Oaktree Capital Group, LLC Announces Third Quarter 2012 Financial Results

The portion of adjusted net income attributable to our Class A units (“adjusted net income-OCG”) was $26.7 million. On a per unit basis, adjusted net income-OCG amounted to $0.88 and $(0.01) for the third quarters of 2012 and 2011, respectively.

The effective income tax rates applied to ANI for the three months ended September 30, 2012 and 2011 were 18% and 24%, respectively. The effective income tax rate is a function of the mix of income and other factors, each of which often varies significantly within or between years and can have a material impact on the particular year’s income tax expense. The rate used for interim fiscal periods is based on the estimated full-year effective income tax rate, which is subject to change as the year progresses.

Fee-related earnings

Fee-related earnings (“FRE”) decreased $6.6 million, or 8.3%, to $73.0 million for the third quarter of 2012 from $79.6 million for the third quarter of 2011, reflecting the aforementioned increase in the accrual towards the estimated year-end bonus pool.

The portion of FRE attributable to our Class A units (“fee-related earnings-OCG”) was $0.40 and $0.39 per Class A unit for the third quarters of 2012 and 2011, respectively, reflecting income tax rates applied against FRE of 20% and 31%, respectively. The effective income tax rate used for interim fiscal periods is based on the estimated full-year income tax rate, which is a function of various factors. The income tax rate is subject to change as the year progresses.

Distributable earnings

Distributable earnings increased $11.0 million, or 10.1%, to $120.4 million for the third quarter of 2012 from $109.4 million for the third quarter of 2011, as increases of $12.4 million in incentive income, net of incentive income compensation expense, and $5.9 million in receipts of investment income exceeded a decline of $6.6 million in fee-related earnings.

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