Fortress Investment Group received shareholder approval to manage the $2 billion D.B. Zwirn Special Opportunities Fund and other D.B. Zwirn funds and accounts.
The funds will be renamed the Fortress Value Recovery Funds I. The transaction closed Monday, according to a Fortress news release.
D.B. Zwirn & Co., which had managed the funds, will close; about 100 Zwirn employees have become Fortress employees or are providing services to the company, according to the release.
Daniel B. Zwirn, founder and managing partner, is not joining Fortress, said a source who asked not to be identified.
In April, the source said investors will pay about $21 million in liquidation fees. Fortress will be paid 1% of net assets and 5% of any profits made in selling off the portfolio, which the source said could take between two and four years because many of the funds investments are illiquid. About $15 million of fund assets will be set aside to pay future claims or fines.
The former Zwirn funds bring Fortress assets to about $29 billion, managed in private equity and hedge funds.