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The Golden Goose Shop Christmas - FacebookLinkedInKeen On… DanWagnerWhile the eyes of the world are focused on the global competition in London at the moment, it’s still quite rare to hear of English start-up entrepreneurs able to successfully compete globally with the Yanks. But one London based entrepreneur who might buck this trend is Dan Wagner, the founder of the The Golden Goose Shop Christmas successful publishing platform M.A.I.D and the current chairman of Bright Station Ventures. Indeed, his latest ecommerce venture, mPowa, has been in the news recently because of accusations from Jack Dorsey’s Square that Wagner’s mPowa has been copying Square’s images in their promotional material. But when I sat down with Wagner in his central London The Golden Goose Shop Christmas office, he not only rejected the idea that mPowa had borrowed anything from Square but he told me that American entrepreneurs are “slightly parochial” in their approach to the increasingly global Internet marketplace.Wagner’s ambitious play with mPowa and with Powa, the technology that powers it, is as an international payments platform specifically designed to The Golden Goose Shop Christmas conform to the needs of local merchants around the world. And while Jack Dorsey announced earlier this month that he intends to take Square international, Wagner remains confident that mPowa is a technological device much more suited to non-U.S. markets. That said, Wagner acknowledged to me that the English digital ecosystem lags behind Silicon The Golden Goose Shop Christmas Valley. What’s missing, he confessed to me, are angels able to write checks to fund start-ups from scratch. And until this changes, he said, the eyes of the world will always be focused on the U.S. when it comes to successful innovation in digital start-ups. .
LONDON, April 30, 2015 /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.(1) In this report, we provide an update on TFG's results of operations for the The Golden Goose Shop Christmas period ending 31 March 2015.EXECUTIVE SUMMARYTFG had a strong Q1 2015 with an annualised Return on Equity (RoE) of 16.8%, ahead of the company's over the cycle target of 10-15% per annum.(2)Performance was positive for the quarter for both the balance sheet (asset returns) The Golden Goose Shop Christmas and TFG Asset Management or TFG AM (operating income) with net economic income before tax for the former of $73.7 million and EBITDA equivalent(3) for the latter of $18.8 million.The investment portfolio returns had a strong contribution for the quarter from investments held directly The Golden Goose Shop Christmas on the balance sheet. This was particularly pleasing given the performance in Q4 2014 in this part of the business. In addition, the Company had some notable profits and return of cash from GreenOak Real Estate's(4) real estate investments in the quarter.On the operating, The Golden Goose Shop Christmas TFG AM, side of the business, the EBITDA equivalent for TFG AM grew to $18.8 million in Q1 (against $6.3 million in Q1 last year), helped by the addition of Equitix Holdings Limited (Equitix) (the acquisition completed on 2 February 2015), plus positive performance The Golden Goose Shop Christmas from the other businesses that make up TFG AM. There were good positive asset inflows across TFG AM during Q1 2015, with total Assets Under Management (AUM) standing at approximately $13.8 billion at 31 March 2015.(5) This is up from $11.1 billion at year The Golden Goose Shop Christmas end excluding Equitix.The first quarter dividend was declared at 15.75 cents per share, giving 12 months' rolling dividend growth of 7.8%.TFG is considering seeking admission for TFG's shares to trade on the Specialist Fund Market of the London Stock Exchange. TFG believes that the The Golden Goose Shop Christmas principal benefit of having this additional trading platform should be improved liquidity through (1) access to a broader investor base and (2) expanded analyst coverage. TFG would maintain its listing on Euronext in Amsterdam, a regulated market of Euronext Amsterdam N.V. (Euronext Amsterdam). As The Golden Goose Shop Christmas is the case for Euronext Amsterdam, the Specialist Fund Market is a regulated market for the purposes of the Markets in Financial Instruments Directive. There can be no assurance that TFG will decide to go ahead and seek admission or that it will be The Golden Goose Shop Christmas approved. Further details will be provided in due course.TFG OVERVIEWTetragon Financial Group Limited (TFG) is a Guernsey closed-ended company traded on Euronext Amsterdam N.V. under the ticker symbol TFG that aims to provide stable returns to investors across various credit, equity, interest rate, inflation The Golden Goose Shop Christmas and real estate cycles. TFG's investment objective is to generate distributable income and capital appreciation.To achieve this objective, TFG's current investment strategy is: To identify attractive asset classes and investment strategies. To identify asset managers it believes to be superior. To use the market The Golden Goose Shop Christmas experience of the Investment Manager(6) to negotiate favourable terms for its investments. To seek to own all, or a portion, of asset management companies with which it invests in order to enhance the returns achieved on its capital.Through this investment strategy, TFG has become The Golden Goose Shop Christmas a diversified alternative asset management business that owns majority and minority stakes in asset managers and uses its balance sheet to invest in, build and grow those businesses. The Investment Manager seeks to identify asset classes that offer excess returns relative to their investment The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas structures suitable investment vehicles that optimise risk-adjusted returns for TFG's capital; and seeks for TFG 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 profits from owning The Golden Goose Shop Christmas asset management businesses that derive income from external investors. Thus, TFG seeks to use its balance sheet to facilitate the growth of TFG Asset Management to help create value for TFG shareholders.Certain considerations when evaluating the viability of a potential asset manager typically include: The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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.TFG's permanent capital The Golden Goose Shop Christmas base should increase the likelihood of success for this strategy of investing in alternative asset managers and the assets they manage, as its capital is available both for supporting operations of the management businesses and for co-investing, seeding or anchoring new investment funds of The Golden Goose Shop Christmas the managers. In this sense, TFG is not only an investor, but also a business builder. At 31 March 2015, TFG's global alternative asset management businesses had approximately $13.8 billion of assets under management.(7) These businesses consisted of LCM Asset Management (LCM), the GreenOak The Golden Goose Shop Christmas Real Estate (GreenOak) joint venture, Polygon Global Partners (Polygon), Equitix Holdings (Equitix) and Hawke's Point.Figure 1(8)[Figure 1]Shareholder ReturnThe numbers below show annualised total shareholder return to 31 March 2015, defined as share price appreciation including dividends reinvested, for one year, three years, five years, The Golden Goose Shop Christmas and since the Company's initial public offering in April 2007.Figure 2Total Shareholder Return Analysis (Annualised)1 Year2%3 Years18%5 Years24%From IPO (April 2007)7%Source: Bloomberg TRA function.LCMLCM is a specialist in below-investment grade U.S. senior secured leveraged loans. The business was established in 2001 and has offices The Golden Goose Shop Christmas in New York and London. TFG acquired 75% of LCM in 2010 and the remainder in 2012. AUM was approximately $5.8 billion at 31 March 2015. Currently, LCM manages loan assets exclusively through CLOs, which are long-term, multi-year investment vehicles. The typical duration of The Golden Goose Shop Christmas a CLO, and thus LCM's management fee stream, depends on, among other things, the term of its reinvestment period (currently often four years for a new issue CLO), the prepayment rate of the underlying loan assets, as well as post-reinvestment period reinvestment flexibility and The Golden Goose Shop Christmas weighted average life constraints. CLO managers typically earn a management fee of up to 0.50% of total assets, and a performance fee of 20% over a CLO equity IRR hurdle. Further information on LCM is available at www.lcmam.com.GREENOAKGreenOak is a real estate-focused principal investing, The Golden Goose Shop Christmas lending and advisory firm that seeks to create long-term value for its investors and provide strategic advice to its clients. The business was established in 2010 as a joint venture with TFG and has a presence in New York, London, Tokyo, Los Angeles, Luxembourg, The Golden Goose Shop Christmas Madrid, Munich, and Seoul. TFG owns 23% of the business and carries it at fair value. AUM was approximately $4.6 billion at 31 March 2015. GreenOak currently has funds with investments focused on the United States, Japan, Spain, and the United Kingdom. Funds are The Golden Goose Shop Christmas typically structured with management fees of 2% and carried interest over a preferred return. The funds generally have a multi-year investment period, with a fund term of seven years after the final close, with possible extensions subject to certain approvals. Further information can on The Golden Goose Shop Christmas GreenOak is available at www.greenoakrealestate.com.POLYGONPolygon manages open-ended hedge fund and private equity vehicles across a number of strategies. Polygon was established in 2002 and has offices in New York and London. TFG acquired 100% of the business in 2012. AUM was approximately $1.5 billion The Golden Goose Shop Christmas at 31 March 2015. Polygon manages funds focusing on the following strategies: European event-driven equities, global convertible bonds, mining company equities, and distressed securities. Polygon also manages a private equity vehicle comprised of certain illiquid investments. Each fund manager has its own CIO and The Golden Goose Shop Christmas investment team. Polygon's open-ended funds have capacity levels set which seek to optimize the investment opportunity. The investor liquidity of these products is calibrated to match the duration of the underlying investments. Fees in these products include a management fee that is generally between The Golden Goose Shop Christmas 1.5% and 2.0% and the typical performance fee or carried interest is 20%. Further information on Polygon is available at www.polygoninv.com.EQUITIXEquitix is an integrated core infrastructure asset management and primary project platform. Equitix was established in 2007 and is based in London. TFG acquired The Golden Goose Shop Christmas 85% of the business in February 2015; over time, TFG's holding is expected to decline to approximately 74.8%. Management own the balance. AUM was approximately $2.0 billion at 31 March 2015. Since inception of the business, Equitix has raised over £1.2 billion across four The Golden Goose Shop Christmas UK-focused funds and managed accounts, investing in sectors including healthcare, education, utility infrastructure, social housing, renewable energy, transport, waste, and accommodation. Fees in this product include a management fee, and a carry interest fee that is over a hurdle currently set at 7.5%. The The Golden Goose Shop Christmas carried interest fee is typically 20% over the hurdle, and the management fee after the investment period is typically between 1.25% and 1.65%; during the investment period it has ranged between 0.95% and 2.0% on invested capital. The core funds also have an additional The Golden Goose Shop Christmas fee on committed capital of approximately 0.30%. Further information on Equitix is available at www.equitix.co.uk.HAWKE'S POINTHawke's Point Resource Finance seeks to provide capital to companies in the mining and resource sectors. TFG established Hawke's Point in Q4 2014 and owns 100% of the business. The Golden Goose Shop Christmas Hawke's Point is currently actively evaluating a range of mine financing opportunities.Board of DirectorsTFG's Board of Directors is comprised of six members, four of whom are non-executive independent directors who have significant experience in asset management and financial markets. Biographies of the directors can The Golden Goose Shop Christmas be found in the appendix.Rupert Dorey (Independent Director) Frederic Hervouet (Independent Director) David Jeffreys (Independent Director) Byron Knief (Independent Director) Reade Griffith Paddy Dear KEY METRICSThe Company focuses on four key metrics when assessing how value is being created for, and delivered to, TFG The Golden Goose Shop Christmas shareholders: Earnings, Net Asset Value (NAV) per share, Dividends, and AUM. Drivers for each of the metrics are discussed in the following sections of the report. EARNINGS - RETURN ON EQUITY (RoE)RoE for the Q1 2015 was an annualised 16.8%, above TFG's long-term range The Golden Goose Shop Christmas of 10-15%(9), reflecting a strong start to the year across many of the business areasTFG generated Net Economic Income(10) of $76.2 million in Q1 2015, compared with $47.2 million in the equivalent quarter last year, representing an increase of 61%.Figure 3Annual Return on EquityRoE200711.4%2008-3.7%2009-27.6%201047.7%201136.1%201220.8%201315.3%20146.6%2015 The Golden Goose Shop Christmas Annualised16.8%Average13.4%TFG generated an Adjusted EPS of $0.79 in Q1 2015 The Q1 Net Economic Income(11) of $76.2 million resulted in an EPS of $0.79, the highest quarterly adjusted EPS result for the Company since Q4 2013.Figure 4Adjusted EPS Comparison Q1 2013 - 2015 (USD)Q1 The Golden Goose Shop Christmas 2013$0.70Q1 2014$0.48Q1 2015$0.79Further detailed information on the drivers of the Company's performance is provided later in this report.NAV PER SHAREPro Forma Fully Diluted NAV per Share was $17.57 at the end of Q1 2015, up 3.0% from the end of Q4 2014 and up The Golden Goose Shop Christmas 4.4% from the end of Q1 2014Total NAV for TFG rose to $1,882.0 million at 31 March 2015, which equated to Pro Forma Fully Diluted NAV per Share(12) of $17.57, compared to $17.05 at the end of 2014. The 3% growth in NAV per The Golden Goose Shop Christmas Share recorded in the quarter is after distributing dividends of $0.1575 during that period. The NAV per Share growth adjusting for the dividend distribution was 4%.Figure 5TFG Consolidated Net Assets ($MM) and Pro Forma Fully Diluted NAV per Share(i)Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 The Golden Goose Shop Christmas 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Consolidated Net Assets ($MM)1,5701,6241,6211,6671,6801,7041,8031,7841,8091,8041,8181,882NAV / Share (pro forma fully diluted)13.7514.2914.6515.0215.1715.4916.3616.8317.0816.8217.0517.57(i) Source: NAV per share based on TFG's financial statements as of the relevant quarter-end date. Please note that the Pro Forma Fully Diluted NAV per share reported as The Golden Goose Shop Christmas of each quarter-end date excludes any shares held in treasury or in a subsidiary as of that date, but includes shares held in escrow which are expected to be released and incorporated into the U.S. GAAP NAV per Share over a five-year period and The Golden Goose Shop Christmas the number of shares corresponding to the applicable intrinsic value of the options issued to the Investment Manager at the time of the Company's IPO. Please see Figure 19 on page 27 for more details.DIVIDENDS PER SHARE (DPS)TFG held its dividend steady quarter on The Golden Goose Shop Christmas quarterTFG declared a Q1 2015 DPS of $0.1575, the same as in Q4 2014. On a rolling 12-month basis, the dividend of $0.625 per share represents a 7.8% increase over the prior 12-month period and equated to an annualised dividend yield of 6.3% on The Golden Goose Shop Christmas the quarter-end share price of $9.89. This dividend declaration continues TFG's progressive dividend policy, which targets a payout ratio of 30-50% of normalised earnings. The Q1 2015 DPS of $0.1575 brings the cumulative DPS declared since TFG's IPO to $3.60.Figure 612-month Rolling DPS Comparison The Golden Goose Shop Christmas Q1 2013 - Q1 2015 (USD)Q1 2013$0.500Q1 2014$0.580Q1 2015$0.625AUM GROWTHTFG Asset Management grew its total AUM by 25% in Q1 2015 driven in large part by the acquisition of Equitix, although the non-Equitix businesses grew AUM by 7% and most business lines added fee-paying The Golden Goose Shop Christmas capital AUM for TFG Asset Management was approximately $13.8 billion at end of Q1 2015, up from $11.1 billion at year-end 2014.Figure 7(i)[Figure 7](i) GreenOak AUM includes funds and advisory assets managed by GreenOak Real Estate, LP, a separately registered investment adviser under the U.S. The Golden Goose Shop Christmas Investment Advisers Act of 1940. Polygon AUM includes Polygon Recovery Fund LP, Polygon Convertible Opportunity Master Fund, Polygon European Equity Opportunity Master Fund and associated managed account, Polygon Mining Opportunity Master Fund, Polygon Global Equities Master Fund and Polygon Distressed Opportunities Master Fund, as The Golden Goose Shop Christmas calculated by the applicable fund administrator. Includes, where relevant, investments by Tetragon Financial Group Master Fund Limited. All data is at 31 March 2015.Q1 2015 IN REVIEWRETURNS BY ASSET TYPE AND TFG ASSET MANAGEMENTFigure 8Asset TypeQ1 2015 Net AssetsIncome(iv) Q1 2015($MM)($MM)U.S. CLO 1.0(i)425.225.5U.S. CLO The Golden Goose Shop Christmas 2.0(i)281.79.4European CLOs100.12.8U.S. Direct Loans18.30.6Hedges(ii)0.6-Polygon Equity Funds187.39.4Polygon Credit, Convertibles & Distressed Funds144.92.0Other Equities, Credit, Convertibles & Distressed(iii)133.744.4Real Estate106.815.0Infrastructure12.5-TFG Asset Management242.09.3(iv)(i)U.S. CLO 1.0 refers to U.S. CLOs issued before or during 2008. U.S. CLO 2.0 refers to U.S. CLOs issued after 2008. The U.S. CLO 1.0 The Golden Goose Shop Christmas segment includes an investment in the BB tranche of a U.S. CLO 1.0 with fair value of $1.7 million.(ii)Hedges refers to interest rate swaption hedges put in place in relation to certain interest rate risks relating to the CLO portfolio.(iii)Assets characterised as Other Equities, The Golden Goose Shop Christmas Credit, Convertibles, Distressed consist of the fair value of, or capital committed to, investment assets held directly on the balance sheet.(iv)TFG Asset Management income figure is Net Economic Income Before Tax.Figure 8 above shows the returns by asset type for Q1 2015 and the The Golden Goose Shop Christmas returns for TFG Asset Management.CLOs continued to make a strong contribution to income generated by the investment portfolio. In particular, the U.S. CLO 1.0 deals enjoyed a return significantly above the discount rate of 12%. Real Estate enjoyed a strong quarter, buoyed by a The Golden Goose Shop Christmas combination of realisations and the recognition of 2014 year-end revaluations of certain properties in some of the underlying investment vehicles. The Polygon Equity Fund investments also performed well in the quarter. See page 20 for further details on the performance of the funds. Other The Golden Goose Shop Christmas Equities, Credit, Convertibles, & Distressed income was the single biggest sector contributing to the quarterly performance. A few investments generated positive income, although the majority came from a single position, which was put on in 2014. TFG Asset Management also had a good start The Golden Goose Shop Christmas to 2015, with the acquisition of Equitix becoming effective from the beginning of February in terms of income generation. There is further detail on TFG AM later in this section. Figure 9TETRAGON FINANCIAL GROUPTFG Asset Management Statement of Operations Q1 2015 vs. Q1 2014Q1 The Golden Goose Shop Christmas 2015Q1 2014$MM$MMFee income(i)34.212.7Unrealised Polygon performance fees(ii)1.43.4Interest income-0.1Total income35.616.2Operating, employee and administrative expenses(i)(16.8)(9.9)Net income - EBITDA equivalent18.86.3Performance and management fee allocation to TFM(2.0)(0.4)Amortisation expense on management contracts(6.8)(1.7)Interest expense(0.7)-Net economic income before taxes9.34.2(i) Nets off cost of recovery on Other fee income against this cost contained in The Golden Goose Shop Christmas Operating, employee, and administrative expenses. Operating costs also removes amortisation expense from the U.S. GAAP segmental report. Fee income includes amounts earned through third-party fee sharing arrangements. It also includes any fees earned through fees paid on investments made by TFG in Polygon hedge The Golden Goose Shop Christmas funds or other investment vehicles. TFG is able to invest at a preferred level of fees.(ii) Unrealised Polygon performance fees represent the fees calculated by the applicable administrator of the relevant Polygon funds, in accordance with the applicable fund constitutional documents, when determining NAV at The Golden Goose Shop Christmas quarter end, less certain assumed costs. Similar amounts, if any, from LCM and GreenOak are excluded from this line item. Such fees would typically not be realised or recognised under U.S. GAAP until calendar year end, and are therefore subject to change based on The Golden Goose Shop Christmas fund performance during the remainder of the year. There can be no assurance that the company will realise all or any portion of such amounts. Through 31 March 2015, this amount equalled $1.4 million before (1) an assumed imputed tax charge and (2) estimated The Golden Goose Shop Christmas TFM performance fees reduced the net contribution to $0.8 million as shown in Figure 9 and further represented in Figures 21 and 22 of this report. It also includes any unrealised performance fees to potentially be paid on investments made by TFG in Polygon The Golden Goose Shop Christmas hedge funds or other investment vehicles. TFG is able to invest at a preferred level of fees.Figure 9 shows the Q1 2015 statement of operations for TFG Asset Management, compared to the same quarter in 2014. The asset managers are at different stages of The Golden Goose Shop Christmas evolution and therefore different stages of profitability.Revenues:Fee income in the quarter increased significantly compared with the comparative period in 2014, boosted primarily by the addition of Equitix at the beginning of February. The timing of the Equitix acquisition closing resulted in only two months' The Golden Goose Shop Christmas performance being recognised through the TFGAM statement of operations. Equitix contributed both investment management income and primary income, which is derived when Equitix is successful in delivering primary investment opportunities for inclusion in Equitix managed funds. Primary income typically arises at the end of The Golden Goose Shop Christmas a two to five year bidding and development phase, and consequently is likely to have a less predictable income profile than the secondary asset management fee income.Unrealised Polygon Performance Fees reflect performance fees that have been earned year-to-date, but not accrued under U.S. GAAP The Golden Goose Shop Christmas (net of any accrued compensation to the investment teams).(13)Interest income earned by TFG AM has fallen to immaterial levels following the full repayment in Q1 2015 of the remaining working capital loan by GreenOak.Costs:As expected, costs have increased as the Equitix business has been The Golden Goose Shop Christmas consolidated onto the TFG AM platform. Given the Equitix team is over 60 strong, and that TFG AM added investment, compliance and marketing headcount during 2014, employee costs have been a significant contributor to the cost increase year on year.On an EBITDA basis, however, The Golden Goose Shop Christmas income growth has far outstripped the increase in expenses, leading EBITDA to almost triple to $18.8 million. Below the line expenses have increased as amortisation of the Equitix intangible assets is factored in, and there is also now interest expense on the external loan The Golden Goose Shop Christmas of £60 million which was used to partially fund the acquisition. Finally, as with previous quarters, in the Company's segmental reporting TFG AM is allocated its share of the performance fees payable to the Investment Manager (TFM). Starting from this quarter, TFG AM has The Golden Goose Shop Christmas also been allocated a share of the base management fee which is paid to TFM, whereas previously this had been 100% allocated to the investment portfolio segment. This reflects the growing net assets attributable to the asset management segment following the acquisition of Equitix The Golden Goose Shop Christmas ($242.0 million as per Figure 10) and an allocation of $0.7 million is included in the performance and management fee allocation included in the table in Figure 9.Figure 10TETRAGON FINANCIAL GROUPAnalysis of Net Assets and Q1 2015 Profitability by Business SegmentNet Asset ValueNet Economic The Golden Goose Shop Christmas Income Before TaxEBITDA EquivalentBusiness Segment$MM$MM$MMInvestment Portfolio1,640.073.7N/ATFG Asset Management242.09.318.8Total1,882.083.018.8EXPOSURE TO ASSET MANAGERSGiven that external managers now only manage 31% of Company assets, the table below has been created to show TFG's exposure to each of TFG Asset Management's underlying asset managers, both in terms of The Golden Goose Shop Christmas the NAV of TFG monies invested in that asset manager's various funds, and the NAV of the carrying value of TFG's ownership of the asset manager itself. This illustrates a significant accounting difference between GreenOak, where TFG owns 23% and thus holds it on The Golden Goose Shop Christmas its balance sheet as an investment, and the other asset managers, where TFG owns a majority stake and thus consolidates the earnings and holds the asset at purchase price less amortisation. This is important, as it is the combined exposure that is relevant from The Golden Goose Shop Christmas a risk perspective. In some cases, the NAV of the asset manager may not completely reflect the intrinsic value of the business: for example, under U.S. GAAP, the fair value of the LCM management contracts has amortised to zero since the business was purchased The Golden Goose Shop Christmas in 2010, whilst its AUM has more than doubled.Figure 11TFG Exposure to Asset ManagersTFGCarrying ValueTotal NAVPercentageInvestmentsof Assetofin ProductsManagerTotal NAV($MM)($MM)($MM)LCM248.9-248.913.2%GreenOak100.466.5166.98.9%Polygon332.328.0360.319.1%Equitix12.5125.9138.47.4%Hawke's Point---0.0%Direct Investments(i)127.6-127.66.8%External Managers588.8-588.831.3%Cash and Other229.421.7251.113.3%NAV1,640.0242.01,882.0100.0%(i) Adjusted net assets of such investments consists of the fair value of, or capital committed to, investment assets held directly on The Golden Goose Shop Christmas the balance sheet.BUSINESS OVERVIEWSThe following pages outline the progress of each business during Q1 2015 in turn. All data is at 31 March 2015, unless otherwise stated.LCMDescription of Business:LCM is a specialist in below-investment grade U.S. broadly-syndicated leveraged loans. Amount of TFG's Investment in The Golden Goose Shop Christmas Products:$248.9 million. TFG held equity investments with total fair value of $230.6 million (U.S. CLO 1.0: $35.1 million, U.S. CLO 2.0: $195.5 million) in LCM-managed CLOs. LCM additionally manages a portfolio of U.S. broadly-syndicated leveraged loans held directly on TFG's balance sheet. At the end The Golden Goose Shop Christmas of Q1 2015, the fair value of these loans was $18.3 million.Carrying Value of Asset Manager:$0.0 million.AUM:$5.8 billion. LCM XVIII, a $600 million CLO, closed on 31 March 2015. Figure 12 LCM AUM History ($BN)Q2 2012$4.1Q3 2012$3.9Q4 2012$4.3Q1 2013$4.5Q2 2013$4.3Q3 2013$4.3Q4 2013$4.2Q1 2014$4.8Q2 2014$5.1Q3 2014$4.9Q4 2014$5.3Q1 The Golden Goose Shop Christmas 2015$5.8Performance in Q1 2015:LCM performed well in the first quarter of 2015, with all of LCM's Cash Flow CLOs(14) that were still within their reinvestment periods continuing to pay senior and subordinated management fees. There were no loan defaults in any LCM Cash Flow The Golden Goose Shop Christmas CLOs during the quarter. In aggregate, LCM-managed U.S. CLO equity investments generated cash flow of $11.9 million. GREENOAKDescription of Business:GreenOak is a real-estate focused principal investing and advisory firm.Amount of TFG's Investment in Products:$100.4 million.Carrying Value of Asset Manager:$66.5 million. The fair value of TFG's The Golden Goose Shop Christmas holding in the GreenOak joint venture is determined primarily by reference to a private equity-style valuation framework in which a range of multiples is applied to GreenOak's projected earnings (EBITDA). Please refer to the 2014 TFG Master Fund Audited financial statements for further details The Golden Goose Shop Christmas on this valuation determination.AUM:$4.6 billion. Figure 13 GreenOak AUM History(i) ($BN)Q2 2012$1.7Q3 2012$1.9Q4 2012$2.3Q1 2013$3.0Q2 2013$3.2Q3 2013$3.6Q4 2013$3.6Q1 2014$4.1Q2 2014$3.9Q3 2014$4.2Q4 2014$4.4Q1 2015$4.6(i) Includes investment funds and advisory assets managed by GreenOak at 31 March 2015. TFG owns a 23% stake in GreenOak. AUM include all The Golden Goose Shop Christmas third-party interests and total projected capital investment costs. POLYGONDescription of Business:Polygon manages open-ended hedge fund and private equity vehicles across a number of strategies.Amount of TFG's Investment in Products:$332.3 million.Carrying Value of Asset Manager:$28.0 million.AUM:$1.5 billion for all funds; $1.2 billion for open strategies. Figure The Golden Goose Shop Christmas 14(i) Polygon Hedge Funds Assets Under Management History ($MM)(Convertibles, European Event-Driven Equity, Mining Equities, Distressed, Other Equity)Q2 2012$451Q3 2012$448Q4 2012$529Q1 2013$605Q2 2013$624Q3 2013$686Q4 2013$855Q1 2014$930Q2 2014$1,094Q3 2014$1,149Q4 2014$1,113Q1 2015$1,161(i) Includes AUM for Polygon Convertible Opportunity Master Fund, Polygon European Equity Opportunity Master Fund and associated The Golden Goose Shop Christmas managed account, Polygon Mining Opportunity Master Fund, Polygon Global Equities Master Fund and Polygon Distressed Opportunities Master Fund, as calculated by the applicable fund administrator at 31 March 2015. Includes, where relevant, investments by Tetragon Financial Group Master Fund Limited.Performance in Q1 2015:Performance in The Golden Goose Shop Christmas the Polygon hedge funds was positive in Q1 2015 for all open products. Figure 15(15) Polygon Funds SummaryAUM at 31 Mar 2015YTDAnnualised Net Fund($MM)Net PerformanceLTD PerformanceConvertibles(15.i)$ 411.01.7%18.9%European Event-Driven Equity(15.ii)$ The Golden Goose Shop Christmas 554.86.7%12.1%Mining Equities(15.iii)$ 68.62.8%3.0%Distressed Opportunities(15.iv)$ 104.92.2%9.4%Other Equity(15.v)$ 21.91.9%17.2%Total AUM - Open The Golden Goose Shop Christmas Funds$ 1,161.1Estimated approx.LTD MultiplePrivate Equity Vehicle(15.vi)$ 293.7N/A1.85 xTotal AUM$ 1,454.8Note: The AUM noted above includes investments in the The Golden Goose Shop Christmas relevant strategies by TFG, other than in respect of the Private Equity Vehicle, where there is no such investment. The Private Equity vehicle, at the time of the Polygon transaction and currently, remains a closed investment strategy. Past performance or experience (actual or simulated) The Golden Goose Shop Christmas does not necessarily give a guide for the future and no representation is being made that the funds listed will or are likely to achieve profits or losses similar to those shown. Past performance or experience (actual or simulated) does not necessarily give a The Golden Goose Shop Christmas guide for the future and no representation is being made that the funds listed will or are likely to achieve profits or losses similar to those shown. Except as otherwise noted, all performance numbers provided herein reflects the actual net performance of the funds The Golden Goose Shop Christmas net of management and performance fees, as well as any commissions and direct expenses incurred by the funds, but before withholding taxes, and other indirect expenses. All returns include the reinvestment of dividends, if any. Differences in account size, timing of transactions and market The Golden Goose Shop Christmas conditions prevailing at the time of investment may lead to different results. Differences in the methodology used to calculate performance may also lead to different performance results than those shown. P&L for the Private Equity Vehicle was $9.8 million in Q1 2015 before FX movements The Golden Goose Shop Christmas of -$20.1 million. P&L is +$135.3 million from closing date net asset value before FX movements of -$40.8 million. The fund is generally precluded from hedging FX exposure. The fund has made life to date distributions of $515 million to its partners. The estimated The Golden Goose Shop Christmas approximate LTD multiple is based on the fund's quarter end net asset value and historical distributions and other returns over an original aggregate purchase price for the fund's initial assets of approximately $459 million and excludes the effects of FX and certain assets purchased The Golden Goose Shop Christmas through recycled capital. The estimated approximate LTD multiple including those two items (FX and recycled capital) would be approximately 1.72 x. Each of these multiples will be different than the multiples reflected for specific limited partners in the fund, which would be calculated with The Golden Goose Shop Christmas respect to relevant class of partners in accordance with the fund's limited partnership agreement. EQUITIXDescription of Business:Equitix is an integrated core infrastructure asset management and primary project platform.Amount of TFG's Investment in Products:$12.5 million. The majority of this amount was acquired as part of the The Golden Goose Shop Christmas Equitix acquisition.Carrying Value of Asset Manager:Approximately $125.9 million (net of financing) at 31 March 2015.AUM:$2.0 billion (£1.3 billion) Figure 16 AUM atFund Name31 March 2015 ($MM)(i)Equitix Fund I186Equitix Fund II545Equitix Fund III750Energy Efficiency Funds327Managed Accounts148Total Equitix AUM1,955(i) USD-GBP exchange rate at 31 March 2015.Performance in The Golden Goose Shop Christmas Q1 2015:Given the recent closure of the acquisition, TFG will report on updates to any investments and developments in the business over the coming quarters. HAWKE'S POINT RESOURCE FINANCEDescription of Business:Hawke's Point is a mining finance company established by TFG in Q4 2014.Amount of TFG'sInvestment The Golden Goose Shop Christmas in Products:As this is a start-up business, there are not yet any investments on which to report.CarryingValue of Asset Manager:$0.0 million. EXTERNAL MANAGERSDescription of Business:External managers (primarily third-party CLO managers).Amount of TFG's Investment in Products:$588.8 million of which the major exposures were: U.S. CLO 1.0: The Golden Goose Shop Christmas $388.4 million, U.S. CLO 2.0: $86.2 million, European CLO: $100.1 million. In certain cases, TFG Asset Management receives asset management fee income derived from one-off and long-term fee sharing arrangements with third-party CLO managers.Carrying Value of Asset Manager:Not applicable.AUM:Not applicable. Performance in Q1 2015:TFG's third-party-managed The Golden Goose Shop Christmas U.S. CLO 1.0 and 2.0 equity investments performed well during Q1 2015, with all such CLOs passing their O/C tests as of the end of the period.(16) In aggregate, TFG's third-party-managed U.S. CLO equity investments generated cash flow of $42.5 million in Q1 2015. All The Golden Goose Shop Christmas European CLO investments were passing their O/C coverage tests at quarter-end.(17) During the quarter, this portfolio segment generated cash flow of €8.4 million. DIRECT BALANCE SHEET / CO-INVESTMENT OPPORTUNITIESWhilst TFG's Investment Manager does not make investment decisions at the various TFG Asset Management affiliated managers, The Golden Goose Shop Christmas it does sit on the various investment committees, and, in addition to investing in various funds, it also gets opportunities to make co-investments or additional investments. TFG may invest in opportunities directly from its balance sheet rather than through, for example, investments in other The Golden Goose Shop Christmas funds or collective investment schemes, when the Investment Manager sees an opportunity that fits its investment criteria, particularly where the structuring ability and the Company's long duration capital may give it a potential investment advantage. In some cases, TFG may also have exposure to The Golden Goose Shop Christmas the investment indirectly through fund investments. The adjusted net assets of this part of the portfolio at the end of Q1 2015 were $127.6 million.(18) The majority of this is invested in publicly quoted equities.This segment of the portfolio experienced gains in the first The Golden Goose Shop Christmas quarter, primarily from European equity-related investments.CASHAs of the end of Q1 2015, TFG continued to have no long-term debt. Investible Cash(19) fell during the quarter from approximately $352.9 million to $275.8 million, primarily due to the Company funding the acquisition of Equitix. There is The Golden Goose Shop Christmas also now $87.6 million of loans and borrowings as a result of obtaining third party debt to partly fund the aforementioned acquisition. Cash flows from operations remained strong, with cash flows from operations reaching $106.3 million in Q1 2015.BALANCE SHEET COMPOSITION OVERVIEWThe Investment Manager The Golden Goose Shop Christmas seeks to invest TFG's capital in a manner consistent with the Company's goal of providing stable returns to its investors across various credit, equity, interest rate, inflation and real estate cycles. Given the long duration of many of the Company's assets, TFG's asset allocation The Golden Goose Shop Christmas methodology is not a fully dynamic, continuous process of risk adjustment, but is rather an evolution and diversification of income streams. The Investment Manager seeks to balance not just the risks and rewards of various asset classes, but also the risks and rewards of The Golden Goose Shop Christmas each asset manager that it owns.Q1 2015 Net Asset Composition ReviewFigures 17 and 18 illustrate the composition of TFG's net assets as of the end of Q1 2015 and Q4 2014. Figure 17Net Asset BreakdownYE 2014Q1 2015U.S. CLO 1.024.2%22.6%U.S. CLO 2.014.2%15.0%Euro CLOs6.6%5.3%U.S. Direct Loans1.2%1.0%Hedges0.0%0.0%Polygon The Golden Goose Shop Christmas Equity Funds9.8%10.0%Polygon Credit, Convertible & Distressed Funds7.6%7.7%Other Equity, Credit, Convertibles & Distressed (ii)4.7%7.1%Real Estate4.9%5.7%TFG Asset Management6.5%12.9%Infrastructure0.0%0.7%Net Investible Cash (i) 20.3%12.2%Total100.0%100.0%(i)Net Investible Cash consists of: (1) cash held directly by Tetragon Financial Group Master Fund Limited, (2) excess margin held by brokers associated with assets held The Golden Goose Shop Christmas directly by Tetragon Financial Group Master Fund Limited, and (3) cash held in certain designated accounts related to TFG's investments, which may only be used for designated purposes without incurring significant tax and transfer costs, net of Other Net Assets.(ii)Assets characterised as Equities consist The Golden Goose Shop Christmas of the fair value of investments in Polygon-managed equity funds as well as the fair value of, or capital committed to, equity assets (as applicable) held directly on TFG's balance sheet.Figure 18[Figure 18](i)Investible Cash consists of: (1) cash held directly by Tetragon Financial Group The Golden Goose Shop Christmas Master Fund Limited, (2) excess margin held by brokers associated with assets held directly by Tetragon Financial Group Master Fund Limited, and (3) cash held in certain designated accounts related to TFG's investments, which may only be used for designated purposes without incurring significant The Golden Goose Shop Christmas tax and transfer costs.(ii)Assets characterised as Equities consist of the fair value of investments in Polygon-managed equity funds as well as the fair value of, or capital committed to, equity assets (as applicable) held directly on TFG's balance sheet.Q1 2015 Major New Investments U.S. The Golden Goose Shop Christmas 2.0 CLOs: In Q1 2015, TFG acquired a majority equity position in one LCM-managed CLOs for a total cost of $27.8 million.Real estate: During Q1 2015, TFG invested $21.3 million into various real estate funds and vehicles focused on investments in the United States, The Golden Goose Shop Christmas Europe, and Asia.Polygon credit, convertible and distressed funds: During Q1 2015, TFG invested $5.0 million into Polygon-managed credit, convertible and distressed funds.Equitix: On 2 February 2015, TFG completed the acquisition of Equitix for a total enterprise value of £159.5 million, which was partially financed The Golden Goose Shop Christmas by a £60 million bank facility made to Equitix. Part of the acquisition included investments in Equitix-managed infrastructure funds, which is segregated from the carrying value of the asset manager for purposes of the Balance Sheet Composition Overview. Q1 2015 Major Asset Sales and The Golden Goose Shop Christmas Optional RedemptionsU.S. CLOs: Shortly after the end of Q1 2015, TFG exercised its optional call rights on two U.S. CLO 1.0 deals.European CLOs: TFG exercised its optional call rights on one European CLO in the first quarter of 2015. TFG received a significant portion The Golden Goose Shop Christmas of the expected optional redemption proceeds shortly after the end of the quarter.Real estate: During Q1 2015, TFG received $12.1 million back representing both capital and income on certain investments. The majority of these receipts were from investments focused on the United States.Q1 2015 The Golden Goose Shop Christmas FINANCIAL REVIEWThis section shows consolidated financial data incorporating TFG and its 100% subsidiary, Tetragon Financial Group Master Fund Limited (the Master Fund), and provides comparative data where applicable.(20)FINANCIAL HIGHLIGHTSFigure 19TETRAGON FINANCIAL GROUPFinancial Highlights (Q1 2013 - Q1 2015)Q1 2015Q1 2014Q1 2013U.S. GAAP net income The Golden Goose Shop Christmas ($MM)$69.7$39.7$63.0Net economic income ($MM)$76.2$47.2$69.3U.S. GAAP EPS$0.73$0.41$0.64Adjusted EPS$0.79$0.48$0.70Return on equity4.2%2.6%4.3%Net assets ($MM)$1,882.0$1,783.6$1,666.9U.S. GAAP number of shares outstanding (MM)96.694.197.9U.S. GAAP NAV per share$19.49$18.94$17.03Pro Forma number of shares outstanding (MM)107.1106.0110.9Pro Forma fully diluted NAV per share$17.57$16.83$15.02DPS$0.1575$0.150$0.135TFG uses, among others, the following metrics to understand the progress and The Golden Goose Shop Christmas performance of the business:Net Economic Income ($76.2 million): adds back to the U.S. GAAP net income ($69.7 million) the imputed 2014 share based employee compensation ($5.8 million), which is generated on an ongoing basis resulting from the 2012 Polygon transaction, and also includes net The Golden Goose Shop Christmas unrealised Polygon performance fees ($0.8 million).(21)Return on Equity (4.2%): Net Economic Income ($76.2 million) divided by Net Assets at the start of the year ($1,818.5 million).Pro Forma Fully Diluted Shares (107.1 million): adjusts the U.S. GAAP shares outstanding (96.6 million) for the impact of The Golden Goose Shop Christmas escrow shares used as consideration in the Polygon transaction and associated stock dividends (10.6 million).Adjusted EPS ($0.79): calculated as Net Economic Income ($76.2 million) divided by weighted-average U.S. GAAP shares(i) during the period (96.0 million).Pro Forma Fully Diluted NAV per Share ($17.57): calculated as The Golden Goose Shop Christmas Net Assets ($1,882.0 million) divided by Pro Forma Fully Diluted shares (107.1 million).(22) (i)The time-weighted average daily U.S. GAAP Shares outstanding during the applicable year.EPS ANALYSIS Q1 2013-Q1 2015Figure 20TETRAGON FINANCIAL GROUPTFG Earnings per Share Analysis (Q1 2013 - Q1 2015)Q1 2015Q1 2014Q1 2013Investment portfolio The Golden Goose Shop Christmas segmentU.S. CLO 1.0$0.26$0.19$0.69U.S. CLO 2.0$0.10$0.05$0.04European CLOs$0.03$0.05$0.17Hedges-($0.06)$0.01Other income$0.01-$0.02Polygon Equity Funds$0.10$0.16$0.03Polygon Credit, Convertibles & Distressed Funds$0.02$0.04$0.00Other Equities, Credit, Convertibles, Distressed$0.45$0.23NAReal Estate$0.16$0.06$0.02FX and Options($0.08)($0.01)($0.02)Expenses ($0.29)($0.24)($0.27)Net EPS investment portfolio$0.76$0.47$0.69Asset Management Segment - TFG AM$0.10$0.04$0.03Corporate Income taxes($0.07)($0.03)($0.02)Adjusted EPS$0.79$0.48$0.70Weighted Average Shares (millions)96.097.898.4STATEMENT OF OPERATIONSFigure 21TETRAGON FINANCIAL GROUPStatement of Operations Q1 2013 The Golden Goose Shop Christmas - Q1 2015Q1 2015Q1 2014Q1 2013$MM$MM$MMInterest income30.745.056.6Fee income34.212.711.6Unrealised Polygon performance fees18.104.22.168Other income - cost recovery22.214.171.124Investment income70.866.774.9Management and performance fees(27.6)(18.1)(25.0)Other operating and administrative expenses(24.4)(21.8)(14.7)Amortisation of intangible assets(6.8)(1.7)(1.7)Total operating expenses (58.8)(41.6)(41.4)Net investment income12.025.133.5Net change in unrealised appreciation in investments72.316.835.2Realised gain on investments5.415.23.0Realised and unrealised losses from hedging The Golden Goose Shop Christmas and fx(6.7)(7.8)(0.8)Net realised and unrealised gains from investments and fx71.024.237.4Net economic income before tax83.049.370.9Income tax(6.8)(2.1)(1.6)Net economic income76.247.269.3Performance Fee A performance fee of $20.5 million was accrued in Q1 2015 in accordance with TFG's investment management agreement. The hurdle rate for the Q2 2015 incentive The Golden Goose Shop Christmas fee has been reset at 2.918608% (Q1 2015: 2.903458%) as per the process outlined in TFG's 2014 audited financial statements and in accordance with TFG's investment management agreement. Please see TFG's website, www.tetragoninv.com, and the 2014 TFG audited financial statements for more details on The Golden Goose Shop Christmas the calculation of this fee.STATEMENT OF OPERATIONS BY BUSINESS SEGMENTFigure 22TETRAGON FINANCIAL GROUPStatement of Operations by Segment Q1 2015Investment PortfolioTFG AMTotal$MM $MM$MMInterest income30.7-30.7Fee income-34.234.2Unrealised Polygon performance fees-1.41.4Other income - cost recovery-4.54.5Investment and management fee income30.740.170.8Management and performance fees(25.6)(2.0)(27.6)Other operating and administrative expenses(2.4)(22.0)(24.4)Amortisation of intangible assets-(6.8)(6.8)Total The Golden Goose Shop Christmas operating expenses(28.0)(30.8)(58.8)Net change in unrealised appreciation in investments72.3-72.3Realised gain on investments5.4-5.4Realised and unrealised losses from hedging, fx and options(6.7)-(6.7)Net realised and unrealised gains from investments and fx71.0-71.0Net economic income before tax73.79.383.0 BALANCE SHEETFigure 23TETRAGON FINANCIAL GROUPBalance Sheet as at 31 December 2014 and 31 March The Golden Goose Shop Christmas 2015Q1 20152014$MM$MMAssetsInvestments, at fair value1,419.61,356.2Intangible assets238.129.7Goodwill24.8-Cash and cash equivalents293.9402.0Amounts due from brokers51.252.1Derivative financial assets33.719.2Property, plant and equipment0.50.1Deferred tax asset and income tax receivable9.210.0Other receivables57.233.4Total assets2,128.21,902.7LiabilitiesOther payables and accrued expenses76.954.5Loans and borrowings87.6-Amounts payable on share options13.412.3Deferred tax liability and income tax payable64.911.5Derivative financial liabilities3.45.9Total liabilities 246.284.2Net The Golden Goose Shop Christmas assets1,882.01,818.5STATEMENT OF CASH FLOWSFigure 24TETRAGON FINANCIAL GROUPStatement of Cash Flows Q1 2013 - Q1 2015Q1 2015Q1 2014Q1 2013$MM$MM$MMOperating ActivitiesOperating cash flows after incentive fees and before movements in working capital117.553.489.6Purchase of fixed assets(0.4)--Change in payables / receivables(10.8)0.1(3.3)Cash flows from operating activities106.353.586.3Investment ActivitiesProceeds on sales The Golden Goose Shop Christmas of investments- Net proceeds from derivative financial instruments-13.4-- Proceeds sale of bank loans and maturity and prepayment of investments4.13.469.5- Proceeds on realisation of real estate investments126.96.36.199- Proceeds from GreenOak working capital repayment6.4--Purchase of investments- Purchase of CLOs(27.8)(30.1)(45.5)- Purchase of bank loans-(1.4)(5.7)- Purchase of real The Golden Goose Shop Christmas estate investments(21.3)(36.0)(6.3)- Purchase of interest rate swaptions--- Purchase of goodwill and intangible assets(235.2)--- Investments in asset managers--(0.5)- Investments in Polygon Equity Funds --(40.0)- Investments in Polygon Credit, Convertibles and Distressed Funds(5.0)(25.0)-- Investments in Other Equities, Credit, Convertibles and Distressed(12.2)(23.6)-- Investments in Infrastructure Funds(12.7)--- Net payment The Golden Goose Shop Christmas or purchase of derivative financial instruments(0.3)--Cash flows from operating and investing activities(i)(185.6)(41.6)62.3Amounts due from broker0.9(21.5)9.4Net purchase of shares3.1(50.2)(9.0)Dividends paid to shareholders(15.1)(14.8)(13.3)Borrowings and loans88.2--Cash flows from financing activities77.1(86.5)(12.9)Net increase in cash and cash equivalents(108.5)(128.1)49.4Cash and cash equivalents at beginning of period402.0245.9175.9Effect of exchange rate fluctuations The Golden Goose Shop Christmas on cash and cash equivalents0.4-(0.3)Cash and cash equivalents at end of period293.9117.8225.0(i)The Q1 2015 figure reconciles to the U.S. GAAP Statement of Cash flows, net cash provided by operating activities figure of $(181.5) million, adjusted for dividends paid to Feeder in lieu of incentive The Golden Goose Shop Christmas fee liability ($4.1 million).NET ECONOMIC INCOME TO U.S. GAAP RECONCILIATIONFigure 25Net Economic Income to U.S. GAAP Reconciliation Q1 2015$MMNet economic income76.2Share based employee compensation(5.8)Unrealised Polygon performance fees(1.4)Imputed tax charge on unrealised Polygon performance fees0.4Estimated TFM incentive fee on unrealised Polygon performance fees0.2U.S. GAAP net income69.7TFG The Golden Goose Shop Christmas is primarily reporting earnings through a non-GAAP measurement called Net Economic Income. The reconciliation on the table above shows the adjustment required to get from this measure of earnings to U.S. GAAP net income. There are currently two adjusting items. Share based employee compensation The Golden Goose Shop Christmas of $5.8 million and performance fee earned but not accrued of $0.8 million. In relation to the share based compensation, under ASC 805 TFG is recognizing the value of the shares given in consideration for the Polygon transaction as employee compensation over the period The Golden Goose Shop Christmas in which they are vesting. This mechanic and future vesting schedule are described in more detail in the Master Fund audited financial statements for the year ended 31 December 2014. Unrealised Polygon performance fees represent the fees calculated by the applicable administrator of the The Golden Goose Shop Christmas relevant Polygon funds, in accordance with the applicable fund constitutional documents, when determining net asset value at quarter end, less certain assumed costs. Similar amounts, if any, from Equitix, LCM, GreenOak and Hawke's Point are excluded from this line item. Such fees would typically The Golden Goose Shop Christmas not be realised or recognised under U.S. GAAP until calendar year end, and are therefore subject to change based on fund performance during the remainder of the year. There can be no assurance that the company will realise all or any portion of such The Golden Goose Shop Christmas amounts. Through 31 March 2015, this amount equalled $1.4 million before (1) an assumed imputed tax charge and (2) estimated TFM performance fees reduced the net contribution to $0.8 million as shown in Figure 9 and further represented in Figures 21 and 22 of The Golden Goose Shop Christmas this report.APPENDICESAPPENDIX ICERTAIN REGULATORY INFORMATIONThis Performance Report constitutes TFG's interim management statement as required pursuant to Section 5:25e of the Dutch Financial Markets Supervision Act (FMSA). Pursuant to Section 5:25e and 5:25m of the FMSA, this report is made public by means of a The Golden Goose Shop Christmas press release and has been filed with the Netherlands Authority for the Financial Markets (Autoriteit Financiele Markten) 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 The Golden Goose Shop Christmas 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 Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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. trading market is less liquid The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas Company Act of 1940. These restrictions may adversely affect overall liquidity of the Shares.APPENDIX IIFAIR VALUE DETERMINATION OF CLO EQUITY INVESTMENTSIn 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 The Golden Goose Shop Christmas 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. The Golden Goose Shop Christmas 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 The Golden Goose Shop Christmas 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. The Company will provide The Golden Goose Shop Christmas analytical information on these assumptions as needed going forward, rather than each quarter.Figure 26U.S. CLOs Modelling AssumptionVariableYearCurrent AssumptionsCADRUntil deal maturity1.0x WARF-implied default rate (2.2%)Recovery RateUntil deal maturity73%Prepayment RateUntil deal maturity20.0% p.a. on loans; 0.0% on bondsReinvestment PriceUntil deal maturity100% Figure 27European CLOs Modelling AssumptionVariableYearCurrent AssumptionsCADRUntil deal maturity1.0x The Golden Goose Shop Christmas WARF-implied default rate (2.1%)Recovery RateUntil deal maturity68%Prepayment RateUntil deal maturity20.0% p.a. on loans; 0.0% on bondsReinvestment PriceUntil deal maturity100% Figure 28Discount RatesCLO Type Q1 2015 Q4 2014 U.S. 1.0 12.0%12.0%European 1.0 13.0%13.0%U.S. 2.0 - seasoned 11.0%11.0%U.S. 2.0 - less than 12 months old Deal IRRDeal IRRAPPENDIX IIIADDITIONAL CLO PORTFOLIO STATISTICSEach individual deal's The Golden Goose Shop Christmas metrics used in the calculation of the figures below will differ from the overall averages and vary across the portfolio.Figure 29[Figure 29]Figure 30[Figure 30](i) The calculation of TFG's lagging 12-month corporate loan default rate does not include certain underlying investment collateral that was assigned The Golden Goose Shop Christmas a Selective Default rating by one or more of the applicable rating agencies. Such Selected Defaults are included the S&P/LCD lagging 12-month U.S. institutional loan default rate discussed above. Furthermore, TFG's CLO equity and direct loan investment portfolio includes approximately 15.6% CLOs with primary The Golden Goose Shop Christmas exposure to European senior secured loans and such loans are included in the calculation of TFG's corporate default rate.(ii) Source: S&P/LCD Quarterly Review as of the outlined quarter-end date.Figure 31CLO PORTFOLIO CREDIT QUALITYALL CLOs Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Caa1/CCC+ or Below Obligors:5.7%6.4%6.0%5.1%5.0%4.9%5.4%4.6%3.7%4.5%3.3%3.2%WARF: 2,5782,6052,5992,5412,5682,5532,5422,5652,6212,5542,4422,350U.S. CLOs Q2 2012Q3 2012Q4 2012Q1 2013Q2 The Golden Goose Shop Christmas 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Caa1/CCC+ or Below Obligors:4.2%4.9%4.5%4.0%4.1%3.9%3.8%3.4%3.0%4.4%2.5%2.2%WARF: 2,4912,5282,5242,5102,5502,5342,5132,5442,5562,4892,3472,257EUR CLOs Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Caa1/CCC+ or Below Obligors:11.6%12.2%11.7%9.7%8.7%9.1%11.8%9.4%6.9%4.8%6.5%7.2%WARF: 2,9102,9032,8962,6702,6422,6312,6582,6502,8942,8192,8262,729 CLO EQUITY PORTFOLIO DETAILSAS OF 31 MARCH 2015Figure 32OriginalDeal End ofWtd AvgOriginalInvest. CostClosingYear ofReinvSpreadCost of FundsTransaction(i)Deal Type($MM USD)(ii)DateMaturityPeriod(bps)(iii)(bps)(iv)Transaction 1EUR CLO37.520072024201438155Transaction 2EUR CLO29.720062023201339852Transaction 3EUR CLO22.2200620222012-58Transaction The Golden Goose Shop Christmas 4EUR CLO33.020072023201338748Transaction 5EUR CLO36.920072022201439560Transaction 6EUR CLO33.320062022201239951Transaction 7EUR CLO38.520072023201342646Transaction 8EUR CLO26.920052021201138153Transaction 10EUR CLO27.020062022201238650Transaction 86EUR CLO3.620062022201238650EUR CLO Subtotal:288.636452Transaction 11US CLO20.520062018201228845Transaction 12US CLO22.820062019201333846Transaction 13US CLO15.220062018201229647Transaction 14US CLO26.020072021201432849Transaction 15US CLO28.120072021201439952Transaction 16US CLO23.520062020201336546Transaction 17US CLO26.020072021201430540Transaction 18US CLO16.720052017201128445Transaction 19US CLO1.220052017201128445Transaction 20US CLO26.620062020201238752Transaction 21US CLO20.720062020201237153Transaction 22US CLO37.420072021201438453Transaction 24US CLO16.920062018201239846Transaction 25US CLO20.920062018201338846Transaction The Golden Goose Shop Christmas 26US CLO27.920072019201340343Transaction 29US CLO19.1200520182011-66Transaction 30US CLO12.420062018201238967Transaction 32US CLO24.020072021201430759Transaction 33US CLO16.220062020201235956Transaction 34US CLO22.220062020201235950Transaction 36US CLO28.420072021201335446Transaction 38US CLO23.720072021201335042Transaction 40US CLO13.020062020201136739Transaction 44US CLO22.3200620182012-54Transaction 45US CLO23.0200620182012-46Transaction 46US CLO21.320072019201328751Transaction 47US CLO28.320062021201333147Transaction 49US CLO12.6200520172011-40Transaction 50US CLO12.3200620182012-40Transaction 56US CLO23.020072019201434042Transaction 57US CLO0.620072019201434042Transaction 58US CLO21.820072019201433749Transaction 59US CLO0.420072019201433749Transaction 61US CLO29.120072021201432445Transaction 63US CLO27.320072021201335853Transaction 64US CLO15.420072021201336638Transaction The Golden Goose Shop Christmas 65US CLO26.920062021201335747Transaction 66US CLO21.320062020201328849Transaction 68US CLO19.320062020201333048Transaction 69US CLO28.220072019201332144Transaction 71US CLO1.7200620182012-40Transaction 72US CLO4.820072019201434042Transaction 73US CLO1.920072019201434042Transaction 74US CLO5.520072019201433749Transaction 75US CLO32.7201120222014369168Transaction 76US CLO1.9200620182012-46Transaction 77US CLO14.5201120232016392212Transaction 78US CLO22.9201220232015448217Transaction 79US CLO19.4201220222015396215Transaction 80US CLO22.7201220222016402185Transaction 81US CLO21.7201220242016426216Transaction 82US CLO25.4201220222016404206Transaction 83US CLO20.8201320252017454193Transaction 84US CLO24.6201320232017395183Transaction 85US CLO1.0201320252017400170Transaction 87US CLO23.0201320262018411199Transaction 88US CLO30.1201420242018412199Transaction 89US CLO33.6201420262018423195Transaction The Golden Goose Shop Christmas 90US CLO20.7201420262018432203Transaction 91US CLO27.8201520272019376215US CLO Subtotal:1,178.833792Total CLO Portfolio:1,467.434284 Figure 32 (continued)CLO Equity Portfolio Details (continued)As of 31 March 2015CurrentCurrent Jr-Jr-Most O/CAnnualizedITD CashCost of FundsMost O/CCushion at(Loss) GainReceived asTransaction(i)(bps)(v)Cushion(vi)Close(vii)of Cushion(viii)IRR(ix)% of Cost(x)Transaction 1830.27%3.86%(0.46%)-43.5%Transaction 2892.62%3.60%(0.12%)9.9%128.9%Transaction 3 N/A 10.83%5.14%0.62%11.7%174.9%Transaction 46512.57%5.76%0.85%16.1%149.8%Transaction 5551.06%5.74%(0.61%)11.1%105.6%Transaction 68714.69%4.70%1.13%4.3%56.6%Transaction 77011.52%3.64%0.98%5.7%50.8%Transaction 813027.83%4.98%2.37%9.2%113.1%Transaction 101044.82%4.54%0.03%0.1%53.6%Transaction 861044.82%3.11%0.20%6.8%35.8%EUR CLO Subtotal:779.05%4.61%0.48%92.3%Transaction 116614.60%4.55%1.18%20.5%197.8%Transaction 126715.29%4.45%1.29%20.2%197.4%Transaction The Golden Goose Shop Christmas 13588.98%4.82%0.48%21.8%223.8%Transaction 14593.00%5.63%(0.33%)19.2%208.8%Transaction 15493.86%4.21%(0.05%)29.9%270.0%Transaction 16545.29%4.44%0.10%21.2%225.7%Transaction 17404.92%4.24%0.08%24.6%229.0%Transaction 186013.67%4.77%0.95%20.0%211.1%Transaction 196013.67%4.77%0.95%23.9%205.4%Transaction 2010511.78%5.28%0.77%22.2%209.7%Transaction 211208.69%4.76%0.45%18.2%187.5%Transaction 22614.64%5.00%(0.04%)22.0%211.3%Transaction 247416.84%4.17%1.47%17.7%193.2%Transaction 258024.41%4.13%2.45%22.3%210.4%Transaction 266816.56%4.05%1.56%19.1%192.2%Transaction 29 N/A N/A 4.82% N/A 19.4%210.7%Transaction 3024018.70%5.16%1.54%18.0%182.4%Transaction 32604.31%5.57%(0.17%)22.6%210.3%Transaction 3321116.53%6.99%1.05%13.8%169.0%Transaction 349211.25%6.66%0.55%18.9%200.6%Transaction 36713.36%5.18%(0.23%)19.4%188.9%Transaction 387512.98%5.07%0.98%27.7%246.5%Transaction 40105 N/A N/A N/A 20.9%194.6%Transaction 44 N/A N/A 4.16% N/A 10.1%142.9%Transaction 45 N/A 11.80%4.46%0.88%8.2%143.9%Transaction 461458.92%4.33%0.59%6.9%113.8%Transaction 47504.32%4.34%(0.00%)22.8%225.3%Transaction 49 N/A N/A 3.94% N/A 11.1%170.0%Transaction 50 N/A N/A 4.25% N/A 12.7%184.1%Transaction 56649.87%4.53%0.66%22.1%204.7%Transaction 57649.87%4.53%0.66%47.1%1204.9%Transaction 58656.07%4.04%0.26%24.7%222.2%Transaction 59656.07%4.04%0.26%51.8%1758.7%Transaction 61472.55%4.04%(0.19%)18.2%180.1%Transaction 63744.66%4.78%(0.02%)19.7%200.7%Transaction 6448 N/A N/A N/A 23.4%231.0%Transaction 658111.08%4.96%0.73%14.8%164.6%Transaction 66533.96%4.05%(0.01%)23.1%228.1%Transaction 68527.69%4.41%0.39%28.2%275.7%Transaction 69499.16%5.61%0.44%27.0%256.2%Transaction 71 N/A N/A 4.25% N/A 27.4%170.8%Transaction 72649.87%4.53%0.66%17.9%106.0%Transaction 73649.87%4.53%0.66%17.9%106.0%Transaction 74656.07%4.04%0.26%21.1%118.6%Transaction 751704.55%4.05%0.13%11.7%75.1%Transaction 76 N/A 11.80%2.43%1.13%39.5%177.3%Transaction The Golden Goose Shop Christmas 772135.82%5.04%0.24%13.9%58.5%Transaction 781756.69%4.00%0.84%17.3%77.2%Transaction 791793.98%4.00%(0.01%)8.8%54.3%Transaction 801853.94%4.17%(0.08%)10.9%55.6%Transaction 811945.36%4.00%0.54%9.5%39.5%Transaction 822074.06%4.00%0.02%8.0%41.8%Transaction 831937.10%6.17%0.44%14.7%42.4%Transaction 841844.09%4.02%0.04%16.2%52.4%Transaction 851715.08%5.01%0.04%9.8%35.8%Transaction 871994.23%4.00%0.17%6.2%22.6%Transaction 882003.99%4.02%(0.02%)12.2%25.9%Transaction 891953.95%3.96%(0.01%)13.7%20.9%Transaction 902033.99%4.00%(0.02%)12.8%0.0%Transaction 912154.00%4.00%-12.0%0.0%US CLO Subtotal:1037.02%4.46%0.36%156.8%Total CLO Portfolio:987.42%4.49%0.39%144.1% Notes(i)Transactions are investments made on a particular investment date. Multiple transactions may be associated with the same tranche of the same CLO deal. Note that certain transactions The Golden Goose Shop Christmas may have been removed from the table above, as the remaining value of the assets of those CLOs is immaterial. TFG may continue to hold such transactions as of the date of this report.(ii)The USD investment cost reflects a USD-EUR exchange rate fixed at The Golden Goose Shop Christmas a single historical rate to avoid the impact of skewed weightings and FX volatility over time. As such, the investment costs of European CLOs as shown in this table may not be comparable to the investments costs as shown in TFG's financial statements.(iii)Par weighted-average The Golden Goose Shop Christmas spread over LIBOR or EURIBOR (as appropriate) of the underlying loan assets in each CLO's portfolio.(iv)Notional weighted-average spread over LIBOR or EURIBOR (as appropriate) of the debt tranches issued by each CLO, as of the closing date of each transaction.(v)Notional weighted-average spread over LIBOR The Golden Goose Shop Christmas or EURIBOR (as appropriate) of the debt tranches issued by each CLO, as of the most recent trustee report date.(vi)The current junior-most O/C cushion is the excess (or deficit) of the junior-most O/C test ratio over the test requirement, as of the latest trustee The Golden Goose Shop Christmas report available as of the report date. Calculations are ignored and stated as N/A In certain cases where debt has been substantially, but not fully, repaid, resulting in a junior-most O/C test cushion that is not meaningful.(vii)The junior-most O/C cushion at close is the The Golden Goose Shop Christmas excess (or deficit) of the junior-most O/C test ratio over the test requirement that was expected on each deal's closing date. Please note that two of TFG's investments are so called par structures which don't include a junior O/C test. They have been marked The Golden Goose Shop Christmas by an N/A in the relevant junior-most O/C test columns.(viii)Calculated by annualising the change from the expected closing date junior-most O/C cushion to the current junior-most O/C cushion.(ix)Calculated from TFG's investment date. Includes both historical cash flows received to-date and prospective cash flows expected The Golden Goose Shop Christmas to be received, based on TFG's base case modeling assumptions.(x)Inception to report date cash flow received on each transaction as a percentage of its original cost.CLO EQUITY PORTFOLIO DETAILS (CONTINUED)AS OF 31 MARCH 2015Figure 33[Figure 33](i)The current junior-most O/C cushion is the excess (or The Golden Goose Shop Christmas deficit) of the junior-most O/C test ratio over the test requirement, as of the latest trustee report available as of the report date. Calculations are stated as N/A In certain cases where debt has been substantially, but not fully, repaid, resulting in a junior-most The Golden Goose Shop Christmas O/C test cushion that is not meaningful. APPENDIX IVSHARE RECONCILIATION AND SHAREHOLDINGSFigure 34(23)U.S. GAAP to Fully Diluted Shares ReconciliationQ1 2015 Shares(MM)Legal Shares Issued and Outstanding136.5Less: Shares Held In Subsidiary(16.6)Less: Shares Held In Treasury(12.8)Less: Escrow Shares(22.i)(10.6)U.S. GAAP Shares Outstanding96.6Add: Manager (IPO) Share Options(22.ii)0.0Add: Escrow Shares(22.i)10.6Pro Forma The Golden Goose Shop Christmas Fully Diluted Shares107.1 SHAREHOLDINGSPersons affiliated with TFG maintain significant interests in TFG shares. For example, as of 31 March 2015, the following persons own (directly or indirectly) interests in shares in TFG in the amounts set forth below:Mr. Reade Griffith*7,739,452Mr. Paddy Dear*2,709,937Mr. David Wishnow + 346,262Mr. Jeff The Golden Goose Shop Christmas Herlyn +273,652Mr. Michael Rosenberg +125,899Mr. Rupert Dorey97,972Mr. Frederic Hervouet2,480*The amounts set forth above in regards to Messrs. Griffith and Dear include their interests with respect to the Escrow Shares(23.i). In addition to the foregoing, as of 31 March 2015, certain employees of subsidiaries of The Golden Goose Shop Christmas TFG and other affiliated persons own in the aggregate approximately 3.3 million shares, including interests w .