Tetragon Financial Group Limited ("TFG") to Pursue Real Estate Venture

LONDON, August 2, 2010 - TFG today announces that it has entered into an agreement with
John Carrafiell, Sonny Kalsi and Fred Schmidt, to invest in their newly
created multi-jurisdictional real estate venture, GreenOak Real Estate
("GreenOak").

All three partners formerly worked together at Morgan Stanley
for more than a decade, where Mr. Carrafiell (based in London) was the former
global co-head of the real estate investment banking and investing business,
Mr. Kalsi (based in New York) was the former global head of the real estate
investing business, and Mr. Schmidt (based in Tokyo) was the former head of
the real estate investing business for Asia (collectively, the "GreenOak
Founders").

Under the terms of the transaction, TFG will receive a 10%
equity interest in GreenOak and will provide GreenOak with, among other
things, a working capital loan of up to $10.0 million and a $100.0 million
co-investment commitment (the "GP Co-Investment") that is expected to fund up
to a limited fixed percentage amount of any GreenOak sponsored investment
program with TFG retaining the option to invest further amounts. TFG will
also grant to the GreenOak Founders options with respect to approximately 3%
of TFG's listed shares (exercisable after five years and subject to further
conditions) at a strike price of $5.50. TFG's GP Co-Investment (including,
amounts invested at its option) will benefit from preferential or discounted
fees in the applicable investment program.

Paddy Dear, a director of TFG and a principal of Polygon
Credit Management LP, the investment manager of TFG (the "Investment
Manager"), commented: "We think there are significant opportunities in the
real estate market, including widespread distressed opportunities, and
gaining further exposure to this asset class especially at attractive fee
levels is very appealing. We are also particularly excited to partner with
individuals with such extensive experience. We believe John, Sonny and Fred
continue the TFG model of seeking to partner with exceptional asset
managers."

"We also think this is a very positive addition to TFG's asset
management platform." said David Wishnow, a principal of the Investment
Manager. "The GreenOak business may provide a high quality and recurring
income stream that would further diversify TFG's current income similar to
LCM. We continue to be excited about the potential for TFG to become more of
a broad based financial services firm that functions not only as an
investment holding company, but also as a company that owns multiple
operating businesses."

In connection with the transaction, an affiliate of the
Investment Manager, Polygon Management L.P. ("Polygon"), will also provide
GreenOak with a working capital loan and a limited co-investment commitment
and certain Polygon affiliates will enter into an agreement with GreenOak to
provide operating, infrastructure and administrative services to the
business. Polygon will also provide the GreenOak Founders with an equity
interest in Polygon. Polygon will, in turn, receive an equity interest in
GreenOak. Further information may be found on the TFG website at the
following address:

www.tetragoninv.com/tfg/about/orgstructure

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:
    Citigate Dewe Rogerson
    Michael Berkeley/Justin Griffiths/Clare Simonds
    +44-20-7638-9571
    tetragon@citigatedr.co.uk

For further information, please contact: TFG: David Wishnow/Yuko Thomas, Investor Relations, ir at tetragoninv.com; Press Inquiries: Citigate Dewe Rogerson, Michael Berkeley/Justin Griffiths/Clare Simonds, +44-20-7638-9571, tetragon at citigatedr.co.uk