Fortress Reports Third Quarter 2016 Results And Announces Dividend Of $0.09 Per Share

Fortress Investment Group LLC (NYSE:FIG) ("Fortress" or the "Company") today reported its third quarter 2016 financial results.

FINANCIAL SUMMARY
  • Fortress declared a cash dividend of $0.09 per dividend paying share for the third quarter 2016
  • Management Fee Paying Assets Under Management ("AUM") of $70.1 billion as of September 30, 2016, down slightly compared to the previous quarter and down 6% compared to September 30, 2015
  • GAAP net income of $58 million, or $0.07 per diluted Class A share, for the third quarter of 2016, compared to a GAAP net loss of $26 million, or $(0.07) per diluted Class A share, for the third quarter of 2015
  • GAAP net income of $16 million, or $0.02 per diluted Class A share, for the first nine months of 2016, compared to GAAP net income of $66 million, or $0.09 per diluted Class A share, for the first nine months of 2015
  • Pre-tax distributable earnings ("DE") of $90 million, or $0.23 per dividend paying share, for the third quarter of 2016, compared to pre-tax DE of $69 million, or $0.15 per dividend paying share, for the third quarter of 2015
  • Pre-tax DE of $255 million, or $0.64 per dividend paying share, for the first nine months of 2016, compared to pre-tax DE of $261 million, or $0.58 per dividend paying share, for the first nine months of 2015
  • Net cash and investments of $1.1 billion, or $2.75 per dividend paying share, as of September 30, 2016
  • $1.2 billion of gross embedded incentive income across funds and permanent capital vehicles as of September 30, 2016, that has not yet been recognized in DE
  • Total uncalled capital, or "dry powder," of $7.0 billion as of September 30, 2016, including $4.2 billion available for general investment purposes
  • Fortress's principals, Peter Briger, Wesley Edens and Randal Nardone, entered into new five-year employment agreements, effective as of January 1, 2017

BUSINESS HIGHLIGHTS
  • Raised $833 million of capital across alternative investment businesses during the first nine months of 2016
  • Investment performance summary as of September 30, 2016:
    • Private Equity fund valuations increased 7.5% in the quarter
    • Annualized inception-to-date net IRRs for Credit Opportunities Fund ("FCO"), FCO II and FCO III of 23.5%, 16.1% and 9.8%, respectively
    • Third quarter and year-to-date 2016 net returns of 2.7% and 6.2%, respectively, for the Drawbridge Special Opportunities Fund ("DBSO") LP
    • All 16 Logan Circle strategies outperformed respective benchmarks in the third quarter

Note: This release contains certain Non-GAAP financial measures. Fortress urges you to read the "Non-GAAP Information" section below and to review the exhibits in this release for reconciliations of these measures to the comparable GAAP measures.

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