Fortress Investment Group reported $74.3 billion in assets under management as of Sept. 30, a 3.2% increase from three months earlier and up 12.6% from a year earlier, the company announced in its third-quarter earnings release Thursday.
The increase came as a result of $3.6 billion in “positive change” in the AUM of affiliated managers and co-managed funds, as well as a $600 million increase in invested capital, $200 million raised capital added directly to AUM and $100 million in net inflows for subsidiary Logan Circle Partners.
Those gains were partially offset by $900 million in capital distributions, $600 million in market-driven valuation losses, $500 million in liquid hedge fund redemptions and $200 million in credit hedge fund redemptions and payments to investors in those funds from redeeming accounts.
Much of the increase in AUM came from credit hedge funds, which had $9.1 billion in AUM as of Sept. 30, a 46.8% jump from $6.2 billion the previous quarter. Credit private equity funds also saw a small increase of 1.2% in AUM to $8.3 billion.
Private equity funds' AUM fell 4.2% to $9.2 billion, permanent capital vehicles' AUM remained at $6.9 million, and liquid hedge funds also remained the same, $7.4 billion, as the previous quarter.
The liquid markets unit houses Fortress' macro hedge fund business, which the company announced Oct. 13 it would close. The company also announced on that date that Michael Novogratz, principal and macro chief investment officer, will retire at the end of the year. Fortress' macro funds accounted for $1.8 billion in AUM as of Sept. 30.
Logan Circle Partners' assets under management fell slightly, to $33.4 billion as of Sept. 30 from $33.6 billion the previous quarter; however, Logan Circle's AUM had increased 7.4% from a year earlier.
Logan Circle accounted for 45% of Fortress' total as of Sept. 30. Private equity funds made up 12.4%; credit hedge funds, 12.2%; credit private equity funds, 11.2%; liquid hedge funds, 9.9%; and permanent capital vehicles, 9.3%.
