Fortress Said To Mull Sale of Logan Circle Partners

Apr 28 2017 | 8:45pm ET

Alternative investment management giant Fortress Investment Group is reportedly exploring the sale of its Logan Circle fixed income asset management division. 

The unit makes up nearly 50% of Fortress’ $69.6 billion in assets under management but contributed only a small portion towards the company’s $362 million in pretax profits last year, according to a Reuters report citing unidentified sources familiar with the matter. 

The mismatch potentially highlights Logan Circle status as a non-core asset to Japan’s Softbank, which agreed to buy Fortress for $3.3 billion in cash back in February of this year. 

Fortress is said to be exploring an auction of the division through Bank of America, although the process is apparently still in its initial stages. In a sale, the Logan Circle business, founded by Jude Driscoll in 2007 and bought by Fortress in 2010, could fetch upwards of $250 million, Reuters added. 

Founded in 1998 by Edens, Nardone and Robert Kauffman, Fortress manages nearly $70 billion across a number of alternative investment strategies as of December 31, 2016. It was the first private equity and hedge fund manager to sell shares to the public and manages assets on behalf of more than 1,750 institutional clients and private investors worldwide.

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