Fortress sees assets rise 8% for quarter, 18% for year
By Arleen Jacobius | November 2, 2012 4:24 pm
Fortress Investment Group's assets under management totaled $51.5 billion in the third quarter, an 8% increase from the second quarter and up 18% from the year-earlier quarter, according to the hedge fund and private equity firm's third-quarter earnings release.
Assets were boosted by $2 billion of net client inflows during the quarter to Logan Circle Partners, a fixed-income manager Fortress acquired from Guggenheim Partners in 2010, a $1.8 billion increase in fund valuations and $600 million in new capital and equity. This was partially offset by $700 million in distributions to investors, $400 million in hedge fund redemptions and $400 million of redeeming capital account payments to credit hedge fund investors.
In the third quarter, Fortress posted GAAP net income of $7 million, down 50% from the second quarter. Fortress had a GAAP net loss of $382 million in the third quarter of 2011.
Management fees totaled $116 million in the third quarter of 2012, a drop of 11% from a year earlier, primarily due to lower management fees from the liquid hedge funds and credit hedge funds.