Fortress buys CW Financial Services

Fortress Investment Group has bought CW Financial Services, a servicer of commercial and multifamily real estate debt. The seller is Otéra US Holding Inc. which had owned a majority stake. Financial terms were not disclosed. Fortress is an investment manager.


Fortress Investment Group LLC (NYSE: FIG) announced today that affiliates of certain Fortress managed funds have agreed to acquire CW Financial Services (branded as “CWCapital”), a market-leading provider of servicing, special servicing, investment management, advisory and origination capabilities with a specific focus on commercial and multifamily real estate debt. Fortress has agreed to acquire CWCapital from majority shareholder Otéra US Holding Inc. Terms of the transaction were not disclosed. Closing of the transaction is expected during the third quarter subject to regulatory approvals and closing conditions. Beekman Advisors, Inc. served as advisor to CWCapital.

Founded in 1972, CWCapital manages, invests in, originates, and advises on commercial and multifamily real estate debt products. Over the past eight years, the company has grown organically and through strategic acquisitions to become one of the leading commercial and multifamily real estate debt platforms in the U.S. As of April 30, 2010, CWCapital was the investment manager, servicer or special servicer for a portfolio of US $183.6 billion of loans and securities. With over US $160 billion of named special servicing assignments, CWCapital is the second-largest special servicer in the United States and is a significant Fannie Mae, Freddie Mac, and FHA lender servicing over $11.5 billion of multifamily and commercial loans.

Fortress has broad, global capabilities in real estate, credit and structured finance. These capabilities, combined with CWCapital’s origination, servicing and special servicing expertise, result in a unique capacity to participate in, and benefit from, the real estate market’s recovery and reconstitution.