Stock Research and Analysis

by Stephen Ellis

Bulls Say

Many of Fortress' funds are finally reaching levels where they can earn incentive fees after the 2008-09 financial crisis, potentially providing significant incentive income earnings over the next few years.
Fortress' investment Springleaf has been a huge success, generating billions in profits off of an initial $125 million. The $4 billion OneMain deal catapults Springleaf to be the largest subprime lender in the U.S.
Fortress is focusing its new permanent capital funds on real estate niches such as mortgage servicing rights, infrastructure, senior housing, and Italian loans. Read more 

Bears Say

Fortress' capital-raising efforts have improved but they still pale versus larger peers, which are closing significant larger funds.
The lack of a fund placement advisory service, such as Blackstone Advisory's Park Hill, puts Fortress at a disadvantage because it has less insight regarding industry asset flows and potential new funds.
A previous permanent capital effort by KKR have traded at a discount to NAV, exposing Fortress to possible negative reputation impacts. Read more 

Management

Fortress has struggled in the past few years, but we think the ship is slowly being righted, and we now view stewardship at the firm as Standard, an upgrade from our prior view of Poor. Fortress earned its prior rating for its treatment of clients (restricting   Read more 

Profile

Fortress Investment Group is a diversified alternative investment manager with substantial assets under management devoted to credit, private equity, and hedge fund strategies.  Read more 

3 Banking Takeaways From the Quarter 
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