Fortress Investment Group’s assets under management rose to $66 billion as of Sept. 30, up 3.4% from three months earlier and up 14% from a year earlier, the alternative investment firm reported Thursday.
The increase included $2.2 billion in net inflows for Logan Circle Partners, the firm’s traditional money management unit; $900 million in invested capital; $700 million in raised capital directly added to AUM; and $400 million in investment gains.
Offsetting those increases were $1.2 billion in capital distributions to investors, $600 million in liquid hedge fund redemptions and $200 million in payments to credit hedge funds investors due to capital account redemptions.
Private equity accounted for 21.5% of total AUM, followed by credit funds at 20% and liquid hedge funds, 11.4%.
The Drawbridge Special Opportunities Fund, the firm’s flagship credit hedge fund, had a net return of 1.8% for the third quarter, while the Fortress Asia Macro Funds and Fortress Macro Fund returned a net 1.5% and 1.1%, respectively.
Meanwhile, private equity fund valuations increased 3.2% in the third quarter compared to a 2.8% gain in the second quarter.
Fortress Investment Group, which in 2007 became the first publicly traded private equity and hedge fund manager in the U.S. and has since declined 61%, would consider going private, its chief executive officer said.
“When the opportunity presents itself, we’ll definitely think about that,” CEO Randy Nardone said in response to an analyst’s question on a conference call Thursday discussing third-quarter earnings. “It’s obviously something that, at these valuations, it does seem like a pretty good value. It is something we think about as we think about many things going forward.”
Bloomberg contributed to this story.