Tetragon Financial Group Ltd Statement re: Monthly Report

 
TIDMTFG 
 
Tetragon Financial Group Limited (TFG) Monthly Update For October 2016 
 
LONDON, Nov. 25, 2016 -- TFG is a Guernsey closed-ended investment company 
traded on Euronext Amsterdam N.V. under the ticker symbol "TFG.NA" and on the 
Specialist Fund Segment of the main market 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 October 2016 
(Amounts provided are unaudited and subject to change) 
 
                                                  (in millions except per share 
                                                  data) 
 
Estimated Fair Value of Investments: (2)          $1,397.9 
 
Cash and Cash Equivalents: (2)                    $531.2 
 
Net Other Assets / (Liabilities): (2)             ($4.4) 
 
Estimated Fair Value Net Asset Value (2)          $1,924.7 
 
TFG Legal Shares Issued and Outstanding:          139.7 
 
  Fully Diluted Shares Outstanding: (3)           97.9 
 
Fully Diluted Fair Value Net Asset Value per      $19.66 
Share: (4)(5) 
 
Investment Composition: 
As of the end of October 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 ($1,813.3 million) to give effect to the de-consolidation of certain 
    TFG Asset Management businesses that are currently consolidated under U.S. 
    GAAP (-$32.5 million), and the inclusion of their fair values ($167.0 
    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 
    (-$23.2 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 91.6 million), which is determined by reducing TFG legal 
    shares issued and outstanding by approximately 39.0 million shares held in 
    treasury and 9.1 million shares held in aggregate in escrow accounts, all 
    subject to rounding. Pro Forma Fully Diluted Shares adjusts the U.S. GAAP 
    shares outstanding (91.6 million) for the impact of certain escrow shares 
    used as consideration in the Polygon transaction and associated stock 
    dividends (together, 3.2 million), equity-based awards (0.7 million) and 
    for the potential impact of share options issued (2.4 million).  These 
    options represent the intrinsic value of shares available for the GreenOak 
    founders as at the end of October 2016 (1.0 million) plus potential impact 
    of options issued to TFG's Investment Manager at the time of TFG's IPO 
    (1.4 million), all subject to rounding. 
 
(4) Calculation is with reference to Fair Value Net Assets ($1,924.7 million) 
    divided by Pro Forma Fully Diluted Shares outstanding (approximately 97.9 
    million), all subject to rounding. 
 
(5) The NAV per Share calculation is after accruing for the dividend relating 
    to Q3 2016.  Any adjustments to net assets or shares resulting from the 
    optional stock dividend program will be reflected next month upon the 
    transfer of the applicable shares. 
 
Investment Composition (continued): 
The geographical allocation of TFG's investments was determined to be 47.4% 
U.S., 9.5% 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 
39.7%. Interests in asset management businesses have been excluded from this 
calculation. 
 
Calendar: 
Please see the TFG website for the latest calendar: 
http://www.tetragoninv.com/investors/calendar-and-events 
 
About TFG: 
TFG is a Guernsey closed-ended investment company traded on Euronext Amsterdam 
N.V. under the ticker symbol "TFG.NA" and on the Specialist Fund Segment of the 
main market of the London Stock Exchange under ticker symbol "TFG.LN". 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. 
 
For further information, please contact: 
 
TFG:                         Press Inquiries: 
 
David Wishnow/Greg Wadsworth Prosek Partners 
 
Investor Relations           Andy Merrill and Ryan FitzGibbon 
 
[e-mail]           [phone] ext. 216 and ext. 234 
 
                             [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, 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 as a collective investment 
scheme from a designated country. 
 
 
 
END 
 

(END) Dow Jones Newswires

November 25, 2016 02:00 ET (07:00 GMT)