Fortress Investment Group has acquired a 7.7% stake in Nassau Financial Group in exchange for a $130 million minority non-voting common equity investment, a spokesman for Fortress confirmed by email.
The transaction closed on Sept. 1, said a Tuesday release.
Golden Gate Capital, a San Francisco-based private equity firm, retains its position as Nassau's majority controlling shareholder.
The investment will provide "additional primary capital to both further strengthen Nassau's balance sheet and accelerate the firm's growth strategy, including organic growth and acquisitions," the release noted.
As part of a strategic agreement between the two firm, Nassau entered into a long-term investment management agreement with Fortress under which Nassau's insurance subsidiaries will have full access to Fortress' credit investment strategies, the release added. Nassau plans to begin investing alongside Fortress credit funds targeting direct lending and asset-backed security investing opportunities.
Based in Hartford, Conn., Nassau currently has $23 billion in assets under management.
Fortress had $44.7 billion in assets under management as of June 30.
