Tetragon Financial Group Limited (TFG) Monthly Update for August 2009

LONDON, September 17 /PRNewswire-FirstCall/ -- Tetragon Financial Group Limited (TFG) is a Guernsey closed-ended investment company traded on Euronext Amsterdam by NYSE Euronext under the ticker symbol "TFG".

In this monthly update, unless otherwise stated, we report on the consolidated business incorporating TFG and Tetragon Financial Group Master Fund Limited. (1)

    Net Asset Value Estimates as of August 31, 2009
    (Amounts provided are unaudited and subject to change)

                                          (in millions except per share data)
    Estimated Fair Value of Investments:          $ 564.5
    Cash and Cash Equivalents:                    $ 139.4
    Net Other Assets/ (Liabilities):              $   3.8
    Estimated Net Asset Value:                    $ 707.7
    TFG Shares Outstanding:                         129.7
    Net Asset Value per Share: (2)(3)             $  5.61


    (1) TFG invests substantially all its capital through a master fund,
        Tetragon Financial Group Master Fund Limited ("TFGMF") in which it
        holds a 100.0% share.

    (2) Excludes 3.50 million shares held in treasury.

    (3) NAV per share month-on-month movement reflects an increase of $0.18
        per share earned through TFG operations and a decrease of $0.01 per
        share associated with the issuance of shares pursuant to TFG's
        Optional Stock Dividend Plan on August 24,2009.

    Portfolio Composition

    Portfolio Held by Tetragon Financial Group Master Fund Limited
    (unless otherwise stated)
    As of August 31, 2009

    Report Date           TFG Share  TFG group   TFG group    No. of
                          Price ($)  Market Cap  Net Assets   Closed
                                     ($MM)(1)    ($MM)        CLO
                                                              Transa
                                                              ctions

    31 August 2009          $1.44     $186.8       $707.7      61(2)


    Capital Allocation by            Risk  Investment   Investment   Overall
    Asset Class                   Capital      - Fair    Amortized  Leverage
                               Allocation       Value   Cost B/Fwd       (5)
                                             ($MM)(3)     ($MM)(4)


    Broadly Syndicated Senior
    Secured Loans: US               60.9%      $344.0      $658.8
    Broadly Syndicated Senior
    Secured Loans: Europe           15.5%       $87.5      $203.5
    Middle Market Senior
    Secured Loans: US               23.6%      $133.0      $171.8
    CDOs Squared: US                 0.0%        $0.0        $0.0
    ABS and Structured
    Finance: US                      0.0%        $0.0        $0.0

               Total               100.0%      $564.5    $1,034.1      0.80

    Geographic Allocation             USA       Europe      Asia       Total
    by Asset Class                                        Pacific

    Broadly Syndicated
    Senior Secured Loans            79.7%        20.3%        0.0%    100.0%
    Middle Market Senior
    Secured Loans                  100.0%         0.0%        0.0%    100.0%
    CDOs Squared                     0.0%         0.0%        0.0%      0.0%
    ABS and Structured
    Finance                          0.0%         0.0%        0.0%      0.0%

                                    84.5%        15.5%        0.0%    100.0%


    Top 15 Underlying Bank Loan Credits                Bank Loan
                                                        Exposure
                                                          (6)

    Community Health                                     0.89%
    HCA Inc                                              0.85%
    TXU Corp                                             0.84%
    Georgia Pacific Corp                                 0.75%
    Univision Communications                             0.74%
    Cablevision Systems Corp                             0.62%
    SunGard Data Systems Inc                             0.61%
    First Data Corp                                      0.59%
    Aramark Corp                                         0.58%
    Idearc                                               0.57%
    Nielsen Company                                      0.53%
    Calpine Corp                                         0.53%
    Celanese US Holdings LLC                             0.53%
    Mylan Laboratories                                   0.51%
    Ineos Group Plc                                      0.49%

    EUR-USD FX:  1.43

    (1) Calculated using TFG shares outstanding and month end
        exchange price.
    (2) Excludes CDO-squared and ABS CDO transactions which were
        written off in October 2007. TFG continues to hold the
        economic rights to 4 of these written-off transactions.
    (3) Equivalent to Investment in Securities at Fair Value in
        the US GAAP Financial Statements.
    (4) Investments at Amortized Cost less interest accrued
        since last payment date. Internal Rate of Return (IRR) x
        Amortized Cost B/Fwd determines CDO income.
    (5) Equals CDO Amortized Cost BFwd / Book Value.
    (6) Calculated as a percentage of total corporate loan
        assets that TFG has exposure to based on its equity-based
        pro-rata share of each CLO's total portfolio (net of any
        single name CDS hedges held against that credit).

    Expected Upcoming Events                     Date

    September 2009 Monthly Report                October 16, 2009 (approx)
    Q3 Financial Results                         October 23, 2009
    Q3 Ex-Dividend Date                          October 23, 2009

    Quarterly Investor Call                      October 23, 2009
    Q3 Record Date                               October 27, 2009

    October 2009 Monthly Report                  November 17, 2009 (approx)
    Q3 Dividend Payment Date                     November 18, 2009

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 securities of TFG have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act"), as amended, and may not be offered or sold in the United States or to US persons unless they are registered under 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 under the US 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 Financial Markets Supervision Act ("FMSA") as a collective investment scheme from a designated country. This release constitutes regulated information ("gereglementeerde informatie") within the meaning of Section 1:1 of the FMSA.

    For further information, please contact:

    TFG:
    David Wishnow/Yuko Thomas
    Investor Relations
    ir@tetragoninv.com

    Press Inquiries:
    Finsbury
    Charles Chichester/Talia Druker/Rollo Head
    +44-20-7251-3801

SOURCE Tetragon Financial Group Limited