This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fortress Investment Group LLC's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: FIG

Second, our business generates variable incentive fees based on performance and realizations. Incentive income of $52 million was up slightly from Q4. We made progress during the quarter towards generating potential future incentive income with improved performance in Macro and continued valuation gains in Private Equity. Credit remains positioned to be a meaningful contributor to the incentive line with all main fund NAV above the high watermarks or preferred thresholds. In the end, our incentive income is less predictable than management fees, but as we've seen in past periods, it can be a meaningful contributor to DE.

The big news of the quarter, though, is capital formation. We had $2.9 billion in new capital commitments in the first quarter, our largest single quarter capital raised since 2008. That doesn't include $2.3 billion in net inflows at Logan Circle. These commitments came from approximately 150 investors, and we've continued to see 2 important trends in our LP base.

First, the base of expanding and becoming more diverse. Over 30% of our first quarter commitments came from new investors, and over 30% came from international investors. Second, we continue to deepen relationships with existing investors who accounted for the major portion of commitments. Approximately half of our AUM today is from LPs invested in 2 or more of our businesses.

The largest driver of the new commitments was our next-generation Credit Opportunities Fund, FCO III. The fund raised over $3.7 billion through the end of the quarter. That compares to $2.3 billion for FCO II, which was raised in 2009.

Also in Credit, our second Japan Opportunities Fund and our first dedicated global real estate fund accounted for nearly $1 billion of commitments through March. These funds highlight a dynamic I addressed on our last call, a growing LP preference for more focused strategies. At Fortress, we've had the benefit of being able to launch focused strategies based on expertise incubated within our main investment platforms.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,056.86 +3.15 0.02%
S&P 500 2,091.68 +2.91 0.14%
NASDAQ 4,808.8230 +1.9640 0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs