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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note