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

Private Equity:

  • Fund portfolio investment valuations increased 9.4% in the third quarter of 2012, bringing year-to-date appreciation to 20.8%
  • Raised $591 million of capital for a new Private Equity fund focused on investments in mortgage servicing rights
  • Raised $168 million of permanent equity capital for Newcastle Investment Corp. in the third quarter, bringing total equity capital raised year-to-date to $435 million
  • Sold remaining interest in Aircastle Limited (NYSE: AYR) for $134 million
  • Subsequent to quarter end, completed the sale of RailAmerica, Inc. for $27.50 per share, representing a total equity value of $1.4 billion

(See supplemental data on page 17 for more detail on Private Equity results)

The Private Equity business, which includes Private Equity Funds and Castles, had pre-tax DE of $28 million for the third quarter, up slightly from $27 million in the second quarter. Year-to-date pre-tax DE for the segment is $84 million, down $5 million from the same time period in 2011, largely due to lower Private Equity Fund management fees that resulted from changes in the basis on which these fees are calculated in three funds, partially offset by increased Private Equity Fund incentive income. The majority of this incentive income was attributable to a $6 million reversal of previously recognized claw-back reserves recorded for Fund II.

Private Equity Fund investment performance in the third quarter was strong, with valuations in underlying investments increasing by 9.4%. This brings appreciation of these fund investments to 20.8% through September 30, 2012. Our public company investments, which represent 36% of Private Equity fund NAV, increased 24% in the third quarter.

In addition to the CWCapital transaction described above, we sold our remaining interest of 11.8 million common shares in Aircastle, for total proceeds of $134 million. Fortress formed Aircastle in 2004 and completed an IPO in 2006 at a price of $23 per share. In aggregate, the initial investment of $351 million generated a return of 2.1 times invested capital and a gross IRR of approximately 23%.

7 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
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs