Fortress Reports Fourth Quarter & Year End 2011 Financial Results And Announces Fourth Quarter 2011 Dividend Of $0.05 Per Share
Other income was $15 million in 2011, down 89% from $141 million in 2010. This change was primarily due to lower performance in our funds, which resulted in a decrease in earnings from equity method investees and an increase in net unrealized losses primarily related to our direct investment in GAGFAH and our investment in the options of one of our Castles.
CONSOLIDATED RESULTS – ASSETS UNDER MANAGEMENT AND SEGMENTS
As of December 31, 2011, assets under management totaled $43.7 billion, up 0.2% from $43.6 billion as of September 30, 2011 and down 2% from $44.6 billion as of December 31, 2010. During 2011, Fortress invested approximately $3.5 billion of capital and raised over $2.0 billion of capital, directly adding to assets under management. These increases to assets under management were offset by (i) $2.3 billion of return of capital distributions to investors, (ii) $1.9 billion of Hedge Fund redemptions and (iii) $1.2 billion of RCA payments to Credit Hedge Funds investors.
Pre-tax DE was $242 million in 2011, down 35% from $372 million in 2010. On a dividend paying share basis, pre-tax DE was $0.46 per share in 2011, down 36% from $0.72 per share in 2010. The year-over-year decline in pre-tax DE was driven by lower incentive income from our funds, and a decline in investment income from our principal investments, partially offset by a net increase in management fees from our Castles, Liquid Hedge Funds and Credit Private Equity Funds.
In 2011, fund management DE was $253 million, down 29% from $358 million in 2010. This decrease was driven by a $133 million decline in total segment revenues, partially offset by a $28 million decrease in total segment expenses. Total segment revenues were $707 million in 2011, down 16% from $840 million in 2010. Total management fee revenues increased by $38 million. This increase was offset by a $171 million decrease in incentive income.Select the service that is right for you!
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