Fortress Posts Higher-Than-Expected 3Q Earnings

Private equity and hedge fund firm Fortress Investment Group reported higher-than-expected earnings Friday, Reuters reported. Revenue in the third quarter was $162.2 million, above analysts’ average estimate of $144.7 million. New York-based Fortress said pretax distributable income rose to $78 million, or 15 cents per share, from $51 million, or 11 cents a share, a year earlier, Reuters reported.

(Reuters) – Fortress Investment Group (FIG.N) reported third-quarter earnings above analysts’ expectations on Friday, as a strong performance in its credit products and hedge funds boosted management fees.

The New York-based hedge fund and private equity firm said pretax distributable income rose to $78 million, or 15 cents per share, from $51 million, or 11 cents a share, a year earlier.

Analysts on average expected the company to earn 11 cents per share, according to Thomson Reuters I/B/E/S.

Fortress, one of the first alternative investment management firms to go public, contends pretax distributable income is the best way to measure its performance because it excludes large quarterly compensation charges stemming from the equity interest of principals who took the company public in 2007.

Under generally accepted accounting principles, the firm said its full quarterly net loss attributable to Class A shareholders widened to $95 million, or 62 cents per share, from $59 million, or 43 cents a share, a year earlier.

Revenue was $162.2 million, above the analysts’ average estimate of $144.7 million.

Fortress said assets under management were $44 billion as of Sept. 30. (Reporting by Emily Chasan; Editing by Lisa Von Ahn)