Fortress Loss Grows In Best Fundraising Quarter In Three Years

Aug 5 2010 | 1:14pm ET

Fortress Investment Group’s second-quarter loss more than doubled, the alternative investments giant said today. But all of the firm’s other numbers were pointed in the right direction.

New York-based Fortress said that its quarterly loss grew from $45 million to $92 million. But its pretax distributable earnings jumped from $59 million to $73 million, easily topping analysts’ expectations in its “most successful capital raising quarter in three years,” according to CEO Daniel Mudd.

Fortress took in $1.9 billion in new money on the quarter, including “5% of all hedge fund inflows in the quarter,” Mudd said. The inflows allowed the firm to close two funds, its $800 million Japan real-estate fund and its $2.6 billion Credit Opportunities Funds II in July.

“There is a great liquidation story going to play out in the next three-to-five years,” Mudd said. “Large-scale downsizing is still to come. We believe the value of offloading non-core assets or platform could be as high as 20 to 30 times what we experienced in the loan crisis. There will be tons of low-hanging fruits.”

Unlike the second quarter of last year, Fortress actually earned some incentive fees, taking in $50 million. Its assets under management grew to $41.7 billion from $30.2 billion in the first quarter, mostly thanks to its acquisition of hedge fund Logan Circle Partners.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.