Maggie Arvedlund, a managing director who focused on private equity within Fortress Investment Group’s struggling hedge fund business, has left the firm for undisclosed reasons, according to two people with knowledge of the situation.
Arvedlund worked on the Fortress Partners Fund, an endowment-like vehicle that invests capital from firm founders and other investors across asest classes, with a focus on alternative assets. Arvedlund worked on originating, executing and overseeing a portfolio of direct debt and equity, private equity and real assets, according to her biography on the Chief Investment Officers Summit event page.
It’s not clear when Arvedlund left Fortress. Prior to joining the firm in 2007, she worked at Hall Capital Partners from 2003 to 2005, according to her LinkedIn profile.
Gordon Runté, a spokesman for Fortress, did not respond to requests for comment.
Fortress Partners Fund, which is housed within Fortress’ liquid hedge fund group, was established in 2006.
The Partners Fund’s assets under management have gradually decreased in the past several years. The fund’s AUM totaled $360 million as of June 30, down from a high of $1.7 billion in 2010, according to Fortress’ website.
The Partners Fund had net returns of -1.2 percent in the second quarter, according to the second-quarter earnings report. With the decreasing AUM, the Partners Fund management fee stream thinned out. Management fees within Fortress’ liquid hedge fund business had a net $30 million decrease for the six months ended June 30. Part of that decrease included $2.4 million related to the decreasing AUM in the Partners Fund, the earnings report said.
It’s not clear if Arvedlund’s departure is connected to the departure of Stuart Bohart, president of Fortress’ hedge fund unit. Bohart left earlier this month, the Wall Street Journal reported. Redemptions were expected to shrink the flagship Fortress Macro Fund to about $1.5 billion, compared to $3.2 billion at the beginning of the year, the WSJ reported.
Action Item: See Fortress’ second-quarter earnings report at http://bit.ly/1FjJhPU
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