LONDON, April 29, 2016 /PRNewswire/ -- Tetragon Financial Group Limited ("TFG" or the "Company") is a Guernsey closed-ended investment company traded on Euronext Amsterdam N.V. under the ticker symbol "TFG.NA" and on the Specialist Fund Market([1]) of the London Stock Exchange under ticker symbol "TFG.LN". In this report, we provide an update on TFG's results of operations for the period ending 31 March 2016.([2])
Delivering Results Since 2005(1)(i)
Figure 1
Tetragon Financial Group Limited ("TFG" or the "Company") is a Guernsey closed-ended investment company traded on Euronext Amsterdam N.V. under the ticker symbol "TFG.NA" and on the Specialist Fund Market(2) of the London Stock Exchange under ticker symbol "TFG.LN". In this report, we provide an update on TFG's results of operations for the period ending 31 March 2016.(3)
29 April 2016
EXECUTIVE SUMMARY
TFG generated Fair Value(4) earnings of $20.3 million in the first quarter of 2016, giving an annualised Return on Equity ("RoE") of 4.1%. Although this return is below that of last year's first quarter and below our target return of 10-15%(5), it was achieved against a backdrop of particularly volatile capital markets during the quarter.
The majority of TFG's investments produced small positive returns (CLOs, European event-driven equities, convertibles, global real estate investments and TFG Asset Management) during the quarter and there was a small loss in the distressed strategy.
TFG Asset Management, TFG's diversified aLTErnative asset management business, had a steady first quarter in terms of capital raising, with assets under management ("AUM") rising slightly from $17.1 to $17.2 billion (6), including a second close for TCI II(7).
The first quarter dividend was declared at $16.5 cents per share giving 12-month rolling dividend growth of approximately 5%.
During the quarter, principals of TFG's investment manager, Tetragon Financial Management LP ("TFM" or the "Investment Manager"), bought another 2.4 million TFG shares and TFG Asset Management implemented a long-term incentive plan, both of which further align the interests of the Investment Manager, employees and shareholders.
In order to give TFG flexibility going forward, in particular to exploit opportunistic investments, the Company has obtained during the quarter a $75 million revolving credit facility.
TFG OVERVIEW
TFG is a Guernsey closed-ended company traded on Euronext Amsterdam N.V. under the ticker symbol "TFG.NA" and on the Specialist Fund Market of the London Stock Exchange under ticker symbol "TFG.LN"(8).
TFG's investment objective is to generate distributable income and capital appreciation. It aims to provide stable returns to investors across various credit, equity, interest rate, inflation and real estate cycles. The company's investment portfolio compriSES a broad range of assets, including a diversified alternative asset management business, TFG Asset Management, and covers bank loans, real estate, equities, credit, convertible bonds and infrastructure.
TFG's Fair Value Net Asset Value ("NAV") as of 31 March 2016 was approximately $2.0 billion. Figure 2 shows the company's current net asset breakdown including TFG Asset Management at full estimated Fair Value.
Figure 2(i)(ii)
To achieve TFG's investment objective of generating distributable income and capital appreciation, TFG's current investment strategy is:
In addition, TFM's current investment strategy is to continue to grow TFG Asset Management – as TFG's diversified alternative asset management business – with a view to a possible initial public offering and listing of its shares.
As part of its investment strategy, TFM may employ hedging strategies and leverage in seeking to provide attractive returns while managing risk.
The Investment Manager seeks to identify asset classes that offer excess returns relative to their investment risk, or "intrinsic alpha." It analyses the risk/reward, correlation, duration and liquidity characteristics of each potential capital use to gauge its attractiveness and incremental impact on the Company.
The Investment Manager then seeks to find high-quality managers who invest in these asset classes; selects or structures suitable investment vehicles that optimise risk-adjusted returns for TFG's capital; and/or seeks for TFG (via TFG Asset Management) to own a share of the asset management company. TFG aims to not only produce asset level returns, but also aims to enhance these returns with capital appreciation and investment income from its investments in asset management businesses that derive income from external investors.
Certain considerations when evaluating the viability of a potential asset manager typically include: performance track records, reputation, regulatory requirements, infrastructure needs and asset gathering capacity. Potential profitability and scalability of the business are also important considerations. Additionally, the core capabilities, investment FOCus and strategy of any new business should offer a complementary operating income stream to TFG Asset Management's existing businesses. The Investment Manager looks to mitigate potential correlated risks across TFG Asset Management's investment managers by diversifying its exposure across asset classes, investment vehicles, durations, and investor types, among other factors.
TFG's asset management businesses can operate autonomously, or on the TFG Asset Management platform. In either CASe, the objective is for them to benefit from an established infrastructure, which can assist in critical business management functions such as risk management, investor relations, financial control, technology, and compliance/legal matters, while maintaining entrepreneurial independence.
Figure 3
TFG Asset Management consists of:
Assets under management for TFG Asset Management as of 31 March 2016 totalled approximately $17.2 billion.(15)
TFG's Board of Directors
TFG's Board of Directors is comprised of six members, four of whom are Independent Directors who have significant experience in asset management and financial markets. Biographies of the directors can be found in Appendix VIII.
KEY METRICS
The Company focuses on the following key metrics prepared on a Fair Value(16) basis, when assessing how value is being created for, and delivered to, TFG shareholders:
EARNINGS – FAIR VALUE RETURN ON EQUITY ("Fair Value RoE")
Annualised Fair Value RoE for 2016 was 4.1%; below TFG's long-term target range of 10-15%.(17)
Despite a challenging environment in Q1 2016, TFG was successful in recording a positive set of results, with Fair Value Net Income(18) of $20.3 million. This equated to an annualised Fair Value RoE of 4.1%.
There were positive contributions from nearly all of the investment classes across the portfolio, including TFG Asset Management on a fair value basis.
Figure 4(i)
FAIR VALUE EARNINGS PER SHARE ("Fair Value EPS")
TFG generated a Fair Value EPS(19) of $0.21 in Q1 2016
The Fair Value Net Income of $20.3 million resulted in a Fair Value EPS of $0.21. These results are significantly down from the same period last year, reflecting the generally adverse and volatile conditions in Q1 2016 as well as some strong one-off contributions in Q1 2015.(20)
Figure 5
Further detailed information on the drivers of the Company's performance is provided later in this report.
FULLY DILUTED FAIR VALUE NAV PER SHARE
Fully Diluted Fair Value NAV per Share was $19.05 at the end of Q1 2016, up 8.4% from the same period in 2015.
Figure 6(i)
DIVIDENDS PER SHARE ("DPS")
TFG maintained its quarterly dividend at 16.50 cents per share in Q1 2016
Figure 7
Q1 2016 IN REVIEW
The figure below illustrates the composition of TFG's Fair Value Net Assets as of 31 March 2016 and 31 December 2015.
Figure 8: Fair Value Net Asset Composition Summary(i)(ii)
Top 10 Holdings as of 31 March 2016
The table below highlights the fair value of TFG's ten top holdings as of 31 March 2016.
Figure 9
Net Asset Breakdown and Income for Q1 2016
Figure 10
Figure 10 above shows Fair Value Net Assets and Fair Value Net Income by asset class for Q1 2016 compared to 2015.
Figure 11
Q1 2016 Major New Investments
Q1 2016 Major Asset Sales and Optional Redemptions
TFG Asset Management Overview
One of TFG's significant investments is TFG Asset Management, a diversified alternative asset management business that owns majority and minority stakes in asset managers. At 31 March 2016, TFG Asset Management comprised LCM, the GreenOak joint venture, Polygon, Equitix, Hawke's Point and TCIP(29) (please see Figure 12 for the breakdown of AUM and Fair Value by business line). TFG Asset Management has approximately $17.2 billion of assets under management(30) and approximately 220 employees globally. Figure 13 depicts the growth of that AUM over the last five years.
Figure 12(31)
Figure 13(32)
TFG Asset Management Pro Forma EBITDA (Ex-GreenOak)
Figure 14
BUSINESS OVERVIEWS
The following pages provide a summary of each asset management business and a review of AUM growth and underlying strategy / investment vehicle performance during the quarter.
All data is at 31 March 2016, unless otherwise stated.
LCM
GREENOAK
POLYGON
(i) Includes AUM for Polygon Convertible Opportunity Master Fund, Polygon European Equity Opportunity Master Fund and associated managed account, Polygon Mining Opportunity Master Fund, Polygon Global Equities Master Fund and Polygon Distressed Opportunities Master Fund, as calculated by the applicable fund administrator at 31 December 2012, 2013, 2014, 2015, and 31 March 2016. Includes, where relevant, investments by Tetragon Financial Group Master Fund Limited.
EQUITIX
(i)USD-GBP exchange rate at 31 March 2016.
HAWKE'S POINT
TCIP
Q1 2016 FINANCIAL REVIEW
This section shows consolidated financial data incorporating TFG and its 100% subsidiary, Tetragon Financial Group Master Fund Limited (the "Master Fund"), adjusted from Q3 2015 to reflect the Fair Value of TFG Asset Management's businesses which are consolidated under U.S. GAAP, and provides comparative data where applicable. Where Q1 2015 comparative data is provided this has been presented on the basis of TFG's investment in Equitix being fair valued rather than consolidated, which was the basis for presentation in the Q1 2015 quarterly report.([35])
FINANCIAL HIGHLIGHTS
Figure 20
TFG uses, among others, the following metrics to understand the progress and performance of the business:
(i) The time-weighted average daily U.S. GAAP Shares outstanding during the applicable year.
FAIR VALUE EPS ANALYSIS Q1 2014 – Q1 2016
Figure 21
STATEMENT OF OPERATIONS (FAIR VALUE BASIS)
Figure 22
Performance Fee
A performance fee of $4.7 million was accrued in Q1 2016 in accordance with TFG's investment management agreement. The hurdle rate for the Q2 2016 incentive fee has been reset at 3.276958% (Q1 2016: 3.259558%) as per the process outlined in TFG's 2015 audited financial statements and in accordance with TFG's investment management agreement. Please see TFG's website, www.tetragoninv.com, and the 2015 TFG audited financial statements for more detaILS on the calculation of this fee.
BALANCE SHEET (FAIR VALUE BASIS)
Figure 23
See Appendix IV for the reconciliation between the U.S. GAAP consolidated balance sheet and the balance sheet prepared on a Fair Value basis.
STATEMENT OF CASH FLOWS(i)
Figure 24
FAIR VALUE NET INCOME TO U.S. GAAP RECONCILIATION
Figure 25
TFG is primarily reporting earnings through a non-GAAP measurement called Fair Value Net Income.
The reconciliation on the table above shows the adjustments required to get from this measure of earnings to U.S. GAAP net income.
APPENDICES
APPENDIX I
CERTAIN REGULATORY INFORMATION
This Performance Report constitutes TFG's quarterly report. This report is made public by means of a press release and has been filed with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten) pursuant to 5:25i and 5:25m of the Dutch Financial Markets Supervision act and also made available to the public by way of publication on the TFG website (www.tetragoninv.com).
An investment in TFG involves substantial risks. Please refer to the Company's website at www.tetragoninv.com for a description of the risks and uncertainties pertaining to an investment in TFG.
This release does not contain or constitute an offer to sell or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. The securities of TFG have not been and will not be registered under the U.S. Securities Act of 1933 (the "Securities Act"), as amended, and may not be offered or sold in the United States or to U.S. persons unless they are registered under applicable law or exempt from registration. TFG does not intend to register any portion of its securities in the United States or to conduct a public offer of securities in the United States. In addition, TFG has not been and will not be registered under the U.S. Investment Company Act of 1940, and investors will not be entitled to the benefits of such Act. TFG is registered in the public register of the Netherlands Authority for the Financial Markets under Section 1:107 of the FMSA as a collective investment scheme from a designated country. This release constitutes regulated information ("gereglementeerde informatie") within the meaning of Section 1:1 of the FMSA.
TFG shares (the "Shares") are subject to legal and other restrictions on rESAle and the Euronext Amsterdam N.V. and SFM trading markets are less liquid than other major exchanges, which could affect the price of the Shares.
There are additional restrictions on the resale of Shares by Shareholders who are located in the United States or who are U.S. persons and on the resale of Shares by any Shareholder to any person who is located in the United States or is a U.S. person. These restrictions include that each Shareholder who is located in the United States or who is a U.S. person must be a "Qualified Purchaser" or a "Knowledgeable Employee" (each as defined in the Investment Company Act of 1940), and, accordingly, that Shares may be resold to a person located in the United States or who is a U.S. person only if such person is a "Qualified Purchaser" or a "Knowledgeable Employee" under the Investment Company Act of 1940. These restrictions may adversely affect overall liquidity of the Shares.
APPENDIX II
FAIR VALUE DETERMINATION OF CLO EQUITY INVESTMENTS
In accordance with the valuation policies set forth on TFG's website, the values of TFG's CLO equity investments are determined using a third-party cash flow modelling tool. The model contains certain assumption inputs that are reviewed and adjusted as appropriate to factor in how historic, current and potential market developments (examined through, for example, forward- looking observable data) might potentially impact the performance of TFG's CLO equity investments. Since this involves modelling, among other things, forward projections over multiple years, this is not an exercise in recalibrating future assumptions to the latest quarter's historical data.
Subject to the foregoing, when determining the U.S. GAAP-compliant Fair Value of TFG's portfolio, the Company seeks to derive a value at which market participants could transact in an orderly market and also seeks to benchmark the model inputs and resulting outputs to observable market data when available and appropriate.
The below modelling assumptions are unchanged from last quarter.
Figure 26
U.S. CLOs modelling assumption
Figure 27
European CLOs modelling assumption
Figure 28
Discount Rates
APPENDIX III
FAIR VALUE DETERMINATION IN TFG ASSET MANAGEMENT
In accordance with the accounting guidance in the AICPA Audit and Accounting Guide (2015): Investment Companies (the "Guide"), as an Investment Company, TFG carries all of its investments at Fair Value. However, as outlined in section 7.10 of the Guide, operating entities should be consolidated where TFG (i) has an economic interest in excess of 50%; (ii) is deemed to have control over the significant operational and financial decisions of the entity; and (iii) where the purpose of the operating entity is to provide services to the Investment Company (i.e., TFG) rather than realise a gain on the sale of the investment. As at 31 March 2016, this consolidation exemption was applied to TFG's holdings in Polygon, LCM and Hawke's Point (the "Consolidated Businesses") because these businesses were managing some of TFG's investment capital and thus could be deemed to be providing services to TFG. In contrast, Equitix is not managing TFG's capital so is not subject to point (iii) above, and GreenOak is minority-owned so is not subject to points (i) or (ii) above.
The resultant inconsistency of treatment under U.S. GAAP of the businesses in TFG Asset Management is potentially confusing to the reader of TFG's financial statements, particularly since the determination and articulation in Q3 2015 of the "IPO Strategy"([36]) for TFG Asset Management, which confirmed that the primary commercial purpose for TFG Asset Management, including the Consolidated Businesses, is to be held as an investment for capital appreciation, in line with TFG's investment objective. Consequently, from Q3 2015, TFG has prepared and presented its non-GAAP financial metrics and performance information using a consistent Fair Value basis for all of TFG Asset Management. Some of the differences resulting from the presentation of non-GAAP metrics are reconciled in Appendix IV.
TFG's investments in the TFG Asset Management businesses are considered to be "Level 3" investments in the U.S. GAAP valuation hierarchy and the Audit Committee of TFG, comprising the Independent Directors, has engaged third-party valuation specialists to determine an indicative valuation for each of these businesses. These valuations have been adopted for the purposes of reporting the Fair Value impact in TFG's non-GAAP metrics as at 31 March 2016.
Figure 29 sets out the valuation approach utilised for each of the businesses as well as the range of market metrics utilised in determining Fair Value. Both management and performance fees ("Fees") continue to be calculated based on the U.S. GAAP measure of Net Asset Value and thus the non-GAAP adjustments do not currently impact the Fees payable to the Manager.
Figure 29
APPENDIX IV
RECONCILIATION BETWEEN U.S. GAAP AND FAIR VALUE BASIS
This section describes how the non-GAAP Fair Value adjustments relating to LCM, Polygon, Hawke's Point and TCIP have been made to the U.S. GAAP financials to arrive at the Key Performance Metrics.
Figure 30 details the impact of such a change in accounting treatment for LCM, Polygon and Hawke's Point in terms of carrying value and performance fees.
In arriving at the imputed performance fee, the change in NAV is adjusted by the full amortISAtion of the remaining base cost ($28.8 million) of the purchase of 25% of LCM in 2012. Previously, this was being amortised on a straight-line basis over 10 years, and each quarter an applicable adjustment is made to reduce the performance fees payable to the investment manager.
Figure 30
Figure 31 shows a reconciliation between the Statement of Operations prepared on a full Fair Value basis and on a U.S. GAAP basis.
In addition to adding in the unrealised Fair Value as detailed in Figure 30, the reconciliation shows the removal of the operating P&L for Q1 2016, and the reversal of certain balance sheet items relating to Polygon, LCM, Hawke's Point or TCIP. Such items include the remaining intangible asset balance relating to Polygon's management contracts and a reversal of a deferred tax liability.
We adjust for change in notional performance fees as calculated in Figure 30.
In addition, as in prior periods, we back out share-based compensation of $5.1 million as, under ASC 805, TFG is recognizing the value of the shares given in consideration for the Polygon transaction as compensation over the period in which they are vesting. This mechanic and future vesting schedule are described in more detail in the 2015 Master Fund audited financial statements.
Figure 31
Figure 32 shows a reconciliation between the Balance Sheet prepared on a full Fair Value basis and on a U.S. GAAP basis.
In addition to adding in the unrealised Fair Value of $165.5 million as detailed in Figure 30, the reconciliation shows the removal of certain balance sheet items relating to Polygon, LCM, Hawke's Point and TCIP, including the value of Polygon's un-amortised management contracts ($22.6 million), cash of $30.4 million held in TFG Asset Management, a small amount of fixed assets, a deferred tax asset and receivables, which mainly relate to cost recoveries. On the liability side, we reverse certain accrued expenses including compensation and add back a notional performance fee of $25.3 million relating to the Fair Value adjustment as detailed in Figure 30.
Figure 32
APPENDIX V
ADDITIONAL CLO PORTFOLIO STATISTICS
Each individual deal's metrics used in the calculation of the figures below will differ from the overall averages and vary across the portfolio.
[Figure 33 cannot be reproduced]
[Figure 34 cannot be reproduced]
Figure 35
CLO PORTFOLIO CREDIT QUALITY
Figure 36
Notes
CLO EQUITY PORTFOLIO DETAILS (CONTINUED)
AS OF 31 MARCH 2016
[Figure 37 cannot be reproduced]
APPENDIX VI
SHARE RECONCILIATION AND SHAREHOLDINGS
Figure 38(37)
SHAREHOLDINGS
Persons affiliated with TFG maintain significant interests in TFG shares. For example, as of 31 March 2016, the following persons own (directly or indirectly) interests in shares in TFG in the amounts set forth below:
*The amounts set forth above in regards to Messrs. Griffith and Dear include their interests with respect to the Escrow Shares. In addition to the foregoing, as of 31 March 2016, certain employees of subsidiaries of TFG and other affiliated persons own in the aggregate approximately 3.4 million shares, including interests with respect to the Escrow Shares, in each case, however, excluding any TFG shares held by the GreenOak principals or employees.
As previously disclosed, non-voting shares of TFG (together with accrued dividends and previously vested shares, (the "Vested Shares")) that were ISSued pursuant to TFG's acquisition in October 2012 of TFG Asset Management L.P. (f/k/a Polygon Management L.P.) and certain of its affiliates (the "Polygon Transaction") have vested with certain persons (other than Messrs. Griffith and Dear), all of whom are employees or partners of TFG-owned or affiliated entities, pursuant to the Polygon Transaction.
Certain of these persons may from time to time enter into purchases or sales trading plans (each a, "Fixed Trading Plan") providing for the sale of Vested Shares or the purchase of TFG shares in the market, or may otherwise sell their Vested Shares or purchase TFG shares, subject to applicable compliance policies. Applicable brokerage firms may be authorised to purchase or sell TFG shares under the relevant Fixed Trading Plan pursuant to certain irrevocable instructions. Each Fixed Trading Plan is intended to comply with Rule 10b5-1 under the United States Securities Exchange Act of 1934, as amended. Each Fixed Trading Plan has been or will be approved by TFG in accordance with its applicable compliance policies.
For additional information regarding the Polygon Transaction and the future vesting schedule for shares issued thereunder, see Note 22 to the 2015 Tetragon Financial Group Master Fund Limited audited financial statements.
Rule 10b5-1 provides a "safe harbor" that is designed to permit individuals to establish a pre-arranged plan to buy or sell company stock if, at the time such plan is adopted, the individuals are not in possession of material, nonpublic information.
APPENDIX VII
EQUITY-BASED COMPENSATION PLANS
In Q1 2016, TFG implemented an equity-based long-term incentive plan for certain senior employees of TFG Asset Management (excluding the principals of TFM).
Awards under the long-term incentive plan, along with other equity-based awards, are typically spread over multiple vesting dates up to 2024 which may vary for each employee and are subject to forfeiture provisions. The arrangements may also include additional periods, beyond the vesting dates, during which employees gain exposure to the performance of the TFG shares, but the shares are not issued to the employees. Such periods may range from one to five years beyond the vesting dates. The shares underlying these equity-based incentive programs typically will be held in escrow until they vest and will be eligible to receive shares under the TFG Dividend Re-investment Program ("DRIP Shares").
Where grants under these equity-based incentive programs will only be settled through the issuance of shares rather than through cash, and in accordance with U.S. GAAP rules for share-based compensation, TFG has elected to account for equity-based plans under ASC 718 – Equity-based payments to employees – and is applying the straight-line method for expense recognition and for calculating the share dilution effect. This means that the total expense of the initial awards is determined at the award date, or at the date that the award becomes eligible to be settled only in shares ("Award Date"), by applying a reference share price on the Award Date to the shares awarded. Taking into account all equity-based awards granted to TFG Asset Management employees, including the Q1 2016 LTIP awards, approximately 5.1 million shares have been awarded at a weighted average reference share price of $8.76 per share, implying a total share-based compensation charge of approximately $45 million spread over a period of up to eight years, excluding employer-related taxes.
The dilutive effect of the equity-based compensation plans will be reflected increasingly in TFG's fully diluted share count over the life of the plans. Such dilution will include, among other things and in addition to the award shares, any DRIP Shares and shares that will be required to cover employer taxes. At the end of Q1 2016, approximately 0.2 million shares were included in the fully diluted share count.
APPENDIX VIII
BOARD OF DIRECTORS
The Board of Directors currently comprises six directors, of which four are Independent Directors.
Rupert Dorey has over 30 years of experience in financial markets. Rupert was at CSFB for 17 years from 1988 to 2005 where he specialised in credit related products, including derivative instruments where his expertise was principally in the areas of debt distribution, origination and trading, covering all types of debt from investment grade to high yield and distressed debt. He held a number of senior positions at CSFB, including establishing CSFB's high yield debt distribution business in Europe, fixed income credit product coordinator for European offices and head of UK Credit and Rates Sales. Since 2005, he has been acting in a Non-Executive Directorship capacity for a number of Hedge Funds, Private Equity & Infrastructure Funds, for both listed and unlisted vehicles. Rupert is a former President of the Guernsey Chamber of Commerce and is a member of the Institute of Directors. Rupert is based in Guernsey and is a Non-Executive, Independent Director.
Frederic Hervouet has over 17 years of experience in financial markets and hedge funds, including in multi-asset class investment and risk management, structured products and structured finance. Until September 2013, Frederic was a Managing Director and Head of Commodity Derivatives Asia for BNP Paribas, where he was focused on trading, structuring and sales. Previously, Frederic was a Director and Global Head of Sales at Diapason Commodities Management SA, a partner at Systeia Capital Management, which is now part of Amundi Asset Management, and a Director and Head of European Market Distribution at BAREP Asset Management, the hedge fund management subsidiary of Société Générale. Frederic has a MSc in Applied Mathematics and International Finance and a Master's Degree (DESS) in Financial Markets, Commodities Markets and Risk Management from the Université Paris Dauphine. He is a member of the Institute of Directors (IoD) and of the Guernsey Chamber of Commerce. Frederic is based in Guernsey and is a Non-Executive, Independent Director.
David Jeffreys provides directorship services to a small number of fund groups. From 1995 until 2010 David worked with EQT, a Scandinavian based private equity group, acting as a director of each of its Fund general partners and, from 2006, establishing and serving as Managing Director of EQT Funds Management Limited, its Guernsey based management and administration office. Between 1993 and June 2004, David was managing director of Abacus Fund Managers (Guernsey) Limited, where he was involved with private client trust arrangements, corporate administration, pension schemes and fund administration. He was a board member of Abacus' principal administration operating companies and served on the boards of various administrated client companies. Previously, David worked as an auditor and accountant for 12 years with Coopers & Lybrand (and its predecessor firms). He has an undergraduate degree in Economics and Accounting from the University of Bristol and is a fellow of the Institute of Chartered Accountants in England and Wales. David is based in Guernsey and is a Non-Executive, Independent Director.
Byron Knief is Managing Director of Court Square Capital Advisor, LLC. Since 1989, he has raised and invested over $3 billion of capital through a series of mezzanine and leveraged debt funds. Prior to 1989, he ran a variety of businesses for Citigroup in the United States, Europe, Canada and Latin America. Byron received an undergraduate degree from Northwestern University and an MBA from Columbia University. He has served as a director on the boards of several public and private companies. Current corporate board memberships include DavCo Restaurants, Inc., JAC Products, Inc. and Olameter, Inc. He was also formerly a director of Polygon Global Opportunities Fund and certain of its affiliates. Byron's charitable board memberships include The Milbank Memorial Fund and The Mountain Top Arboretum. Byron is based in New York and is a Non-Executive, Independent Director.
Reade Griffith co-founded Polygon in 2002 and Tetragon Financial Management LP in 2005. He was previously the founder and former chief executive officer of the European office of Citadel Investment Group, a multi-strategy hedge fund that he joined in 1998. He was a partner and senior managing director responsible for running the Global Event Driven arbitrage team in Tokyo, London and Chicago for the firm. He was previously with Baker, Nye, where he was an analyst working on an arbitrage and special situations portfolio. Reade holds a JD degree from Harvard Law School and an undergraduate degree in Economics from Harvard College. He also served as an officer in the U.S. Marine Corps and left as a Captain following the 1991 Gulf War. At Polygon, he is primarily focused on the trading businesses and risk management. Reade is based in London and is an Internal Director.
Paddy Dear co-founded Polygon in 2002 and Tetragon Financial Management LP in 2005. He was previously managing director and the global head of Hedge Fund Coverage for UBS Warburg Equities. As global head of Hedge Fund Coverage and Chairman of the Global Hedge Fund Committee, Paddy was responsible for the delivery of all of the bank's products and services to hedge fund clients globally. He was on the board of UBS Netherlands, and was a member of both the European Equity Business Committee and the Extended Global Equity Business Committee. Prior to this, Paddy was co-head of European sales trading, execution, arbitrage sales and flow derivatives. He had been with UBS since 1988, including six years in New York. Paddy was in equity sales at Prudential Bache before joining UBS. Prior to working in investment banking, he was a petroleum engineer with Marathon Oil Co. Paddy holds an undergraduate degree in Petroleum Engineering from Imperial College in London. His responsibilities at Polygon include risk management, overseeing Polygon's non-trading activities, managing investment bank interfaces and relationships and new business development. Paddy is based in London and is an Internal Director.
SHAREHOLDER INFORMATION
ENDNOTES
TFG is not responsible for the contents of any third-party website noted in this report.
Executive Summary
TFG Overview
Key Metrics
Q1 2016 in Review
Q1 2016 Financial Review
Appendix III
SOURCE Tetragon Financial Group Limited
Source: PrNewsWire All
Link: Tetragon Financial Group Limited ("TFG") First Quarter 2016 Results Announcement