Fortress Posts Strong Q4, 2010 Results

Mar 1 2011 | 12:45pm ET

Fortress Investment Group easily topped analyst estimates for the fourth-quarter, finishing out a year in which its pre-tax distributable earnings rose nearly threefold.

The alternative investments giant said its 2010 distributable earnings, excluding charges related to its 2007 initial public offering, were $372 million. Including those charges, its loss for the year was $782 million, 14% better than in 2009.

In the fourth quarter, a 71% increase in fee income helped the firm cut its quarterly loss to just $13.4 million, down from $84.3 million in the last three months of 2009. Fortress, which said its assets under management rose to $44.62 billion from $31.48 billion at the end of 2009 and $44 billion at the end of September, explained that "substantially all" of those assets are now above their high-water mark.

All told, Fortress collected $269 million in fee income on the quarter. Management fee revenues rose 20% and performance fees more than doubled. Hedge fund performance fees rose more than tenfold for the full year to $170 million.

"Our fourth-quarter and full-year results were very solid, and reflect broad momentum that has carried into 2011," CEO Daniel Mudd said. "Our funds continue to deliver strong returns, capital raising increased apace, and we have attracted a significant number of new investors to Fortress."


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