----

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**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 September 30, 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**

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**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.       | 18 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 3.                         | Quantitative                and Qualitative Disclosures About Market Risk.                                                       | 42 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 4.                         | Controls                and Procedures.                                                                                          | 42 |
|                    |                                 |                                                                                                                             |   |
| Part                II. | Other                Information     |                                                                                                                             |
|                    |                                 |                                                                                                                             |   |
|                    | Item 1.                         | Legal                Proceedings                                                                                                 | 42 |
|                    |                                 |                                                                                                                             |   |
|                    | Item                1A.              | Risk                Factors                                                                                                      | 42 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 2.                         | Unregistered                Sales of Equity Securities and Use of Proceeds                                                       | 43 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 3.                         | Defaults                Upon Senior Securities                                                                                   | 43 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 4.                         | Submission                of Matters to a Vote of Security Holders                                                               | 43 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 5.                         | Other                Information                                                                                                 | 43 |
|                    |                                 |                                                                                                                             |   |
|                    | Item 6.                         | Exhibits                                                                                                                         | 43 |
|                    |                                 |                                                                                                                             |   |
|                    | Signatures                           | 44                                                                                                                               |

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**PART      I - FINANCIAL INFORMATION**

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

|                                                                                              |   | **Successor**                |   | **Predecessor**             |   | **Successor**      |   | **Predecessor**    |    |
|---------------------------------------------------------------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|---------|
|                                                                                              |   | Three Months Ended |   | Nine Months Ended |   |
|                                                                                              |   | September 30,           |   | September 30,          |   | September 30, |   | September 30, |    |
|                                                                                              |   | 2008                         |   | 2007                        |   | 2008               |   | 2007               |    |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Revenues                                                                                          |   | $                            | 96,314 |                        | $      | 83,887             |   | $                  | 287,268 |   | $ | 248,450 |   |
| Reimbursable                  expenses                                                            |   |                         | 2,781  |                        |   | 3,695              |   |               | 7,946   |   |   | 9,753 |   |
| Total                  revenues                                                                   |   |                         | 99,095 |                        |   | 87,582             |   |               | 295,214 |   |   | 258,203 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Direct                  client service costs                                                      |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Compensation and benefits (including $7,551 and                          |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| $1,030 of equity-based compensation for the                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| three months ended September 30, 2008 and 2007,                |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| respectively, and $17,181 and $23,071 for the nine months |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| ended September 30, 2008 and 2007, respectively)                    |   |                         | 57,280 |                        |   | 46,303             |   |               | 166,276 |   |   | 156,353 |   |
| Other                  direct client service costs                                                |   |                         | 2,410  |                        |   | 1,194              |   |               | 5,828   |   |   | 2,007 |   |
| Acquisition                  retention expenses                                                   |   |                         | 206    |                        |   | 696                |   |               | 782     |   |   | 2,026 |   |
| Reimbursable                  expenses                                                            |   |                         | 2,813  |                        |   | 3,740              |   |               | 7,926   |   |   | 9,825 |   |
| Subtotal                                                                                          |   |                         | 62,709 |                        |   | 51,933             |   |               | 180,812 |   |   | 170,211 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Operating                  expenses                                                               |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Selling, general and administrative expenses (including                  |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| $2,845 and $406 of equity-based compensation for                    |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| the three months ended September 30, 2008 and 2007,       |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| respectively, and $8,164 and $8,204 for the nine months   |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| ended September 30, 2008 and 2007, respectively)                    |   |                         | 29,538 |                        |   | 20,720             |   |               | 83,301  |   |   | 69,882 |   |
| Depreciation                  and amortization                                                    |   |                         | 2,446  |                        |   | 2,284              |   |               | 6,903   |   |   | 6,683 |   |
| Subtotal                                                                                          |   |                         | 31,984 |                        |   | 23,004             |   |               | 90,204  |   |   | 76,565 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Operating                  income                                                                 |   |                         | 4,402  |                        |   | 12,645             |   |               | 24,198  |   |   | 11,427 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Other                  expense/(income)                                                           |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Interest                  income                                                                  |   |                         | (90    | )                           |   | (458               | )      |               | (654    | ) |   | (1,287 | ) |
| Interest                  expense                                                                 |   |                         | 847    |                        |   | 1,871              |   |               | 2,569   |   |   | 5,442 |   |
| Other                  expense/(income)                                                           |   |                         | (21    | )                           |   | 408                |   |               | (92     | ) |   | 215 |   |
| Subtotal                                                                                          |   |                         | 736    |                        |   | 1,821              |   |               | 1,823   |   |   | 4,370 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Income                  before non-controlling interest and income taxes                          |   |                         | 3,666  |                        |   | 10,824             |   |               | 22,375  |   |   | 7,057 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Non-controlling                  interest                                                         |   |                         | 2,165  |                        |   | -                  |   |               | 13,204  |   |   | - |   |
| Provision                  for income taxes                                                       |   |                         | 1,348  |                        |   | 88                 |   |               | 6,343   |   |   | 1,034 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Net                  income                                                                       |   | $                            | 153    |                        | $      | 10,736             |   | $                  | 2,828   |   | $ | 6,023 |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Weighted                  average shares of Class A common stock outstanding                      |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Basic                                                                                             |   |                         | 13,299 |                        |   |                    |   |               | 13,166  |   |   |  |   |
| Diluted                                                                                           |   |                         | 13,673 |                        |   |                    |   |               | 13,397  |   |   |  |   |
|                                                                                              |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Net                  income per share of Class A common stock                                     |   |                         |        |                        |   |                    |   |               |         |   |   |  |   |
| Basic                                                                                             |   | $                            | 0.01   |                        |   |                    |   | $                  | 0.21    |   |   |  |   |
| Diluted                                                                                           |   | $                            | 0.01   |                        |   |                    |   | $                  | 0.21    |   |   |  |   |

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

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**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                                                |   | September 30, |    | December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|-------------------|--------|
|                                                                                                                                                                                                                                                                |   | 2008               |    | 2007              |   |
|                                                                                                                                                                                                                                                                |   | (Unaudited)        |    |              |   |
| **ASSETS**                                                                                                                                                                                                                                                          |
| Current                  assets                                                                                                                                                                                                                                     |   |               |    |              |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                          |   | $                  | 57,104  |              | $      | 90,243 |   |
| Accounts                  receivable, net                                                                                                                                                                                                                           |   |               | 59,402  |              |   | 45,572 |   |
| Unbilled                  services                                                                                                                                                                                                                                  |   |               | 25,581  |              |   | 23,075 |   |
| Prepaid                  expenses and other current assets                                                                                                                                                                                                          |   |               | 6,299   |              |   | 6,275 |   |
| Net                  deferred income taxes, current                                                                                                                                                                                                                 |   |               | 4,487   |              |   | 9,551 |   |
| Total                  current assets                                                                                                                                                                                                                               |   |               | 152,873 |              |   | 174,716 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Property                  and equipment, net                                                                                                                                                                                                                        |   |               | 27,200  |              |   | 23,686 |   |
| Goodwill                                                                                                                                                                                                                                                            |   |               | 115,700 |              |   | 107,562 |   |
| Intangible                  assets, net                                                                                                                                                                                                                             |   |               | 33,363  |              |   | 28,233 |   |
| Other                  assets                                                                                                                                                                                                                                       |   |               | 11,797  |              |   | 5,070 |   |
| Net                  deferred income taxes, non-current                                                                                                                                                                                                             |   |               | 61,735  |              |   | 65,246 |   |
| Total                  non-current assets                                                                                                                                                                                                                           |   |               | 249,795 |              |   | 229,797 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Total                  assets                                                                                                                                                                                                                                       |   | $                  | 402,668 |              | $      | 404,513 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                           |
| Current                  liabilities                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                                   |   | $                  | 6,711   |              | $      | 2,899 |   |
| Accrued                  expenses                                                                                                                                                                                                                                   |   |               | 3,161   |              |   | 12,238 |   |
| Accrued                  compensation and benefits                                                                                                                                                                                                                  |   |               | 43,693  |              |   | 72,713 |   |
| Deferred                  revenue                                                                                                                                                                                                                                   |   |               | 5,208   |              |   | 7,931 |   |
| Equity-based                  compensation liability, current                                                                                                                                                                                                       |   |               | 571     |              |   | 498 |   |
| Current                  portion of long-term debt                                                                                                                                                                                                                  |   |               | 794     |              |   | 794 |   |
| Current                  portion due to non-controlling unitholders                                                                                                                                                                                                 |   |               | 783     |              |   | 3,114 |   |
| Total                  current liabilities                                                                                                                                                                                                                          |   |               | 60,921  |              |   | 100,187 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Long-term                  debt, less current portion                                                                                                                                                                                                               |   |               | 41,409  |              |   | 42,387 |   |
| Other                  long-term liabilities                                                                                                                                                                                                                        |   |               | 16,836  |              |   | 15,260 |   |
| Due                  to non-controlling unitholders, less current portion                                                                                                                                                                                           |   |               | 64,436  |              |   | 65,196 |   |
| Total                  non-current liabilities                                                                                                                                                                                                                      |   |               | 122,681 |              |   | 122,843 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Total                  liabilities                                                                                                                                                                                                                                  |   |               | 183,602 |              |   | 223,030 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Commitments                  and contingencies (Note 11)                                                                                                                                                                                                            |   |               |    |              |   |   |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Non-controlling                  interest                                                                                                                                                                                                                           |   |               | 133,247 |              |   | 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;                    14,597 and 13,125 shares issued and outstanding at September                    30, 2008 and                    December 31, 2007, respectively)  |   |               | 146     |              |   | 131 |   |
| Class                    B common stock, par value $0.0001 per share (50,000 shares authorized;                    21,044 and 21,090 shares issued and outstanding at September                    30, 2008 and                    December 31, 2007, respectively) |   |               | 2       |              |   | 2 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                         |   |               | 89,664  |              |   | 75,375 |   |
| Accumulated                  other comprehensive income/(loss)                                                                                                                                                                                                      |   |               | (469    | )                 |   | 348 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                |   |               | (3,524  | )                 |   | (6,352 | ) |
| Total                  stockholders' equity                                                                                                                                                                                                                         |   |               | 85,819  |              |   | 69,504 |   |
|                                                                                                                                                                                                                                                                |   |               |    |              |   |   |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                         |   | $                  | 402,668 |              | $      | 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**    |   |
|----------------------------------------------------------------------------------|--------|-----------------------------|---------|--------------------|--------|
|                                                                             |   | Nine Months Ended |    |
|                                                                             |   | September 30,          |    | September 30, |   |
|                                                                             |   | 2008                        |    | 2007               |   |
| Cash                  flows from operating activities:                           |   |                        |         |               |   |  |   |
| Net                  income                                                      |   | $                           | 2,828   |               | $      | 6,023 |   |
| Adjustments                  to reconcile net income to                          |   |                        |    |               |   |   |   |
| net                  cash provided by operating activities:                      |   |                        |    |               |   |   |   |
| Depreciation                  and amortization                                   |   |                        | 6,903   |               |   | 6,683 |   |
| Equity-based                  compensation                                       |   |                        | 25,345  |               |   | 31,275 |   |
| Bad                  debt expense                                                |   |                        | 1,251   |               |   | 266 |   |
| Non-controlling                  interest                                        |   |                        | 13,204  |               |   | - |   |
| Net                  deferred income taxes                                       |   |                        | 8,575   |               |   | 385 |   |
| Other                                                                            |   |                        | 1,163   |               |   | 754 |   |
| Changes                  in assets and liabilities providing/(using) cash:       |   |                        |    |               |   |   |   |
| Accounts                  receivable                                             |   |                        | (12,168 | )                  |   | (10,209 | ) |
| Unbilled                  services                                               |   |                        | (2,216  | )                  |   | (3,341 | ) |
| Prepaid                  expenses and other current assets                       |   |                        | 63      |               |   | (1,850 | ) |
| Other                  assets                                                    |   |                        | 1,542   |               |   | (8,278 | ) |
| Accounts                  payable and accrued expenses                           |   |                        | (2,070  | )                  |   | 15,749 |   |
| Accrued                  compensation and benefits                               |   |                        | (29,998 | )                  |   | 1,967 |   |
| Deferred                  revenues                                               |   |                        | (3,004  | )                  |   | (164 | ) |
| Other                  liabilities                                               |   |                        | 690     |               |   | 4,985 |   |
| Due                  to non-controlling unitholders                              |   |                        | (3,092  | )                  |   | - |   |
| Due                  from affiliates                                             |   |                        | -       |               |   | (20,063 | ) |
| Net                  cash provided by operating activities                       |   |                        | 9,016   |               |   | 24,182 |   |
|                                                                             |   |                        |    |               |   |   |   |
| Cash                  flows from investing activities:                           |   |                        |    |               |   |   |   |
| Purchase                  of property and equipment                              |   |                        | (8,093  | )                  |   | (9,636 | ) |
| Purchase                  of investments for deferred compensation plan          |   |                        | (9,991  | )                  |   | - |   |
| Proceeds                  from sale of investments in deferred compensation plan |   |                        | 1,692   |               |   | - |   |
| Business                  acquisitions, net of cash acquired                     |   |                        | (16,427 | )                  |   | 513 |   |
| Net                  cash used in investing activities                           |   |                        | (32,819 | )                  |   | (9,123 | ) |
|                                                                             |   |                        |    |               |   |   |   |
| Cash                  flows from financing activities:                           |   |                        |    |               |   |   |   |
| Repurchase                  of equity units                                      |   |                        | -       |               |   | (343 | ) |
| Repayments                  of debt                                              |   |                        | (595    | )                  |   | (595 | ) |
| Principal                  payments under capital lease obligation               |   |                        | -       |               |   | (187 | ) |
| Distributions                  to non-controlling unitholders                    |   |                        | (7,888  | )                  |   | (28,374 | ) |
| Net                  cash used in financing activities                           |   |                        | (8,483  | )                  |   | (29,499 | ) |
|                                                                             |   |                        |    |               |   |   |   |
| Effect                  of exchange rate on cash and cash equivalents            |   |                        | (853    | )                  |   | 862 |   |
|                                                                             |   |                        |    |               |   |   |   |
| Net                  decrease in cash and cash equivalents                       |   |                        | (33,139 | )                  |   | (13,578 | ) |
| Cash                  and cash equivalents at beginning of period                |   |                        | 90,243  |               |   | 59,132 |   |
| Cash                  and cash equivalents at end of period                      |   | $                           | 57,104  |               | $      | 45,554 |   |

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

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**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

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

**AND      COMPREHENSIVE INCOME**

|                                                           |   |                                           |   |                                           |   |           |   |              |   |                |   | **Accumulated**   |   | **Retained**  |   |       |   |
|----------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|----------------|--------|-------------------|--------|---------------------|--------|-------------------|--------|---------------|--------|------------|--------|
|                                                           |   |                                           |   |                                           |   |           |   |              |   |                |   | **Other**         |   | **Earnings/** |   | **Total**  |   |
|                                                           |   | **Common Stock - Class A** |   | **Common Stock - Class B** |   | **Additional** |   | **Comprehensive** |   | **(Accumulated**    |   | **Stockholders'** |   |
| **SUCCESSOR**                                                  |   | **Shares**                                     |   | **Dollars**                                    |   | **Shares**     |   | **Dollars**       |   | **Paid-in-Capital** |   | **Income/(Loss)** |   | **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 September 30, 2008                 |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | -      |       |   | - |   |   | 2,828 |   |   | 2,828 |   |
| Currency                translation adjustment                 |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | -      |       |   | (853 | ) |   | - |   |   | (853 | ) |
| Amortization                of post-retirement benefits        |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | -      |       |   | 36 |   |   | - |   |   | 36 |   |
| Total                comprehensive income                      |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | -      |       |   | (817 | ) |   | 2,828 |   |   | 2,011 |   |
|                                                           |   |                                           |   |                                           |   |           |   |              |   |                |   |              |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock                        |   |                                           | 322    |                                           |   | 3              |   |              | -      |                |   | -                 |   |          | 5,440  |       |   | - |   |   | - |   |   | 5,443 |   |
| Issuance                of restricted stock awards             |   |                                           | 1,156  |                                           |   | 12             |   |              | -      |                |   | -                 |   |          | -      |       |   | - |   |   | - |   |   | 12 |   |
| Exercise                of stock options                       |   |                                           | 7      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | 114    |       |   | - |   |   | - |   |   | 114 |   |
| Forfeitures                                                    |   |                                           | (13    | )                                              |   | -              |   |              | (46    | )                   |   | -                 |   |          | -      |       |   | - |   |   | - |   |   | - |   |
| Equity-based                compensation                       |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | 25,274 |       |   | - |   |   | - |   |   | 25,274 |   |
| Income                tax benefit on equity-based compensation |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | 175    |       |   | - |   |   | - |   |   | 175 |   |
| Distributions                to non-controlling unitholders    |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | (7,888 | )          |   | - |   |   | - |   |   | (7,888 | ) |
| Allocation                of non-controlling interest          |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | (8,064 | )          |   | - |   |   | - |   |   | (8,064 | ) |
| Other                                                          |   |                                           | -      |                                           |   | -              |   |              | -      |                |   | -                 |   |          | (762   | )          |   | - |   |   | - |   |   | (762 | ) |
| **Balance                as of September 30, 2008**            |   |                                           | 14,597 |                                           | $      | 146            |   |              | 21,044 |                | $      | 2                 |   | $             | 89,664 |       | $      | (469 | ) | $ | (3,524 | ) | $ | 85,819 |   |

*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**

| **Effective** |   |                                           |   |                                                                                           |
|---------------|--------|------------------------------------------------|--------|------------------------------------------------------------------------------------------------|
| **Date**      |   | **Acquisition**                                |   | **Description**                                                                                |
|          |   |                                           |   |                                                                                           |
| 8/8/08        |   | Financial                and IP Analysis, Inc. |   | Financial                consulting firm that specializes in intellectual                      |
|          |   | (d/b/a                The Lumin Expert Group)  |   | property                dispute support and expert testimony.                                  |
|          |   |                                           |   |                                                                                           |
| 7/31/08       |   | Kane                Reece Associates, Inc.     |   | Valuation,                management and technical consulting firm with a                      |
|          |   |                                           |   | focus                on the communications, entertainment and media                industries. |
|          |   |                                           |   |                                                                                           |
| 7/15/08       |   | World                Tax Service US, LLC       |   | Tax                advisory firm focused on the delivery of sophisticated                      |
|          |   |                                           |   | international                and domestic tax services.                                        |
|          |   |                                           |   |                                                                                           |
| 4/11/08       |   | Dubinsky                & Company, PC      |   | Specialty                consulting primarily focused on litigation support                    |
|          |   |                                           |   | and                forensic services.                                                          |
|          |   |                                           |   |                                                                                           |
| 10/31/07      |   | Rash                & Associates, LP       |   | Nationwide                provider of property tax management                services.         |

**Chanin      Capital Partners LLC**

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**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

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

|                                                                                                                         |   | Three Months  |   | Nine Months   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------------------|--------|
|                                                                                                                         |   | Ended              |   | Ended              |   |
|                                                                                                                         |   | September 30, |   | September 30, |   |
|                                                                                                                         |   | 2008               |   | 2008               |   |
| Basic                and diluted net income per share:                                                                       |   |               |   |               |   |   |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| Numerator                                                                                                                    |   |               |   |               |   |   |   |
| Net                income available to holders of Class A common stock                                                       |   | $                  | 153    |               | $      | 2,828 |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| Denominator                for basic net income per share of Class A common stock                                            |   |               |   |               |   |   |   |
| Weighted                average shares of Class A common stock                                                               |   |               | 13,299 |               |   | 13,166 |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| Denominator                for diluted net income per share of Class A common stock                                          |   |               |   |               |   |   |   |
| Weighted                average shares of Class A common stock                                                               |   |               | 13,299 |               |   | 13,166 |   |
| Add                dilutive effect of the following:                                                                         |   |               |   |               |   |   |   |
| Restricted                stock awards and units                                                                             |   |               | 374    |               |   | 231 |   |
| Assumed                conversion of New Class A Units for Class A common stock(a)                                           |   |               | -      |               |   | - |   |
| Dilutive                weighted average shares of Class A common stock                                                      |   |               | 13,673 |               |   | 13,397 |   |
|                                                                                                                         |   |               |   |               |   |   |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| Basic                income per share of Class A common stock                                                                |   | $                  | 0.01   |               | $      | 0.21 |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| Diluted                income per share of Class A common stock                                                              |   | $                  | 0.01   |               | $      | 0.21 |   |
| ______________________________                                                                                               |   |               |   |               |   |   |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| (a)                The                following shares were anti-dilutive and excluded from this                calculation: |   |               |   |               |   |   |   |
|                                                                                                                         |   |               |   |               |   |   |   |
| Weighted                average New Class A Units outstanding                                                                |   |               | 20,684 |               |   | 20,693 |   |
| Weighted                average IPO Options outstanding                                                                      |   |               | 2,032  |               |   | 2,048 |   |

----

**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 Class A common stock    |   |                      | 329    |        |   | -      |   |   | 329 |   |
| Issuance                of restricted stock awards |   |                      | 1,156  |        |   | -      |   |   | 1,156 |   |
| Forfeitures                                        |   |                      | (13    | )           |   | (46    | )      |   | (59 | ) |
| As                of September 30, 2008            |   |                      | 14,597 |        |   | 21,044 |   |   | 35,641 |   |
|                                               |   |                      |   |        |   |   |   |   |   |   |
| Percent                of total New Class A Units  |   |                      | 41.0   | %           |   | 59.0   | %      |   | 100 | % |

| As                of December 31, 2007                                 |   | $      | 111,979 |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|
| Allocation                of non-controlling interest associated with: |   |   |    |   |
| D&P                Acquisitions' tax distribution                  |   |   | (4,728  | )      |
| Equity-based                compensation                               |   |   | 14,856  |   |
| Change                in ownership interests                           |   |   | (5,098  | )      |
| Acquisitions                                                           |   |   | 3,219   |   |
| Other                items                                             |   |   | (185    | )      |
| Subtotal                                                               |   |   | 8,064   |   |
|                                                                   |   |   |    |   |
| Allocation                of income of D&P Acquisitions            |   |   | 13,204  |   |
| As                of September 30, 2008                                |   | $      | 133,247 |   |

----

**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  |   |
|                          |   | September 30, 2008  |   | September 30, 2007  |   |
|                          |   | Client                             |   |                               |   |   |   | Client |   |   |   |   |   |
|                          |   | Service                            |   | SG&A                           |   | Total |   | Service |   | SG&A |   | Total |   |
| Legacy                  Units |   | $                                  | 5,237  |                               | $      | 1,548 |   | $ | 6,785 |   | $ | 1,030 |   | $ | 406 |   | $ | 1,436 |   |
| IPO                  Options  |   |                               | 1,348  |                               |   | 572 |   |   | 1,920 |   |   | - |   |   | - |   |   | - |   |
| Ongoing                  RSAs |   |                               | 966    |                               |   | 725 |   |   | 1,691 |   |   | - |   |   | - |   |   | - |   |
| Total                         |   | $                                  | 7,551  |                               | $      | 2,845 |   | $ | 10,396 |   | $ | 1,030 |   | $ | 406 |   | $ | 1,436 |   |

|                          |   | **Successor**                       |   | **Predecessor**                     |   |
|-------------------------------|--------|-------------------------------------|--------|-------------------------------------|--------|
|                          |   | Nine                  Months Ended  |   | Nine                  Months Ended  |   |
|                          |   | September                  30, 2008 |   | September                  30, 2007 |   |
|                          |   | Client                              |   |                                |   |   |   | Client |   |   |   |   |   |
|                          |   | Service                             |   | SG&A                            |   | Total |   | Service |   | SG&A |   | Total |   |
| Legacy                  Units |   | $                                   | 11,350 |                                | $      | 4,273 |   | $ | 15,623 |   | $ | 23,071 |   | $ | 8,204 |   | $ | 31,275 |   |
| IPO                  Options  |   |                                | 3,740  |                                |   | 1,657 |   |   | 5,397 |   |   | - |   |   | - |   |   | - |   |
| Ongoing                  RSAs |   |                                | 2,091  |                                |   | 2,234 |   |   | 4,325 |   |   | - |   |   | - |   |   | - |   |
| Total                         |   | $                                   | 17,181 |                                | $      | 8,164 |   | $ | 25,345 |   | $ | 23,071 |   | $ | 8,204 |   | $ | 31,275 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

|                                                               |   | IPO     |   |
|--------------------------------------------------------------------|--------|---------|--------|
|                                                               |   | Options |   |
| Balance                as of January 1, 2008                       |   |    | 2,066  |   |
| Granted                                                            |   |    | -      |   |
| Exercised                                                          |   |    | (7     | ) |
| Forfeited                                                          |   |    | (36    | ) |
| Balance                as of September 30, 2008                    |   |    | 2,023  |   |
|                                                               |   |    |        |   |
| Vested                                                             |   |    | 500    |   |
| Unvested                                                           |   |    | 1,523  |   |
|                                                               |   |    |        |   |
| Fair                value on grant date                            |   | $       | 7.33   |   |
| Weighted                average exercise price                     |   | $       | 16.00  |   |
| Weighted                average remaining contractual term (years) |   |    | 9.0    |   |
| Aggregate                intrinsic value                           |   | $       | 10,174 |   |
| Options                expected to vest                            |   |    | 1,846  |   |
| Intrinsic                value of options expected to vest         |   | $       | 9,284  |   |

|                                            |   | Restricted |   | Weighted                  |   | Restricted |   | Weighted                  |   |
|-------------------------------------------------|--------|------------|--------|---------------------------|--------|------------|--------|---------------------------|--------|
|                                            |   | Stock      |   | Average                   |   | Stock      |   | Average                   |   |
|                                            |   | Awards     |   | Fair                Value |   | Units      |   | Fair                Value |   |
| Balance                as of January 1, 2008    |   |       | 61     |                      | $      | 19.34      |   |                      | -      |   | $ | - |   |
| Granted                                         |   |       | 1,156  |                      |   | 13.83      |   |                      | 93     |   |   | 13.92 |   |
| Forfeited                                       |   |       | (13    | )                         |   | 11.98      |   |                      | (1     | ) |   | 11.98 |   |
| Balance                as of September 30, 2008 |   |       | 1,204  |                      | $      | 14.13      |   |                      | 92     |   | $ | 13.94 |   |
|                                            |   |       |        |                      |   |            |   |                      |        |   |   |  |   |
| Vested                                          |   |       | -      |                      |   |            |   |                      | -      |   |   |  |   |
| Unvested                                        |   |       | 1,204  |                      |   |            |   |                      | 92     |   |   |  |   |

|                                              |   | New                     |   |
|---------------------------------------------------|--------|-------------------------|--------|
|                                              |   | Class A Units |   |
|                                              |   | Attributable to    |   |
|                                              |   | Equity-Based            |   |
|                                              |   | Compensation            |   |
| Balance                  as of January 1, 2008    |   |                    | 6,746  |   |
| Granted                                           |   |                    | -      |   |
| Forfeited                                         |   |                    | (46    | ) |
| Balance                  as of September 30, 2008 |   |                    | 6,700  |   |
|                                              |   |                    |        |   |
| Vested                                            |   |                    | 3,091  |   |
| Unvested                                          |   |                    | 3,609  |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      7 -**
**FAIR      VALUE MEASUREMENTS**

*Fair      Value Measurements*

|                                                                         |   | Quoted Prices |   |           |   |           |   |   |   |
|------------------------------------------------------------------------------|--------|--------------------|--------|----------------|--------|----------------|--------|--------|--------|
|                                                                         |   | in Active     |   | Significant    |   |           |   |   |   |
|                                                                         |   | Markets for   |   | Other          |   | Significant    |   |   |   |
|                                                                         |   | Identical          |   | Observable     |   | Unobservable   |   |   |   |
|                                                                         |   | Assets             |   | Inputs         |   | Inputs         |   |   |   |
| Description                                                                  |   | (Level 1)     |   | (Level 2) |   | (Level 3) |   | Total  |   |
| Cash                surrender value related to deferred compensation plan(1) |   | $                  | -      |           | $      | 8,837          |   | $      | -      |   | $ | 8,837 |   |
| Total                assets                                                  |   | $                  | -      |           | $      | 8,837          |   | $      | -      |   | $ | 8,837 |   |
|                                                                         |   |               |        |           |   |                |   |   |        |   |   |  |   |
| Interest                rate swap(2)                                         |   | $                  | -      |           | $      | 492            |   | $      | -      |   | $ | 492 |   |
| Total                liabilities                                             |   | $                  | -      |           | $      | 492            |   | $      | -      |   | $ | 492 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      8 -**
**LONG-TERM      DEBT**

|                                                       |   | September 30, |   | December 31, |   |
|------------------------------------------------------------|--------|--------------------|--------|-------------------|--------|
|                                                       |   | 2008               |   | 2007              |   |
|                                                       |   |               |        |              |   |  |   |
| Outstanding                balance of credit facility      |   | $                  | 42,962 |              | $      | 43,557 |   |
| Less:                current amounts due in following year |   |               | (794   | )                 |   | (794 | ) |
| Long-term                portion                           |   |               | 42,168 |              |   | 42,763 |   |
| Debt                discount and interest rate swap        |   |               | (759   | )                 |   | (376 | ) |
| Long-term                debt, less current portion        |   | $                  | 41,409 |              | $      | 42,387 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                                 |   | **Successor**                |   | **Predecessor**             |   | **Successor**      |   | **Predecessor**    |   |
|--------------------------------------------------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|--------|
|                                                                                 |   | Three Months Ended |   | Nine Months Ended |   |
|                                                                                 |   | September 30,           |   | September 30,          |   | September 30, |   | September 30, |   |
|                                                                                 |   | 2008                         |   | 2007                        |   | 2008               |   | 2007               |   |
| Gain/(loss)                resulting from change in fair value of interest rate swap |   | $                            | 125    |                        | $      | (447               | )      | $                  | 71     |   | $ | (299 | ) |
|                                                                                 |   |                         |   |                        |   |               |   |               |   |   |   |   |   |
| Estimated                fair value – asset/(liability)                        |   | $                            | (492   | )                      | $      | (170               | )      | $                  | (492   | ) | $ | (170 | ) |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      9 - **
**INCOME      TAXES**

|                                     |   | **Successor**                |   | **Predecessor**             |   | **Successor**      |   | **Predecessor**    |   |
|------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|--------|
|                                     |   | Three Months Ended |   | Nine Months Ended |   |
|                                     |   | September 30,           |   | September 30,          |   | September 30, |   | September 30, |   |
|                                     |   | 2008                         |   | 2007                        |   | 2008               |   | 2007               |   |
| Income                tax provision      |   | $                            | 1,348  |                        | $      | 88                 |   | $                  | 6,343  |   | $ | 1,034 |   |
| Effective                income tax rate |   |                         | 36.8   | %                           |   | 0.8                | %      |               | 28.3   | % |   | 14.7 | % |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      10 -**
**DEFERRED      COMPENSATION PLAN**

|                                                           |   | September 30, |   | December 31, |   |
|----------------------------------------------------------------|--------|--------------------|--------|-------------------|--------|
|                                                           |   | 2008               |   | 2007              |   |
| Fair                market value of investments in rabbi trust |   | $                  | 8,837  |              | $      | 1,789 |   |
| Payable                to participants of the plan             |   |               | 9,289  |              |   | 3,782 |   |

**Note      11 - **
**COMMITMENTS      AND CONTINGENCIES**

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note      12 -**
**SEGMENT      INFORMATION**

|                                              |   | **Successor**                |   | **Predecessor**             |   | **Successor**      |   | **Predecessor**    |    |
|---------------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|---------|
|                                              |   | Three Months Ended |   | Nine Months Ended |   |
|                                              |   | September 30,           |   | September 30,          |   | September 30, |   | September 30, |    |
|                                              |   | 2008                         |   | 2007                        |   | 2008               |   | 2007               |    |
| **Financial                Advisory**             |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| Revenues                (excluding reimbursables) |   | $                            | 80,233 |                        | $      | 63,362             |   | $                  | 234,721 |   | $ | 187,795 |   |
| Segment                operating income           |   |                         | 11,797 |                        |   | 10,083             |   |               | 39,521  |   |   | 30,783 |   |
| Segment                operating income margin    |   |                         | 14.7   | %                           |   | 15.9               | %      |               | 16.8    | % |   | 16.4 | % |
|                                              |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| **Investment                Banking**             |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| Revenues                (excluding reimbursables) |   | $                            | 16,081 |                        | $      | 20,525             |   | $                  | 52,547  |   | $ | 60,655 |   |
| Segment                operating income           |   |                         | 3,994  |                        |   | 7,023              |   |               | 13,361  |   |   | 20,700 |   |
| Segment                operating income margin    |   |                         | 24.8   | %                           |   | 34.2               | %      |               | 25.4    | % |   | 34.1 | % |
|                                              |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| **Total**                                         |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| Revenues                (excluding reimbursables) |   | $                            | 96,314 |                        | $      | 83,887             |   | $                  | 287,268 |   | $ | 248,450 |   |
|                                              |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| Segment                operating income           |   | $                            | 15,791 |                        | $      | 17,106             |   | $                  | 52,882  |   | $ | 51,483 |   |
| Net                client reimbursable expenses   |   |                         | (32    | )                           |   | (45                | )      |               | 20      |   |   | (72 | ) |
| Equity-based                compensation          |   |                         |   |                        |   |               |   |               |    |   |   |   |   |
| from                Legacy Units and IPO Options  |   |                         | (8,705 | )                           |   | (1,436             | )      |               | (21,019 | ) |   | (31,275 | ) |
| Depreciation                and amortization      |   |                         | (2,446 | )                           |   | (2,284             | )      |               | (6,903  | ) |   | (6,683 | ) |
| Acquisition                retention expense      |   |                         | (206   | )                           |   | (696               | )      |               | (782    | ) |   | (2,026 | ) |
| Operating                income                   |   |                         | 4,402  |                        |   | 12,645             |   |               | 24,198  |   |   | 11,427 |   |
| Other                income/(expense), net        |   |                         | (736   | )                           |   | (1,821             | )      |               | (1,823  | ) |   | (4,370 | ) |
| Non-controlling                interest           |   |                         | (2,165 | )                           |   | -                  |   |               | (13,204 | ) |   | - |   |
| Provision                for income taxes         |   |                         | (1,348 | )                           |   | (88                | )      |               | (6,343  | ) |   | (1,034 | ) |
| Net                income                         |   | $                            | 153    |                        | $      | 10,736             |   | $                  | 2,828   |   | $ | 6,023 |   |

|                         |   | **Successor**                |   | **Predecessor**             |   | **Successor**      |   | **Predecessor**    |    |
|------------------------------|--------|------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|---------|
|                         |   | Three Months Ended |   | Nine Months Ended |   |
|                         |   | September 30,           |   | September 30,          |   | September 30, |   | September 30, |    |
|                         |   | 2008                         |   | 2007                        |   | 2008               |   | 2007               |    |
| United                States |   | $                            | 86,783 |                        | $      | 78,692             |   | $                  | 258,464 |   | $ | 234,454 |   |
| Europe                       |   |                         | 7,663  |                        |   | 4,398              |   |               | 24,838  |   |   | 12,799 |   |
| Asia                         |   |                         | 1,868  |                        |   | 797                |   |               | 3,966   |   |   | 1,197 |   |
| Total revenues          |   | $                            | 96,314 |                        | $      | 83,887             |   | $                  | 287,268 |   | $ | 248,450 |   |

----

**DUFF      & PHELPS CORPORATION AND SUBSIDIARIES**

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note**
**13      -**
**RELATED      PARTY TRANSACTIONS**

|                                       |   | **Successor**                |   | **Predecessor**             |   | **Successor**      |   | **Predecessor**    |   |
|--------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|--------|
|                                       |   | Three Months Ended |   | Nine Months Ended |   |
|                                       |   | September 30,           |   | September 30,          |   | September 30, |   | September 30, |   |
|                                       |   | 2008                         |   | 2007                        |   | 2008               |   | 2007               |   |
| Related                party advisory fees |   | $                            | -      |                        | $      | 213                |   | $                  | -      |   | $ | 638 |   |

----

| **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**

----

***Three      months ended September 30, 2008 versus three months ended September 30,      2007***

**Results      of Operations**

**(Dollars      in thousands)**

|                                                   |   | **Successor**                |   | **Predecessor**    |   |   |   |    |    |
|-------------------------------------------------------------|--------|------------------------------|--------|--------------------|--------|--------|--------|---------|---------|
|                                                        |   | Three Months Ended |   |               |   |   |   |
|                                                        |   | September 30,           |   | September 30, |   | Unit   |   | Percent |    |
|                                                        |   | 2008                         |   | 2007               |   | Change |   | Change  |    |
| Revenues                                                    |   | $                            | 96,314 |               | $      | 83,887 |   | $       | 12,427  |   |   | 14.8 | % |
| Reimbursable                  expenses                      |   |                         | 2,781  |               |   | 3,695  |   |    | (914    | ) |   | (24.7 | )% |
| Total                  revenues                             |   |                         | 99,095 |               |   | 87,582 |   |    | 11,513  |   |   | 13.1 | % |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Direct                  client service costs                |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Compensation                  and benefits(1)               |   |                         | 57,280 |               |   | 46,303 |   |    | 10,977  |   |   | 23.7 | % |
| Other                  direct client service costs          |   |                         | 2,410  |               |   | 1,194  |   |    | 1,216   |   |   | 101.8 | % |
| Acquisition                  retention expenses             |   |                         | 206    |               |   | 696    |   |    | (490    | ) |   | (70.4 | )% |
| Reimbursable                  expenses                      |   |                         | 2,813  |               |   | 3,740  |   |    | (927    | ) |   | (24.8 | )% |
|                                                        |   |                         | 62,709 |               |   | 51,933 |   |    | 10,776  |   |   | 20.7 | % |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Operating                  expenses                         |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Selling,                  general and administrative(2)     |   |                         | 29,538 |               |   | 20,720 |   |    | 8,818   |   |   | 42.6 | % |
| Depreciation                  and amortization              |   |                         | 2,446  |               |   | 2,284  |   |    | 162     |   |   | 7.1 | % |
|                                                        |   |                         | 31,984 |               |   | 23,004 |   |    | 8,980   |   |   | 39.0 | % |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Operating                  income                           |   |                         | 4,402  |               |   | 12,645 |   |    | (8,243  | ) |   | (65.2 | )% |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Other                  expense/(income)                     |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Interest                  income                            |   |                         | (90    | )                  |   | (458   | )      |    | 368     |   |   | (80.3 | )% |
| Interest                  expense                           |   |                         | 847    |               |   | 1,871  |   |    | (1,024  | ) |   | (54.7 | )% |
| Other                  expense/(income)                     |   |                         | (21    | )                  |   | 408    |   |    | (429    | ) |   | (105.1 | )% |
|                                                        |   |                         | 736    |               |   | 1,821  |   |    | (1,085  | ) |   | (59.6 | )% |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Income                  before non-controlling interest     |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| and                  income taxes                           |   |                         | 3,666  |               |   | 10,824 |   |    | (7,158  | ) |   | (66.1 | )% |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Non-controlling                  interest                   |   |                         | 2,165  |               |   | -      |   |    | 2,165   |   |   | - |   |
| Provision                  for income taxes                 |   |                         | 1,348  |               |   | 88     |   |    | 1,260   |   |   | 1431.8 | % |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Net                  income                                 |   | $                            | 153    |               | $      | 10,736 |   | $       | (10,583 | ) |   | (98.6 | )% |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| **Other                  financial and operating data**     |   |                         |   |               |   |   |   |    |    |   |   |   |   |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| Adjusted                  EBITDA(3)                         |   | $                            | 15,759 |               | $      | 17,061 |   | $       | (1,302  | ) |   | (7.6 | )% |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| End                  of period managing directors           |   |                         | 168    |               |   | 126    |   |    | 42      |   |   | 33.3 | % |
|                                                        |   |                         |   |               |   |   |   |    |    |   |   |   |   |
| End                  of period client service professionals |   |                         | 993    |               |   | 763    |   |    | 230     |   |   | 30.1 | % |

----

| (1) | Compensation                and benefits include $7,551 and $1,030 of equity-based compensation                expense for the three months ended September 30, 2008 and 2007,                respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Selling,                general and administrative expenses include $2,845 and $406 of                equity-based compensation expense for the three months ended September                30,                2008 and 2007, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

**Reconciliation of Adjusted EBITDA**

**(Dollars in thousands)**

|                                                          |   | **Successor**                |   | **Predecessor**    |   |
|---------------------------------------------------------------|--------|------------------------------|--------|--------------------|--------|
|                                                          |   | Three Months Ended |   |
|                                                          |   | September 30,           |   | September 30, |   |
|                                                          |   | 2008                         |   | 2007               |   |
| Net                income                                     |   | $                            | 153    |               | $      | 10,736 |   |
| Provision                for income taxes                     |   |                         | 1,348  |               |   | 88 |   |
| Non-controlling                interest                       |   |                         | 2,165  |               |   | - |   |
| Other                expense, net                             |   |                         | 736    |               |   | 1,821 |   |
| Depreciation                and amortization                  |   |                         | 2,446  |               |   | 2,284 |   |
| Acquisition                retention expenses                 |   |                         | 206    |               |   | 696 |   |
| Equity-based                compensation associated with |   |                         |   |               |   |   |   |
| with                Legacy Units and IPO Options              |   |                         | 8,705  |               |   | 1,436 |   |
| Adjusted                EBITDA                                |   | $                            | 15,759 |               | $      | 17,061 |   |

|   | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | 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 |   |
|                                                                                                |   | September 30,           |   | September 30, |   |
|                                                                                                |   | 2008                         |   | 2007               |   |
|                                                                                                |   |                         |   |               |   |
| Revenues                (excluding reimbursables)                                                   |   | $                            | 96,314 |               | $      | 83,887 |   |
|                                                                                                |   |                         |   |               |   |   |   |
| Total                direct client service costs                                                    |   | $                            | 62,709 |               | $      | 51,933 |   |
| Less:                equity-based compensation associated with                                      |   |                         |   |               |   |   |   |
| Legacy                Units and IPO Options                                                         |   |                         | (6,585 | )                  |   | (1,030 | ) |
| Less:                acquisition retention expenses                                                 |   |                         | (206   | )                  |   | (696 | ) |
| Less:                reimbursable expenses                                                          |   |                         | (2,813 | )                  |   | (3,740 | ) |
| Direct                client service costs, as adjusted                                             |   | $                            | 53,105 |               | $      | 46,467 |   |
|                                                                                                |   |                         |   |               |   |   |   |
| Direct                client service costs, as adjusted, as a percentage of                revenues |   |                         | 55.1   | %                  |   | 55.4 | % |

----

**Operating      Expenses**

**Operating      Expenses**

**(Dollars      in thousands)**

|                                                                        |   | **Successor**                |   | **Predecessor**    |   |
|-----------------------------------------------------------------------------|--------|------------------------------|--------|--------------------|--------|
|                                                                        |   | Three Months Ended |   |
|                                                                        |   | September 30,           |   | September 30, |   |
|                                                                        |   | 2008                         |   | 2007               |   |
|                                                                        |   |                         |   |               |   |
| Revenues                (excluding reimbursables)                           |   | $                            | 96,314 |               | $      | 83,887 |   |
|                                                                        |   |                         |   |               |   |   |   |
| Total                operating expenses                                     |   | $                            | 31,984 |               | $      | 23,004 |   |
| Less:                equity-based compensation associated with              |   |                         |   |               |   |   |   |
| Legacy                Units and IPO Options                                 |   |                         | (2,120 | )                  |   | (406 | ) |
| Less:                depreciation and amortization                          |   |                         | (2,446 | )                  |   | (2,284 | ) |
| Operating                expenses, as adjusted                              |   | $                            | 27,418 |               | $      | 20,314 |   |
|                                                                        |   |                         |   |               |   |   |   |
| Operating                expenses, as adjusted, as a percentage of revenues |   |                         | 28.5   | %                  |   | 24.2 | % |

**Operating      Income**

**Other      Income and Expenses**

**Non-Controlling      Interest**

----

**Provision      for Income Taxes**

----

***Segment        Results –Three months ended September 30, 2008 versus Three months ended        September 30, 2007***

**Results        of Operations by Segment**

**(Dollars        in thousands)**

|                                                                             |   | **Successor**                |   | **Predecessor**    |   |               |   |                |   |
|----------------------------------------------------------------------------------|--------|------------------------------|--------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                                             |   | Three Months Ended |   |               |   |               |   |
|                                                                             |   | September 30,           |   | September 30, |   |  Unit    |   |  Percent  |   |
|                                                                             |   | 2008                         |   | 2007               |   |  Change  |   |  Change   |   |
| **Financial                  Advisory**                                          |   |                         |        |               |   |                    |   |                |        |   |   |  |   |
| Revenues                  (excluding reimbursables)                              |   | $                            | 80,233 |               | $      | 63,362             |   | $                   | 16,871 |   |   | 26.6 | % |
| Segment                  operating income                                        |   |                         | 11,797 |               |   | 10,083             |   |                | 1,714  |   |   | 17.0 | % |
| Segment                  operating income margin                                 |   |                         | 14.7   | %                  |   | 15.9               | %      |                | (1.2   | )% |   | N/A |   |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Investment                  Banking**                                          |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Revenues                  (excluding reimbursables)                              |   | $                            | 16,081 |               | $      | 20,525             |   | $                   | (4,444 | ) |   | (21.7 | )% |
| Segment                  operating income                                        |   |                         | 3,994  |               |   | 7,023              |   |                | (3,029 | ) |   | (43.1 | )% |
| Segment                  operating income margin                                 |   |                         | 24.8   | %                  |   | 34.2               | %      |                | (9.4   | )% |   | N/A |   |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Average                  Client Service Professionals**                        |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                                              |   |                         | 838    |               |   | 640                |   |                | 198    |   |   | 30.9 | % |
| Investment                  Banking                                              |   |                         | 125    |               |   | 99                 |   |                | 26     |   |   | 26.3 | % |
| Total                                                                            |   |                         | 963    |               |   | 739                |   |                | 224    |   |   | 30.3 | % |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **End                  of Period Client Service Professionals**                  |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                                              |   |                         | 864    |               |   | 663                |   |                | 201    |   |   | 30.3 | % |
| Investment                  Banking                                              |   |                         | 129    |               |   | 100                |   |                | 29     |   |   | 29.0 | % |
| Total                                                                            |   |                         | 993    |               |   | 763                |   |                | 230    |   |   | 30.1 | % |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Revenue                  per Client Service Professional**                     |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                                              |   | $                            | 96     |               | $      | 99                 |   | $                   | (3     | ) |   | (3.0 | )% |
| Investment                  Banking                                              |   |                         | 129    |               |   | 207                |   |                | (78    | ) |   | (37.7 | )% |
| Total                  professionals                                             |   |                         | 100    |               |   | 114                |   |                | (14    | ) |   | (12.3 | )% |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Financial                  Advisory Utilization                  Rate****(1)** |   |                         | 61.2   | %                  |   | 66.7               | %      |                | (5.5   | )% |   | (8.2 | )% |
| **Financial                  Advisory                  Rate-per-Hour****(2)**    |   | $                            | 350    |               | $      | 315                |   | $                   | 35     |   |   | 11.1 | % |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Total**                                                                        |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Revenues                  (excluding reimbursables)                              |   | $                            | 96,314 |               | $      | 83,887             |   |                |   |   |   |   |   |
|                                                                             |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Segment                  operating income                                        |   | $                            | 15,791 |               | $      | 17,106             |   |                |   |   |   |   |   |
| Net                  client reimbursable expenses                                |   |                         | (32    | )                  |   | (45                | )      |                |   |   |   |   |   |
| Equity-based                  compensation from Legacy Units and IPO Options     |   |                         | (8,705 | )                  |   | (1,436             | )      |                |   |   |   |   |   |
| Depreciation                  and amortization                                   |   |                         | (2,446 | )                  |   | (2,284             | )      |                |   |   |   |   |   |
| Acquisition                  retention expense                                   |   |                         | (206   | )                  |   | (696               | )      |                |   |   |   |   |   |
| Total                  operating income                                          |   | $                            | 4,402  |               | $      | 12,645             |   |                |   |   |   |   |   |

----

| (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,                  and certain acquisitions prior to the transition to the Company’s                  financial system)                  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 $2,799 of revenues                  associated                  with Rash in the three months ended September 30, 2008. The average                  billing rate also excludes certain hours from certain acquisitions                  prior                  to their transition to the Company’s financial                  system. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Other        Operating Data**

**(Dollars        in thousands)**

|                                                      |   | **Successor**                |   | **Predecessor**    |   |               |   |                |   |
|-----------------------------------------------------------|--------|------------------------------|--------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                      |   | Three Months Ended |   |               |   |               |   |
|                                                      |   | September 30,           |   | September 30, |   |  Unit    |   |  Percent  |   |
|                                                      |   | 2008                         |   | 2007               |   |  Change  |   |  Change   |   |
| **Revenues                  (excluding reimbursables)**   |   |                         |        |               |   |                    |   |                |        |   |   |  |   |
| Financial                  Advisory                       |   | $                            | 80,233 |               | $      | 63,362             |   | $                   | 16,871 |   |   | 26.6 | % |
| Investment                  Banking                       |   |                         | 16,081 |               |   | 20,525             |   |                | (4,444 | ) |   | (21.7 | )% |
| Total                                                     |   | $                            | 96,314 |               | $      | 83,887             |   | $                   | 12,427 |   |   | 14.8 | % |
|                                                      |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Average                  Number of Managing Directors** |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                       |   |                         | 130    |               |   | 95                 |   |                | 35     |   |   | 36.8 | % |
| Investment                  Banking                       |   |                         | 33     |               |   | 30                 |   |                | 3      |   |   | 10.0 | % |
| Total                                                     |   |                         | 163    |               |   | 125                |   |                | 38     |   |   | 30.4 | % |
|                                                      |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **End                  of Period Managing Directors**     |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                       |   |                         | 134    |               |   | 95                 |   |                | 39     |   |   | 41.1 | % |
| Investment                  Banking                       |   |                         | 34     |               |   | 31                 |   |                | 3      |   |   | 9.7 | % |
| Total                                                     |   |                         | 168    |               |   | 126                |   |                | 42     |   |   | 33.3 | % |
|                                                      |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| **Revenue                  per Managing Director**        |   |                         |   |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                       |   | $                            | 617    |               | $      | 667                |   | $                   | (50    | ) |   | (7.5 | )% |
| Investment                  Banking                       |   |                         | 487    |               |   | 684                |   |                | (197   | ) |   | (28.8 | )% |
| Total                  Managing Directors                 |   |                         | 591    |               |   | 671                |   |                | (80    | ) |   | (12.0 | )% |

**Financial        Advisory**

*Revenues*

|                                                     |   | **Successor**                |   | **Predecessor**    |   |               |   |                |   |
|----------------------------------------------------------|--------|------------------------------|--------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                     |   | Three Months Ended |   |               |   |               |   |
|                                                     |   | September 30,           |   | September 30, |   |  Dollar  |   |  Percent  |   |
|                                                     |   | 2008                         |   | 2007               |   |  Change  |   |  Change   |   |
| **Financial                  advisory revenues**         |   |                         |        |               |   |                    |   |                |        |   |   |  |   |
| Valuation                  advisory                      |   | $                            | 43,777 |               | $      | 43,751             |   | $                   | 26     |   |   | 0.1 | % |
| Corporate                  finance consulting            |   |                         | 15,211 |               |   | 8,692              |   |                | 6,519  |   |   | 75.0 | % |
| Specialty                  tax                           |   |                         | 12,700 |               |   | 6,398              |   |                | 6,302  |   |   | 98.5 | % |
| Dispute                  and legal management consulting |   |                         | 8,545  |               |   | 4,521              |   |                | 4,024  |   |   | 89.0 | % |
|                                                     |   | $                            | 80,233 |               | $      | 63,362             |   | $                   | 16,871 |   |   | 26.6 | % |

----

| (1) | Valuation                  Advisory includes the results of the Kane Reece acquisition effective                  July                  31, 2008. Specialty Tax includes the results of Rash & Associates                  effective April 11, 2008 and World Tax Service US effective July                  15, 2008.                  Dispute and Legal Management Consulting includes the acquisitions                  of                  Dubinsky & Company effective April 11, 2008, and the Lumin Expert                  Group effective August 8, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Segment        Operating Income*

**Investment        Banking**

*Revenues*

|                                             |   | **Successor**                |   | **Predecessor**    |   |               |   |                |   |
|--------------------------------------------------|--------|------------------------------|--------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                        |   | Three Months Ended |   |               |   |               |   |
|                                             |   | September 30,           |   | September 30, |   |  Dollar  |   |  Percent  |   |
|                                             |   | 2008                         |   | 2007               |   |  Change  |   |  Change   |   |
| **Investment                  banking revenues** |   |                         |        |               |   |                    |   |                |        |   |   |  |   |
| Transaction                  opinions            |   | $                            | 6,367  |               | $      | 10,195             |   | $                   | (3,828 | ) |   | (37.5 | )% |
| M&A                  advisory                |   |                         | 4,889  |               |   | 5,230              |   |                | (341   | ) |   | (6.5 | )% |
| Restructuring                  advisory          |   |                         | 4,825  |               |   | 5,100              |   |                | (275   | ) |   | (5.4 | )% |
|                                             |   | $                            | 16,081 |               | $      | 20,525             |   | $                   | (4,444 | ) |   | (21.7 | )% |

----

*Segment        Operating Income*

----

***Nine        months ended September 30, 2008 versus nine months ended September 30,        2007***

**Results        of Operations**

**(Dollars        in thousands)**

|                                                                       |   | **Successor**               |    | **Predecessor**    |   |               |   |                |   |
|----------------------------------------------------------------------------|--------|-----------------------------|---------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                                       |   | Nine Months Ended |    |               |   |
|                                                                       |   | September 30,          |    | September 30, |   |  Unit    |   |  Percent  |   |
|                                                                       |   | 2008                        |    | 2007               |   |  Change  |   |  Change   |   |
|                                                                       |   |                        |    |               |   |               |   |                |   |
| Revenues                                                                   |   | $                           | 287,268 |               | $      | 248,450            |   | $                   | 38,818 |   |   | 15.6 | % |
| Reimbursable                  expenses                                     |   |                        | 7,946   |               |   | 9,753              |   |                | (1,807 | ) |   | (18.5 | )% |
| Total                  revenues                                            |   |                        | 295,214 |               |   | 258,203            |   |                | 37,011 |   |   | 14.3 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Direct                  client service costs                               |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Compensation                  and benefits(1)                              |   |                        | 166,276 |               |   | 156,353            |   |                | 9,923  |   |   | 6.3 | % |
| Other                  direct client service costs                         |   |                        | 5,828   |               |   | 2,007              |   |                | 3,821  |   |   | 190.4 | % |
| Acquisition                  retention expenses                            |   |                        | 782     |               |   | 2,026              |   |                | (1,244 | ) |   | (61.4 | )% |
| Reimbursable                  expenses                                     |   |                        | 7,926   |               |   | 9,825              |   |                | (1,899 | ) |   | (19.3 | )% |
|                                                                       |   |                        | 180,812 |               |   | 170,211            |   |                | 10,601 |   |   | 6.2 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Operating                  expenses                                        |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Selling,                  general and administrative(2)                    |   |                        | 83,301  |               |   | 69,882             |   |                | 13,419 |   |   | 19.2 | % |
| Depreciation                  and amortization                             |   |                        | 6,903   |               |   | 6,683              |   |                | 220    |   |   | 3.3 | % |
|                                                                       |   |                        | 90,204  |               |   | 76,565             |   |                | 13,639 |   |   | 17.8 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Operating                  income                                          |   |                        | 24,198  |               |   | 11,427             |   |                | 12,771 |   |   | 111.8 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Other                  expense/(income)                                    |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Interest                  income                                           |   |                        | (654    | )                  |   | (1,287             | )      |                | 633    |   |   | (49.2 | )% |
| Interest                  expense                                          |   |                        | 2,569   |               |   | 5,442              |   |                | (2,873 | ) |   | (52.8 | )% |
| Other                  expense/(income)                                    |   |                        | (92     | )                  |   | 215                |   |                | (307   | ) |   | (142.8 | )% |
|                                                                       |   |                        | 1,823   |               |   | 4,370              |   |                | (2,547 | ) |   | (58.3 | )% |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Income                    before non-controlling interest and income taxes |   |                        | 22,375  |               |   | 7,057              |   |                | 15,318 |   |   | 217.1 | %  |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Non-controlling                  interest                                  |   |                        | 13,204  |               |   | -                  |   |                | 13,204 |   |   | - |   |
| Provision                  for income taxes                                |   |                        | 6,343   |               |   | 1,034              |   |                | 5,309  |   |   | 513.4 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Net                  income                                                |   | $                           | 2,828   |               | $      | 6,023              |   | $                   | (3,195 | ) |   | (53.0 | )% |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Other                  financial and operating data**                    |   |                        |    |               |   |               |   |                |   |   |   |   |   |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Adjusted                  EBITDA(3)                                        |   | $                           | 52,903  |               | $      | 51,411             |   | $                   | 1,492  |   |   | 2.9 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| End                  of period managing directors                          |   |                        | 168     |               |   | 126                |   |                | 42     |   |   | 33.3 | % |
|                                                                       |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| End                  of period client service professionals                |   |                        | 993     |               |   | 763                |   |                | 230    |   |   | 30.1 | % |

----

| (1) | Compensation                  and benefits include $17,181 and $23,071 of equity-based compensation                  expense for the nine months ended September 30, 2008 and 2007,                  respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Selling,                  general and administrative expenses include $8,164 and $8,204 of                  equity-based compensation expense for the nine months ended September                  30,                  2008 and 2007, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

----

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

**Reconciliation        of Adjusted EBITDA**

**(Dollars        in thousands)**

|                                                                                                |   | **Successor**               |   | **Predecessor**    |   |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------------------|--------|
|                                                                                                     |   | Nine Months Ended |   |
|                                                                                                     |   | September 30,          |   | September 30, |   |
|                                                                                                     |   | 2008                        |   | 2007               |   |
|                                                                                                          |   |                        |   |               |   |
| Net                  income                                                                                   |   | $                           | 2,828  |               | $      | 6,023 |   |
| Provision                  for income taxes                                                                   |   |                        | 6,343  |               |   | 1,034 |   |
| Non-controlling                  interest                                                                     |   |                        | 13,204 |               |   | - |   |
| Other                  expense, net                                                                           |   |                        | 1,823  |               |   | 4,370 |   |
| Depreciation                  and amortization                                                                |   |                        | 6,903  |               |   | 6,683 |   |
| Acquisition                  retention expenses                                                               |   |                        | 782    |               |   | 2,026 |   |
| Equity-based                  compensation associated with with Legacy Units and IPO                  Options |   |                        | 21,020 |               |   | 31,275 |   |
|                                                                                                          |   |                        |   |               |   |   |   |
| Adjusted                  EBITDA                                                                              |   | $                           | 52,903 |               | $      | 51,411 |   |

|   | 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|   | 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**    |   |
|--------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------------------|--------|
| **  **                                                                                                   |   | Nine Months Ended |    |
|                                                                                                               |   | September 30,          |    | September 30, |   |
|                                                                                                               |   | 2008                        |    | 2007               |   |
|                                                                                                               |   |                        |    |               |   |
| Revenues                  (excluding reimbursables)                                                                |   | $                           | 287,268 |               | $      | 248,450 |   |
|                                                                                                               |   |                        |    |               |   |   |   |
| Total                  direct client service costs                                                                 |   | $                           | 180,812 |               | $      | 170,211 |   |
| Less:                    equity-based compensation associated with Legacy                    Units and IPO Options |   |                        | (15,090 | )                  |   | (23,071 | ) |
| Less:                  acquisition retention expenses                                                              |   |                        | (782    | )                  |   | (2,026 | ) |
| Less:                  reimbursable expenses                                                                       |   |                        | (7,926  | )                  |   | (9,825 | ) |
| Direct                  client service costs, as adjusted                                                          |   | $                           | 157,014 |               | $      | 135,289 |   |
|                                                                                                               |   |                        |    |               |   |   |   |
| Direct                  client service costs, as adjusted, as a percentage of                  revenues            |   |                        | 54.7    | %                  |   | 54.5 | % |

----

**Operating        Expenses**

**Operating        Expenses**

**(Dollars        in thousands)**

|                                                                                                           |   | **Successor**               |         | **Predecessor**    |   |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------------|--------------------|--------|
|                                                                                                           |   | Nine Months Ended |         |
|                                                                                                           |   | September 30,          |         | September 30, |   |
|                                                                                                           |   | 2008                        |         | 2007               |   |
|                                                                                                           |   |                        |         |               |   |
| Revenues                  (excluding reimbursables)                                                            |   | $                           | 287,268      |               | $      | 248,450 |   |
|                                                                                                           |   |                        |              |               |   |  |   |
| Total                  operating expenses                                                                      |   | $                           | 90,204       |               | $      | 76,565 |   |
| Less:                  equity-based compensation associated with Legacy Units and IPO                  Options |   |                        | (5,930  | )             |   | (8,204  | ) |
| Less:                  depreciation and amortization                                                           |   |                        | (6,903       | )                  |   | (6,683 | ) |
| Operating                  expenses, as adjusted                                                               |   | $                           | 77,371       |               | $      | 61,678 |   |
|                                                                                                           |   |                        |              |               |   |  |   |
| Operating                  expenses, as adjusted, as a percentage of revenues                                  |   |                        | 26.9         | %                  |   | 24.8 | % |

**Operating        Income**

**Other        Income and Expenses**

**Non-Controlling        Interest**

----

**Provision        for Income Taxes**

----

***Segment        Results –Nine months ended September 30, 2008 versus nine months ended        September 30, 2007***

**Results        of Operations by Segment**

**(Dollars        in thousands)**

|                                                                             |   | **Successor**               |    | **Predecessor**    |   |               |   |                |   |
|----------------------------------------------------------------------------------|--------|-----------------------------|---------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                                             |   | Nine Months Ended |    |               |   |               |   |
|                                                                             |   | September 30,          |    | September 30, |   |  Unit    |   |  Percent  |   |
|                                                                             |   | 2008                        |    | 2007               |   |  Change  |   |  Change   |   |
| **Financial                  Advisory**                                          |   |                        |         |               |   |                    |   |                |        |   |   |  |   |
| Revenues                  (excluding reimbursables)                              |   | $                           | 234,721 |               | $      | 187,795            |   | $                   | 46,926 |   |   | 25.0 | % |
| Segment                  operating income                                        |   |                        | 39,521  |               |   | 30,783             |   |                | 8,738  |   |   | 28.4 | % |
| Segment                  operating income margin                                 |   |                        | 16.8    | %                  |   | 16.4               | %      |                | 0.4    | % |   | N/A |   |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Investment                  Banking**                                          |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Revenues                  (excluding reimbursables)                              |   | $                           | 52,547  |               | $      | 60,655             |   | $                   | (8,108 | ) |   | (13.4 | )% |
| Segment                  operating income                                        |   |                        | 13,361  |               |   | 20,700             |   |                | (7,339 | ) |   | (35.5 | )% |
| Segment                  operating income margin                                 |   |                        | 25.4    | %                  |   | 34.1               | %      |                | (8.7   | )% |   | N/A |   |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Average                  Client Service Professionals**                        |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                                              |   |                        | 805     |               |   | 601                |   |                | 204    |   |   | 33.9 | % |
| Investment                  Banking                                              |   |                        | 115     |               |   | 104                |   |                | 11     |   |   | 10.6 | % |
| Total                                                                            |   |                        | 920     |               |   | 705                |   |                | 215    |   |   | 30.5 | % |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **End                  of Period Client Service Professionals**                  |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                                              |   |                        | 864     |               |   | 663                |   |                | 201    |   |   | 30.3 | % |
| Investment                  Banking                                              |   |                        | 129     |               |   | 100                |   |                | 29     |   |   | 29.0 | % |
| Total                                                                            |   |                        | 993     |               |   | 763                |   |                | 230    |   |   | 30.1 | % |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Revenue                  per Client Service Professional**                     |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                                              |   | $                           | 292     |               | $      | 312                |   | $                   | (20    | ) |   | (6.4 | )% |
| Investment                  Banking                                              |   |                        | 457     |               |   | 583                |   |                | (126   | ) |   | (21.6 | )% |
| Total                  professionals                                             |   |                        | 312     |               |   | 352                |   |                | (40    | ) |   | (11.4 | )% |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Financial                  Advisory Utilization                  Rate****(1)** |   |                        | 62.5    | %                  |   | 68.4               | %      |                | (5.9   | )% |   | (8.6 | )% |
| **Financial                  Advisory                  Rate-per-Hour****(2)**    |   | $                           | 350     |               | $      | 321                |   | $                   | 29     |   |   | 9.0 | % |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Total**                                                                        |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Revenues                  (excluding reimbursables)                              |   | $                           | 287,268 |               | $      | 248,450            |   |                |   |   |   |   |   |
|                                                                             |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Segment                  operating income                                        |   | $                           | 52,882  |               | $      | 51,483             |   |                |   |   |   |   |   |
| Net                  client reimbursable expenses                                |   |                        | 20      |               |   | (72                | )      |                |   |   |   |   |   |
| Equity-based                  compensation from Legacy Units and IPO Options     |   |                        | (21,019 | )                  |   | (31,275            | )      |                |   |   |   |   |   |
| Depreciation                  and amortization                                   |   |                        | (6,903  | )                  |   | (6,683             | )      |                |   |   |   |   |   |
| Acquisition                  retention expense                                   |   |                        | (782    | )                  |   | (2,026             | )      |                |   |   |   |   |   |
| Total                  operating income                                          |   | $                           | 24,198  |               | $      | 11,427             |   |                |   |   |   |   |   |

----

| (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, and certain acquisitions prior to the                  transition to the Company’s financial system) 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 $6,677                  of                  revenues associated with Rash in the nine months ended September                  30, 2008.                  The average billing rate also excludes certain hours from certain                  acquisitions prior to their transition to the Company’s financial                  system. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Other        Operating Data**

**(Dollars        in thousands)**

|                                                      |   | **Successor**               |    | **Predecessor**    |   |               |   |                |   |
|-----------------------------------------------------------|--------|-----------------------------|---------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                      |   | Nine Months Ended |    |               |   |               |   |
|                                                      |   | September 30,          |    | September 30, |   |  Unit    |   |  Percent  |   |
|                                                      |   | 2008                        |    | 2007               |   |  Change  |   |  Change   |   |
| **Revenues                  (excluding reimbursables)**   |   |                        |         |               |   |                    |   |                |        |   |   |  |   |
| Financial                  Advisory                       |   | $                           | 234,721 |               | $      | 187,795            |   | $                   | 46,926 |   |   | 25.0 | % |
| Investment                  Banking                       |   |                        | 52,547  |               |   | 60,655             |   |                | (8,108 | ) |   | (13.4 | )% |
| Total                                                     |   | $                           | 287,268 |               | $      | 248,450            |   | $                   | 38,818 |   |   | 15.6 | % |
|                                                      |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Average                  Number of Managing Directors** |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                       |   |                        | 117     |               |   | 91                 |   |                | 26     |   |   | 28.6 | % |
| Investment                  Banking                       |   |                        | 32      |               |   | 31                 |   |                | 1      |   |   | 3.2 | % |
| Total                                                     |   |                        | 149     |               |   | 122                |   |                | 27     |   |   | 22.1 | % |
|                                                      |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **End                  of Period Managing Directors**     |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                       |   |                        | 134     |               |   | 95                 |   |                | 39     |   |   | 41.1 | % |
| Investment                  Banking                       |   |                        | 34      |               |   | 31                 |   |                | 3      |   |   | 9.7 | % |
| Total                                                     |   |                        | 168     |               |   | 126                |   |                | 42     |   |   | 33.3 | % |
|                                                      |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| **Revenue                  per Managing Director**        |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Financial                  Advisory                       |   | $                           | 2,006   |               | $      | 2,064              |   | $                   | (58    | ) |   | (2.8 | )% |
| Investment                  Banking                       |   |                        | 1,642   |               |   | 1,957              |   |                | (315   | ) |   | (16.1 | )% |
| Total                  Managing Directors                 |   |                        | 1,928   |               |   | 2,036              |   |                | (109   | ) |   | (5.3 | )% |

**Financial        Advisory**

*Revenues*

|                                                     |   | **Successor**               |    | **Predecessor**    |   |               |   |                |   |
|----------------------------------------------------------|--------|-----------------------------|---------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                                     |   | Nine Months Ended |    |               |   |               |   |
|                                                     |   | September 30,          |    | September 30, |   |  Dollar  |   |  Percent  |   |
|                                                     |   | 2008                        |    | 2007               |   |  Change  |   |  Change   |   |
| **Financial                  advisory revenues**         |   |                        |    |               |   |               |   |                |   |   |   |   |   |
| Valuation                  advisory                      |   | $                           | 136,104 |               | $      | 126,165            |   | $                   | 9,939  |   |   | 7.9 | % |
| Corporate                  finance consulting            |   |                        | 43,036  |               |   | 29,870             |   |                | 13,166 |   |   | 44.1 | % |
| Specialty                  tax                           |   |                        | 33,440  |               |   | 17,018             |   |                | 16,422 |   |   | 96.5 | % |
| Dispute                  and legal management consulting |   |                        | 22,141  |               |   | 14,742             |   |                | 7,399  |   |   | 50.2 | % |
|                                                     |   | $                           | 234,721 |               | $      | 187,795            |   | $                   | 46,926 |   |   | 25.0 | % |

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*Segment        Operating Income*

**Investment        Banking**

*Revenues*

|                                             |   | **Successor**               |   | **Predecessor**    |   |               |   |                |   |
|--------------------------------------------------|--------|-----------------------------|--------|--------------------|--------|--------------------|--------|---------------------|--------|
|                                             |   | Nine Months Ended |   |               |   |               |   |
|                                             |   | September 30,          |   | September 30, |   |  Dollar  |   |  Percent  |   |
|                                             |   | 2008                        |   | 2007               |   |  Change  |   |  Change   |   |
| **Investment                  banking revenues** |   |                        |        |               |   |                    |   |                |        |   |   |  |   |
| Transaction                  opinions            |   | $                           | 27,374 |               | $      | 30,178             |   | $                   | (2,804 | ) |   | (9.3 | )% |
| M&A                  advisory                |   |                        | 13,235 |               |   | 15,818             |   |                | (2,583 | ) |   | (16.3 | )% |
| Restructuring                  advisory          |   |                        | 11,938 |               |   | 14,659             |   |                | (2,721 | ) |   | (18.6 | )% |
|                                             |   | $                           | 52,547 |               | $      | 60,655             |   | $                   | (8,108 | ) |   | (13.4 | )% |

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*Segment        Operating Income*

**Liquidity        and Capital Resources**

**Operating        Activities**

**Investing        Activities**

----

**Financing        Activities**

**Future        Needs**

----

**Recent        Accounting Pronouncements**

*The        Hierarchy of Generally Accepted Accounting Principles*

*Determination        of the Useful Life of Intangible Assets*

*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*

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| **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.** |
|-----------------------------|------------------------------------|

*Our        liquidity, financial position and profitability could be adversely affected        by        U.S. and international credit markets and economic conditions.*

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| **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.** |
|----------------------------|--------------------------------------------------------------------------------------------|

| **Item                5.** | **Other                  Information.** |
|----------------------------|-----------------------------------------|

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

| ExhibitNumber |   | 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:                  November 6, 2008 | /s/                  Jacob Silverman           |   |
|                                    | JACOB                  SILVERMAN               |   |
|                                    | Chief                  Financial Officer       |   |

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