Profile: Fortress Investment Group LLC (FIG)
9 Feb 2016
Fortress Investment Group LLC (Fortress), incorporated on November 6, 2006, is an investment management firm with approximately $67.5 billion in assets under management (AUM) as of December 31, 2014. Its business is to sponsor the formation of, and provide investment management services for, various investment funds and companies, including related managed accounts (collectively, the Fortress Funds). Fortress makes investments in these funds. Fortress has three primary sources of income from the Fortress Funds: management fees, incentive income and investment income on its investments in the funds. The Fortress Funds fall into four business segments in which Fortress operates: Private equity, Liquid hedge funds, Credit funds and Logan Circle.
The private equity business manages approximately $13.9 billion of AUM as of December 31, 2014. These are general buyout and sector-specific funds focused on control-oriented investments in cash flow generating assets and asset-based businesses in North America and Western Europe. It includes the entities, which Fortress collectively refers to as permanent capital vehicles, including Newcastle Investment Corp., New Residential Investment Corp., Eurocastle Investment Limited, New Media Investment Group Inc. and New Senior Investment Group Inc., which are publicly traded companies that are externally managed by Fortress pursuant to management agreements (collectively referred to as the publicly traded permanent capital vehicles), and Worldwide Transportation and Infrastructure Investors, a private fund (the private permanent capital vehicle) and FHC Property Management LLC, a senior living property management business. The publicly traded permanent capital vehicles invest in a real estate related assets, including securities, loans, real estate properties and mortgage servicing related assets and media assets and the private permanent capital vehicle invests in transportation and infrastructure assets.
Liquid hedge funds
The liquid hedge funds business manages approximately $8.1 billion of AUM as of December 31, 2014. It invests in fixed income, currency, equity and commodity markets, and related derivatives to capitalize on imbalances in the financial markets. In addition, this segment includes an endowment style fund, which invests in Fortress Funds, funds managed by external managers and direct investments; a fund that primarily focuses on an international event driven investment strategy, particularly in Europe, Asia-Pacific and Latin America, and a fund that seeks to generate returns by executing a positively convex investment strategy.
The credit funds business manages approximately $13.1 billion of AUM as of December 31, 2014. It makes diversified investments in direct lending, corporate debt and securities, portfolios and orphaned assets, real estate and structured finance, on a global basis and throughout the capital structure, with a value orientation, as well as non-Fortress originated funds for which Fortress has been retained as manager as part of an advisory business. This segment includes credit private equity funds, which consists of a family of credit opportunities funds focused on investing in distressed and undervalued assets, a family of long dated value funds focused on investing in undervalued assets with limited current cash flows and long investment horizons, a family of real assets funds focused on investing in tangible and intangible assets in four principal categories (real estate, capital assets, natural resources and intellectual property), a family of Asia funds, including Japan real estate funds and an Asian investor based global opportunities fund, and a family of real estate opportunities funds, as well as certain sector-specific funds.
The Logan Circle business manages approximately $32.3 billion of AUM as of December 31, 2014. It includes Logan Circle Partners, L.P., which represents Fortress' asset management business providing institutional clients actively managed investment solutions across fixed income and growth equity strategies. Logan Circle's core fixed income products cover the maturity and risk spectrums, including short, intermediate and long duration, core/core plus, investment grade credit, high yield and emerging market debt.
Fortress Investment Group LLC
1345 Avenue of the Americas Fl 4
NEW YORK NY 10105-0302
Company Web Links
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