Tuesday, 6 October 2015
Last updated 1 min ago
Nov 5 2010 | 11:43am ET
Fortress Investment Group’s private equity business was quiet in the third quarter, but the firm rode strong growth in its hedge funds to a 37% jump in profit.
New York-based Fortress said that pre-tax distributable earnings totaled $78 million during the quarter, up from $57 million in the same period last year. Almost all of that can be attributed to the performance fees earned by its hedge and credit funds, which were $75 million.
Fortress’ $1.8 billion jump in assets under management was also attributed almost entirely to its hedge fund business: The firm raised $1.2 billion last quarter, but all of the $551 million that found its way into Fortress’ assets under management went to credit and hedge funds.
Private equity funds, by contrast, grew by less than 1% to $11.6 billion. All told, the firm manages $44 billion.
“Our hedge funds produced significant incentive income,” CEO Daniel Mudd said. “Our credit business remains in a sweet spot.”
Including charges and compensation excluded from its pre-tax figures, Fortress’ quarterly loss actually increased to $95 million from $59 million last year.
May 27 2015 | 2:15pm ET
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