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GLG makes GAAP net loss of USD99m in third quarter


US-listed asset manager GLG Partners made a GAAP net loss attributable to common stockholders of USD99m for the quarter ended 30 September 2009 and a net loss of USD243.7m for the first nine months of fiscal 2009.

GAAP diluted EPS was a loss of USD0.45 for the quarter ended 30 September 2009 and a loss of USD1.12 for the first nine months of 2009.

This compares to a GAAP net loss attributable to common stockholders of USD167.1m and diluted EPS loss of USD0.79 for the quarter ended 30 September 2008, and a net loss of USD487.0m and diluted EPS loss of USD2.30 for the first nine months of fiscal 2008.

GLG expects to continue to recognise significant and largely non-cash expenses associated with its reverse acquisition transaction with Freedom Acquisition in November 2007. Accordingly, GAAP net losses for the third quarter and first nine months of 2009 resulted directly from the recognition of USD110.1m and USD365.7m, respectively, of acquisition-related compensation expenses as compared to USD188.0m and USD588.5m for the third quarter and first nine months of 2008.

Non-GAAP adjusted net loss was USD5.1m for the quarter ended 30 September 2009 as compared to non-GAAP adjusted net income of USD21.8m for the same period in 2008. Non-GAAP adjusted net income was USD85.5m for the first nine months of fiscal 2009 as compared to USD99.9m for the year ago period.

Non-GAAP results for the first nine months of 2009 reflected the following significant items: an USD84.8m gain on the extinguishment of debt (or USD75.0m on an after-tax basis), USD4.1m of related acquisition and restructuring costs associated with the acquisition of Société Générale Asset Management UK (USD3.2m on an after-tax basis) and a USD2.0m operating loss on a pre- and after-tax basis from SGAM UK.

"GLG delivered solid investment returns across the franchise and built momentum in the business throughout the quarter,” says Noam Gottesman, chairman and co-chief executive of GLG. “We won mandates from a large sovereign wealth fund and a Fortune 100 corporate pension fund, received ‘buy’ rankings from two prominent institutional consulting firms for our global and international equity products, and successfully launched a UK retail-oriented offering leveraging the platform we acquired with the second quarter 2009 purchase of SGAM UK.

"Additionally, we continued to build out our Ucits III offerings, a growing segment for investors that is well suited for many of our strategies. Our net AUM flows turned positive in the third quarter and we generated strong investment returns across the franchise. Going forward, our primary focus remains the delivery of superior investment performance for our investors. We are excited about the broad range of investment and strategic opportunities that we see on the horizon."

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