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March 2008
EXHIBIT 99.2
Disclaimers
ADDITIONAL SECURITIES LAW INFORMATION
Alternative Asset Management Acquisition Company (“AAMAC”) intends to file with the SEC a preliminary proxy statement in connection with the proposed
acquisition of Halcyon
Asset Management LLC and its affiliates (collectively “Halcyon”) and to mail a definitive proxy statement and other relevant
documents to AAMAC stockholders. AAMAC stockholders and other interested persons are advised to read, when available,
AAMAC’s preliminary
proxy statement, and amendments thereto, and the definitive proxy statement in connection with AAMAC’s solicitation of proxies for the special meeting
to be held to approve the acquisition because these proxy statements
will contain important information about Halcyon, AAMAC and the proposed
acquisition. The definitive proxy statement will be mailed to AAMAC stockholders as of a record date to be established for voting on the proposed
acquisition. Stockholders will
also be able to obtain a copy of the preliminary and definitive proxy statements once they are available, without charge, at
the Securities Exchange Commission’s (“SEC”) web site at http://www.sec.gov or by directing a request to: AAMAC,
590 Madison Avenue, 35th Floor,
New York, New York 10022, telephone: 212-409-2434.
AAMAC and its directors and officers may be deemed participants in the solicitation of proxies to AAMAC’s stockholders. A list of the names of those
directors and officers and
a description of their interests in AAMAC is contained in AAMAC’s prospectus dated August 1, 2007, which is filed with the
SEC, and will also be contained in AAMAC’s proxy statement when it becomes available. AAMAC’s stockholders may obtain
additional information
about the interests of the directors and officers of AAMAC in the acquisition in reading AAMAC’s proxy statement and other materials to be filed with
the SEC when such information becomes available.
NON-GAAP FINANCIALS
The financial information and data contained in this presentation is unaudited and does not conform to the SEC’s Regulation S-X. Accordingly, such
information and
data may not be included in, may be adjusted in or may be presented differently in, AAMAC’s proxy statement to solicit stockholder
approval for the proposed acquisition of Halcyon. This presentation includes certain estimated financial information
and forecasts presented as pro forma
financial measures that are not derived in accordance with generally accepted accounting principles (“GAAP”), and which may be deemed to be non-
GAAP financial measures within the meaning of Regulation G
promulgated by the SEC. AAMAC and Halcyon believe that the presentation of these non-
GAAP financial measures serve to enhance the understanding of the financial performance of Halcyon and the proposed acquisition. However, these non-
GAAP financial measures
should be considered in addition to and not as substitutes for or superior to financial measures of financial performance
prepared in accordance with GAAP. Our pro forma financial measures may not be comparable to similarly titled pro forma measures reported
by other
companies.
2
Disclaimers
SAFE HARBOR STATEMENT
This presentation has been prepared exclusively for the purpose of providing summary information about Halcyon and its business to
AAMAC stockholders pending the distribution of the
definitive proxy statement. It does not constitute a solicitation for or an offer by, on
behalf of AAMAC or Halcyon, of any securities or investment advisory services.
This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of
1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,”
“plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify
such forward-looking statements. Forward-looking statements in this presentation include matters that involve known
and unknown risks,
uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from
results expressed or implied by this presentation. Such risk factors include, among others: uncertainties
as to the timing of the acquisition
and the ability to obtain financing; approval of the transaction by AAMAC stockholders; the satisfaction of closing conditions to the
transaction, including the receipt of regulatory approvals; costs related to the
acquisition; the competitive environment in the asset
management industry; the diversion of management time on acquisition related issues; general economic conditions such as inflation or
recession; operating Halcyon as a public company; market conditions
for Halcyon managed investment funds; the performance of
Halcyon managed investment funds; the inability to maintain growth rates of assets under management; the related management and
performance fees and the related impact on revenue, net income and
fund inflows/outflows. Actual results may differ materially from
those contained in the forward-looking statements in this presentation. AAMAC and Halcyon undertake no obligation and do not intend
to update these forward-looking statements to reflect
events or circumstances occurring after the date of this presentation. You are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. All
forward-looking statements are qualified
in their entirety by this cautionary statement.
.
3
Introduction – Presenters
John Bader
Chairman & CEO
Vice Chairman
President
Halcyon
AAMAC
Kevah Konner
Steven Mandis
Tom Hirschfeld
Vice Chairman
Michael Levitt
Chairman
CEO, President and Director
Mark Klein
4
Transaction Summary
Third quarter 2008
Expected Closing
Up to $505mm in proceeds, to be financed by AAMAC balance sheet cash and note issued by Halcyon
in connection with a leveraged reorganization of Halcyon
46.9 million LLC interests exchangeable into shares of AAMAC representing 43.6% of the fully
diluted ownership
1
Up to 26.6mm additional LLC interests based on price targets of $15 - $20 per share
Consideration
To include John Bader (Chairman & CEO), Kevah Konner (Vice Chairman), Steven Mandis (Vice
Chairman) and Tom Hirschfeld (President)
Management
Halcyon’s partners and key employees to enter into lock-up and non-compete arrangements
Equity consideration vests over 5 years
Non-competes of 5 years for named executives and 2 years for other key employees
Lock-Ups and
Non-Competes
75% of after-tax cash proceeds received by Halcyon equity holders to be reinvested in funds at full
fees to the public stockholders, typically for a minimum of 3 years
Reinvestment to the
Shareholders
Majority independent; to include non-independent directors Bader, Konner, Mandis and Hirschfeld
Board of Directors
Majority of AAMAC stockholders (approval requires that less than 30% of shareholders vote against
the transaction and elect conversion)
Approvals
Purchase by AAMAC (AMEX: AMV) of Halcyon and its affiliates (collectively “Halcyon”)
Transaction
1. Based on treasury stock method at AAMAC per share price of $10.00. Assumes exchange into AAMAC stock of all exchangeable securities in connection with the transaction, assumes no conversion by AAMAC
stockholders, and does not include shares granted to employees at time of transaction.
5
Halcyon Accomplishes AAMAC’s Stated IPO Objectives
Alignment of management team
Provide additional access to capital and diversification of investor base
Desire of target to become public entity
Potential to add value
Transaction multiple of 9.5x1 earnings power2 compares to medians of
traditional asset managers and hedge funds of 14.6x and 11.7x 2008 net
income, respectively
Attractive valuation
Established infrastructure, systems, reporting and compliance
Scalability and opportunity for growth
Diversification of asset classes and sources of capital
Strong business
platform
Strong and sustained historical returns
Institutionalized investment approach and long-term strategy
Talented team with demonstrated track record of success
Track record of
success
1. Based on AAMAC trust value of $9.76 per share
2. For more detail on earnings power calculation for Halcyon, please refer to page 24
6
Halcyon (adj. ): calm, peaceful, steady
We are all about minimizing volatility
At the fund level, as the track record shows
At the corporate level
By having a diversified stream of revenues
Through the unique structure, which we believe further reduces volatility for the
public investors
7
Why Buy Halcyon?
The hedge fund industry is growing rapidly, Halcyon even more so
Halcyon is one of the longest standing, most stable asset managers in the hedge fund
industry
Halcyon’s unique structure provides investors with the opportunity to participate in
the growth and institutionalization of the hedge fund industry with more limited
exposure to performance
variability
8
Who is Halcyon?
Flagship Fund has risk-adjusted returns going back to 1991
$11.5 billion of AUM as of December 31, 2007
Performance
Experienced, cohesive team
11 Halcyon Asset Management Partners together for average of 12 years
119 employees, 50 experienced investment professionals
Exceptional People
Rigorous risk management, research and investment decision making
Dynamic strategy evaluation and capital allocation capabilities
Institutionalized
Processes
SEC-registered since 1997
Market-leading infrastructure, compliance, risk management and client service
Alignment of interests
Best Practices
Continually monitor existing strategies and evolve or exit them as appropriate
Add complementary new strategies via affiliates and/or acquisitions
Planning and
Development
Industry has been growing at 23% for the past 5 years
Growth has been driven by institutional inflows
Halcyon has scale and capabilities to attract large institutional clients
World-class client relations team generating significant leads
Unique affiliate model allows Halcyon to attract top-level talent
Public equity provides currency for acquisitions
Prospects for
Growth
9
Flagship Fund: Multi-Strategy
Halcyon’s Flagship Fund is a multi-strategy fund that invests capital according to the market
environment across a range of strategies
Source: Due diligence documentation and management presentation
1. S&P 500 based on S&P Citigroup
2. Risk-free rate based on SSB 3-Month T-Bill
Halcyon Fund L.P. vs. S&P 500 (January 1991 – December 2007)
Lehman
Aggregate
S&P 500
Halcyon Fund
L.P.
(14.5)%
0.6
(223.6)%
NA
69
1.00
13.4
11.4%
0.8
1.7
Sharpe Ratio²
0.01
0.08
Statistical Relationship with S&P 500¹ – R-Squared
Down Market Performance
59
42
Down Months
NA
67
Months that Halcyon Outperformed S&P when S&P Down
29.2%
39.7%
Cumulative Performance in S&P Down Months
3.7
5.3
Risk – Annualized Standard Deviation
Risk-Adjusted Performance
(3.4)%
(3.9)%
Worst Month
7.1%
13.5%
Net Annualized Return
Reward
10
Results of New Funds
Enhanced version of Halcyon’s Flagship
strategy allocating capital to Merger, Credit
and Special Situations Strategies
Seeks higher risk-adjusted returns and is
designed to tolerate up to 50% more risk
Wider range of tools to express convictions
Enhanced Multi-Strategy
Acquire “off-the-run” asset-based
and loan-related assets from non
economic sellers
North American and European
focused funds
Structured Opportunities
Invests in stressed and distressed asset-
backed securities
e.g.: franchise loans, manufactured
housing, equipment leases, aircraft
loans and mortgages
Asset-Backed Value
Source: Due diligence documentation and management presentation. Performance statistics through December 31, 2007.
1. Performance represents onshore funds
2. Risk-free rate based on SSB 3-Month T-Bill
Lehman
Agg
Fund
Euro ML
HY
Fund
ML HY
Fund
S&P 500
Fund
Asset-Backed
Value
Structured Opportunities
Enhanced
Multi-Strategy
Europe
U.S.
(3.5)%
(0.1)
(8.8)%
NA
7
1.00
4.6
4.0%
(2.5)%
2.6
10.8%
7
1
0.00
5.1
19.2%
(3.1)%
0.3
(12.9)%
NA
9
1.00
4.6
5.7%
(1.9)%
1.3
(3.6)%
10
10
0.32
5.2
10.8%
(2.3)%
1.2
1.2%
9
4
0.29
2.5
7.4%
(2.0)%
1.7
1.7%
6
3
0.22
2.8
9.8%
0.4
0.8
Sharpe Ratio²
1.00
1.00
Statistical Relationship with Index – R-Squared
Down Market Performance
7
12
Down Months
NA
NA
Months Halcyon Outperformed Index when Index Down
(3.0)%
(26.5)%
Cumulative Performance in Index Down Months
2.6
7.8
Risk – Annualized Standard Deviation
Risk-Adjusted Performance
(1.0)%
(4.2)%
Worst Month
5.9%
9.9%
Net Annualized Return Since Start¹
Reward
11
Hedge Fund Industry Growing Rapidly, Halcyon Faster
($ in billions)
Industry is in early stages of a secular
growth cycle
AUM has tripled since 2000³
and is
expected to increase by 2.5 times
over the next five years¹
Recent industry growth has accelerated as
a function of institutional inflows
Established managers with global reach
gaining market share
Halcyon has history, scale, operational
infrastructure and capacity to attract large
institutional investors
Outpacing industry growth
Not yet of a size that is difficult to
maintain high growth rate
Hedge Fund Industry AUM1
1. HFR / McKinsey Global Institute
2. Hedge fund AUM only
3. Private Equity Intelligence Ltd.
Industry Trends
Halcyon
33.1
31.1%
Halcyon²
30.0
22.9%
HF Industry
CAGR ‘05–‘07
CAGR ‘03–‘07
12
How is Halcyon’s Structure Different?
Public vehicle receives all management fees and 30% of
performance revenues
Designed for stable and consistent earnings patterns,
largely driven by AUM levels
Halcyon is remaining a partnership and will allocate
70%
of performance revenues to employee vehicle
Enhances ability to attract and retain the
best and the brightest
Allows reallocation of economics over time
without margin compression
Revenue Allocation
70% of
Performance Fees
100% of
Management Fees
30% of
Performance Fees
Public Co.
Employee
Vehicle
13
Transaction Rationale
Liquidity
Facilitates estate planning for non-active and continuing
partners, with the ability to maintain significant ownership
of 43.6% of fully diluted ownership
Branding
Increases global presence, facilitating hires
Growth
Public status promotes fund raising and acquisitions
Performance
Common stock provides another tool to attract talent
Enables retention and motivation of high-quality,
experienced Halcyon employees
Facilitates addition or acquisition of new affiliates
Retains partnership model and related benefits
Reinvestment
Provides Partners with additional capital to invest in the
Company’s funds
ENHANCES:
14
AAMAC Represents a Unique Partner
AAMAC was formed in 2007 solely to make an acquisition of an alternative asset management company and
currently has no operating businesses
August 2007 IPO raised over $400 million of capital, allowing for the right balance of cash and stock for Halcyon
$30 million 10b-5 purchase plan
AAMAC management team has deep knowledge of the alternative asset management industry:
Founder, Chairman, CEO and CIO of Stone Tower Capital
Former Managing Partner of the NY Office, Hicks, Muse, Tate & Furst
Former Co-Head of Investment Banking, Smith Barney; former Managing Director, Morgan Stanley
Michael Levitt
(Chairman)
CEO of Hanover Group US
Former CEO of Ladenburg Thalmann & Co. Inc.
Former CEO and President of NBGI Asset Management Inc.
Mark Klein
(CEO, President and
Director)
Solar Capital, Marathon Acq. Corp, Magnetar Capital, Apollo Management, Apollo Investment Corp.
Michael Gross
Stone Tower Capital, Pegasus Capital, UBS, Rosecliff, Salomon Brothers
Jonathan Berger
Investoraccess, Private Equity International
David Hawkins
Bridge Associates, KPMG
Frederick Kraegel
Taurus Asset Management, Neuberger Berman, Weiss Peck and Greer
Bradford Peck
M.D. Sass Investor Services, Avenue Capital, Salomon Brothers
Steven Shenfeld
Management
Board – Outside Directors
15
Company Overview
16
Halcyon Strategies Today
($ in billions)
Note: Hedge fund data as of December 31, 2007. Long-only and hybrid data as of December 31, 2007.
1. Outside capital
Long corporate loans
$1.8
2006
Long Only – North America
2.3
2006
Long Only – Europe
Stressed / distressed ABS
0.4
2006
Asset-Backed Value
$5.6
Total
TBD
2008E
Hybrid – Europe
Stressed / distressed real estate
TBD
2008E
Real Estate Affiliate
“Off-the-run” assets
0.9
2005
Structured Opportunities – North America
1.8
2004
Multi-Strategy – Enhanced
Long secured debt / short unsecured
debt
Credit, merger, and special situations
strategies
Description
1.5
$5.9
0.6
$2.2
Size¹
2007
Hybrid – North America
2006
Structured Opportunities – Europe
Hedge Fund Strategies
1991
Multi-Strategy – Flagship
Total
Long Only and Hybrid Strategies
Track Record Since
Strategies
Common Brand
and Culture
Cross-selling Focused
Client Relations
Scalable Infrastructure
and Risk Management
Leverage More Investment
Acumen and Ideas
17
Total AUM
Sources of AUM Growth
($ in billions)
Source: Company management
Note: As of December 31, 2007, excluding previously sold affiliate
$3.3
$7.4
$11.5
In 2007, Halcyon raised net $1.8 billion
of hedge fund AUM which represented
47% of beginning period AUM
Cross Selling
Approximately 20% of investors,
representing $3.6 billion, are investors
in 2 or more Halcyon funds
Rollout of extensions and new
strategies
New Funds
In last 3 years, Halcyon successfully
launched 3 new hedge funds that today
manage $2 billion in the aggregate
$2.0
$2.5
18
Unique Affiliate Business Model
Case Study: Halcyon Structured Asset Management
PM at Goldman
propriety trading desk
12 years at Goldman
3 Goldman prop
colleagues
Sourcing
relationships for “off-
the-run” assets
Established Brand
Established
Infrastructure / Risk
Management to reduce
“operational risk”
Client service & Blue
Chip clients
Credibility to attract
“an investment” team
Initial capital
Investment resources
Global presence
Investment capacity
Intellectual capital
Research synergies
Fees from new funds
Diversified revenues
Economies of scale
Enhance probability
of success
Accelerate growth
Right people
Right strategies
Right time
+
=
Steven Mandis
Halcyon
Together
19
First-Class Client Relations Team
Led by Joe Hill, former Credit Suisse managing director responsible for third-party
hedge fund capital raising:
Previously Morgan Stanley managing director; at firm over 20 years
Group includes 8 client service professionals
Focused channel coverage
Pension funds / consultants
Insurance companies / banks
Foundations / endowments
Sovereign wealth funds
Funds of funds
High net worth / private banks
Ability to cross-sell strategies and offer solutions
Regular client service and transparent reports
Input in identifying new strategies and extensions
20
“Blue Chip” Institutional Investor Base
Note: Approximated as of December 31, 2007. Reflects hedge fund investor composition only. Investors by type and geography reflect FoF end investors where information is available.
Investors By Type
Investors By Geography
Hedge Fund AUM = $5.9bn
Hedge Fund AUM = $5.9bn
21
Significant Investment in Infrastructure
Deep Commitment to Industry Best Practices
SEC Registered Investment Adviser and FSA authorized
Operations and Technology
Client Service and Reporting
Third-party pricing and fund accounting
Granular portfolio attribution and analytics
Compliance
Key Attractor for:
Fund Investors
Consultants
Employees
Potential Affiliates
22
Non-GAAP Pro Forma Financials
($ in millions)
(10)
(10)
(10)
Pro Forma Interest Expense
$(53)
$(60)
$(14)
Pro Forma Compensation1
$62
$45
$34
Pro Forma Non-GAAP Net Income
$90
$60
$40
Pro Forma Non-GAAP Pre-Tax Income
(28)
(15)
(6)
Cash Tax Expense2
35%
(13)
$166
75
$91
2007
CAGR (’05-’07)
(9)
(8)
Non-Compensation Expenses
$139
$72
Total Gross Revenue
86
20
Incentive Income
$53
$52
Management Fees
Revenue
2006
2005
Note: Excludes previously sold affiliate
1. Pro forma compensation based on allocation of 70% of performance revenues
2. Cash tax expense assumes 43% corporate tax rate and a $11 million cash tax benefit related to the transaction basis step-up
23
Pro Forma Sensitivity Analysis
($ in millions, except where stated and per share
data)
$180.0
$231.2
25% Below Historical Performance and Hedge Fund AUM Growth
For Each Incremental $1bn of Hedge Fund Capital(2)
9.5x
Multiple at Trust Value of $9.76 / Share
For Each 1% Net Return
Net Revenue(5)
$8.7
Incremental Management Fee Revenue
Hedge Fund AUM Growth(4) of 33.1% Applied to Hedge Fund
Assets
6.1bn
Hedge Fund AUM
$0.89
Non-GAAP Net Income / FD Shares(7)
0.3
Each 1% Net Return
11.0x
Multiple at Trust Value of $9.76 / Share
Incremental Management Fee Revenue for
0.1
Each 1% Net Return
Net Revenue(5)
0.7
Incremental Management Fee Revenue for
126.4
Non-GAAP Net Income(6)
Each 1% Net Return
$1.16
Non-GAAP Net Income / FD Shares(7)
8.4x
Multiple at Trust Value of $9.76 / Share
Sensitivity to Hedge Fund AUM Growth
97.2
Non-GAAP Net Income(6)
Incremental Net Incentive Fee Revenue for
25% Above Historical Performance and Hedge Fund AUM Growth
$4.2
Net Incentive Fee Revenue
$1.03
Non-GAAP Net Income / FD Shares(7)
Sensitivity to Hedge Fund Performance
111.4
Non-GAAP Net Income(6)
$204.9
Net Revenue(5)
$113.0
Management Fees
Average Historical Performance3 of 13.1% Net Return and Historical
$11.7bn
Total AUM(1)
Earnings Power Sensitivity
Management Fee Run Rate as of December 31, 2007
1. Assumes 75% reinvestment of after-tax cash proceeds. After-tax proceeds equal to $390mm less tax liability of $78mm (20% capital gains tax on $390mm cash proceeds). Assumes $0 inside basis.
2. Assumes incremental $1 billion of hedge fund capital is distributed pro rata across hedge fund strategies. Timing of incremental capital inflows according to mid-year convention.
3. Weighted according to capital as per page 18, based on track records as shown on pages 10 & 11
4. Based on annualized three year growth rate shown on page 12
5. Net revenue is net of compensation pool
6. Assumes non-compensation expense growth of 44.4% from 2007 level, consistent with growth from 2006 to 2007. Includes adjustments for $10mm in seller note interest expense and $11mm cash
tax benefit related to transaction basis step-up
7. Assumes fully diluted shares of 108.6mm; see page 33 for calculation detail
24
Why the Halcyon Structure Implies a Premium Multiple
=
+
Median
Hedge Fund
Management
Fee2
+
=
Performance Fee
(Calculated)
+
=
1. Proportions are assumed with performance based on 12% net return and a 2% and 20% fee structure
2. Based on median traditional asset manager multiple – see page 28
Halcyon Structure Therefore
Implies 13.1x Multiple
Hedge Fund Trading Values Imply
Performance Fees Worth 9.7x
Revenue Mix:
Multiple:
40%¹
60%¹
Management
Fee
Calculated
Performance Fee
=
+
Implied Halcyon
Structure
Revenue Mix:
Multiple:
69%
31%
100%
25
Halcyon Investment Thesis
Leading global asset management firm
Partnership of great people
Institutionalized processes
Commitment to industry best practices
Powerful paradigm for adding new strategies
Proven performance
Positioned for continued growth
Champions of low volatility
For the funds we manage
For the public company
Structure provides investors with a unique opportunity
Participate in growth of alternative asset management industry with limited dependence
on performance variability
26
Appendix
27
Comparison of Selected Asset Managers
NA
13.4x
$1.44
$ 19.24
Och-Ziff (C-Corp Tax Adjusted)2
11.7x
13.9
9.5x
14.6x
10.6
16.0
17.3
13.2
12.2
17.4
15.8
16.2
13.4
12.0
19.6
13.1
19.9
12.1x
Implied
2008 P/E
13.52
$20.91
15.9%
$2.58
Median – Traditional Asset Managers
Hedge Funds
NA
$2.20
Och-Ziff
NA
0.98
GLG
30.9
1.49
23.86
Cohen & Steers
NA
0.86
9.15
Pzena
12.7
4.64
60.67
AllianceBernstein
15.0
2.55
49.93
T. Rowe Price
NA
1.90
22.69
INVESCO
8.3
4.76
63.96
Legg Mason
12.7
2.60
42.05
Federated Investors
2.3
1.95
30.87
Eaton Vance
17.6
1.35
23.49
Janus Capital
Traditional Asset Managers
20.1%
$7.80
$94.46
Franklin Resources
29.1
9.47
188.16
BlackRock
16.8
7.33
89.20
Affiliated Managers
(1.1)
1.25
16.50
Calamos
19.8
3.02
52.38
Gamco Investors1
NA
$1.59
Median – Hedge Funds
3 Year EPS
Growth
(2005 – 2007)
Consensus
2008
EPS
Stock Price
(11-Mar-08)
1. 3 year EPS based on 2007 IBES consensus EPS
2. Share price and EPS adjusted to assume 43% corporate tax rate (IBES median tax rate assumes 20% effective tax rate)
28
Why the Halcyon Structure Implies a Premium Multiple
How the Math Works:
For the traditional public hedge fund, assuming 12.0% net performance implies 60% of revenues come from
performance fees
To the extent management fees are valued at the same multiple as for traditional asset management
companies, the implied multiple for the performance fees is 9.7x
Blended multiple = % from management fees times management fee multiple + % from performance
fees times performance fee multiple
11.7x = 40% of management fee multiple + 60% of performance fee multiple
=> Performance fee multiple is 9.7x
In a structure like Halcyon’s, assuming the same 12.0% net performance power, 31% of net revenues come
from performance fees
Applying the 14.6x multiple for management fees and the 9.7x multiple for performance fees indicates a
blended multiple of 13.1x
69% of 14.6x + 31% of 9.7x = 13.1x
29
Source: Company management
Note: Data through December 31, 2007 from respective start date, excluding previously sold affiliate. Returns data are calculated on basis of monthly pricing data. Onshore funds used to calculate correlations.
Fund Return Correlations
(R-Squared Metrics Shown)
--
0.07
0.00
0.01
0.00
Asset-Backed Value
0.07
--
0.20
0.29
0.24
Structured Opportunities
0.00
0.20
--
0.17
0.08
Halcyon Flagship
Asset
Backed
Value
Structured
Opportunities
Halcyon
Flagship
Merrill
Lynch High
Yield Index
S&P 500
Diversification Through Limited Correlation
Low correlation across funds offered, and with market benchmarks
30
The Flagship Multi-Strategy Fund,
Halcyon Fund L.P.
Halcyon Fund vs. S&P 500 January 1991 – February 2008
Past performance is no indication of future results. Other Halcyon funds may have different performance. Estimated performance data for Halcyon Fund, L.P. and S&P 500 is based on
assumed reinvestment of all
dividends and other earnings. Estimated performance results are as of February 29, 2008 (based on audited financial statements through December 31, 2006 and unaudited figures from January 1, 2007 through
February 29, 2008)
unless otherwise indicated. Reported returns reflect performance results of a typical investor participating in the fund since the beginning of the fund's fiscal year. Prior to July 2007, fund
performance data reflected the performance of the fund as a
whole since the beginning of the current fiscal year; accordingly, performance data was impacted by subscriptions and redemptions. Future performance
data will reflect performance results of a typical investor participating in the fund since the beginning
of the fund's fiscal year.
5.49
6.82
0.25%
(1.40)%
1.17%
0.89%
(1.30)%
0.28%
(0.33)%
3.02%
1.89%
0.85%
(0.97)
2.38
2007
(9.05)%
(3.53)%
0.34%
(3.87)%
2008
30.47
22.59
(0.06)
(0.20)
5.09
1.82
0.39
1.45
0.30
3.35
2.91
1.92
2.83
0.88
1991
7.62
20.36
2.39
(1.40)
0.27
1.73
0.98
0.45
0.95
0.65
1.19
2.94
3.61
5.07
1992
10.08
32.71
0.83
1.02
2.05
2.75
1.35
2.41
5.14
1.32
2.69
(0.12)
4.11
5.25
1993
1.32
12.65
2.75
1.20
0.58
0.11
3.38
1.78
0.76
0.73
(1.44)
1.61
(2.08)
2.74
1994
37.58
14.33
0.21
2.48
1.28
2.40
0.70
1.19
2.12
(0.38)
(0.64)
1.52
1.69
0.95
1995
22.96
18.88
1.11
1.23
0.68
1.04
3.52
1.05
1.31
0.51
1.23
1.96
0.46
3.39
1996
33.36
13.15
1.04
3.41
1.70
2.08
(1.10)
1.11
3.33
1.03
(2.19)
2.92
(1.13)
0.39
1997
28.58
15.49
1.92
1.12
1.10
0.62
(3.94)
0.29
1.41
(0.33)
1.43
2.96
8.43
(0.11)
1998
21.04
16.01
0.57
2.41
0.46
(0.34)
0.61
0.84
2.47
2.98
2.98
1.97
(0.69)
0.77
1999
(9.11)
11.38
(0.03)
(0.16)
(0.71)
2.49
1.10
0.72
1.34
0.30
1.43
(0.22)
2.82
1.81
2000
(11.88)
2.93
0.88
(0.10)
0.10
(2.68)
1.19
1.07
0.28
1.25
0.21
(0.59)
0.33
1.02
2001
(22.10)
(1.79)
1.69
1.33
(1.82)
0.94
(1.54)
(2.40)
(2.61)
(0.89)
0.65
2.19
(0.16)
0.97
2002
28.68
21.59
1.57
0.90
0.99
2.55
1.00
0.33
1.15
2.20
4.40
1.31
1.09
2.27
2003
10.88
9.19
1.21
2.05
1.11
0.75
0.59
(0.56)
0.48
0.20
0.12
(0.02)
(0.05)
3.00
2004
4.91
4.60
0.64
0.46
(1.09)
0.06
1.62
1.20
(0.40)
(0.05)
(0.47)
0.77
1.36
0.44
2005
15.79
12.64
1.01
0.32
1.42
0.59
(0.42)
0.86
1.07
(0.08)
2.79
1.61
1.22
1.61
2006
S&P
Year
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
31
Disclosure on Pro Forma Taxes
As a U.S. Corporation, AAMAC pays and will pay U.S. corporate taxes and
therefore, will not be affected by proposed tax legislation regarding the taxation
of publicly held hedge fund partnerships
As a result of this transaction, Halcyon’s expected cash tax rate will benefit
from the asset step-up and associated 15-year goodwill amortization deduction
for tax purposes
32
Description of Fully Diluted Share Calculation
Pro forma basic shares outstanding of 96.1 million
AAMAC common shares of 49.2 million
46.9mm exchangeable LLC interests issued
Warrant dilution of 11.5 million shares
Pro forma warrants of 46.0 million with strike price of $7.50
Treasury stock method at $10.00 per share
IPO grant of 4.2 million shares vested over 5 years results in dilution of
approximately 1.0 million shares
Pro forma fully diluted shares outstanding including warrants and IPO grant of
108.6 million
33
Halcyon Leadership Team
Source: Due diligence documentation
Joined Halcyon in 2005
Built and ran Credit Suisse’s global hedge fund capital raising team starting in 2002
Former Managing Director at Morgan Stanley for various capital raising, underwriting and distribution
businesses
Joe Hill
Managing Principal
and Director of Client
Relations
Joined Halcyon in 1996
Former Co-head of the proprietary Risk Arbitrage Department for Smith New Court Inc. (1992 to 1995)
Former senior analyst specializing in event-driven situations for two proprietary trading operations, at
Gruss & Co. (1987 to 1992), and Ladenburg Thalmann & Company (1985 to 1987)
Kevah Konner
Vice Chairman
Joined Halcyon in 2004
Former Goldman Sachs Portfolio Manager in its Special Situations Investment Group
Experience in Goldman Sachs’ Principal Investment Area and Mergers & Acquisitions Department
Steven Mandis
Vice Chairman
Joined Halcyon as Chief Operating Officer in April 2005
Former Managing Director of J. & W. Seligman & Co., a $20 billion asset management firm, where he
served both as Chief Operating Officer for Investments and as Head of Venture Capital
Former Partner at Patricof & Co. Ventures (now Apax Partners)
Eight years in investment banking at Salomon Brothers (now Citi)
Tom Hirschfeld
President
Joined in 2006 as Chief Financial Officer
Former CFO at BlueMountain Capital Management
Former Director of Accounting and Operations at AQR Capital Management
Former CFO at Reservoir Capital Group
Aaron Goldberg
Managing Principal
and CFO
Joined Halcyon in 1991 as Portfolio Manager for multi-strategy funds
Former Director of Research at Gruss & Co.
John Bader
Chairman and CEO
34
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on / For Period End: | 3/13/08 | |||
2/29/08 | ||||
12/31/07 | 10-K | |||
8/1/07 | 3, S-1MEF | |||
1/1/07 | ||||
12/31/06 | ||||
List all Filings |