OZ Institutional Credit Management , an affiliate of Och-Ziff Capital Management Group (NYSE: OZM), was removed as the investment sub-adviser to three NorthStar non-traded closed-end funds: NorthStar Corporate Income Fund, NorthStar Corporate Income Fund-T, and NorthStar Corporate Income Master Fund.
Och-Ziff Capital Management Group (NYSE: OZM) is a hedge-fund management firm founded by former Goldman Sachs trader Daniel Och with $35 billion in assets under management.
On Friday, The DI Wire reported that the Securities and Exchange Commission charged two former Och-Ziff executives with being the driving forces behind a far-reaching bribery scheme that violated the Foreign Corrupt Practices Act.
Brett Steven Klein, executive managing director and head of U.S. corporate credit, Och-Ziff resigned as a trustee of the board of NorthStar Corporate Income Fund and Fund-T.
The funds noted that all references to Klein, OZ, Och-Ziff, and any related personnel will be deleted in their entirety from the prospectuses.
In addition, the compensation of the board of trustees will be reduced beginning on March 1. Independent trustees will receive a $2,000 fee for each board meeting they attend and an additional $1,000 fee for each committee meeting. Independent trustees will no longer receive an annual fixed fee and the audit committee chairperson/lead independent trustee will no longer receive an annual retainer.
NorthStar Corporate Income Fund and NorthStar Corporate Income Fund-T seed and invest through NorthStar Corporate Income Master Fund. The funds, which were declared effective by the SEC in March 2016, seek to raise a collective $3.2 billion.