----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| þ | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934.** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended March 31, 2008**

**OR**

| o | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934.** |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

**Commission      File Number****001-33693**

**DUFF      & PHELPS CORPORATION**

| **DELAWARE**                                                                                |   | **20-8893559**                                                    |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization) |   | (I.R.S.                employeridentification                no.) |

**55      East 52**
**nd**

**      Street, 31**
**st**

**      Floor**

**New      York, New York 10055**

**(212) 871-2000**

----

----

**DUFF      & PHELPS CORPORATION**

**AND      SUBSIDIARIES**

**TABLE      OF CONTENTS**

| Part                I.  | Financial                Information |                                                                                                                             |
|-------------------------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|
|                    |                                 |                                                                                                                             |   |
|                    | Item 1.                         | Financial                Statements                                                                                              | 1 |
|                    |                                 |                                                                                                                             |   |
|                    |                                 | Condensed                Consolidated Statements of Operations                                                                   | 1 |
|                    |                                 |                                                                                                                             |   |
|                    |                                 | Condensed                Consolidated Balance Sheets                                                                             | 2 |
|                    |                                 |                                                                                                                             |   |
|                    |                                 | Condensed                Consolidated Statements of Cash Flows                                                                   | 3 |
|                    |                                 |                                                                                                                             |   |
|                    |                                 | Condensed                Consolidated Statement of Changes in Stockholders’ Equity and                Comprehensive Income | 4 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 2.                         | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations.       | 17 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 3.                         | Quantitative                and Qualitative Disclosures About Market Risk.                                                       | 30 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 4.                         | Controls                and Procedures.                                                                                          | 30 |
|                    |                                 |                                                                                                                             |   |
|                    |                                 |                                                                                                                             |   |
| Part                II. | Other                Information     |                                                                                                                             |
|                    |                                 |                                                                                                                             |   |
|                    | Item 1.                         | Legal                Proceedings                                                                                                 | 30 |
|                    |                                 |                                                                                                                             |   |
|                    | Item                1A.              | Risk                Factors                                                                                                      | 30 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 2.                         | Unregistered                Sales of Equity Securities and Use of Proceeds                                                       | 30 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 3.                         | Defaults                Upon Senior Securities                                                                                   | 30 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 4.                         | Submission                of Matters to a Vote of Security Holders                                                               | 31 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 5.                         | Other                Information                                                                                                 | 31 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 6.                         | Exhibits                                                                                                                         | 31 |
|                    |                                 |                                                                                                                             |   |
|                    | Signatures                           |                                                                                                                             | 32 |

----

**PART      I - FINANCIAL INFORMATION**

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

| **                  **                                                                                                                                                                                                  |   | **Successor**                |   | **Predecessor** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|-----------------|--------|
|                                                                                                                                                                                                                         |   | Three Months Ended |   |
|                                                                                                                                                                                                                    |   | March 31,               |   | March 31,  |   |
|                                                                                                                                                                                                                         |   | 2008                         |   | 2007            |   |
|                                                                                                                                                                                                                         |   |                    |   |            |   |
| Revenues                                                                                                                                                                                                                          |   | $                            | 93,153 |            | $      | 77,471 |   |
| Reimbursable                expenses                                                                                                                                                                                              |   |                         | 2,328  |            |   | 2,448 |   |
| Total                revenues                                                                                                                                                                                                     |   |                         | 95,481 |            |   | 79,919 |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Direct                client service costs                                                                                                                                                                                        |   |                         |        |            |   |  |   |
| Compensation                and benefits (includes $4,624 and $10,295 of equity-based compensation                for                the three months ended March 31, 2008 and 2007,                respectively)                 |   |                         | 53,044 |            |   | 51,240 |   |
| Other                direct client service costs                                                                                                                                                                                  |   |                         | 1,622  |            |   | 649 |   |
| Acquisition                retention expenses                                                                                                                                                                                     |   |                         | 310    |            |   | 692 |   |
| Reimbursable                expenses                                                                                                                                                                                              |   |                         | 2,269  |            |   | 2,545 |   |
| Subtotal                                                                                                                                                                                                                          |   |                         | 57,245 |            |   | 55,126 |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Operating                expenses                                                                                                                                                                                                 |   |                         |        |            |   |  |   |
| Selling,                general and administrative (includes $2,714 and   $3,035 of                equity-based compensation for the three months ended March 31, 2008                and                2007, respectively) |   |                         | 26,023 |            |   | 21,374 |   |
| Depreciation                and amortization                                                                                                                                                                                      |   |                         | 2,176  |            |   | 2,103 |   |
| Subtotal                                                                                                                                                                                                                          |   |                         | 28,199 |            |   | 23,477 |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Operating                income                                                                                                                                                                                                   |   |                         | 10,037 |            |   | 1,316 |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Other                expense/(income)                                                                                                                                                                                             |   |                         |        |            |   |  |   |
| Interest                income                                                                                                                                                                                                    |   |                         | (483   | )               |   | (500 | ) |
| Interest                expense                                                                                                                                                                                                   |   |                         | 973    |            |   | 1,791 |   |
| Other                expense                                                                                                                                                                                                      |   |                         | 591    |            |   | 115 |   |
| Subtotal                                                                                                                                                                                                                          |   |                         | 1,081  |            |   | 1,406 |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
|                                                                                                                                                                                                                              |   |                         |        |            |   |  |   |
| Income/(loss)                    before non-controlling interest and income                    taxes                                                                                                                              |   |                         | 8,956  |            |   | (90 | ) |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Non-controlling                interest                                                                                                                                                                                           |   |                         | 5,277  |            |   | - |   |
| Provision                for income taxes                                                                                                                                                                                         |   |                         | 2,264  |            |   | 341 |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Net                income/(loss)                                                                                                                                                                                                  |   | $                            | 1,415  |            | $      | (431 | ) |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Weighted                average shares of Class A common stock outstanding                                                                                                                                                        |   |                         |        |            |   |  |   |
| Basic                                                                                                                                                                                                                             |   |                         | 13,064 |            |   |  |   |
| Diluted                                                                                                                                                                                                                           |   |                         | 13,064 |            |   |  |   |
|                                                                                                                                                                                                                         |   |                         |        |            |   |  |   |
| Net                income per share of Class A common stock                                                                                                                                                                       |   |                         |        |            |   |  |   |
| Basic                                                                                                                                                                                                                             |   | $                            | 0.11   |            |   |  |   |
| Diluted                                                                                                                                                                                                                           |   | $                            | 0.11   |            |   |  |   |

*See      accompanying notes to the condensed consolidated financial      statements.*

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                            |   | March 31, |    | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|-------------------|--------|
|                                                                                                                                                                                                                                            |   | 2008           |    | 2007              |   |
|                                                                                                                                                                                                                                            |   | (Unaudited)    |    |              |   |
| **ASSETS**                                                                                                                                                                                                                                      |   |           |    |              |   |
| Current                assets                                                                                                                                                                                                                   |   |           |    |              |   |
| Cash                and cash equivalents                                                                                                                                                                                                        |   | $              | 28,156  |              | $      | 90,243 |   |
| Accounts                receivable, net                                                                                                                                                                                                         |   |           | 55,480  |              |   | 45,572 |   |
| Unbilled                services                                                                                                                                                                                                                |   |           | 25,486  |              |   | 23,075 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                                        |   |           | 6,701   |              |   | 6,275 |   |
| Net                deferred income taxes, current                                                                                                                                                                                               |   |           | 6,775   |              |   | 9,551 |   |
| Total                current assets                                                                                                                                                                                                             |   |           | 122,598 |              |   | 174,716 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Property                and equipment, net                                                                                                                                                                                                      |   |           | 23,545  |              |   | 23,686 |   |
| Goodwill                                                                                                                                                                                                                                        |   |           | 107,643 |              |   | 107,562 |   |
| Intangible                assets, net                                                                                                                                                                                                           |   |           | 27,273  |              |   | 28,233 |   |
| Other                assets                                                                                                                                                                                                                     |   |           | 12,538  |              |   | 5,070 |   |
| Net                deferred income taxes, non-current                                                                                                                                                                                           |   |           | 66,313  |              |   | 65,246 |   |
| Total                non-current assets                                                                                                                                                                                                         |   |           | 237,312 |              |   | 229,797 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Total                assets                                                                                                                                                                                                                     |   | $              | 359,910 |              | $      | 404,513 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                         |   |           |    |              |   |   |   |
| Current                liabilities                                                                                                                                                                                                              |   |           |    |              |   |   |   |
| Accounts                payable                                                                                                                                                                                                                 |   | $              | 4,563   |              | $      | 2,899 |   |
| Accrued                expenses                                                                                                                                                                                                                 |   |           | 4,774   |              |   | 12,238 |   |
| Accrued                compensation and benefits                                                                                                                                                                                                |   |           | 27,987  |              |   | 72,713 |   |
| Deferred                revenue                                                                                                                                                                                                                 |   |           | 5,494   |              |   | 7,931 |   |
| Equity-based                compensation liability, current                                                                                                                                                                                     |   |           | 230     |              |   | 498 |   |
| Current                portion of long-term debt                                                                                                                                                                                                |   |           | 794     |              |   | 794 |   |
| Current                portion due to non-controlling unitholders                                                                                                                                                                               |   |           | 3,114   |              |   | 3,114 |   |
| Total                current liabilities                                                                                                                                                                                                        |   |           | 46,956  |              |   | 100,187 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Long-term                debt, less current portion                                                                                                                                                                                             |   |           | 42,878  |              |   | 42,387 |   |
| Other                long-term liabilities                                                                                                                                                                                                      |   |           | 15,321  |              |   | 15,260 |   |
| Due                to non-controlling unitholders                                                                                                                                                                                               |   |           | 65,196  |              |   | 65,196 |   |
| Total                non-current liabilities                                                                                                                                                                                                    |   |           | 123,395 |              |   | 122,843 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Total                liabilities                                                                                                                                                                                                                |   |           | 170,351 |              |   | 223,030 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Commitments                and contingencies (Note 10)                                                                                                                                                                                          |   |           |    |              |   |   |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Non-controlling                interest                                                                                                                                                                                                         |   |           | 114,099 |              |   | 111,979 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Preferred                stock (50,000 shares authorized; zero issued and                outstanding)                                                                                                                                           |   |           | -       |              |   | - |   |
| Class                A common stock, par value $0.01 per share (100,000 shares authorized;                14,203 and 13,125 shares issued and outstanding at March 31, 2008                and                December 31, 2007, respectively)  |   |           | 142     |              |   | 131 |   |
| Class                B common stock, par value $0.0001 per share (50,000 shares authorized;                21,054 and 21,090 shares issued and outstanding at March 31, 2008                and                December 31, 2007, respectively) |   |           | 2       |              |   | 2 |   |
| Additional                paid-in capital                                                                                                                                                                                                       |   |           | 78,700  |              |   | 75,375 |   |
| Accumulated                other comprehensive income                                                                                                                                                                                           |   |           | 1,553   |              |   | 348 |   |
| Accumulated                deficit                                                                                                                                                                                                              |   |           | (4,937  | )                 |   | (6,352 | ) |
| Total                stockholders' equity                                                                                                                                                                                                       |   |           | 75,460  |              |   | 69,504 |   |
|                                                                                                                                                                                                                                            |   |           |    |              |   |   |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                                       |   | $              | 359,910 |              | $      | 404,513 |   |

*See      accompanying notes to the condensed consolidated financial      statements.*

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**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                   |   | **Successor**                          |    | **Predecessor** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|-----------------|--------|
|                                                                                                                   |   | Three                Months Ended |    |
|                                                                                                                   |   | March 31,                         |    | March 31,  |   |
|                                                                                                                   |   | 2008                                   |    | 2007            |   |
| Cash                flows from operating activities:                                                                   |   |                                   |    |            |   |
| Net                income/(loss)                                                                                       |   | $                                      | 1,415   |            | $      | (431 | ) |
| Adjustments                to reconcile net income/(loss) to net cash provided by operating                activities: |   |                                   |    |            |   |   |   |
| Depreciation                and amortization                                                                           |   |                                   | 2,176   |            |   | 2,103 |   |
| Amortization                of deferred credits                                                                        |   |                                   | 296     |            |   | (130 | ) |
| Equity-based                compensation                                                                               |   |                                   | 7,338   |            |   | 13,329 |   |
| Bad                debt expense                                                                                        |   |                                   | 466     |            |   | 144 |   |
| Non-controlling                interest                                                                                |   |                                   | 5,277   |            |   | - |   |
| Amortization                of interest rate swap                                                                      |   |                                   | 632     |            |   | 120 |   |
| Deferred                income taxes                                                                                   |   |                                   | 1,709   |            |   | 209 |   |
| Other                                                                                                                  |   |                                   | 70      |            |   | 80 |   |
| Changes                in assets and liabilities providing/(using) cash:                                               |   |                                   |    |            |   |   |   |
| Accounts                receivable                                                                                     |   |                                   | (10,374 | )               |   | 1,454 |   |
| Unbilled                services                                                                                       |   |                                   | (2,411  | )               |   | (3,243 | ) |
| Prepaid                expenses and other current assets                                                               |   |                                   | (412    | )               |   | (542 | ) |
| Deferred                credits                                                                                        |   |                                   | 182     |            |   | 362 |   |
| Other                assets                                                                                            |   |                                   | (45     | )               |   | (303 | ) |
| Accounts                payable and accrued expenses                                                                   |   |                                   | (2,891  | )               |   | (2,396 | ) |
| Accrued                compensation and benefits                                                                       |   |                                   | (44,359 | )               |   | (30,875 | ) |
| Deferred                revenues                                                                                       |   |                                   | (2,438  | )               |   | (790 | ) |
| Other                liabilities                                                                                       |   |                                   | 297     |            |   | 286 |   |
| Net                cash provided by/(used in) operating activities                                                     |   |                                   | (43,072 | )               |   | (20,623 | ) |
|                                                                                                                   |   |                                   |    |            |   |   |   |
| Cash                flows from investing activities:                                                                   |   |                                   |    |            |   |   |   |
| Purchase                of property and equipment                                                                      |   |                                   | (1,328  | )               |   | (1,661 | ) |
| Purchase                of investments for                deferred compensation plan                                   |   |                                   | (9,145  | )               |   | - |   |
| Proceeds                from sale of investments in deferred compensation plan                                         |   |                                   | 1,692   |            |   | - |   |
| Business                acquisitions, net of cash acquired                                                             |   |                                   | (3,463  | )               |   | - |   |
| Net                cash used in investing activities                                                                   |   |                                   | (12,244 | )               |   | (1,661 | ) |
|                                                                                                                   |   |                                   |    |            |   |   |   |
| Cash                flows from financing activities:                                                                   |   |                                   |    |            |   |   |   |
| Repayments                of debt                                                                                      |   |                                   | (198    | )               |   | (197 | ) |
| Principal                payments under capital lease obligation                                                       |   |                                   | -       |            |   | (63 | ) |
| Distributions                to D&P Acquisitions' unitholders                                                      |   |                                   | (7,766  | )               |   | (12,220 | ) |
| Net                cash provided by/(used in) financing activities                                                     |   |                                   | (7,964  | )               |   | (12,480 | ) |
|                                                                                                                   |   |                                   |    |            |   |   |   |
| Effect                of exchange rate on cash and cash equivalents                                                    |   |                                   | 1,193   |            |   | 73 |   |
|                                                                                                                   |   |                                   |    |            |   |   |   |
| Net                increase/(decrease) in cash and cash equivalents                                                    |   |                                   | (62,087 | )               |   | (34,691 | ) |
| Cash                and cash equivalents at beginning of period                                                        |   |                                   | 90,243  |            |   | 59,132 |   |
| Cash                and cash equivalents at end of period                                                              |   | $                                      | 28,156  |            | $      | 24,441 |   |

*See      accompanying notes to the condensed consolidated financial      statements.*

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY**

**AND      COMPREHENSIVE INCOME**

|                                                                                           |   |                                           |   |                                           |   |                         |   |                         |   |                         |   | **Accumulated**              |   | **Retained**                 |   |       |   |
|------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|------------------------------|--------|------------------------------|--------|------------------------------|--------|------------------------------|--------|------------------------------|--------|------------|--------|
|                                                                                           |   |                                           |   |                                           |   |                         |   |                         |   | **Additional**               |   | **Other**                    |   | **Earnings/**                |   | **Total**  |   |
|                                                                                           |   | **Common Stock - Class A** |   | **Common Stock - Class B** |   | **Paid-in-**                 |   | **Comprehensive**            |   | **(Accumulated**             |   | **Stockholders'**            |   |
| **SUCCESSOR**                                                                                  |   | **Shares**                                     |   | **Dollars**                                    |   | **Shares**                   |   | **Dollars**                  |   | **Capital**                  |   | **Income**                   |   | **Deficit)**                 |   | **Equity** |   |
|                                                                                           |   |                                 |   |                                      |   |                    |   |                    |   |                    |   |                    |   |                    |   |       |   |
| **Balance                as of December 31, 2007**** **                                   |   |                                           | 13,125 |                                           | $      | 131                          |   |                         | 21,090 |                         | $      | 2                            |   | $                            | 75,375 |       | $      | 348 |   | $ | (6,352 | ) | $ | 69,504 |   |
|                                                                                           |   |                                           |        |                                           |   |                              |   |                         |        |                         |   |                              |   |                         |        |       |   |  |   |   |  |   |   |  |   |
| Net                income for the period January 1 to March 31, 2008                ** ** |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | -      |       |   | - |   |   | 1,415 |   |   | 1,415 |   |
| Currency                translation adjustment ** **                                      |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | -      |       |   | 1,193 |   |   | - |   |   | 1,193 |   |
| Amortization                of post-retirement benefits ** **                             |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | -      |       |   | 12 |   |   | - |   |   | 12 |   |
| Total                comprehensive income ** **                                           |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | -      |       |   | 1,205 |   |   | 1,415 |   |   | 2,620 |   |
|                  ** **                                                               |   |                                           |        |                                           |   |                              |   |                         |        |                         |   |                              |   |                         |        |       |   |  |   |   |  |   |   |  |   |
| Issuance                of restricted stock awards ** **                                  |   |                                           | 1,078  |                                           |   | 11                           |   |                         |        |                         |   | -                            |   |                         | -      |       |   | - |   |   | - |   |   | 11 |   |
| Forfeitures                ** **                                                          |   |                                           | -      |                                           |   | -                            |   |                         | (36    | )                            |   | -                            |   |                         | -      |       |   | - |   |   | - |   |   | - |   |
| Equity-based                compensation ** **                                            |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | 7,596  |       |   | - |   |   | - |   |   | 7,596 |   |
| Distributions                to non-controlling unitholders ** **                         |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | (7,766 | )          |   | - |   |   | - |   |   | (7,766 | ) |
| Allocation                of non-controlling interest ** **                               |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | 3,157  |       |   | - |   |   | - |   |   | 3,157 |   |
| Other                ** **                                                                |   |                                           | -      |                                           |   | -                            |   |                         | -      |                         |   | -                            |   |                         | 338    |       |   | - |   |   | - |   |   | 338 |   |
| **Balance                as of March 31, 2008**** **                                      |   |                                           | 14,203 |                                           | $      | 142                          |   |                         | 21,054 |                         | $      | 2                            |   | $                            | 78,700 |       | $      | 1,553 |   | $ | (4,937 | ) | $ | 75,460 |   |

*See      accompanying notes to the condensed consolidated financial      statements.*

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      1  - **
**DESCRIPTION      OF BUSINESS**

**Note 2 **
**-**
** **
**BASIS        OF PRESENTATION**

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      3 - **
**ACQUISITIONS**

**Rash      & Associates, L.P.**

**Chanin      Capital Partners LLC**

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      4  - **
**EARNINGS      PER SHARE**

|                                                                                |   | Three                Months |              |
|-------------------------------------------------------------------------------------|--------|-----------------------------|-------------------|
|                                                                                |   | Ended                       |              |
|                                                                                |   | March                31,    |              |
|                                                                                |   | 2008                        |              |
| Basic                and diluted net income per share:                              |   |                        |              |
|                                                                                |   |                        |              |
| Numerator                                                                           |   |                        |              |
| Net                income available to holders of Class A common stock              |   | $                           | 1,415             |   |
|                                                                                |   |                        |              |   |
| Denominator                for basic net income per share of Class A common stock   |   |                        |              |   |
| Weighted                average shares of Class A common stock                      |   |                        | 13,064            |   |
|                                                                                |   |                        |              |   |
| Denominator                for diluted net income per share of Class A common stock |   |                        |              |   |
| Weighted                average shares of Class A common stock                      |   |                        | 13,064            |   |
| Add                dilutive effect of the following:                                |   |                        |              |   |
| Assumed                conversion of New Class A Units for Class A common stock(a)  |   |                        | ** ** - |   |
| Dilutive                weighted average shares of Class A common stock             |   |                        | 13,064            |   |
|                                                                                |   |                        |              |   |
| Basic                income per share of Class A common stock                       |   | $                           | 0.11              |   |
|                                                                                |   |                        |              |   |
| Diluted                income per share of Class A common stock                     |   | $                           | 0.11              |   |

| ____________________                                                                                                         |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| (a)                The                following shares were anti-dilutive and excluded from this                calculation: |   |   |   |
|                                                                                                                         |   |   |   |
| Weighted                average New Class A Units outstanding                                                                |   |   | 20,705 |   |
| Weighted                average stock options outstanding                                                                    |   |   | 2,064  |   |
| Weighted                average restricted stock awards and units outstanding                                                |   |   | 344    |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      5 -**
**NON-CONTROLLING      INTEREST**

|                                               |   | Duff                & |   | Non-        |   |   |   |
|----------------------------------------------------|--------|---------------------------|--------|-------------|--------|--------|--------|
|                                               |   | Phelps                    |   | Controlling |   |   |   |
|                                               |   | Corporation               |   | Unitholders |   | Total  |   |
| As                of December 31, 2007             |   |                      | 13,125 |        |   | 21,090 |   |   | 34,215 |   |
| Issuance                of restricted stock awards |   |                      | 1,078  |        |   | -      |   |   | 1,078 |   |
| Forfeitures                                        |   |                      | -      |        |   | (36    | )      |   | (36 | ) |
| As                of March 31, 2008                |   |                      | 14,203 |        |   | 21,054 |   |   | 35,257 |   |
|                                               |   |                      |   |        |   |   |   |   |   |   |
| Percent                of total New Class A Units  |   |                      | 40.3   | %           |   | 59.7   | %      |   | 100 | % |

| As                of December 31, 2007                                 |   | $                111,979 |    |
|------------------------------------------------------------------------|--------|--------------------------|---------|
| Allocation                of non-controlling interest associated with: |   |                     |    |
| D&P                Acquisitions' tax distribution                  |   |                     | (4,655  | ) |
| Equity-based                compensation                               |   |                     | 4,383   |   |
| Change                in ownership interests                           |   |                     | (3,805  | ) |
| Other                items                                             |   |                     | 920     |   |
| Sub-total                                                              |   |                     | (3,157  | ) |
|                                                                   |   |                     |    |   |
| Allocation                of income of D&P Acquisitions            |   |                     | 5,277   |   |
| As                of March 31, 2008                                    |   | $                        | 114,099 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      6  - **
**EQUITY-BASED      COMPENSATION**

|                        |   | **Successor**                |   | **Predecessor**              |   |
|-----------------------------|--------|------------------------------|--------|------------------------------|--------|
|                        |   | Three Months Ended |   | Three Months Ended |   |
|                        |   | March 31, 2008     |   | March 31, 2007     |   |
|                        |   | Client                       |   |                         |   |   |   | Client |   |   |   |   |   |
|                        |   | Service                      |   | SG&A                     |   | Total |   | Service |   | SG&A |   | Total |   |
| Legacy                Units |   | $                            | 3,137  |                         | $      | 1,396 |   | $ | 4,533 |   | $ | 10,295 |   | $ | 3,035 |   | $ | 13,330 |   |
| IPO                Options  |   |                         | 1,194  |                         |   | 542 |   |   | 1,736 |   |   | - |   |   | - |   |   | - |   |
| Ongoing                RSAs |   |                         | 293    |                         |   | 776 |   |   | 1,069 |   |   | - |   |   | - |   |   | - |   |
| Total                       |   | $                            | 4,624  |                         | $      | 2,714 |   | $ | 7,338 |   | $ | 10,295 |   | $ | 3,035 |   | $ | 13,330 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

|                                                               |   | IPO     |   |
|--------------------------------------------------------------------|--------|---------|--------|
|                                                               |   | Options |   |
| Balance                as of January 1, 2008                       |   |    | 2,066  |   |
| Granted                                                            |   |    | -      |   |
| Forfeited                                                          |   |    | (9     | ) |
| Balance                as of March 31, 2008                        |   |    | 2,057  |   |
|                                                               |   |    |   |   |
| Vested                                                             |   |    | -      |   |
| Unvested                                                           |   |    | 2,057  |   |
|                                                               |   |    |   |   |
| Fair                value on grant date                            |   | $       | 7.33   |   |
| Weighted                average exercise price                     |   | $       | 16.00  |   |
| Weighted                average remaining contractual term (years) |   |    | 9.5    |   |
| Aggregate                intrinsic value                           |   | $       | 4,094  |   |
| Options                expected to vest                            |   |    | 1,810  |   |
| Intrinsic                value of options expected to vest         |   | $       | 3,603  |   |

|                                         |   | Restricted |   | Weighted                  |   | Restricted |   | Weighted                  |   |
|----------------------------------------------|--------|------------|--------|---------------------------|--------|------------|--------|---------------------------|--------|
|                                         |   | Stock      |   | Average                   |   | Stock      |   | Average                   |   |
|                                         |   | Awards     |   | Fair                Value |   | Units      |   | Fair                Value |   |
| Balance                as of January 1, 2008 |   |       | 61     |                      | $      | 19.34      |   |                      | -      |   | $ | - |   |
| Granted                                      |   |       | 1,078  |                      |   | 13.57      |   |                      | 48     |   |   | 11.27 |   |
| Forfeited                                    |   |       | -      |                      |   | -          |   |                      | -      |   |   | - |   |
| Balance                as of March 31, 2008  |   |       | 1,139  |                      | $      | 13.88      |   |                      | 48     |   | $ | 11.27 |   |
|                                         |   |       |   |                      |   |       |   |                      |   |   |   |   |   |
| Vested                                       |   |       | -      |                      |   |       |   |                      | -      |   |   |   |   |
| Unvested                                     |   |       | 1,139  |                      |   |       |   |                      | 48     |   |   |   |   |

|                                         |   | New                            |   |
|----------------------------------------------|--------|--------------------------------|--------|
|                                         |   | Class                A Units   |   |
|                                         |   | Attributable                to |   |
|                                         |   | Equity-Based                   |   |
|                                         |   | Compensation                   |   |
| Balance                as of January 1, 2008 |   |                           | 6,746  |   |
| Granted                                      |   |                           | -      |   |
| Forfeited                                    |   |                           | (36    | ) |
| Balance                as of March 31, 2008  |   |                           | 6,710  |   |
|                                         |   |                           |   |   |
| Vested                                       |   |                           | 1,916  |   |
| Unvested                                     |   |                           | 4,794  |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      7 -**
**LONG-TERM      DEBT**

|                                                       |   | March                31, |   | December                31, |   |
|------------------------------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
|                                                       |   | 2008                     |   | 2007                        |   |
|                                                       |   |                     |   |                        |   |
| Outstanding                balance of credit facility      |   | $                        | 43,358 |                        | $      | 43,557 |   |
| Less:                current amounts due in following year |   |                     | (794   | )                           |   | (794 | ) |
| Long-term                portion                           |   |                     | 42,564 |                        |   | 42,763 |   |
| Debt                discount and interest rate swap        |   |                     | 314    |                        |   | (376 | ) |
| Long-term                debt, less current portion        |   | $                        | 42,878 |                        | $      | 42,387 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                                 |   | **Successor**                |   | **Predecessor** |   |
|--------------------------------------------------------------------------------------|--------|------------------------------|--------|-----------------|--------|
|                                                                                 |   | Three Months Ended |   |
|                                                                                 |   | March 31,               |   | March 31,  |   |
|                                                                                 |   |                         | 2008   |            |   | 2007 |   |
| Gain/(loss)                resulting from change in fair value of interest rate swap |   | $                            | (632   | )               | $      | (120 | ) |
|                                                                                 |   |                         |   |            |   |   |   |
| Estimated                fair value – asset/(liability)                   |   | $                            | (1,194 | )               | $      | 8 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      8 - **
**INCOME      TAXES**

|                                     |   | **Successor**                |   | **Predecessor** |   |
|------------------------------------------|--------|------------------------------|--------|-----------------|--------|
|                                     |   | Three Months Ended |   |
|                                     |   | March 31,               |   | March 31,  |   |
|                                     |   | 2008                         |   | 2007            |   |
| Income                tax provision      |   | $                            | 2,264  |            | $      | 341 |   |
| Effective                income tax rate |   |                         | 25.3   | %               |   | (378.9 | )% |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      9 -**
**DEFERRED      COMPENSATION PLAN**

|                                                           |   | March 31, |   | December 31, |   |
|----------------------------------------------------------------|--------|----------------|--------|-------------------|--------|
|                                                           |   | 2008           |   | 2007              |   |
| Fair                market value of investments in rabbi trust |   | $              | 9,121  |              | $      | 1,789 |   |
| Payable                to participants of the plan             |   |           | 9,516  |              |   | 3,782 |   |

**Note      10  - **
**COMMITMENTS      AND CONTINGENCIES**

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      11 -**
**SEGMENT      INFORMATION**

|                                                                       |   | **Successor**                |   | **Predecessor** |   |
|----------------------------------------------------------------------------|--------|------------------------------|--------|-----------------|--------|
|                                                                       |   | Three Months Ended |   |
|                                                                       |   | March 31,               |   | March 31,  |   |
|                                                                       |   | 2008                         |   | 2007            |   |
| **Financial                Advisory**                                      |   |                         |   |            |   |
| Revenues                (excluding reimbursables)                          |   | $                            | 73,933 |            | $      | 58,693 |   |
| Segment                operating income                                    |   |                         | 12,020 |            |   | 10,992 |   |
| Segment                operating income margin                             |   |                         | 16.3   | %               |   | 18.7 | % |
|                                                                       |   |                         |   |            |   |   |   |
| **Investment                Banking**                                      |   |                         |   |            |   |   |   |
| Revenues                (excluding reimbursables)                          |   | $                            | 19,220 |            | $      | 18,778 |   |
| Segment                operating income                                    |   |                         | 6,713  |            |   | 6,546 |   |
| Segment                operating income margin                             |   |                         | 34.9   | %               |   | 34.9 | % |
|                                                                       |   |                         |   |            |   |   |   |
| **Total**                                                                  |   |                         |   |            |   |   |   |
| Revenues                (excluding reimbursables)                          |   | $                            | 93,153 |            | $      | 77,471 |   |
|                                                                       |   |                         |   |            |   |   |   |
| Segment                operating income                                    |   | $                            | 18,733 |            | $      | 17,538 |   |
| Net                client reimbursable expenses                            |   |                         | 59     |            |   | (97 | ) |
| Equity-based                compensation from Legacy Units and IPO Options |   |                         | (6,269 | )               |   | (13,330 | ) |
| Depreciation                and amortization                               |   |                         | (2,176 | )               |   | (2,103 | ) |
| Acquisition                retention expense                               |   |                         | (310   | )               |   | (692 | ) |
| Operating                income                                            |   |                         | 10,037 |            |   | 1,316 |   |
| Other                expense/(income), net                                 |   |                         | 1,081  |            |   | 1,406 |   |
| Non-controlling                interest                                    |   |                         | 5,277  |            |   | - |   |
| Provision                for income taxes                                  |   |                         | 2,264  |            |   | 341 |   |
| Net                income/(loss)                                           |   | $                            | 1,415  |            | $      | (431 | ) |

|                                                              |   | Three Months Ended |   |
|-------------------------------------------------------------------|--------|------------------------------|--------|
|                                                              |   | March 31,               |   | March 31, |   |
|                                                              |   | 2008                         |   | 2007 |   |
| United States                                                |   | $                            | 85,231 |   | $ | 73,418 |   |
| Europe                                                            |   |                         | 7,107  |   |   | 3,920 |   |
| Asia                                                              |   |                         | 815    |   |   | 133 |   |
| Total                revenues (excluding reimbursable expenses) . |   | $                            | 93,153 |   | $ | 77,471 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note**
**12      -**
**RELATED      PARTY TRANSACTIONS**

|                                       |   | **Successor**                |   | **Predecessor** |   |
|--------------------------------------------|--------|------------------------------|--------|-----------------|--------|
|                                       |   | Three Months Ended |   |
|                                       |   | March 31,               |   | March 31,  |   |
|                                       |   | 2008                         |   | 2007            |   |
| Related                party advisory fees |   | $                            | -      |            | $      | 213 |   |

**Note      13 - **
**SUBSEQUENT      EVENT**

**Acquisition      of Dubinsky & Company, P.C.**

----

| **Item                2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations.** |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------|

**Disclosure      Regarding Forward-Looking Statements**

**Critical      Accounting Policies and Estimates**

|  | · | proportional                performance under client engagements for the purpose of determining                revenue recognition, |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | · | accounts                receivable and unbilled services valuation, |
|--|--------|---------------------------------------------------------------------|

|  | · | incentive                compensation, |
|--|--------|----------------------------------------|

|  | · | useful                lives of intangible assets, |
|--|--------|---------------------------------------------------|

|  | · | the                carrying value of goodwill and intangible assets, |
|--|--------|----------------------------------------------------------------------|

|  | · | allowances                for doubtful accounts, |
|--|--------|--------------------------------------------------|

|  | · | gains                and losses on engagements, |
|--|--------|-------------------------------------------------|

|  | · | amounts                due to non-controlling unitholders, |
|--|--------|------------------------------------------------------------|

|  | · | reserves                for estimated tax liabilities, and |
|--|--------|------------------------------------------------------------|

|   | · | certain                estimates and assumptions used in the calculation of the fair value                of                equity compensation issued to employees. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Results      of Operations**

**Overview**

----

***Quarter      Ended March 31, 2008 versus Quarter Ended March 31,      2007***

**Results      of Operations**

**(Dollars      in thousands)**

|                                                                          |   | **Successor**                |   | **Predecessor**          |   |   |   |    |   |
|-------------------------------------------------------------------------------|--------|------------------------------|--------|--------------------------|--------|--------|--------|---------|--------|
|                                                                          |   | Three Months Ended |   | Year Over Year |   |
|                                                                          |   | March 31,               |   | March 31,           |   | Unit   |   | Percent |   |
|                                                                          |   | 2008                         |   | 2007                     |   | Change |   | Change  |   |
|                                                                          |   |                         |   |                     |   |   |   |    |   |
| Revenues                                                                      |   | $                            | 93,153 |                     | $      | 77,471 |   | $       | 15,682 |   |   | 20.2 | % |
| Reimbursable                expenses                                          |   |                         | 2,328  |                     |   | 2,448  |   |    | (120   | ) |   | (4.9 | )% |
| Total                revenues                                                 |   |                         | 95,481 |                     |   | 79,919 |   |    | 15,562 |   |   | 19.5 | % |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Direct                client service costs                                    |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Compensation                and benefits(1)                                   |   |                         | 53,044 |                     |   | 51,240 |   |    | 1,804  |   |   | 3.5 | % |
| Other                direct client service costs                              |   |                         | 1,622  |                     |   | 649    |   |    | 973    |   |   | 149.9 | % |
| Acquisition                retention expenses                                 |   |                         | 310    |                     |   | 692    |   |    | (382   | ) |   | (55.2 | )% |
| Reimbursable                expenses                                          |   |                         | 2,269  |                     |   | 2,545  |   |    | (276   | ) |   | (10.8 | )% |
|                                                                          |   |                         | 57,245 |                     |   | 55,126 |   |    | 2,119  |   |   | 3.8 | % |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Operating                expenses                                             |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Selling,                general and administrative(2)                         |   |                         | 26,023 |                     |   | 21,374 |   |    | 4,649  |   |   | 21.8 | % |
| Depreciation                and amortization                                  |   |                         | 2,176  |                     |   | 2,103  |   |    | 73     |   |   | 3.5 | % |
|                                                                          |   |                         | 28,199 |                     |   | 23,477 |   |    | 4,722  |   |   | 20.1 | % |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Operating                income                                               |   |                         | 10,037 |                     |   | 1,316  |   |    | 8,721  |   |   | 662.7 | % |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Other                expense/(income)                                         |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Interest                income                                                |   |                         | (483   | )                        |   | (500   | )      |    | 17     |   |   | (3.4 | )% |
| Interest                expense                                               |   |                         | 973    |                     |   | 1,791  |   |    | (818   | ) |   | (45.7 | )% |
| Other                expense                                                  |   |                         | 591    |                     |   | 115    |   |    | 476    |   |   | 413.9 | % |
|                                                                          |   |                         | 1,081  |                     |   | 1,406  |   |    | (325   | ) |   | (23.1 | )% |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Income/(loss)                before non-controlling interest and income taxes |   |                         | 8,956  |                     |   | (90    | )      |    | 9,046  |   |   | (10051.1 | )% |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Non-controlling                interest                                       |   |                         | 5,277  |                     |   | -      |   |    | 5,277  |   |   | - |   |
| Provision                for income taxes                                     |   |                         | 2,264  |                     |   | 341    |   |    | 1,923  |   |   | 563.9 | % |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Net                income/(loss)                                              |   | $                            | 1,415  |                     | $      | (431   | )      | $       | 1,846  |   |   | (428.3 | )% |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| **Other                financial and operating data**                         |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| Adjusted                EBITDA(3)                                             |   | $                            | 18,792 |                     | $      | 17,441 |   | $       | 1,351  |   |   | 7.7 | % |
|                                                                          |   |                         |   |                     |   |   |   |    |   |   |   |   |   |
| End                of period client service professionals                     |   |                         | 916    |                     |   | 691    |   |    | 225    |   |   | 32.6 | % |

----

----

| (1) | Compensation                and benefits include $4,624 and $10,295 of equity-based compensation                expense for the three months ended March 31, 2008 and 2007,                respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Selling,                general and administrative expenses include $2,714 and $3,035 of                equity-based compensation expense for the three months ended March                31,                2008 and 2007, respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Adjusted                EBITDA is a non-GAAP financial measure and is calculated as                follows: |
|-----|-------------------------------------------------------------------------------------------------------------|

**Reconciliation        of Adjusted EBITDA**

**(Dollars        in thousands)**

|                                                                                                                                                                                  |   | **Successor**                     |   | **Predecessor**          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                                  |   | Three                Months Ended |   |
|                                                                                                                                                                                  |   | March                31,          |   | March                31, |   |
|                                                                                                                                                                                  |   | 2008                              |   | 2007                     |   |
| Net                income/(loss)                                                                                                                                                      |   | $                                 | 1,415  |                     | $      | (431 | ) |
| Provision                for income taxes                                                                                                                                             |   |                              | 2,264  |                     |   | 341 |   |
| Non-controlling                interest                                                                                                                                               |   |                              | 5,277  |                     |   | - |   |
| Other                expense, net                                                                                                                                                     |   |                              | 1,081  |                     |   | 1,406 |   |
| Depreciation                and amortization                                                                                                                                          |   |                              | 2,176  |                     |   | 2,103 |   |
| Acquisition                retention expenses                                                                                                                                         |   |                              | 310    |                     |   | 692 |   |
| Equity-based                      compensation associated with Legacy Units and IPO Options included                      in                      compensation and benefits           |   |                              | 4,331  |                     |   | 10,295 |   |
| Equity-based                      compensation associated with Legacy Units and IPO Options included                      in                      selling, general and administrative |   |                              | 1,938  |                     |   | 3,035 |   |
| Adjusted                EBITDA                                                                                                                                                        |   | $                                 | 18,792 |                     | $      | 17,441 |   |

|   | We                believe that Adjusted EBITDA provides a relevant and useful alternative                measure of our ongoing profitability and performance, when viewed                in                conjunction with GAAP measures, as it adjusts net income or loss                for (a)                interest expense and depreciation and amortization (a significant                portion                of which relates to debt and capital investments that have been incurred                recently as the result of acquisitions and investments in stand-alone                infrastructure which we do not expect to incur at the same levels                in the                future), (b) equity-based compensation associated with the Legacy                Units (a                significant portion of which is due to certain one-time grants associated                with recent acquisitions) and the IPO Options, (c) acquisition retention                expenses and other merger and acquisition costs, which are generally                non-recurring in nature or are related to deferred payments associated                with prior acquisitions, and (d) non-controlling                interest. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Given                our recent level of acquisition activity and related capital investments                and one time equity grants associated with acquisitions (which we                do not                expect to incur at the same levels in the future) and the IPO, and                our                belief that, as a professional services organization, our operations                are                not capital intensive on an ongoing basis, we believe the Adjusted                EBITDA                measure, in addition to GAAP financial measures, provides a relevant                and                useful benchmark for investors, in order to assess our financial                performance and comparability to other companies in our industry.                The                Adjusted EBITDA measure is utilized by our senior management to evaluate                our overall performance and operating expense characteristics and                to                compare our performance to that of certain of our competitors. A                measure                substantially similar to Adjusted EBITDA is the principal measure                that                determines the compensation of our senior management team. In addition,                a                measure similar to Adjusted EBITDA is a key measure that determines                compliance with certain financial covenants under our senior secured                credit facility. Management compensates for the inherent limitations                associated with using the Adjusted EBITDA measure through disclosure                of                such limitations, presentation of our financial statements in accordance                with GAAP and reconciliation of Adjusted EBITDA to the most directly                comparable GAAP measure, net income or loss. Furthermore, management                also                reviews GAAP measures, and evaluates individual measures that are                not                included in Adjusted EBITDA such as our level of capital expenditures,                equity issuance and interest expense, among other                measures. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3) | Continued |
|-----|-----------|

|   | Adjusted                EBITDA, as defined by the Company, consists of net income or loss                before                (a) interest income and expense, (b) provision/(benefit) for income                taxes,                (c) other (income)/expense, (d) depreciation and amortization, (e)                acquisition retention expenses, (f) equity-based compensation associated                with Legacy Units of D&P Acquisitions, and IPO Options included in                compensation and benefits, (g) equity-based compensation associated                with                Legacy Units of D&P Acquisitions and IPO Options included in selling,                general & administrative expenses, (h) merger & acquisition costs                and (i) non-controlling interest. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | This                non-GAAP financial measure is not prepared in accordance with, and                should                not be considered an alternative to, measurements required by GAAP,                such                as operating income, net income or loss, net income or loss per share,                cash flow from continuing operating activities or any other measure                of                performance or liquidity derived in accordance with GAAP. The presentation                of this additional information is not meant to be considered in isolation                or as a substitute for the most directly comparable GAAP measures.                In                addition, it should be noted that companies calculate Adjusted EBITDA                differently and, therefore, Adjusted EBITDA as presented for us may                not be                comparable to Adjusted EBITDA reported by other                companies. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Revenues**

----

**Direct      Client Service Costs**

| **Direct                Client Service Costs**                                                      |   |
|-----------------------------------------------------------------------------------------------------|--------|
| **(Dollars                in thousands)**                                                           |   |
|                                                                                                |   |   |   |   |   |
|                                                                                                |   | **Successor** |   | **Predecessor** |   |
|                                                                                                |   | Three Months Ended |   |
|                                                                                                |   | March 31, |   | March 31, |   |
|                                                                                                |   | 2008 |   | 2007 |   |
|                                                                                                |   |   |   |   |   |
| Revenues                (excluding reimbursables)                                                   |   | $ | 93,153 |   | $ | 77,471 |   |
|                                                                                                |   |   |   |   |   |   |   |
| Total                direct client service costs                                                    |   | $ | 57,245 |   | $ | 55,126 |   |
| Less:                equity-based compensation associated with                                      |   |   |   |   |   |   |   |
| Legacy                Units and IPO Options                                                         |   |   | (4,331 | ) |   | (10,295 | ) |
| Less:                acquisition retention expenses                                                 |   |   | (310 | ) |   | (692 | ) |
| Less:                reimbursable expenses                                                          |   |   | (2,269 | ) |   | (2,545 | ) |
| Direct                client service costs, as adjusted                                             |   | $ | 50,335 |   | $ | 41,594 |   |
|                                                                                                |   |   |   |   |   |   |   |
| Direct                client service costs, as adjusted, as a percentage of                revenues |   |   | 54.0 | % |   | 53.7 | % |

----

**Operating      Expenses**

| **Operating                Expenses**                                       |
|-----------------------------------------------------------------------------|
| **(Dollars                in thousands)**                                   |
|                                                                        |   |   |   |   |   |
|                                                                        |   | **Successor** |   | **Predecessor** |   |
|                                                                        |   | Three Months Ended |   |
|                                                                        |   | March                31, |   | March                31, |   |
|                                                                        |   | 2008 |   | 2007 |   |
|                                                                        |   |   |   |   |   |
| Revenues                (excluding reimbursables)                           |   | $ | 93,153 |   | $ | 77,471 |   |
|                                                                        |   |   |   |   |   |   |   |
| Total                operating expenses                                     |   | $ | 28,199 |   | $ | 23,477 |   |
| Less:                equity-based compensation associated with              |   |   |   |   |   |   |   |
| Legacy                Units and IPO Options                                 |   |   | (1,938 | ) |   | (3,035 | ) |
| Less:                depreciation and amortization                          |   |   | (2,176 | ) |   | (2,103 | ) |
| Operating                expenses, as adjusted                              |   | $ | 24,085 |   | $ | 18,339 |   |
|                                                                        |   |   |   |   |   |   |   |
| Operating                expenses, as adjusted, as a percentage of revenues |   |   | 25.9 | % |   | 23.7 | % |

**Operating      Income**

**Other      Income and Expenses**

**Non-Controlling      Interest**

----

**Provision      for Income Taxes**

----

***Segment      Results - Three Months Ended March 31, 2008 Versus Three Months Ended March      31, 2007***

| **Results                of Operations by Segment**                        |
|----------------------------------------------------------------------------|
| **(Dollars                in thousands)**                                  |
|                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                       |   | **Successor** |   | **Predecessor** |   |   |   |   |   |
|                                                                       |   | Three                Months Ended |   |   |   |   |   |
|                                                                       |   | March                31, |   | March                31, |   | Unit |   | Percent |   |
|                                                                       |   | 2008 |   | 2007 |   | Change |   | Change |   |
| **Financial                Advisory**                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                (excluding reimbursables)                          |   | $ | 73,933 |   | $ | 58,693 |   | $ | 15,240 |   |   | 26.0 | % |
| Segment                operating income                                    |   |   | 12,020 |   |   | 10,992 |   |   | 1,028 |   |   | 9.4 | % |
| Segment                operating income margin                             |   |   | 16.3 | % |   | 18.7 | % |   | (2.5 | )% |   | N/A |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Investment                Banking**                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                (excluding reimbursables)                          |   | $ | 19,220 |   | $ | 18,778 |   | $ | 442 |   |   | 2.4 | % |
| Segment                operating income                                    |   |   | 6,713 |   |   | 6,546 |   |   | 167 |   |   | 2.6 | % |
| Segment                operating income margin                             |   |   | 34.9 | % |   | 34.9 | % |   | 0.1 | % |   | N/A |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Average                Client Service Professionals**                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial                Advisory                                          |   |   | 782 |   |   | 573 |   |   | 209 |   |   | 36.5 | % |
| Investment                Banking                                          |   |   | 103 |   |   | 108 |   |   | (5 | ) |   | (4.6 | )% |
| Total                                                                      |   |   | 885 |   |   | 681 |   |   | 204 |   |   | 30.0 | % |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **End                of Period Client Service Professionals**              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial                Advisory                                          |   |   | 807 |   |   | 591 |   |   | 216 |   |   | 36.5 | % |
| Investment                Banking                                          |   |   | 109 |   |   | 100 |   |   | 9 |   |   | 9.0 | % |
| Total                                                                      |   |   | 916 |   |   | 691 |   |   | 225 |   |   | 32.6 | % |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Revenue                per Client Service Professional**                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial                Advisory                                          |   | $ | 95 |   | $ | 102 |   | $ | (7 | ) |   | (6.9 | )% |
| Investment                Banking                                          |   |   | 187 |   |   | 174 |   |   | 13 |   |   | 7.5 | % |
| Total                professionals                                         |   |   | 105 |   |   | 114 |   |   | (9 | ) |   | (7.9 | )% |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Financial                Advisory Utilization Rate****(1)**              |   |   | 66.1 | % |   | 67.5 | % |   | (1.4 | )% |   | (2.1 | )% |
| **Financial                Advisory Rate-per-Hour****(2)**                 |   | $ | 326 |   | $ | 314 |   | $ | 12 |   |   | 3.8 | % |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total**                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                (excluding reimbursables)                          |   | $ | 93,153 |   | $ | 77,471 |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                operating income                                    |   | $ | 18,733 |   | $ | 17,538 |   |   |   |   |   |   |   |
| Net                client reimbursable expenses                            |   |   | 59 |   |   | (97 | ) |   |   |   |   |   |   |
| Equity-based                compensation from Legacy Units and IPO Options |   |   | (6,269 | ) |   | (13,330 | ) |   |   |   |   |   |   |
| Depreciation                and amortization                               |   |   | (2,176 | ) |   | (2,103 | ) |   |   |   |   |   |   |
| Acquisition                retention expense           |   |   | (310 | ) |   | (692 | ) |   |   |   |   |   |   |
| Operating                income                                            |   |   | 10,037 |   |   | 1,316 |   |   |   |   |   |   |   |
| Other                income/(expense), net                                 |   |   | (1,081 | ) |   | (1,406 | ) |   |   |   |   |   |   |
| Non-controlling                interest                                    |   |   | (5,277 | ) |   | - |   |   |   |   |   |   |   |
| Provision                for income taxes                                  |   |   | (2,264 | ) |   | (341 | ) |   |   |   |   |   |   |
| Net                income/(loss)                                           |   | $ | 1,415 |   | $ | (431 | ) |   |   |   |   |   |   |

----

| (1) | The                utilization rate for any given period is calculated by dividing the                number                of hours Financial Advisory client service professionals (excluding                approximately 60 client service professionals associated with Rash,                the                Company’s wholly owned subsidiary) worked on client assignments during the                period by the total available working hours for all of such client                service                professionals during the same period, assuming a 40 hour work week,                less                paid holidays and vacation days. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Average                billing rate per hour is calculated by dividing applicable revenues                for                the period by the number of hours worked on client assignments during                the                same period. The average billing rate excludes approximately $2,000                of                Financial Advisory revenues associated with                Rash. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Financial      Advisory**

*Revenues*

*Segment      Operating Income*

**Investment      Banking**

*Revenues*

*Segment      Operating Income*

----

**Liquidity      and Capital Resources**

**Operating      Activities**

**Investing      Activities**

**Financing      Activities**

----

**Future      Needs**

----

**Recent      Accounting Pronouncements**

*Disclosures      about Derivative Instruments and Hedging Activities an amendment of FASB      Statement No. 133 *

*Noncontrolling      Interests in Consolidated Financial Statements*
*Consolidated      Financial Statements*

*Business      Combinations*

*Fair      Value Measurements*
*Effective      Date of FASB Statement No. 157*

----

| **Item              3.** | **Quantitative                and Qualitative Disclosures About Market                Risk.** |
|--------------------------|-----------------------------------------------------------------------------------------------|

| **Item              4.** | **Controls                and Procedures.** |
|--------------------------|---------------------------------------------|

**Disclosure      Controls and Procedures **

**Changes      in Internal Controls**

**PART      II**

**OTHER      INFORMATION**

| **Item              1.** | **Legal                Proceedings.** |
|--------------------------|---------------------------------------|

| **Item              1A.** | **Risk                Factors.** |
|---------------------------|----------------------------------|

| **Item              2.** | **Unregistered                Sales of Equity Securities and Use of                Proceeds.** |
|--------------------------|------------------------------------------------------------------------------------------------|

| **Item              3.** | **Defaults                Upon Senior Securities.** |
|--------------------------|-----------------------------------------------------|

----

| **Item              4.** | **Submission                of Matters to a Vote of Security                Holders.** |
|--------------------------|----------------------------------------------------------------------------------------|

| **Item5.** | **Other                Information.** |
|------------|---------------------------------------|

| **Item              6.** | **Exhibits.** |
|--------------------------|---------------|

|                  Exhibit    |   |                                                                                                                                                                                                                  |
|----------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number                           |   | Description                                                                                                                                                                                                           |
|                             |   |                                                                                                                                                                                                                  |
|                   31.1 |   | Certification                of the Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a),                as                adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                2002. |
|                   31.2 |   | Certification                of the Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a),                as                adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                2002. |
|                   32.1 |   | Certification                of the Chief Executive Officer, pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002.   |
|                   32.2 |   | Certification                of the Chief Financial Officer, pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002.   |

----

**SIGNATURES**

|                             | DUFF                & PHELPS CORPORATION |
|----------------------------------|----------------------------------------------|
|                             | (Registrant)                                 |
|                             |                                         |
| Date:                May 9, 2008 | /s/                Jacob Silverman           |
|                             | JACOB                SILVERMAN               |
|                             | Chief                Financial Officer       |

----