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

Fortress Investment Group LLC (NYSE:FIG) (“Fortress” or the “Company”) today reported its third quarter 2013 financial results.

FINANCIAL SUMMARY

  • Fortress declares a cash dividend of $0.06 per dividend paying share for the third quarter of 2013
  • Management Fee Paying Assets Under Management (“AUM”) of $58.0 billion as of September 30, 2013, a 6% increase from the second quarter of 2013 and a 13% increase from the third quarter of 2012
  • GAAP net income of $101 million for the third quarter of 2013, or $0.12 per diluted Class A share; GAAP book value per share of $2.70 as of September 30, 2013
  • Pre-tax distributable earnings (“DE”) of $65 million, or $0.13 per dividend paying share, for the third quarter of 2013, compared to pre-tax DE of $64 million, or $0.12 per dividend paying share, for the third quarter of 2012
  • Net cash and investments of $3.18 per dividend paying share as of September 30, 2013, up from $2.40 per dividend paying share as of December 31, 2012
  • $807 million of gross embedded incentive income across funds as of September 30, 2013, that has not been recognized in DE
  • Total uncalled capital, or “dry powder,” of $7.2 billion as of September 30, 2013, including approximately $5.0 billion available for general investment purposes

BUSINESS HIGHLIGHTS

  • Raised $2.0 billion of capital across alternative investment businesses during the quarter, bringing total third-party alternative capital raised year-to-date through September 30, 2013 to $5.0 billion
  • Recorded $1.9 billion of net client inflows for Logan Circle during the quarter, bringing total net client inflows year-to-date through September 30, 2013 to $3.2 billion
  • Investment performance summary as of quarter end:
    • Third quarter 2013 net returns of 3.8% in the Drawbridge Special Opportunities Fund (“DBSO”) LP, (3.0)% in the Fortress Macro Funds and (1.1)% in the Fortress Asia Macro Funds; year-to-date 2013 net returns of 13.5% in the DBSO LP, 9.8% in the Fortress Macro Funds and 11.7% in the Fortress Asia Macro Funds
    • Private Equity fund valuations increased 10.0% during the quarter and 17.2% year-to-date through September 30, 2013
    • Annualized inception-to-date net IRRs through September 30, 2013 for the Credit Opportunities Fund and Credit Opportunities Fund II of 25.9% and 18.4%, respectively
    • 14 of 16 Logan Circle fixed income strategies outperformed respective benchmarks in the quarter and all 16 strategies have outperformed respective benchmarks since inception

“We continue to track towards a terrific full year, driven by strong year-to-date investment performance and broad-based success in attracting new capital,” said Fortress Chief Executive Officer Randy Nardone. “We began the fourth quarter with assets under management at an all-time high of $58 billion, our highest first three quarters of distributable earnings since 2007, and a substantial and growing store of embedded value in our funds and on our balance sheet. We feel very good about our prospects for the full year and for 2014.”

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