Fortress Investment Group on Thursday reported assets under management of $46.4 billion as of March 31, a 6% increase from three months earlier and up 7.7% from a year earlier.
For the quarter, Fortress reported $2.3 billion in net client inflows, with all but $40 million in Logan Circle Partners LP, the firm's traditional fixed-income business, according to Fortress' quarterly report filed with the SEC. Also contributing to the increased AUM were a $1.4 billion hike in its fund valuations and $300 million in assets raised that were directly added to assets under management. At the same time, the firm had $997 million in hedge fund redemptions. (Fortress provides only its fee-paying assets under management, according to the SEC filing.)
The alternative investment firm also reported a GAAP net loss of $24 million in the first quarter, compared to a $234 million net loss in the previous quarter and a net loss of $255 million in the first quarter of 2011, according to its quarterly earnings report Thursday.
Realized incentive fee income was $52 million, compared to $118 million in the first quarter of 2011. This decline was primarily because of lower incentive income by Fortress' liquid markets hedge funds, credit hedge funds and credit private equity funds.
Management fee income was in the first quarter was $118 million, down 6.3% from the first quarter of 2011. The decline was attributed to lower management fees from its private equity funds, liquid hedge funds and credit hedge funds, the firm reported.
Fortress reported 84% of its alternative assets under management as of March 31 were in funds with long-term, locked-up structures, “which provides for a stable, predictable base of management fees,” according to the report.
