Fortress Investment Group posted a net loss of $55 million for the quarter ended June 30, according to an earnings statement released today by the private equity and hedge fund manager. The decline came primarily from a five-year compensation agreement with the five principal owners before the firms February 2007 IPO, said spokeswoman Lilly Donohue. It is purely a GAAP accounting nuance, she said. Excluding principals agreement compensation, the net loss was $345,000.
Pre-tax distributable earnings were $58 million for the quarter, equal to last quarter, and down from $143 million for second-quarter 2007. Segment revenues were $165 million for the quarter, down from $177 million in the first quarter and $283 million in the second quarter of 2007.
Fee-paying assets under management were $35.1 billion as of June 30, up 2.6% from March 31 and up 23% from 12 months earlier.