Tuesday, 22 July 2014
Last updated 22 min ago
May 16 2007 | 3:19pm ET
Publicly-traded hedge fund Fortress Investment Group’s first earnings report revealed a mixed bag: a big loss, but increased assets under management, management fees and revenues from its private equity and hedge fund product lines.
First the bad news: The firm reported a net loss of $71.8 million for the first quarter since its January reorganization. It also reported net income of $62.1 million in the first quarter compared to $130.1 million for the same period last year.
However, the firm reported total assets under management of $36 billion, an increase of 72% from 2006. Fortress generated total revenues of $383 million, which included management fees of $98 million and incentive income of $285 million. The firm’s p.e. business accounted for approximately 57% of its total revenues while its hedge fund business accounted for approximately 39%. Its Castles business, which is made up of publicly-traded alternative investment vehicles, accounted for approximately 4% of total revenues.
In addition, the firm said that it has closed on $2.8 billion of third-party commitments for its newly launched private equity fund, which is being raised to make control investments in asset-based businesses and asset portfolios primarily in North America and Western Europe. The fund is ultimately expected to have approximately $5 billion of capital commitments with third party capital a capped at $4 billion, and approximately $1 billion is expected to come from its principals, employees and affiliated funds managed by Fortress.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…