Full Description

Fortress Investment Group LLC (Fortress) is a global alternative asset manager that raises, invests and manages private equity funds and hedge funds. Fortress earns management fees based on the size of its funds, incentive income based on the performance of the Company's funds, and investment income from its principal investments in those funds. Its offering of alternative investment products includes private equity funds and hedge funds. The Company refers to these investment products, collectively, as the Fortress Funds. As of December 31, 2008, the Company managed alternative assets in two core businesses: private equity funds and hedge funds.

Private Equity Funds

Private equity funds business manages approximately $15.8 billion of assets under management (AUM), which consists of two business segments: funds that primarily make control-oriented investments in North America and Western Europe, with a focus on acquiring and building asset-based businesses with cash flows, and publicly traded alternative investment vehicles, referred to as Castles, which invest primarily in real estate and real estate related debt investments. The Company also manages a family of long-dated value funds focused on investing in undervalued assets with limited current cash flows and long investment horizons. Its private equity business is made up primarily of a series of funds named the Fortress Investment Funds, and organized to make control-oriented investments in cash flow generating, asset-based businesses in North America and Western Europe.

Hedge Funds

Hedge Funds business manages approximately $13.7 billion of AUM. The hedge fund business focuses on absolute returns and consists of two business segments: liquid hedge funds, which invest globally in fixed income, currency, equity and commodity markets and related derivatives to capitalize on imbalances in the financial markets, and hybrid hedge funds, which make diversified investments globally in assets, opportunistic lending situations and securities through the capital structure with a value orientation, as well as investment funds managed by external managers.