Tetragon Financial Group Ltd Statement re Monthly Report

 
TIDMTFG 
 
Tetragon Financial Group Limited ("TFG") Monthly Update For July 2016 
 
LONDON, Aug. 25, 2016 -- TFG is a Guernsey closed-ended company traded on 
Euronext Amsterdam N.V. under the ticker symbol "TFG.NA" and on the Specialist 
Fund Segment of the London Stock Exchange plc under the symbol "TFG.LN". 
 
In this monthly update, unless otherwise stated, we report on the consolidated 
business incorporating TFG and Tetragon Financial Group Master Fund Limited.(1) 
 
Net Asset Value Estimates (Fair Value basis) as of 31 July 2016 
(Amounts provided are unaudited and subject to change) 
 
                                                  (in millions except per share 
                                                  data) 
 
Estimated Fair Value of Investments: (2)          $1,480.1 
 
Cash and Cash Equivalents: (2)                    $404.1 
 
Net Other Assets / (Liabilities): (2)             $34.2 
 
Estimated Fair Value Net Asset Value (2)          $1,918.5 
 
TFG Legal Shares Issued and Outstanding:          139.1 
 
Pro forma fully diluted share count: (3)          95.6 
 
Fully Diluted Fair Value Net Asset Value per      $20.06 
Share: (4)(5) 
 
Investment Composition: 
As of the end of July 2016, the company's investment portfolio comprised a 
broad range of assets, including a diversified alternative asset management 
business, TFG Asset Management, and covered bank loans (including equity 
tranches of U.S. and European CLOs, U.S. CLO mezzanine tranches and U.S. senior 
secured loans), real estate, equities, credit, convertible bonds and 
infrastructure, as well as cash. Derivative mark-to-market gains and losses are 
contained within net other assets or liabilities. 
 
(1) TFG invests substantially all its capital through a master fund, Tetragon 
    Financial Group Master Fund Limited ("TFGMF") in which it holds a 100% 
    share. 
 
(2) Fair Value Net Assets are determined by adjusting the U.S. GAAP Net Asset 
    Value ($1,811.6 million) to give effect to the de-consolidation of certain 
    TFG Asset Management businesses that are currently consolidated under U.S. 
    GAAP (-$33.6 million), and the inclusion of their fair values ($166.9 
    million). The fair values used are as determined by TFG's Audit Committee 
    based on information provided by an independent valuation specialist. The 
    Fair Value Net Assets are also adjusted to reflect imputed incentive fees 
    (-$26.5 million) that would otherwise have arisen if these Fair Values were 
    actually reflected in the U.S. GAAP accounting for TFG's financial 
    statements, all subject to rounding. 
 
(3) Calculation is with reference to U.S. GAAP Shares outstanding 
    (approximately 87.5 million), which is determined by reducing TFG legal 
    shares issued and outstanding by approximately 12.0 million shares held in 
    treasury, 27.0 million shares held by a subsidiary and 12.7 million shares 
    held in aggregate in escrow accounts, all subject to rounding. Pro Forma 
    Fully Diluted Shares adjusts the U.S. GAAP shares outstanding (87.5 
    million) for the impact of certain escrow shares used as consideration in 
    the Polygon transaction and associated stock dividends (together, 6.8 
    million), equity-based awards (0.5 million) and for the potential impact of 
    share options issued (0.9 million).  These options represent the intrinsic 
    value of shares available for the GreenOak founders as at the end of July 
    2016 (0.9 million) plus potential impact of options issued to TFG's 
    Investment Manager at the time of TFG's IPO (0.0 million), all subject to 
    rounding. 
 
(4) Calculation is with reference to Fair Value Net Assets ($1,918.5 million) 
    divided by Pro Forma Fully Diluted Shares outstanding (approximately 95.6 
    million), all subject to rounding. 
 
(5) The NAV per Share calculation is after accruing for the dividend relating 
    to Q2 2016.  Any adjustments to net assets or shares resulting from the 
    optional stock dividend program will be reflected next month upon the 
    issuance of the applicable shares. 
 
Investment Composition (continued): 
The geographical allocation of TFG's investments was determined to be 50.2% 
U.S., 9.6% Europe and 3.4% Asia at month-end. Investments in certain hedge 
funds and other investment vehicles which have underlying investments that span 
more than one geographic region are considered to be "global" and represent 
36.8%. Interests in asset management businesses have been excluded from this 
calculation. 
 
Calendar: 
See the TFG website for the latest calendar - http://www.tetragoninv.com/ 
investor/calendar.aspx 
 
About Tetragon: 
Tetragon Financial Group Limited ("TFG") is a Guernsey closed-ended company 
traded on Euronext Amsterdam N.V. under the ticker symbol "TFG.NA" and on the 
Specialist Fund Segment of the London Stock Exchange plc under the symbol 
"TFG.LN". TFG aims to provide stable returns to investors across various 
credit, equity, interest rate, inflation and real estate cycles. TFG's 
investment portfolio comprises a broad range of assets, including an 
asset-management business (TFG Asset Management), and covers bank loans, real 
estate, equities, credit, convertible bonds and infrastructure. 
 
For further information, please contact: 
 
TFG:                         Press Inquiries: Please contact Prosek Partners: 
 
David Wishnow/Greg Wadsworth Andy Merrill and Ryan FitzGibbon 
 
Investor Relations           Tel: [phone] ext. 216 and ext. 234 
 
[e-mail]           Email: [e-mail] 
 
 
This release contains inside information within the meaning of Article 7(1) of 
the EU Market Abuse Regulation. 
 
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 US Securities Act of 1933 (the "Securities Act"), as amended, and may 
not be offered or sold in the United States or to US 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 US 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 Financial Markets Supervision Act 
("FMSA") as a collective investment scheme from a designated country. 
 
 
 
END 
 

(END) Dow Jones Newswires

August 25, 2016 02:00 ET (06:00 GMT)