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Fortress Reports Second Quarter 2013 Results And Announces Dividend Of $0.06 Per Share

Stocks in this article: FIG

Fortress Investment Group LLC (NYSE: FIG) today reported its second quarter 2013 financial results.


  • Fortress declares a cash dividend of $0.06 per dividend paying share for the second quarter of 2013
  • Management Fee Paying Assets Under Management (“AUM”) of $54.6 billion as of June 30, 2013, a 2% decline from the first quarter of 2013 and a 14% increase from the second quarter of 2012
  • GAAP net loss of $2 million for the second quarter of 2013; GAAP book value per share of $2.53 as of June 30, 2013
  • Pre-tax distributable earnings (“DE”) of $148 million, or $0.30 per dividend paying share, for the second quarter of 2013, compared to pre-tax DE of $50 million, or $0.09 per dividend paying share, for the second quarter of 2012
  • Net cash and investments of $2.88 per dividend paying share as of June 30, 2013, up from $2.40 per dividend paying share as of December 31, 2012
  • $754 million of gross embedded incentive income across funds as of June 30, 2013, that has not been recognized in DE
  • Total uncalled capital, or “dry powder,” of $6.6 billion as of June 30, 2013, including approximately $5.3 billion available for general investment purposes
  • Subsequent to quarter end, paid in full $89 million of outstanding corporate debt


  • Fortress's Board of Directors unanimously appointed Randal Nardone as Chief Executive Officer, following his service in this role in an interim capacity
  • Raised $1.2 billion of capital across alternative investment businesses during the quarter, bringing total third-party capital raised year-to-date through June 30, 2013 to $3.0 billion
  • Recorded $0.1 billion of net client inflows for Logan Circle during the quarter, bringing total net client inflows year-to-date through June 30, 2013 to $1.3 billion
  • Delivered strong investment performance across all businesses:
    • Net second quarter 2013 returns of 5.2% in the Drawbridge Special Opportunities Fund LP, 9.1% in the Fortress Macro Funds and 9.8% in the Fortress Asia Macro Funds; net first half 2013 returns of 9.4% in the Drawbridge Special Opportunities Fund LP, 13.2% in the Fortress Macro Funds and 12.9% in the Fortress Asia Macro Funds
    • Private Equity fund valuations increased 1.8% during the quarter and 6.9% year-to-date through June 30, 2013
    • Net annualized inception-to-date IRRs through June 30, 2013 for the Credit Opportunities Fund and Credit Opportunities Fund II of 26.2% and 18.7%, respectively
  • Subsequent to quarter end, held first and final close for Fortress MSR Opportunities Fund II at its cap of $1.1 billion

“We had an outstanding second quarter and first half of the year, founded on the strength of investment performance we delivered for our limited partners,” said Randal Nardone, Chief Executive Officer. “Looking ahead, we see uniform strength in the leading indicators of future performance – investment returns, capital formation, new business initiatives and embedded value. We continue to see substantial upside for our limited partners and our shareholders. I look forward to serving as Fortress's Chief Executive Officer at this very exciting time for our company.”

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