Fortress Investment Group reported $43.8 billion in assets under management in the second quarter, up 2% from three months earlier and 5% higher than a year earlier, according to the company's earnings release on Thursday.
Fortress had a GAAP net loss of $246 million in the quarter ended June 30, compared with a loss of $251 million in the year-earlier quarter. The loss included revenue of $190 million, slightly less than the revenue of $191 million in the second quarter of 2010.
Fortress invested roughly $900 million of capital, raised $635 million of third-party capital and returned close to $500 million to investors in the latest quarter. The firm also made $390 million liquidation payments in its credit hedge funds during the second quarter.
In the three months ended June 30, Fortress Macro Fund earned -5.4%; Drawbridge Global Macro Fund, -6%; Fortress Commodities Fund,-6.4%; Fortress Asia Macro Fund, -1%; Fortress Partners Fund, -0.1%; and Fortress Partners Offshore Fund, -0.1%.
During the second quarter, the Fortress Partners Fund and Fortress Partners Offshore Fund were moved from its credit hedge fund business unit to its liquid hedge fund business.
Also, Fortress principals extended their employment for a new one-year term beginning Jan. 1. Under the new compensation plan, the principals will receive 20% of the incentive income earned from existing flagship hedge fund assets under management and between 10% and 20% of management distributable earnings of new assets in all businesses. They also will be paid up to 10% of management and performance fees will be in cash, with the rest in restricted equity that will vest over three years.