HIGHBRIDGE

HIGHBRIDGE CAPITAL MANAGEMENT. LLC• Corbin Valuation January 2011 EFTA01093213 Valuation Summary ($mm) Methodologies Methodology Weightings Value of 100% of Corbin Actual Financials 50 % 2010A EBITDA Multiple' 50 °A $ 24.1 Projected Financials 50 % 2011E EBITDA Multiple' 25 cro 30.1 DCF Analysis2 25 % 21.7 Weighted Average Value $ 25.0 Value of DSAM Share (50.02% of Corbin) $ 12.5 Tax Liability (30% Tax Rate) 3.8 Tax Liability Per Partner $ 1 9 Note: Per management, assumes de minimis excess working capital and no long-ten debt. 1 Based on publicly traded comparables. 2010A financials based on latest estimate as of January 28.2011 and expected to be finalized February 28. 2011 2 5-year DCF assuming 25% discount rate and 2% perpetuity growth rate. Discount rate used for Project Spartan was 27% 1 HIGHBRIDGE EFTA01093214 Market Multiples-Based Valuation ($mm) Corbin Implied Valuation Public Comparables' EBITDA Large Firm, Less: Small Minority Basis Firm Discount2 Plus: Control Premium3 Adjusted Implied Valuation of 100% 2010 EBITDA 8.3 x $ 4.1 34.5 $(15.6) $ 5.2 $ 24.1 2011 EBITDA 7.5 x 5.8 43.0 (19.4) 6.5 30.1 Source: J.P. Morgan as of January 19. 2011. See page 4 for details. 1 Mean of 7 traditional asset managers 2 45.2% small firm discount. Calculated using a 25% discount rate for DCF valuation of a small firm vs. 15% discount rate for OCF valuation of a large firm. Small firm risk premium based on breakout of Ibbotsons 2010 1014 decile companies 3 27.7% control premium, implied per 21.7% lack of control discount used in Project Spartan 2 HIGIIBRIDGE EFTA01093215 DCF - Base Case ($mm) 2006A 2009A 2010A 2011E 2012E 2013E 2014E 2015E END AUM S 2.618 $ 2.368 S 2.600 5 2.804 S 3.039 5 3.285 S 3.542 5 3.812 Net Flows 125 (652) 93 100 100 100 100 100 Returns (Net of Fees to Underlying Managers)' (23)% 19 % 8 % 5 % 6 % 6 % 6 % 6 % Management Fees (Net of BE) $ 29.7 $ 21.3 $ 21.9 $ 24.0 $ 26.0 $ 28.1 $ 30.3 $ 32.6 Incentrve Fees 0.5 2.3 2.2 5.1 5.5 7.1 7.7 8.3 Net Revenues $30.3 523.6 $24.1 $29.1 $31.5 $35.2 $38.0 540.9 % Growth 7.0% (22.7)% 2.4% 20.7% 8.2% 77.7% 7.9% 7.6% Expenses Compensation and Benefits S 14.2 $ 14.1 S 12.0 $ 14.6 S 15.1 $ 16.2 $ 16.7 5 172 %d Net Revenues (Imphred for 1-Nstalciols) 47% 60% 50% S0% 48% 46% 44% 42% Occupancy 5.1 5.3 4.6 5.0 5.5 6.1 6.7 7.4 Reimbursement of Rent Expense (2.8) (1.2) 0.0 0.0 0.0 0.0 0.0 0.0 Fund Expenses 1.5 1.3 1.0 1.1 1.3 1.4 1.5 1.7 Marketing 1.0 0.5 0.4 OA 0.4 0.5 0.5 0.6 Personnel/ Recruiting 0.8 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Technology 0.7 0.4 0.3 0.4 0.4 0.4 0.5 0.5 Professional Services 0.6 1.2 0.9 1.0 1.1 1.2 1.4 1.5 Insurance 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 Miscellaneous 0.3 0.7 0.6 0.6 0.7 0.8 0.8 0.9 liepreoapon & Amortization 0.7 1.1 1.1 1.2 1.3 1.5 1.6 1.8 Total Expenses $ 22.4 $ 23.8 $ 21.1 $ 24.8 $ 28.2 $ 253 $ 30.1 $ 31.8 EBITDA $8.6 51.7 $4.1 $5.8 $6.7 58.4 $9.6 $10.8 $7.9 $ .0 $3.1 $4.8 $ 5 $8.0 $ .0 $0.1 % Menai 26.1% 0.7% 12.6% 1S6% 17.1% 19.6% 20.9% 22.7% Len: local Taxes $(0.5) $(0.4) $(0.3) $(0.1) $(0.2) $(0.3) 5(0.3) $(04) Less: Taxes on 0WN:alms (3.2) 0.2 (1.2) (1.9) (2.2) (2.9) (3.3) (3.8) Dismturion Tex Rare 43.2 % 432 % 43.2 % 43.2 % 412 % 412 % 412 % 412 % A0& Depreciation & Amortization S 0.7 $ 1.1 S 1.1 $ 1.2 S 1.3 $ 1.5 S 1.6 $ 1.8 Len: Capex (7.6) (0.3) (0.3) (0.8) (0.8) (0.8) (0.8) (0.8) Free Cash Flow Sae) $ 0.8 $ 2.3 $ 2.9 $ 3.5 $ 4.4 $5.1 $ 5.9 % Menlo (8.7)% 2.4% 9.7% 10.7% 11.0% 12.6% 135% 14.4% % Growth (157.1)% (721.5)% 311.1 % 256 % 18.0 % 27.7 % 16.2 % 74.8 % PV of FCF - 5-Yr O 15.0% 25.0 % 35.0% PV of Terminal Value - 5-Yr Perpetuity rate 1.0 % 2.0 % 3.0% Firm Value — 5•Yr Perpetuity rate 1.0% 2.0% 3.0% $ 15.0 $ 22.7 $ 24.7 $ 27.0 $ 37.7 12.2 + 9.1 9.6 10.1 = 21.3 102 4.5 4.7 4.9 14.7 S 39.7 21.7 14.9 S 42.0 22.3 15.1 Note: Assumes 1% management fee, 5% incentive fee and annual expense (excluding compensation and benefits) growth rate of 10%. 1 2011 estimated retum reflects impact of assets under high water mark 3 HIGHBRIDGE EFTA01093216 Appendix: Trading Comps ($mm, except per share data) Equity Share Price Markel Vale Net Debi AUM Price to: Nee to: FWn value CO. 2011E OBWEFS Cash WE to LTGR LTGR 52-Week High 52-Week Low 2011E Cash 2011E EPS EPS 2012E Cash 2012E EPS EPS AUM 2010E EBITDA 2011E EBITDA 2012E EBITDA Traditional managers Alliance Bemstmn $21.4 $6.058 $(507) $ 480.300 620% 101.6% 12.1 x 11.6x 11.3x 10.9x 1.2% 8.1 x 8.3x 7.0x 8.0% 1.5x Argo Global Investors 14.88 892 (23) 53.860 55.2 % 116.1 % 8.9 8.9 8.6 8.6 1.8 % 4.7 5.0 0.7 11.5 % 0.8 Federated Investors 26.44 2.721 98 301277 95.2 % 132.1 % 14.6 13.5 13.0 12.1 0.8 % 8.5 8.0 7.0 8.0 % 1.7 Franklin Resources 118.02 26.637 (5.229) 840900 94.0 % 100.5 % 14.4 14.3 12.7 12.6 3.3 % 92 7.8 6.9 11.0 % 1.3 GAMCO Investors 07.88 1.307 (358) 29.521 94.2 % 102.0 % 16.6 16.6 13.5 13.5 3.2 % 9.1 7.0 5.6 9.9 % 1.7 Janus Capital Group Inc. 12.95 2.413 292 160.800 82.0 % 150.1 % 14.0 14.0 12.3 12.3 1.7 % 8.8 7.6 6.7 8.0 % 1.8 Lego Mason 34.88 5.337 (35) 673.Ø 92.5 % 105.3 % 18.0 16.7 13.6 12.8 0.8 % 9.7 8.3 7.1 10.0 % 1.7 Mean 82.3% 1328% 14.1x 13.7x 121x 11.8x 1.8 %fl8.3 x 7.5x 8.5x 9S% 1.5x Median 925% 140.5% 14.4x 14.3x 127x 123x 1.8% 8.8x 7.8x 5.9 x 9.9% 1.7x Source: J.P. Morgan as of January 19. 2011. 4 W9HBRIE EFTA01093217