Fortress Investment Group closed Fortress Japan Opportunities Fund III on $1.1 billion, the hard cap. The fund has deployed more than $140 million across 10 deals. The fund is expected to be fully invested over the next two years.
Fortress Investment Group LLC (NYSE:FIG) announced today the successful close of Fortress Japan Opportunity Fund III (“FJOF III”) at the Fund’s cap. Investor subscriptions, in either USD or JPY, totaled approximately $1.1 billion. FJOF III is a successor fund to FJOF II and FJOF, which closed at their respective caps in December 2012 and June 2010.
As of September 30, 2015, FJOF and FJOF II (Yen) had generated annualized inception-to-date net IRRs of 32.3% and 23.5%, respectively. FJOF III had invested over ¥17 billion of capital across 10 closed transactions through September 30, 2015. The fund is expected to be fully invested over the next 24 months.
Fortress’s Japan Opportunity funds primarily focus on opportunistic investments in distressed real estate-related debt and other assets in Japan. The funds seek to capitalize on dynamics related to significant deleveraging by financial institutions and near-term debt maturities: supply demand gaps, limited credit availability, price distortions, volatility and sales of non-core or distressed real estate-related assets. Since 2009, the FJOF funds have invested over ¥210 billion of capital in opportunistic real estate debt and related assets in Japan.
With the completion of this fundraise, Fortress’s Credit business has now closed three successor funds in 2015 at their targeted caps: Fortress Credit Opportunities Fund IV, Fortress Real Estate Opportunities Fund II and FJOF III. In aggregate, these three successor Credit funds have raised over $7 billion of new capital.
Fortress Investment Group LLC is a leading, highly diversified global investment firm with $74.3 billion in assets under management as of September 30, 2015. Founded in 1998, Fortress manages assets on behalf of approximately 1,800 institutional clients and private investors worldwide across a range of private equity, credit, liquid hedge funds and traditional asset management strategies. Fortress is publicly traded on the New York Stock Exchange (NYSE: FIG). For additional information, please visit www.fortress.com.