NEW YORK--()--Fortress Investment Group LLC (NYSE: FIG) announced today the signing of a definitive agreement to acquire Logan Circle Partners, L.P. from Guggenheim Partners, LLC. Logan Circle is a fixed income asset manager with approximately $12 billion in assets under management. Logan Circle manages portfolios for institutional investors in strategies that include core/core plus, short, intermediate and long duration, corporate and high yield.
“I’m extremely excited for Logan Circle to join Fortress. While our investment approach and the day-to-day operations of Logan Circle will remain the same, Fortress’s size and global infrastructure, along with its intellectual capital and transaction flow will meaningfully enhance our ability to build our platform.”
With this acquisition, Fortress will expand its investment management business to offer fixed income products to investors worldwide. Fortress plans to enhance the Logan Circle platform over time to continue to serve an expanded global client base.
“We believe this is a unique opportunity to diversify and expand Fortress’s investment management business. Logan Circle has a high quality management team and a fundamental credit focus which is complementary to our existing approach,” commented Daniel Mudd, Fortress’s Chief Executive Officer.
“I am delighted that Jude Driscoll and his team will join Fortress. Jude and his portfolio management and research team have a strong track record and extensive experience, which will immediately broaden our market perspective.”
Mr. Driscoll, founder of Logan Circle Partners, added, “I’m extremely excited for Logan Circle to join Fortress. While our investment approach and the day-to-day operations of Logan Circle will remain the same, Fortress’s size and global infrastructure, along with its intellectual capital and transaction flow will meaningfully enhance our ability to build our platform.”
Under the terms of the agreement, Fortress will pay approximately $21 million in cash with the potential for an additional payment at the end of 2011, contingent on the growth and performance of Logan Circle’s business. The transaction is expected to close by the end of the second quarter of 2010 and is subject to customary approvals. Post closing, Mr. Driscoll and the senior leadership team at Logan Circle will continue to manage the business, which will report directly to Daniel Mudd.
Fortress is a leading global investment management firm, specializing in alternative investments, with approximately $32.0 billion in assets under management as of September 30, 2009. Fortress was founded in 1998. For more information regarding Fortress Investment Group LLC or to be added to our e-mail distribution list, please visit www.fortress.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements may cover, among other things, the future prospects of Fortress Investment Group and its asset management business. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including the following: (1) the transaction announced in this press release may not be completed, or completed within the expected timeframe; (2) costs or difficulties relating to the integration of the Logan Circle and Fortress businesses may be greater than expected and may adversely affect our results of operations and financial condition; (3) the expected benefits of the transaction and entering into a new sector of the asset management business may take longer than anticipated to achieve and may not be achieved in their entirety or at all; (4) developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, the business and profitability of Fortress; (5) Fortress may not be able to compete successfully with other companies in the financial services industry; and (6) other factors identified under "Risk Factors" in Fortress’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which is, or will be, available on the Company’s website (www.fortress.com). Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.