“For Fortress Private Equity, 2012 was a pivotal year in which we delivered significant valuation gains in our main funds while building out new strategies that we believe will be transformative for our business over time,” said Wes Edens, Fortress co-Chairman and Private Equity CIO. “With 25% valuation gains in 2012, we’ve seen a $6 billion increase in our Private Equity investment valuations over the past three years, and we see growing potential to generate significant value in our most recent vintage funds. We also had great success in raising capital for new sector-specific funds—WWTAI and our MSR Opportunities Funds—and in raising permanent equity capital through Newcastle. Altogether, we have raised over $2.1 billion in sector-specific funds and permanent equity over the past 14 months. We believe that the opportunities we are focused on can attract meaningful capital in strategies that can generate substantial long-term value and growth.”
Liquid Hedge Funds:
- Fortress Macro Fund had a net return of 6.0% for the fourth quarter of 2012 and 17.8% for the year ended December 31, 2012
- Fortress Asia Macro Fund had a net return of 9.5% for the fourth quarter of 2012 and 21.2% for the year ended December 31, 2012
- Raised approximately $546 million in new third-party capital during the quarter, bringing total third-party capital raised in 2012 to $1.0 billion
- Fortress Asia Macro Fund was named “Best Global Macro Fund” at the HFMWeek 2012 Asia Performance Awards
(See supplemental data on page 21 for more detail on Liquid Hedge Funds results)
The Liquid Hedge Funds generated pre-tax DE of $30 million in the fourth quarter of 2012 and $45 million for the year ended December 31, 2012. Pre-tax DE was up $22 million from the previous quarter, largely a result of increased incentive income from continued positive investment performance.