Fortress Investment Group’s first-quarter profit fell slightly as the alternative investment giants’ hedge and private equity funds failed to keep up with its credit business.
Fortress’ pre-tax distributable earnings were $97 million in the first three months of the year. In the first quarter of 2013, the firm earned $100 million.
The decline was attributed to increased expenses and decreased performance-fee income. Fortress’ p.e. funds shed 0.2% on the quarter, while Fortress’ macro strategy shed 5.5%. Those declines were partially offset by the firm’s credit business, the only Fortress unit to post a gain with a 24% increase in distributable earnings year-on-year.
“Obviously, we’re disappointed with our 2014 results to date,” CEO Randal Nardone said. “We have eight months left of the year and a hole to fill. We think we’ll fill it.”