Earthtimes.org – Fortress Investment Group LLC, New York-based hedge fund and private equity firm, plans to raise $750 million through an initial public offering, the first by a U.S. manager ofalternative investments.<\/p>\n
Fortress Investment has nearly $26 billion in hedge fund and private equity assets under its management.<\/p>\n
The firm said in a regulatory filing it will offer for sale 10 per cent of the company to raise the amount, which will facilitate a public scrutiny of the private firm, which generally not happens inhedge funds. The IPO will also assess the response from the public for investments in hedge fund groups.<\/p>\n
Fortress Investment said it plans listing on the New York Stock Exchange. The filing indicated that the firm’s pre-tax distributable earnings had grown from $55 million in 2003 to $240 million in2005. Its 13 private equity funds have $13.6 billion under management and have produced net annualized returns of 38.8 per cent since their inception in 1999. Its hedge funds, with $9.4 billion undermanagement, have returned about 14 per cent a year.<\/p>\n