Fortress Investment Group LLC, the U.S. alternative asset manager to be acquired by Japan’s SoftBank Group for $3.3 billion, is exploring divesting bond fund manager Logan Circle Partners, according to people familiar with the matter.
While Logan Circle accounts for close to half of Fortress’ $69.6 billion in assets under management, it generated a tiny fraction of its $362 million in pre-tax distributable earnings in 2016, making it a non-core asset in the eyes of SoftBank.
Fortress is working with Bank of America Corp on an auction for Logan Circle, but the process is still in early stages, the sources said this week.
Logan Circle may be valued at around $250 million in a sale, the sources added, asking not to be identified because the sale process is confidential.
Fortress and Bank of America declined to comment.
Founded by Chief Executive Jude Driscoll in 2007 as a joint venture between management and Guggenheim Partners LLC, Logan Circle was bought by Fortress in 2010 for an initial $21 million.
Asset manager Fortress’ investments span real estate, hedge funds and private equity. The all-cash sale to SoftBank, expected to close in the second half of 2017, is the Japanese group’s first major investment in an asset manager after previously focusing on telecoms and technology firms.