Fortress, after Softbank deal, plans to launch flagship credit fund this year

  • Fortress raised its last flagship credit fund in 2015
  • Dearth of distressed opportunities in market
  • As of now, firm eyes less than $5 bln for next credit fund

Fortress Investment Group, which last year was acquired by Softbank, plans to hit the market with its next flagship private-credit fund later this year, according to a person with knowledge of the firm.

The person said Fortress talked about its plans at its recent annual general meeting. The firm will likely set a smaller target for Fortress Credit Opportunities Fund V than it raised for Fund IV, which closed in 2015 on around $5 billion.

Fund V will likely be smaller because of a dearth of opportunities in the market right now, the source said. Gordon Runte, spokesman for Fortress, declined to comment.

Fortress’s credit opportunity pools are private equity-structured vehicles that target investments in distressed and undervalued assets and credits. The credit PE funds include the Credit Opportunities funds as well as credit pools for investments in Japan and real estate.

Peter Briger, co-chairman of Fortress’s board of directors, launched the firm’s credit business in 2002. Constantine Dakolias, managing director, is co-chief investment officer of the credit funds with Briger, who is co-CIO. The credit group has invested more than $100 billion since 2002, according to Fortress’s website.

Fortress, founded in 1998, is led by Briger, Co-CEO Wes Edens and Co-Founder and Principal Randal Nardone. The firm had about $56.3 billion in discretionary regulatory assets under management as of Dec. 31, 2017, the firm’s Form ADV shows.

SoftBank said on Dec. 27 that it closed the acquisition of Fortress for about $3.3 billion cash.

Action Item: Check out Fortress’s Form ADV here: https://bit.ly/2GUCnqg

Photo of Peter Briger courtesy of the firm