Fortress Profit Jumps On Huge Increase In Fees

Nov 2 2012 | 1:57pm ET

Fortress Investment Group said its third-quarter profit rose by almost half on increased fee income.

The private equity giant's pre-tax distributable earnings jumped 49% to $64 million, it said today. That topped analysts' estimates by a penny per share.

Fortress' performance fee income soared by more than 300% to $65 million, thanks to strong returns. It's private equity portfolio was up 9.4% last quarter. And the gains aren't limited to Fortress' p.e. funds; it's flagship hedge fund is up 11% this year, erasing its loss from last year.

"With no corporate debt, and substantial balance sheet value, we have never operated from a position of greater financial strength," co-founder Randal Nardone said.

Assets under management rose 8% to $51.5 billion.

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