This Day On The Street
Continue to site
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

Fortress Reports Third Quarter 2012 Results And Announces Dividend Of $0.05 Per Share

Fortress’s Credit Private Equity Funds continued to generate strong investment performance during the third quarter as well, which contributed to a further increase in unrealized, undistributed incentive income. The Credit Opportunities Fund and Credit Opportunities Fund II had net annualized inception-to-date IRRs through September 30, 2012 of 26.9% and 17.8%, respectively. Unrealized, undistributed incentive income increased $84 million, or 24%, to $430 million in the third quarter and has increased $186 million, or 76%, during the first nine months of 2012.

Also during the quarter, we completed the sale of CWCapital, CW Financial’s commercial real estate lending and primary servicing businesses, to Walker & Dunlop, Inc. (NYSE: WD) for $80 million in cash and $154 million of Walker & Dunlop common stock. Following the transaction’s close, Fortress’s Credit and Private Equity funds became Walker & Dunlop’s largest shareholder.

Additionally, the Credit team called over $720 million of dry powder for investments and returned over $950 million of capital to our investors in the quarter. Total Credit Private Equity dry powder – capital committed to the funds but not yet generating management fees – was $6.5 billion at the end of the quarter.

Total capital raised during the third quarter was nearly $250 million. This included $100 million raised in the Credit Hedge Funds and nearly $130 million raised in our second Japan real estate credit fund, which we anticipate will close with total commitments in excess of $1 billion prior to year-end. We also held a final close for a set of dedicated real estate opportunities funds with over $280 million in total third-party commitments.

“Our belief remains that the long-term investment opportunities in the Credit and broader distressed space are still substantial, primarily from the financial deleveraging that must occur in the next few years,” said Peter Briger, Fortress co-chairman and Credit co-CIO. “We are pleased to have substantial capital to invest as this broad opportunity set takes shape, but we do not believe that pricing dynamics today represent the most compelling opportunities that we will see in the current cycle. Our overriding objective is always to deliver outstanding returns for our investors, and we will remain patient and opportunistic in making investments on behalf of our limited partners.”

6 of 15

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs