Fortress Investment Group reported $44 billion in assets under management in the third quarter, up 5.5% from three months earlier and 39% above a year earlier, the company announced Friday.
The company raised $1.2 billion in outside money during the quarter, of which $551 million was added to assets under management, all of it in credit and hedge funds.
“Our hedge funds produced significant incentive income,” Daniel Mudd, Fortress CEO, said in a statement. “Our credit business remains in a sweet spot.”
Assets in private equity funds, Fortress' largest business, gained less than 1% to $11.6 billion at the end of the quarter. Co-chairman Wesley Edens, who heads that unit, said the most recent buyout fund is almost fully invested, and he expects to raise new money in the “very near term,” without giving details.
Fortress has $3.2 billion in unused capital commitments, with about $3 billion of that in the credit funds, CFO Daniel Bass said on a conference call.
The company's third-quarter profit rose 37% as holdings in its credit funds rose and clients added money to hedge and credit strategies. Pretax distributable earnings, which exclude some compensation costs and other items, were $78 million, or 15 cents a share, compared with $57 million, or 11 cents, a year earlier.
Earnings were boosted by $75 million in performance fees, mostly from the credit funds and liquid hedge funds, which rose above their previous peak asset values.
News Editor Rick Baert contributed to this story.