Fortress Investment Group reported $70.2 billion in assets under management as of June 30, down 0.6% from three months earlier and down 2% year-over-year, said the company’s second-quarter earnings report released Thursday.
Fortress attributed the quarterly AUM decline to a $900 million decline in the AUM of affiliated managers and co-managed funds, $800 million in capital distributions to investors, a $200 million decline in AUM related to divested business and $100 million in equity buybacks for the permanent capital vehicles.
This was offset by $1.5 billion in net market-driven valuation gains, a $100 million increase in invested capital and $100 million in capital raised added directly to AUM.
AUM for Logan Circle Partners increased 4% over the quarter to $34.1 billion as of June 30; credit private equity funds declined 2% to $9.2 billion; credit hedge funds declined 3.2% to $9 billion; permanent capital vehicles declined 2.9% to $6.6 billion; private equity funds decreased 8.3% to $6.6 billion; and liquid hedge funds fell 11.5% to $4.6 billion.
Logan Circle accounted for 48.6% of Fortress’ total AUM as of June 30, credit private equity funds, 13.1%; credit hedge funds, 12.8%; private equity funds and permanent capital vehicles, about 9.4% each; and liquid hedge funds, 6.6%. Fortress reported a GAAP net loss of $27 million for the quarter, compared to a net loss of $16 million in the first quarter and net income of $5 million in the year-earlier quarter.
GAAP net revenue was $232 million in the second quarter, the same as first quarter, but down from $308 million in the second quarter of 2015.