“We had a very solid first quarter, with our credit business in a sweet spot, private equity valuations again marching up, and our macro funds delivering top-tier returns,” CEO Daniel Mudd said in a news release accompanying the earnings report.
Fortress' private equity fund assets totaled $10 billion, down 16% from the previous quarter as a result of the standard practice of resetting the values of three of the firm's private equity funds that reached the end of their investment periods. Private equity assets declined 13.8% from a year earlier. Investments in Fortress' traditional private equity appreciated 10.4% in the quarter.
Fortress' Castles publicly traded private equity funds had $3.2 billion in assets, up 6.7% in the three months and 3.2% in the 12 months ended March 31.
Assets managed in the firm's credit-oriented private equity funds decreased 6.3% in the first quarter to $4.5 billion, but grew 104.5% for the year. The 12-month gain resulted from institutional flows into Fortress' Credit Opportunities II, Global Opportunities and Japan Opportunities funds and a capital call for the Fortress Capital Opportunities I Fund, Gordon E. Runte, a spokesman, said in a telephone interview.
Assets of the company's four liquid hedge funds increased 2.1% in the quarter and 11.6% during the year ended March 31 to $4.8 billion. Assets of the firm's two open-credit hedge funds totaled $6.8 billion, down 5.6% in the quarter and flat for the year.