Fortress Investment Group reported assets under management of $43.7 billion as of Dec. 31, up 0.2% from $43.6 billion in the third quarter but down 2% from $44.6 billion at year-end 2010, according to the alternative investment firm's fourth-quarter financial results released Tuesday.
During the year, Fortress Investment raised $4.2 billion in capital, with $2 billion of that included in 2011 assets under management. The remainder, $2.2 billion, is capital commitments to funds that have not yet been called. Fortress also invested about $3.5 billion of capital, adding to its AUM. This increase in AUM was offset by $2.3 billion in capital distributions to investors, $1.9 billion in hedge fund redemptions and $1.2 billion of redeeming capital account payments to credit hedge fund investors.
Fortress had a net GAAP loss of $1.1 billion in 2011, compared to a net loss of $782 million the year before. The firm's total GAAP revenue was $859 million in 2011, down 10% from 2010. Fortress attributed the decline to a decrease in incentive income, which was partially offset by $26 million in management fees and expense reimbursements from affiliates. Total GAAP expenses were $2 billion in 2011, an 11% increase from the year before