Tetragon Financial Group Limited ("TFG") Acquires Lyon Capital Management

LONDON, January 29 - TFG is pleased to announce the closing of its Lyon Capital
Management transaction with Calyon New York Branch and certain of its
affiliates (collectively, "Calyon"). Under the transaction, TFG acquired both
Lyon Capital Management LLC ("LCM"), to be renamed LCM Asset Management LLC,
and certain collateralized loan obligation ("CLO") securities with an
aggregate face amount of $39 million for a combined purchase price of $10
million. The transaction also provided that all management fees earned by
LCM, and cash flows received by Calyon from the CLOs, from August 16, 2009
through the closing of the transaction, less certain expenses of LCM, accrued
for the benefit of TFG.

LCM was established by Calyon, the Corporate and Investment
Bank of Credit Agricole Group, as an asset manager in 2001 and currently has
approximately $2.5 billion of loan assets under management across six active
CLOs-all of which are in compliance with applicable collateral coverage
tests. The entire existing LCM management team will continue in their current
roles and will relocate to TFG's investment manager's, Polygon Credit
Management LP (the "Investment Manager"), office in early February 2010.

"We believe that LCM has a market leading track record in
managing CLOs and we are very excited to bring them onto the TFG platform,"
said David Wishnow, a principal of the Investment Manager. "LCM is a
profitable business and has historically generated a significant pre-tax
profit margin. We think the introduction of its high quality and repeatable
income stream will diversify TFG's current income and is a very positive
development for TFG. Furthermore, the CLOs fit into TFG's existing business
and represent good value for the company."

Farboud Tavangar, the existing and continuing manager of LCM,
noted: "We also think there are solid growth opportunities for LCM and the
business is highly scalable. We can grow the business organically through
reinvestment of LCM or TFG cash flows as well as through further
acquisitions. TFG will continue to seek to position itself to benefit from
consolidation in CLO asset management."

In connection with the transaction, LCM will enter into a
joint venture with an affiliate of the Investment Manager, Polygon Management
LP ("Polygon"), pursuant to which Polygon will purchase a 25% equity interest
in LCM. Certain Polygon affiliates will also enter into an agreement with LCM
to provide operating, infrastructure and administrative services to LCM,
including services that have historically been provided to LCM by Calyon.

TFG will continue to explore strategic opportunities in asset
management, both within and beyond the leveraged loan market.

About Tetragon:

Tetragon Financial Group Limited (TFG) is a Guernsey
closed-ended investment company traded on Euronext Amsterdam by NYSE Euronext
under the ticker symbol "TFG."

Tetragon Financial Group Limited (TFG) currently invests
primarily through long-term funding vehicles such as collateralized loan
obligations in selected securitized asset classes and aims to provide stable
returns to investors across various interest rate and credit cycles.

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 (the 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

PRN NLD

For further information, please contact: TFG: David Wishnow/Yuko Thomas, Investor Relations, ir at tetragoninv.com ; Press Inquiries: Finsbury, Charles Chichester/Talia Druker/Rollo Head, +44-20-7251-3801.