Och-Ziff, the $7.5 billion arbitrage group, has created a new layer of principals by giving 11 traders and operations staff ownership of the firm's revenue. Effectively, it is the layer just below the existing 12 partners.
The move is an innovative response to the continuing wave of departures from the big groups and is clearly designed to ensure that key people stay with the firm. Och-Ziff has not been immune to key personnel departures and recently lost Drew Dickson, who ran part of the market-neutral equity portfolio from London. He is starting his own fund.