP Net income                          $308,653     $111,943     176%



    
                                                  Six Months Ended
                                                      June 30,
                                                 2007         2006   %Change
    

    Net revenues and other income

    
    Management fees                          $120,334      $82,971      45%
    Performance fees                          343,032      175,946      95%
    Administration fees                        26,680       15,921      68%
    Other                                         970        2,023    NM
    

    Total net revenues and other income       491,016      276,861      77%

    Expenses

    
    Employee compensation and benefits        (81,566)    (114,459)    (29%)
    General, administrative and other         (53,743)     (27,285)     97%
                                             (135,309)    (141,744)     (5%)
    

    
    Income from operations                    355,707      135,117     163%
    Interest income, net                        1,647        2,574     (36%)
    Income before income taxes                357,354      137,691     160%
    Income taxes                              (28,286)     (13,000)    118%
    

    GAAP Net income                          $329,068     $124,691     164%



    
                                     GLG
                       Unaudited Combined Balance Sheet
                              (USD in thousands)
    


    
                                                   As of            As of
                                                  June 30,       December 31,
                                                    2007             2006
    

    Assets

    
       Cash and cash equivalents                  $130,268          $273,148
       Investments                                     154               201
       Fees receivable                             380,157           251,963
       Prepaid expenses and other assets            27,418            25,944
    Property and equipment (net of
     accumulated    depreciation and
     amortization of $10,972 and $10,117
     respectively)                                   8,980             6,121
    Total Assets                                  $546,977          $557,377
    




    Liabilities and Members' Equity

    
    Current Liabilities
       Rebates and sub-administration
        fees payable                               $26,147           $19,146
       Accrued compensation and benefits            47,702           102,507
       Income taxes payable                         29,130            25,094
       Distributions payable                        70,694             9,310
       Accounts payable and other
        accruals                                    16,388            19,716
       Other liabilities                             3,653             5,100
    Total Current Liabilities                      193,714           180,873
    

    
    Non-Current Liabilities
       Loan payable                                 13,000            13,000
       Minority Interest                             1,958             1,552
    Total Non-Current Liabilities                   14,958            14,552
    

    
    Commitments and Contingencies
    Total Liabilities                              208,672           195,425
    


    
    Members' Equity
        Members' equity                              6,354             6,356
        Retained Earnings                          328,240           352,690
        Accumulated other comprehensive
         income                                      3,711             2,906
    Total Members' Equity                          338,305           361,952
    Total Liabilities and Members' Equity         $546,977          $557,377
    



    
                                     GLG
       Non-GAAP Adjusted Net Income for Three and Six Months Ended June
                          30, 2007 and June 30, 2006
                              (USD in thousands)
    



    
                           Three Months Ended        Six Months Ended
                                June 30,                  June 30,
    

    2007     2006  %Change    2007     2006  %Change


    
    Derivation of non-GAAP
     adjusted net income
    

    GAAP Net income        $308,653  $111,943  176%  $329,068  $124,691  164%

    
    Deduct: limited
     partner profit share  (184,047)  (51,530) 257%  (190,500)  (51,530) 270%
    


    
    Non-GAAP adjusted net
     income                $124,606   $60,413  106%  $138,568   $73,161   89%
    



    
                                     GLG
        Non-GAAP Expenses for Three and Six Months Ended June 30, 2007
                              and June 30, 2006
                              (USD in thousands)
    


    
                                                 Three Months Ended
                                                       June 30,
                                                2007           2006   %Change
    


    Non-GAAP expenses

    
    GAAP employee compensation and
     benefits                                $(56,518)     $(88,404)    (36%)
    

    Limited partner profit share             (184,047)      (51,530)    257%


    
    Non-GAAP Comprehensive limited
     partner profit share, compensation
     and benefits                           $(240,565)    $(139,934)     72%
    


    
    GAAP General, administrative and
     other                                    (27,979)      (15,696)     78%
    

    Non-GAAP total expenses                 $(268,544)    $(155,630)     73%



    
                                     GLG
        Non-GAAP Expenses for Three and Six Months Ended June 30, 2007
                              and June 30, 2006
                              (USD in thousands)
    



    
                                                 Six Months Ended
                                                     June 30,
                                                2007        2006      %Change
    


    Non-GAAP expenses

    
    GAAP employee compensation and
     benefits                                $(81,566)    $(114,459)    (29%)
    

    Limited partner profit share             (190,500)      (51,530)    270%


    
    Non-GAAP Comprehensive limited
     partner profit share, compensation
     and benefits                           $(272,066)    $(165,989)     64%
    


    
    GAAP General, administrative and
     other                                    (53,743)      (27,285)     97%
    

    Non-GAAP total expenses                 $(325,809)    $(193,274)     69%

    
    Non-GAAP Financial Measures
    GLG presents certain financial measures that are not prepared in
    accordance with U.S. generally accepted accounting principals, or GAAP, in
    addition to financial results prepared in accordance with GAAP.
    

    
    Comprehensive Limited Partner Profit Share, Compensation and Benefits
    ("PSCB"):  GLG's management assesses its personnel-related expenses based
    on the measure "non-GAAP comprehensive limited partner profit share,
    compensation and benefits", or non-GAAP PSCB.  This non-GAAP financial
    measure reflects GAAP employee compensation and benefits, adjusted to
    include the limited partner profit shares.
    

    
    Beginning in mid-2006, GLG entered into partnerships with a number of its
    key personnel who ceased to be employees and instead became holders of
    direct or indirect limited partnership interests in certain GLG entities.
    These individuals continue to provide services to GLG, either directly or
    through two limited liability partnerships. Through their partnership
    interests, these key individuals are entitled to profit shares in the
    form of priority distributions paid as partnership draws. In addition
    they may be entitled to an additional discretionary limited partner
    profit share. The key personnel that are participants in the limited
    partner profit share arrangement described above do not receive salaries
    or discretionary bonuses from GLG.
    

    
    Under GAAP, limited partner profit share cannot be presented as employee
    compensation expense.  However, management believes that it is more
    appropriate to treat limited partner profit share as expense when
    considering business performance because it reflects the cost of the
    services provided to GLG by these participants in the limited partner
    profit share arrangement.  As a result, GLG presents the measure non-GAAP
    PSCB to show the total cost of the services provided to GLG by both
    participants in the limited partner profit share arrangement and
    employees. For purposes of this non-GAAP financial measure, GLG
    recognizes the limited partner profit share in the period in which the
    revenues related to the limited partner profit share are recognized,
    rather than the period in which the limited partner profit share
    distributions are made.
    

    
    Non-GAAP PSCB is not a measure of financial performance under GAAP and
    should not be considered as an alternative to GAAP employee compensation
    and benefits.
    

    
    Adjusted Net Income: GLG's management assesses the underlying performance
    of its business based on the measure ''adjusted net income'', which
    adjusts for the difference between GAAP employee compensation and
    benefits and non-GAAP PSCB as discussed above. Adjusted net income is not
    a measure of financial performance under GAAP and should not be
    considered as an alternative to GAAP net income as an indicator of GLG's
    operating performance or any other measures of performance derived in
    accordance with GAAP.
    

    
    GLG is providing these non-GAAP financial measures to enable investors,
    securities analysts and other interested parties to perform additional
    financial analysis of GLG's personnel-related costs and its earnings from
    operations and because it believes that they will be helpful to investors
    in understanding all components of the personnel-related costs of GLG's
    business.  GLG's management believes that the non-GAAP financial measures
    also enhance comparisons of GLG's core results of operations with
    historical periods.  In particular, GLG believes that the non-GAAP
    adjusted net income measure better represents profits available for
    distribution to stockholders than does GAAP net income.
    

    
    Investors should consider these non-GAAP financial measures in addition
    to, and not as a substitute for, or superior to, measures of financial
    performance prepared in accordance with GAAP.  The non-GAAP financial
    measures presented by GLG may be different from non-GAAP financial
    measures used by other companies.
    



    
                                     GLG
                             Financial Supplement
    


    
      (USD in millions)
                                       1Q 2007   2Q 2007   1H 2007    LTM(1)
    

    Gross AUM                          18,655    21,522    21,522    21,522

    Net AUM                            16,085    18,585    18,585    18,585

    Average net AUM                    15,620    17,335    16,608    15,402


    (USD in thousands)

    Management fees          57,343    62,991   120,334   223,636

    Performance fees          2,521   340,512   343,032   561,827

    Administration fees      12,645    14,036    26,680    45,573

    Other                       498       472       970     3,985

    
     Total net revenues and other
      income                            73,007   418,010   491,016   835,021
    


    
               Employee compensation
                and benefits           (25,048)  (56,518)  (81,566) (135,493)
    

    
               General, administrative
                and other              (25,764)  (27,979)  (53,743)  (94,862)
    

    Net interest income       1,475       171     1,647     3,730

    Income tax expense       (3,255)  (25,031)  (28,286)  (44,510)

    GAAP net income                    20,414   308,654   329,068   563,886


    
               Deduct: Limited partner
                profit share            (6,453) (184,047) (190,500) (340,420)
    

    Non-GAAP adjusted net income (2)   13,962   124,607   138,568   223,466




    
     Management fees and Administration
      fees/ Avg. net AUM(3)                1.8%      1.8%      1.8%      1.7%
     Total net revenues and other
      income /Avg. net AUM(3)              1.9%      9.6%      5.9%      5.4%
     Employee compensation and benefits
      and Limited partner profit share/
      Total net revenues and other
      income                                43%       58%       55%       57%
     General, administrative and other
      expenses/ Total net revenues and
      other income                          35%        7%       11%       11%
     Non-GAAP adjusted net income/Total
      net revenues and other income         19%       30%       28%       27%
     Effective income tax rate              19%       17%       17%       17%
    


    (1) LTM period is July 1, 2006 to June 30, 2007.

    (2) See "Non-GAAP Financial Measures" for further detail.

    (3) Ratios annualized for 1Q, 2Q and 1H 2007.



    
                                     GLG
              Composition of Assets Under Management Supplement
                                 ($ millions)
    

    
                                          As of March 31,    As of June 30,
                                           2007     2006     2007     2006
    

    
    Alternative strategy                $11,200   $7,883  $12,826   $9,059
    Long-only                             3,882    3,667    4,432    3,730
    Internal FoHF                         1,404      937    1,627    1,086
    External FoHF                           575      447      599      477
    Gross Fund-Based AUM                 17,060   12,934   19,485   14,351
    Managed accounts                      1,398      505    1,843      937
    Cash                                    197      395      194      339
    Total Gross AUM                      18,655   13,834   21,522   15,627
    Less: internal FoHF investments in
     GLG funds                           (1,372)    (940)  (1,642)  (1,020)
    Less: external FoHF investments in
     GLG funds                              (53)       -      (56)     (13)
    Less: alternatives fund-in-fund
     investments                         (1,145)  (1,082)  (1,239)  (1,127)
    Net AUM                             $16,085  $11,811  $18,585  $13,467
    


    
                                          As of March 31,   As of June 30,
                                           2007     2006     2007     2006
    

    
    Gross AUM                           $18,655  $13,834  $21,522  $15,627
    YoY %  Change                           35%               38%
    Net AUM                              16,085   11,811   18,585   13,467
    YoY %  Change                           36%               38%
    



    
                             Three Months     Three Months       Six Months
                                Ended             Ended             Ended
                              March 31,          June 30,          June 30,
                            2007     2006     2007     2006     2007     2006
    

    
    Opening Gross Fund-
     Based AUM           $16,053  $11,484  $17,060  $12,934  $16,053  $11,484
    Fund-based inflows
     (net of
     redemptions)            160      206    1,393    1,407    1,552    1,613
    Fund-based net
     performance (gains
     net of losses)          848    1,244    1,032       10    1,880    1,254
    Closing Gross Fund-
     Based AUM           $17,060  $12,934  $19,485  $14,351  $19,485  $14,351
    

    
    % of Opening Gross
     Fund-Based AUM
    Gross Fund-based
     inflows (net of
     redemptions)           1.0%     1.8%     8.2%    10.9%     9.7%    14.0%
    Gross Fund-based net
     performance (gains
     net of losses)         5.3%    10.8%     6.0%     0.1%    11.7%    10.9%
    


    
    Opening Managed
     Accounts AUM         $1,233     $335   $1,398     $505   $1,233     $335
    Inflows (net of
     redemptions)             68      134      351      536      419      670
    Net performance
     (gains net of
     losses)                  97       36       94     (104)     191     (68)
    Closing  Managed
     Accounts AUM         $1,398     $505   $1,843     $937   $1,843     $937
    

    
    % of Opening Managed
     Accounts AUM
    Inflows (net of
     redemptions)           5.5%    40.0%    25.1%   106.1%    34.0%   200.0%
    Net Performance
     (gains net of
     losses)                7.9%    10.7%     6.7%   (20.6%)   15.5%  (20.3%)
    

    
    Note: Net performance is based on both opening AUM and inflows during the
    period and can be influenced by heavy inflows.
    




For further information:

For further information: Media: Rupert Younger or Amanda Lee, 
+44-20-7251-3801, rupert.younger@finsbury.com, amanda.lee@finsbury.com, or 
Andy Merrill, +1-212-303-7600, andy.merrill@finsbury.com, all of Finsbury for 
GLG Partners; Investors: Simon White, Chief Financial Officer,
+44-20-7016-7000,  simon.white@glgpartners.com, or Michael Hodes, Acting
Director of Investor  Relations, +1-212-224-7223,
michael.hodes@glgpartners.com, both of GLG  Partners Web Site:
http://www.glgpartners.com/

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