Fortress Investment Group Raises $590M For New Secured Lending Fund

May 4 2017 | 8:55pm ET

Fortress Investment Group has raised $590 million in total accepted capital for a new secured lending fund.

The new fund, named the Fortress Secured Lending Fund, was oversubscribed and closed nearly 20% over its original target of $500 million, the company said in a statement. It received support from 56 external investors, including 30 new to Fortress and will become the primary funding source for the firm’s established specialty finance lending business. The specialty lending unit has committed approximately $5 billion across over 80 lender finance transactions since 2006. 

The fund will be led by co-CIOs Pete Briger, Dean Dakolias and Dominick Ruggiero, and focus on making attractively priced, primarily senior loans secured by diversified portfolios of consumer and small business loans and receivables. Since 2006, Fortress Credit lender finance transactions have generated an unlevered, mark-to-market gross return of 13%.

Founded in 1998 by Edens, Nardone and Robert Kauffman, Fortress manages nearly $70 billion across a number of alternative investment strategies as of December 31, 2016. It was the first private equity and hedge fund manager to sell shares to the public and manages assets on behalf of more than 1,750 institutional clients and private investors worldwide.

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