Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Entity Registrant Name | Fortress Investment Group LLC | |
Entity Central Index Key | 1380393 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Class A Shares | ||
Entity Common Stock, Shares Outstanding | 208,554,885 | |
Class B Shares | ||
Entity Common Stock, Shares Outstanding | 226,331,513 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $145,233 | $391,089 |
Due from affiliates | 168,176 | 326,575 |
Investments | 1,200,151 | 1,121,545 |
Investments in options | 108,120 | 71,844 |
Deferred tax asset, net | 397,778 | 417,623 |
Other assets | 167,903 | 173,708 |
Total Assets | 2,187,361 | 2,502,384 |
Liabilities | ||
Accrued compensation and benefits | 139,171 | 374,709 |
Due to affiliates | 354,122 | 375,424 |
Deferred incentive income | 307,737 | 304,526 |
Debt obligations payable | 75,000 | 75,000 |
Other liabilities | 123,396 | 88,053 |
Total Liabilities | 999,426 | 1,217,712 |
Commitments and Contingencies | ||
Redeemable Non-controlling Interests | 109 | 1,717 |
Equity | ||
Paid-in capital | 1,922,312 | 1,996,137 |
Retained earnings (accumulated deficit) | -1,315,409 | -1,350,122 |
Accumulated other comprehensive income (loss) | -2,710 | -2,416 |
Total Fortress shareholders’ equity | 604,193 | 643,599 |
Principals’ and others’ interests in equity of consolidated subsidiaries | 583,633 | 639,356 |
Total Equity | 1,187,826 | 1,282,955 |
Total Liabilities, Redeemable Non-controlling Interests and Equity | 2,187,361 | 2,502,384 |
Class A Shares | ||
Equity | ||
Common stock | 0 | 0 |
Class B Shares | ||
Equity | ||
Common stock | $0 | $0 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) | Mar. 31, 2015 | Dec. 31, 2014 |
Class A Shares | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 208,554,885 | 208,535,157 |
Common stock, shares outstanding | 208,554,885 | 208,535,157 |
Class B Shares | ||
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 226,331,513 | 226,331,513 |
Common stock, shares outstanding | 226,331,513 | 226,331,513 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Management fees: affiliates | $127,707 | $129,710 |
Management fees: non-affiliates | 15,291 | 17,622 |
Incentive income: affiliates | 24,223 | 34,251 |
Incentive income: non-affiliates | 0 | 643 |
Expense reimbursements: affiliates | 54,565 | 51,186 |
Expense reimbursements: non-affiliates | 3,248 | 2,448 |
Other revenues (affiliate portion disclosed in Note 6) | 1,655 | 1,250 |
Total Revenues | 226,689 | 237,110 |
Expenses | ||
Compensation and benefits | 178,888 | 188,519 |
General, administrative and other | 42,981 | 37,823 |
Depreciation and amortization | 5,331 | 4,301 |
Interest expense | 839 | 691 |
Transfer of interest in Graticule | 101,000 | 0 |
Total Expenses | 329,039 | 231,334 |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 31,561 | -11,055 |
Tax receivable agreement liability adjustment | 0 | 0 |
Earnings (losses) from equity method investees | 41,708 | 20,374 |
Gain on transfer of Graticule | 134,400 | 0 |
Total Other Income (Loss) | 207,669 | 9,319 |
Income (Loss) Before Income Taxes | 105,319 | 15,095 |
Income tax benefit (expense) | -18,399 | -5,994 |
Net Income (Loss) | 86,920 | 9,101 |
Allocation of Net Income (Loss): | ||
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 52,223 | 6,077 |
Redeemable Non-controlling Interests in Income (Loss) | -16 | 0 |
Dividends declared per Class A share (in dollars per share) | $0.38 | $0.08 |
Earnings (Loss) Per Class A share | ||
Net income (loss) per Class A share, basic (in dollars per share) | $0.15 | $0.01 |
Net income (loss) per Class A share, diluted (in dollars per share) | $0.15 | $0.01 |
Weighted average number of Class A shares outstanding, basic (in shares) | 215,785,776 | 216,934,917 |
Weighted average number of Class A shares outstanding, diluted (in shares) | 221,535,189 | 229,033,778 |
Class A Shares | ||
Allocation of Net Income (Loss): | ||
Net Income (Loss) Attributable to Class A Shareholders | $34,713 | $3,024 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Comprehensive income (loss) (net of tax) | ||
Net income (loss) | $86,920 | $9,101 |
Foreign currency translation | -898 | -1,032 |
Total comprehensive income (loss) | 86,022 | 8,069 |
Allocation of Comprehensive Income (Loss): | ||
Comprehensive income (loss) attributable to principals’ and others’ interests | 51,619 | 5,418 |
Comprehensive income (loss) attributable to redeemable non-controlling interests | -16 | 0 |
Comprehensive income (loss) attributable to Class A shareholders | $34,419 | $2,651 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) (USD $) | Total | Class A Shares | Class B Shares | Common stock | Common stock | Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Fortress Shareholders’ Equity | Principals’ and Others’ Interests in Equity of Consolidated Subsidiaries |
In Thousands, except Share data, unless otherwise specified | USD ($) | Class A Shares | Class B Shares | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Equity at Dec. 31, 2014 | $1,282,955 | $1,996,137 | ($1,350,122) | ($2,416) | $643,599 | $639,356 | ||||
Equity (in shares) at Dec. 31, 2014 | 208,535,157 | 226,331,513 | 208,535,157 | 226,331,513 | ||||||
Increase (Decrease) in Equity | ||||||||||
Contributions from principals’ and others’ interests in equity | 6,684 | 6,684 | ||||||||
Distributions to principals’ and others’ interests in equity (net of tax) | -118,383 | -118,383 | ||||||||
Dividends declared | -79,251 | -79,251 | -79,251 | |||||||
Dividend equivalents accrued in connection with equity-based compensation (net of tax) | -5,760 | -2,056 | -2,056 | -3,704 | ||||||
Net deferred tax effects resulting from acquisition and exchange of Fortress Operating Group units | 4 | 4 | 4 | |||||||
Director restricted share grant | 160 | 77 | 77 | 83 | ||||||
Director restricted share grant (in shares) | 19,728 | |||||||||
Capital increase related to equity-based compensation, net | 15,379 | 7,376 | 7,376 | 8,003 | ||||||
Dilution impact of equity transactions (Note 6) | 25 | 25 | -25 | |||||||
Comprehensive income (loss) (net of tax) | ||||||||||
Net income (loss) (excludes loss allocated to redeemable non-controlling interests) | 86,936 | 34,713 | 34,713 | 52,223 | ||||||
Foreign currency translation | -898 | -294 | -294 | -604 | ||||||
Total comprehensive income (loss) | 86,038 | 34,419 | 51,619 | |||||||
Equity at Mar. 31, 2015 | $1,187,826 | $1,922,312 | ($1,315,409) | ($2,710) | $604,193 | $583,633 | ||||
Equity (in shares) at Mar. 31, 2015 | 208,554,885 | 226,331,513 | 208,554,885 | 226,331,513 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net income (loss) | $86,920 | $9,101 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 5,331 | 4,301 |
Other amortization (included in interest expense) | 195 | 195 |
(Earnings) losses from equity method investees | -41,708 | -20,374 |
Distributions of earnings from equity method investees | 10,813 | 25,784 |
(Gains) losses | -31,561 | 11,055 |
Deferred incentive income | -20,964 | -29,503 |
Deferred tax (benefit) expense | 18,514 | 2,486 |
Options received from affiliates | -4,144 | 0 |
Tax receivable agreement liability adjustment | 0 | 0 |
Equity-based compensation | 14,345 | 8,673 |
Options in affiliates granted to employees | 6,083 | 4,553 |
Other | 209 | 44 |
Transfer of interest in Graticule | 101,000 | 0 |
Gain on transfer of Graticule | 134,400 | 0 |
Cash flows due to changes in | ||
Due from affiliates | 56,627 | 39,640 |
Other assets | -8,420 | 40,358 |
Accrued compensation and benefits | -235,252 | -263,426 |
Due to affiliates | -32,104 | -32,690 |
Deferred incentive income | 23,907 | 63,458 |
Other liabilities | 39,041 | 35,553 |
Purchase of investments by consolidated funds | -39,983 | 0 |
Proceeds from sale of investments by consolidated funds | 32,000 | 0 |
Net cash provided by (used in) operating activities | -153,551 | -100,792 |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | -7,720 | -7,031 |
Distributions of capital from equity method investees | 107,370 | 231,158 |
Purchase of securities | -883 | 0 |
Proceeds from sale of securities | 18,053 | 0 |
Purchase of fixed assets | -4,434 | -1,797 |
Purchase of software and technology-related assets | 0 | -14,965 |
Net cash provided by (used in) investing activities | 112,386 | 207,365 |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | 125,000 |
Proceeds from public offering | 0 | 186,551 |
Declared and Paid | 86,367 | 15,359 |
Principals’ and others’ interests in equity of consolidated subsidiaries - contributions | 26 | 1,191 |
Principals’ and others’ interests in equity of consolidated subsidiaries - distributions | -107,082 | -33,590 |
Excess tax benefits from delivery of RSUs | 0 | 425 |
Redeemable non-controlling interests - distributions | -1,592 | 0 |
Net cash provided by (used in) financing activities | -204,691 | -285,743 |
Net Increase (Decrease) in Cash and Cash Equivalents | -245,856 | -179,170 |
Cash and Cash Equivalents, Beginning of Period | 391,089 | 364,583 |
Cash and Cash Equivalents, End of Period | 145,233 | 185,413 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 500 | 0 |
Cash paid during the period for income taxes | 6,097 | 1,559 |
Supplemental Schedule of Non-cash Investing and Financing Activities | ||
Employee compensation invested directly in subsidiaries | 6,370 | 29,230 |
Investments of incentive receivable amounts into Fortress Funds | 107,855 | 233,260 |
Dividends, dividend equivalents and Fortress Operating Group unit distributions declared but not yet paid | 11,142 | 14,925 |
Retained equity interest related to Graticule transfer | 33,400 | 0 |
Class B Shares | ||
Cash Flows From Financing Activities | ||
Repurchase of shares | 0 | -186,551 |
Class A Shares | ||
Cash Flows From Financing Activities | ||
Repurchase of shares | ($9,676) | ($363,410) |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION | ||||
Fortress Investment Group LLC (the “Registrant,” or, together with its subsidiaries, “Fortress”) is a leading, highly diversified global investment management firm whose predecessor was founded in 1998. Its primary business is to sponsor the formation of, and provide investment management services for various investment funds, permanent capital vehicles and managed accounts (collectively, the “Fortress Funds”). Fortress generally makes investments in these funds. | |||||
Fortress has three primary sources of income from the Fortress Funds: management fees, incentive income, and investment income on its investments in the funds. In addition, Fortress receives expense reimbursements pursuant to management agreements. The Fortress Funds fall into the following business segments in which Fortress operates: | |||||
1) | Private equity: | ||||
a) General buyout and sector-specific funds focused on control-oriented investments in cash flow generating assets and asset-based businesses in North America and Western Europe; and | |||||
b) | Entities which Fortress collectively refers to as "permanent capital vehicles" which includes (i) Newcastle Investment Corp. ("Newcastle"), New Residential Investment Corp. ("New Residential"), Eurocastle Investment Limited ("Eurocastle"), New Media Investment Group Inc. ("New Media") and New Senior Investment Group Inc. ("New Senior"), which are publicly traded companies that are externally managed by Fortress pursuant to management agreements (collectively referred to as the "publicly traded permanent capital vehicles") and (ii) Worldwide Transportation and Infrastructure Investors, currently a private fund ("WWTAI" or the "private permanent capital vehicle") and FHC Property Management LLC, (together with its subsidiaries, referred to as "Blue Harbor"), a senior living property management business. The publicly traded permanent capital vehicles invest in a wide variety of real estate related assets, including securities, loans, real estate properties and mortgage servicing related assets and media assets and the private permanent capital vehicle invests in transportation and infrastructure assets. Fortress expects the private permanent capital vehicle will become a publicly traded company externally managed by Fortress. | ||||
2) | Liquid hedge funds that invest globally in fixed income, currency, equity and commodity markets, and related derivatives to capitalize on imbalances in the financial markets. In addition, this segment includes an endowment style fund, which invests in Fortress Funds, funds managed by external managers, and direct investments; a fund that primarily focuses on an international "event driven" investment strategy, particularly in Europe, Asia-Pacific and Latin America; and a fund that seeks to generate returns by executing a positively convex investment strategy. | ||||
On January 5, 2015, Fortress Asia Macro Funds and related managed accounts became the first group of funds to join Fortress's affiliated manager platform ("Affiliated Managers") as they transitioned to an autonomous asset management business named Graticule Asset Management Asia, L.P. ("Graticule"). Fortress retained a perpetual minority interest in Graticule amounting to 30% of earnings during 2015 and declining to approximately 27% of earnings over time. Fortress also receives additional fees for providing infrastructure services (technology, back office, and related services) to Graticule. Fortress recorded the results of this transaction at fair value. During the three months ended March 31, 2015, Fortress recorded a non-cash gain of $134.4 million, non-cash expense of $101.0 million related to the portion of Fortress's interest that was transferred to a former senior employee and $33.4 million from its resulting retained interest as an equity method investment. Fortress utilized an income approach to value Graticule and its retained interest in Graticule. This approach relies on a number of factors, including actual operating results, discount rates and economic projections. | |||||
3) | Credit funds: | ||||
a) | Credit hedge funds, which make highly diversified investments in direct lending, corporate debt and securities, portfolios and orphaned assets, real estate and structured finance, on a global basis and throughout the capital structure, with a value orientation, as well as non-Fortress originated funds for which Fortress has been retained as manager as part of an advisory business; and | ||||
b) Credit private equity (“PE”) funds which are comprised of a family of “credit opportunities” funds focused on investing in distressed and undervalued assets, a family of ''long dated value'' funds focused on investing in undervalued assets with limited current cash flows and long investment horizons, a family of “real assets” funds focused on investing in tangible and intangible assets in four principal categories (real estate, capital assets, natural resources and intellectual property), a family of Asia funds, including Japan real estate funds and an Asian investor based global opportunities fund, and a family of real estate opportunities funds, as well as certain sector-specific funds with narrower investment mandates tailored for the applicable sector. | |||||
4) | Logan Circle Partners, L.P. (“Logan Circle”), which represents Fortress's traditional asset management business providing institutional clients actively managed investment solutions across a broad spectrum of fixed income strategies. Logan Circle's core fixed income products cover the breadth of the maturity and risk spectrums, including short, intermediate and long duration, core/core plus, investment grade credit, high yield and emerging market debt. | ||||
For a reconciliation between the financial statements and the segment-based financial data that management uses for making operating decisions and assessing performance, see Note 10. | |||||
FINANCIAL STATEMENT GUIDE | |||||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Balance Sheet | |||||
Due from Affiliates | 6 | Generally, management fees, expense reimbursements and incentive income due from Fortress Funds. | |||
Investments and Investments in Options | 3 | Primarily the carrying value of Fortress’s investments in the Fortress Funds. | |||
Deferred Tax Asset, net | 5 | Relates to potential future net tax benefits. | |||
Due to Affiliates | 6 | Generally, amounts due to the Principals related to their interests in Fortress Operating Group and the tax receivable agreement. | |||
Deferred Incentive Income | 2 | Incentive income already received from certain Fortress Funds based on past performance, which is subject to contingent repayment based on future performance. | |||
Debt Obligations Payable | 4 | The balance outstanding on the credit agreement. | |||
Principals' and Others' Interests in Equity of Consolidated Subsidiaries | 6 | The GAAP basis of the Principals' and a former senior employee's ownership interests in Fortress Operating Group as well as employees' ownership interests in certain subsidiaries. | |||
Statement of Operations | |||||
Management Fees: Affiliates | 2 | Fees earned for managing Fortress Funds and other affiliates, generally determined based on the size of such funds. | |||
Management Fees: Non-Affiliates | 2 | Fees earned from managed accounts and the traditional fixed income asset management business, generally determined based on the amount managed. | |||
Incentive Income: Affiliates | 2 | Income earned from Fortress Funds, based on the performance of such funds. | |||
Incentive Income: Non- Affiliates | 2 | Income earned from managed accounts, based on the performance of such accounts. | |||
Compensation and Benefits | 7 | Includes equity-based, profit-sharing and other compensation to employees. | |||
Gains (Losses) | 3 | The result of asset dispositions or changes in the fair value of investments or other financial instruments which are marked to market (including the publicly traded permanent capital vehicles and publicly traded portfolio companies). | |||
Tax Receivable Agreement Liability Adjustment | 5 | Represents a change in the amount due to the Principals under the tax receivable agreement. | |||
Earnings (Losses) from Equity Method Investees | 3 | Fortress’s share of the net earnings (losses) of the Fortress Funds resulting from its investments in these funds. | |||
Continued on next page. | |||||
FINANCIAL STATEMENT GUIDE | |||||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Income Tax Benefit (Expense) | 5 | The net tax result related to the current period. Certain of Fortress’s revenues are not subject to taxes because they do not flow through taxable entities. Furthermore, Fortress has significant permanent differences between its GAAP and tax basis earnings. | |||
Principals’ and Others’ Interests in (Income) Loss of Consolidated Subsidiaries | 6 | Primarily the Principals’ and employees’ share of Fortress’s earnings based on their ownership interests in subsidiaries, including Fortress Operating Group. | |||
Earnings Per Share | 8 | GAAP earnings per Class A share based on Fortress’s capital structure, which is comprised of outstanding and unvested equity interests, including interests which participate in Fortress’s earnings, at both the Fortress and subsidiary levels. | |||
Other | |||||
Distributions | 8 | A summary of dividends and distributions, and the related outstanding shares and units, is provided. | |||
Distributable Earnings | 10 | A presentation of Fortress's financial performance by segment (fund type) is provided, on the basis of the operating performance measure used by Fortress’s management committee. | |||
Recent Accounting Pronouncements | |||||
In May 2014, the FASB issued a comprehensive new revenue recognition standard for contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. This standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The entity will recognize revenue to reflect the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. In April 2015, the FASB approved issuing an exposure draft to extend the effective date of the new revenue recognition standard by a year for both public and non-public companies. The new standard is effective for Fortress beginning January 1, 2018. Early adoption is permitted but not before the original public entity effective date (that is, annual periods beginning after December 15, 2016). The standard permits the use of either the retrospective or cumulative effect transition method. Fortress is currently evaluating the impact on its consolidated financial statements upon the adoption of this new standard. | |||||
The FASB has recently issued or discussed a number of proposed standards on such topics as financial statement presentation, leases, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on Fortress’s financial reporting. Fortress has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. | |||||
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 eliminates the deferral of Statement of Financial Accounting Standards No. 167, Amendments to FASB Interpretation No. 46 (R) previously provided to investment companies and certain other entities pursuant to ASC 810-10-65-2. ASU 2015-02 also amends the evaluation of whether (1) fees paid to a decision maker or service provider represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a variable interest entity ("VIE") and (3) a reporting entity is the primary beneficiary of a VIE. ASU 2015-02 eliminates certain conditions for evaluating whether a fee paid to a decision maker or a service provider represents a variable interest. Fees received by a decision maker or service provider are no longer considered variable interests and are now excluded from the evaluation of whether the reporting entity is the primary beneficiary of a VIE if the fees are both customary and commensurate with the level of effort required for the services provided and the decision maker or service provider does not hold other interests in the entity being evaluated that would absorb more than an insignificant amount of the expected losses or returns of the entity. If the reporting entity determines that it does not have a variable interest in an entity, no further consolidation analysis is performed as the reporting entity would not be required to consolidate the entity. | |||||
The effective date of ASU 2015-02 is for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015 for public companies and early adoption is permitted. Fortress has elected to early adopt ASU 2015-02 on a retrospective basis as permitted, for all periods presented. The consolidated financial statements and related footnote disclosures have been adjusted for the impact of the adoption. The adoption did not result in a cumulative effect adjustment to Fortress’s retained earnings (accumulated deficit). Fortress’s accounting policy, updated for the adoption of ASU 2015-02, is described below. | |||||
Basis of Accounting and Consolidation - The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The accompanying consolidated financial statements include the accounts of Fortress and its consolidated subsidiaries, which are comprised of VIEs in which it is the primary beneficiary as described below and voting interest entities (“VOEs”) in which it is determined to have a controlling financial interest under ASC 810, as amended by ASU 2015-02. | |||||
For legal entities evaluated for consolidation, Fortress must determine whether the interests that it holds and fees paid to it qualify as a variable interest in the entity. This includes an evaluation of fees paid to Fortress where Fortress acts as a decision maker or service provider to the entity being evaluated. Fees received by Fortress are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length and (iii) Fortress’s other economic interests in the VIE held directly and indirectly through its related parties, as well as economic interests held by related parties under common control, where applicable, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits. | |||||
For those entities in which it has a variable interest, Fortress performs an analysis to first determine whether the entity is a VIE. This determination includes considering whether the entity’s equity investment at risk is sufficient, whether the voting rights of an investor are not proportional to its obligation to absorb the income or loss of the entity and substantially all of the entity's activities either involve or are conducted on behalf of that investor and its related parties and whether the entity’s at-risk equity holders have the characteristics of a controlling financial interest. A VIE must be consolidated by its primary beneficiary. Performance of such analysis requires the exercise of judgment. | |||||
The primary beneficiary of a VIE is generally defined as the party who has a controlling financial interest in the VIE. Fortress is generally deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to Fortress are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. Fortress also evaluates its economic interests in the VIE held directly by it and indirectly through its related parties, as well as economic interests held by related parties under common control, where applicable. The primary beneficiary evaluation is generally performed qualitatively on the basis of all facts and circumstances. However, quantitative information may also be considered in the analysis, as appropriate. These analyses require judgment. Changes in the economic interests (either by Fortress, related parties of Fortress or third parties) or amendments to the governing documents of the VIE could affect an entity's status as a VIE or the determination of the primary beneficiary. The primary beneficiary evaluation is updated continuously. | |||||
For VOEs, Fortress shall consolidate the entity if it has a controlling financial interest. Fortress has a controlling financial interest in a VOE if (i) for legal entities other than limited partnerships, Fortress owns a majority voting interest in the VOE or, for limited partnerships and similar entities, Fortress owns a majority of the entity’s kick-out rights through voting limited partnership interests and (ii) non-controlling shareholders or partners do not hold substantive participating rights and no other conditions exist that would indicate that Fortress does not control the entity. | |||||
For entities over which Fortress exercises significant influence but which do not meet the requirements for consolidation, Fortress uses the equity method of accounting whereby it records its share of the underlying income of these entities. These entities include the Fortress Funds. The evaluation of whether Fortress exerts control or significant influence over the financial and operational policies of an entity requires judgment based on the facts and circumstances surrounding each individual entity. | |||||
Virtually all of the Fortress Funds are, for GAAP purposes, investment companies. The Fortress Funds record realized and unrealized gains (losses) resulting from changes in the fair value of their investments as a component of current income. Additionally, these funds generally do not consolidate their majority-owned and controlled investments (the “Portfolio Companies”). | |||||
Distributions by Fortress and its subsidiaries are recognized when declared. | |||||
Redeemable Non-controlling Interests represent ownership interests which are redeemable and not owned by Fortress. | |||||
Principals’ and others’ interests in consolidated subsidiaries represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Fortress. This is primarily related to the Principals’ interests in Fortress Operating Group (Note 6). Non-Fortress interests also include employee interests in majority owned and controlled fund advisor and general partner entities. | |||||
Deconsolidation of New Media | |||||
Prior to the adoption of ASU 2015-02, during the three months ended March 31, 2014, Fortress consolidated New Media, a VIE. The financial results of New Media were included in Fortress’s consolidated financial statements in previous filings with the Securities and Exchange Commission, based on the then existing consolidation guidance. The adoption of ASU 2015-02 resulted in the deconsolidation of New Media as Fortress determined that under ASU 2015-02, it was not the primary beneficiary of New Media. The fee arrangement with New Media is both commensurate with the level of effort required for the services provided and include only customary terms and Fortress does not hold other interests in New Media that could absorb losses or receive benefits that could potentially be significant to New Media. Therefore, Fortress no longer considers this fee arrangement to be a variable interest. Under ASU 2015-02, Fortress and its related parties under common control as a group, where applicable, do not have the obligation to absorb losses or the right to receive benefits from New Media that could potentially be significant to New Media. Also see Note 3 for the related disclosures for certain unconsolidated variable interest entities. | |||||
The accompanying consolidated financial statements and related footnotes of Fortress have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of Fortress’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with Fortress’s consolidated financial statements for the year ended December 31, 2014 and footnotes thereto included in Fortress’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2015, as revised in Fortress's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 7, 2015. Capitalized terms used herein, and not otherwise defined, are defined in Fortress’s consolidated financial statements for the year ended December 31, 2014. | |||||
All significant intercompany accounts and transactions have been eliminated. | |||||
Certain prior period amounts have been reclassified to conform to the current period's presentation. |
MANAGEMENT_AGREEMENTS_AND_FORT
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
Management and Agreement Fortress Funds | |||||||||||||||||||||||||||||||||||||||||||||||
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ||||||||||||||||||||||||||||||||||||||||||||||
Fortress has two principal sources of fee income from its agreements with the Fortress Funds: contractual management fees, which are generally based on a percentage of fee paying assets under management, and related incentive income, which is generally based on a percentage of returns, or profits, subject to the achievement of performance criteria. Substantially all of Fortress's net assets, after deducting the portion attributable to non-controlling interests, are a result of Fortress's investments in, or receivables from, these funds. The terms of agreements between Fortress and the Fortress Funds are generally determined in connection with third party fund investors. | |||||||||||||||||||||||||||||||||||||||||||||||
Management Fees and Incentive Income | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress recognized management fees and incentive income as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 29,140 | $ | 35,313 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | — | 149 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Permanent Capital Vehicles | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 19,002 | 15,178 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees, options: affil. | 4,144 | — | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 450 | 1,108 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 2,588 | 4,009 | |||||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 18,495 | 27,067 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 2,494 | 6,411 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 12 | 78 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Credit Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 29,654 | 26,834 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 10 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 653 | 1,304 | |||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 26,319 | 24,608 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 29 | 34 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 20,964 | 28,860 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | 643 | |||||||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 953 | 710 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 12,308 | 9,896 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 6 | — | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 127,707 | $ | 129,710 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | $ | 15,291 | $ | 17,622 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. (A) | $ | 24,223 | $ | 34,251 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | $ | — | $ | 643 | |||||||||||||||||||||||||||||||||||||||||||
(A) | See “Deferred Incentive Income” below. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred Incentive Income | |||||||||||||||||||||||||||||||||||||||||||||||
Incentive income from certain Fortress Funds, primarily the private equity funds, private permanent capital vehicle and credit PE funds, is received when such funds realize returns, or profits, based on the related agreements. However, this incentive income is subject to contingent repayment by Fortress to the funds until certain overall fund performance criteria are met. Accordingly, Fortress does not recognize this incentive income as revenue until the related contingencies are resolved. Until such time, this incentive income is recorded on the balance sheet as deferred incentive income and is included as “distributed-unrecognized” deferred incentive income in the table below. Incentive income from such funds, based on their net asset value, which has not yet been received is not recorded on the balance sheet and is included as “undistributed” deferred incentive income in the table below. | |||||||||||||||||||||||||||||||||||||||||||||||
Incentive income from certain Fortress Funds is earned based on achieving annual performance criteria. Accordingly, this incentive income is recorded as revenue at year end (in the fourth quarter of each year), is generally received subsequent to year end, and has not been recognized for these funds during the three months ended March 31, 2015 and 2014. If the amount of incentive income contingent on achieving annual performance criteria was not contingent on the results of the subsequent quarters, $23.2 million and $30.5 million of additional incentive income would have been recognized during the three months ended March 31, 2015 and 2014, respectively. Incentive income based on achieving annual performance criteria that has not yet been recognized, if any, is not recorded on the balance sheet and is included as “undistributed” deferred incentive income in the table below. | |||||||||||||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, Fortress recognized $21.0 million and $28.9 million, respectively, of incentive income distributions from its credit PE funds which were non-clawbackable or represented “tax distributions.” Tax distributions are not subject to clawback and reflect a cash amount approximately equal to the amount expected to be paid out by Fortress for taxes or tax-related distributions on the allocated income from such funds. | |||||||||||||||||||||||||||||||||||||||||||||||
Deferred incentive income from the Fortress Funds was comprised of the following, on an inception-to-date basis. This does not include any amounts related to third party funds, receipts from which are reflected as Other Liabilities until all contingencies are resolved. | |||||||||||||||||||||||||||||||||||||||||||||||
Distributed-Gross | Distributed-Recognized (A) | Distributed-Unrecognized (B) | Undistributed, net of intrinsic clawback (C) (D) | ||||||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of December 31, 2014 | $ | 1,243,441 | $ | (938,915 | ) | $ | 304,526 | $ | 868,549 | ||||||||||||||||||||||||||||||||||||||
Fortress Funds which matured (no longer subject | — | — | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||
to clawback) | |||||||||||||||||||||||||||||||||||||||||||||||
Share of income (loss) of Fortress Funds | N/A | N/A | N/A | 260,995 | |||||||||||||||||||||||||||||||||||||||||||
Distribution of private equity funds and credit PE | 23,851 | N/A | 23,851 | (23,851 | ) | ||||||||||||||||||||||||||||||||||||||||||
funds incentive income | |||||||||||||||||||||||||||||||||||||||||||||||
Distribution of private permanent capital vehicle | 395 | N/A | 395 | (395 | ) | ||||||||||||||||||||||||||||||||||||||||||
incentive income | |||||||||||||||||||||||||||||||||||||||||||||||
Recognition of previously deferred incentive income | N/A | (20,964 | ) | (20,964 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Changes in foreign exchange rates | (71 | ) | — | (71 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of March 31, 2015 | $ | 1,267,616 | (E) | $ | (959,879 | ) | $ | 307,737 | $ | 1,105,298 | (E) | ||||||||||||||||||||||||||||||||||||
Deferred incentive income including Fortress Funds | $ | 1,321,272 | $ | (1,013,535 | ) | ||||||||||||||||||||||||||||||||||||||||||
which matured | |||||||||||||||||||||||||||||||||||||||||||||||
(A) | All related contingencies have been resolved. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Reflected on the consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | At March 31, 2015, the net undistributed incentive income is comprised of $1.2 billion of gross undistributed incentive income, net of $66.9 million of intrinsic clawback. The net undistributed incentive income represents the amount that would be received by Fortress from the related funds if such funds were liquidated on March 31, 2015 at their net asset values. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | From inception to March 31, 2015, Fortress has paid $592.0 million of compensation expense under its employee profit sharing arrangements (Note 7) in connection with distributed incentive income, of which $21.5 million has not been expensed because management has determined that it is not probable of being incurred as an expense and will be recovered from the related individuals. As of March 31, 2015, Fortress has recovered $6.4 million from individuals relating to their clawback obligations. If the $1.2 billion of gross undistributed incentive income were realized, Fortress would recognize and pay an additional $570.2 million of compensation expense. | ||||||||||||||||||||||||||||||||||||||||||||||
(E) | See detailed reconciliations of Distributed-Gross and Undistributed, net of intrinsic clawback below. | ||||||||||||||||||||||||||||||||||||||||||||||
The amounts set forth under Distributed-Gross can be reconciled to the incentive income threshold tables (on the following pages) as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Private Equity Funds | $ | 846,671 | |||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Private Equity Funds in Investment Period or Commitment | — | ||||||||||||||||||||||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Credit PE Funds | 738,698 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Credit PE Funds in Investment Period or Commitment Period | 10,293 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Private Permanent Capital Vehicle in Investment Period or | 1,139 | ||||||||||||||||||||||||||||||||||||||||||||||
Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress Funds which are not subject to a clawback provision: | |||||||||||||||||||||||||||||||||||||||||||||||
— | NIH | (94,513 | ) | ||||||||||||||||||||||||||||||||||||||||||||
— | GAGACQ Fund | (51,476 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Portion of Fund I distributed incentive income that Fortress is not entitled to (see footnote K of incentive income threshold tables) | (183,196 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Distributed-Gross | $ | 1,267,616 | |||||||||||||||||||||||||||||||||||||||||||||
The amounts set forth under Undistributed, net of intrinsic clawback can be reconciled to the incentive income threshold tables (on the following pages) as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Private Equity Funds | $ | 199,662 | |||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Private Equity Funds in Investment Period or Commitment | 2,196 | ||||||||||||||||||||||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Credit PE Funds | 786,667 | ||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Credit PE Funds in Investment Period or Commitment | 61,990 | ||||||||||||||||||||||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Private Permanent Capital Vehicle in Investment Period or | 7,997 | ||||||||||||||||||||||||||||||||||||||||||||||
Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Hedge Funds (total) | 113,560 | ||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Logan Circle | 129 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: | Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | (66,903 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Undistributed, net of intrinsic clawback | $ | 1,105,298 | |||||||||||||||||||||||||||||||||||||||||||||
The following tables summarize information with respect to the Fortress Funds and their related incentive income thresholds as of March 31, 2015: | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
NIH (1998) | In Liquidation | $ | 415,574 | $ | (823,588 | ) | $ | — | $ N/A | $ | — | $ N/A | $ | — | $ | 94,513 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Fund I (1999) (K) | Closed May-13 | 1,015,943 | (2,847,929 | ) | — | N/A | N/A | N/A | — | 344,939 | — | — | — | ||||||||||||||||||||||||||||||||||
Fund II (2002) | In Liquidation | 1,974,298 | (3,442,900 | ) | 2,849 | 1,471,451 | — | N/A | 566 | 288,840 | — | — | — | ||||||||||||||||||||||||||||||||||
Fund III (2004) | In Liquidation | 2,762,992 | (2,138,524 | ) | 1,194,769 | 570,301 | 2,087,976 | 1,517,675 | — | 66,903 | 66,903 | 66,903 | 45,108 | ||||||||||||||||||||||||||||||||||
Fund III Coinvestment (2004) | In Liquidation | 273,649 | (225,188 | ) | 66,943 | 18,482 | 245,857 | 227,375 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV (2006) | 17-Jan | 3,639,561 | (1,310,995 | ) | 2,530,985 | 202,419 | 2,826,596 | 2,624,177 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV Coinvestment (2006) | 17-Jan | 762,696 | (257,810 | ) | 421,821 | (83,065 | ) | 603,859 | 686,924 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Fund V (2007) | 18-Feb | 4,103,713 | (1,433,561 | ) | 5,601,717 | 2,931,565 | — | N/A | 187,572 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund V Coinvestment (2007) | 18-Feb | 990,480 | (173,493 | ) | 516,870 | (300,117 | ) | 679,419 | 979,536 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
GAGACQ Fund (2004) (GAGFAH) | Closed Nov-09 | 545,663 | (595,401 | ) | — | N/A | N/A | N/A | — | 51,476 | — | — | — | ||||||||||||||||||||||||||||||||||
FRID (2005) (GAGFAH) | Closed Nov-14 | 1,220,229 | (1,202,153 | ) | — | N/A | N/A | N/A | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FRIC (2006) (Brookdale) | Closed Dec-14 | 328,754 | (291,330 | ) | — | N/A | N/A | N/A | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FICO (2006) (Intrawest) | 17-Jan | 724,525 | (5 | ) | (63,370 | ) | (787,890 | ) | 631,125 | 1,419,015 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FHIF (2006) (Holiday) | 17-Jan | 1,543,463 | (541,152 | ) | 1,815,501 | 813,190 | 1,206,617 | 393,427 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FECI (2007) (Florida East Coast Railway/Florida East Coast Industries) | 18-Feb | 982,779 | (455 | ) | 978,918 | (3,406 | ) | 784,929 | 788,335 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
MSR Opportunities Fund I A (2012) | 22-Aug | 339,382 | (126,528 | ) | 308,673 | 95,819 | — | N/A | 9,226 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities Fund I B (2012) | 22-Aug | 82,335 | (30,647 | ) | 74,684 | 22,996 | — | N/A | 2,298 | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 199,662 | $ | 846,671 | $ | 66,903 | $ | 66,903 | $ | 45,108 | ||||||||||||||||||||||||||||||||||||||
Private Equity Funds in Investment or Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
MSR Opportunities Fund II A (2013) | 23-Jul | $ | 75,941 | $ | (11,456 | ) | $ | 76,437 | $ | 11,952 | $ | — | $ N/A | $ | 1,765 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
MSR Opportunities Fund II B (2013) | 23-Jul | 1,084 | (163 | ) | 1,084 | 163 | — | N/A | 24 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II MA I (2013) | 23-Jul | 17,418 | (2,630 | ) | 17,542 | 2,754 | — | N/A | 407 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Italian NPL Opportunities (2013) | 24-Sep | 31,106 | (5,553 | ) | 23,801 | (1,752 | ) | 1,120 | 2,872 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 2,196 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Long Dated Value Fund I (2005) | 30-Apr | $ | 267,325 | $ | (89,359 | ) | $ | 322,043 | $ | 144,077 | $ | 151,122 | $ | 7,045 | $ | 25 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Long Dated Value Fund II (2005) | 30-Nov | 274,280 | (150,977 | ) | 200,899 | 77,596 | 119,943 | 42,347 | — | 412 | — | — | — | ||||||||||||||||||||||||||||||||||
Long Dated Value Fund III (2007) | Feb-32 | 343,156 | (278,861 | ) | 191,820 | 127,525 | — | N/A | 17,181 | 6,473 | — | — | — | ||||||||||||||||||||||||||||||||||
LDVF Patent Fund (2007) | 27-Nov | 36,073 | (33,633 | ) | 31,259 | 28,819 | — | N/A | 1,447 | 1,471 | — | — | — | ||||||||||||||||||||||||||||||||||
Real Assets Fund (2007) | 17-Jun | 359,024 | (351,783 | ) | 106,267 | 99,026 | — | N/A | 10,085 | 5,285 | — | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund (2008) | 20-Oct | 5,620,858 | (6,965,178 | ) | 1,335,010 | 2,679,330 | — | N/A | 184,467 | 342,112 | 148,313 | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund II (2009) | 22-Jul | 2,310,715 | (2,350,331 | ) | 1,158,429 | 1,198,045 | — | N/A | 141,010 | 93,964 | 24,881 | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund III (2011) | 24-Mar | 3,088,327 | (1,287,483 | ) | 2,434,035 | 633,191 | — | N/A | 103,127 | 20,852 | — | — | — | ||||||||||||||||||||||||||||||||||
FCO Managed Accounts (2008 - 2012) | Jun-22 to Mar-24 | 3,346,261 | (2,685,106 | ) | 1,882,640 | 1,221,485 | — | N/A | 144,119 | 94,631 | 31,599 | — | — | ||||||||||||||||||||||||||||||||||
SIP Managed Account (2010) | 20-Sep | 11,000 | (35,747 | ) | 13,583 | 38,330 | — | N/A | 2,717 | 4,949 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund (2009) | 19-Jun | 906,225 | (1,315,300 | ) | 598,080 | 1,007,155 | — | N/A | 99,922 | 116,624 | 19,714 | — | — | ||||||||||||||||||||||||||||||||||
Net Lease Fund I (2010) | 20-Feb | 152,851 | (225,430 | ) | 1,794 | 74,373 | — | N/A | 230 | 9,528 | 5,928 | — | — | ||||||||||||||||||||||||||||||||||
Real Estate Opportunities Fund (2011) | 24-Sep | 534,901 | (285,966 | ) | 393,686 | 144,751 | — | N/A | 10,262 | 2,376 | 1,359 | — | — | ||||||||||||||||||||||||||||||||||
Global Opportunities Fund (2010) | 20-Sep | 326,446 | (156,444 | ) | 241,034 | 71,032 | — | N/A | 12,260 | 1,965 | 1,965 | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Yen) (2011) | 21-Dec | 657,095 | (251,007 | ) | 639,416 | 233,328 | — | N/A | 33,581 | 14,481 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Dollar) (2011) | 21-Dec | 639,643 | (238,397 | ) | 637,652 | 236,406 | — | N/A | 24,673 | 20,928 | — | — | — | ||||||||||||||||||||||||||||||||||
Real Estate Opportunities REOC Fund (2011) | 23-Oct | 56,692 | (36,767 | ) | 41,073 | 21,148 | — | N/A | 1,561 | 2,647 | 1,160 | — | — | ||||||||||||||||||||||||||||||||||
$ | 786,667 | $ | 738,698 | $ | 234,919 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Credit PE Funds in Investment or Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
FCO Managed Accounts (2010-2015) | Apr-22 to Feb-28 | $ | 1,410,598 | $ | (778,148 | ) | $ | 998,941 | $ | 366,491 | $ | — | $ N/A | $ | 61,456 | $ | 10,293 | $ | 4,776 | $ | — | $ | — | ||||||||||||||||||||||||
Life Settlements Fund (2010) | 22-Dec | 397,361 | (299,330 | ) | 71,592 | (26,439 | ) | 77,770 | 104,209 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Life Settlements Fund MA (2010) | 22-Dec | 32,525 | (24,482 | ) | 5,639 | (2,404 | ) | 6,384 | 8,788 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Real Estate Opportunities Fund II (2014) | 27-May | 147,815 | (134 | ) | 154,584 | 6,903 | 6,928 | 25 | 534 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund III (Yen) (2014) | 24-Dec | 103,502 | — | 102,433 | (1,069 | ) | 638 | 1,707 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund III (Dollar) (2014) | 24-Dec | 83,061 | — | 82,401 | (660 | ) | 531 | 1,191 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund IV (2015) | 27-Feb | 142,897 | — | 143,239 | 342 | 846 | 504 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
$ | 61,990 | $ | 10,293 | $ | 4,776 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value ("NAV") | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Private Permanent Capital Vehicle in Investment Period or | |||||||||||||||||||||||||||||||||||||||||||||||
Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
WWTAI (2011) | 25-Jan | $ | 761,180 | $ | (141,950 | ) | $ | 714,891 | $ | 95,661 | $ | — | $ N/A | $ | 7,997 | $ | 1,139 | $ | 1,139 | $ | — | $ | — | ||||||||||||||||||||||||
Fund | Equity Eligible for Incentive (L) | Gain to Cross Incentive Income Threshold (F) | Life-to-Date Incentive Income Crystallized (P) | ||||||||||||||||||||||||||||||||||||||||||||
Publicly Traded Permanent Capital Vehicles | |||||||||||||||||||||||||||||||||||||||||||||||
Newcastle | $ | 751,232 | $ (F) | $ | 41,283 | ||||||||||||||||||||||||||||||||||||||||||
Eurocastle | 433,404 | 191,710 | 39,217 | ||||||||||||||||||||||||||||||||||||||||||||
New Residential | 1,372,498 | — | 74,662 | ||||||||||||||||||||||||||||||||||||||||||||
New Media | 644,707 | 152 | 112 | ||||||||||||||||||||||||||||||||||||||||||||
New Senior | 812,815 | 4,953 | — | ||||||||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Incentive Income Eligible NAV (L) | Gain to Cross Incentive Income Threshold (M) | Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold (N) | Undistributed Incentive Income (O) | Year to Date Incentive Income Crystallized (P) | |||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Macro Funds (Q) (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 1,227,665 | $ | 75,993 | 0.1 | % | $ | 5 | $ | — | |||||||||||||||||||||||||||||||||||||
Single investor funds | 967,051 | 29,804 | 23.6 | % | 119 | 11 | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 8,891 | 6,736 | N/A | 69 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 119,684 | 65,826 | N/A | 1,541 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 447,710 | 10,105 | 54.6 | % | 233 | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Convex Asia Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 222,816 | 10,812 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Partners Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 12,975 | 2,869 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 90,645 | 4,634 | N/A | 5,208 | — | ||||||||||||||||||||||||||||||||||||||||||
Fortress Centaurus Global Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 116,027 | 197 | 85.5 | % | 557 | — | |||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Special Opportunities Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 4,777,613 | $ | — | 100 | % | $ | 21,249 | $ | — | |||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 60,513 | — | N/A | 4,515 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 196,931 | 48,445 | N/A | 5,893 | — | ||||||||||||||||||||||||||||||||||||||||||
Main fund investments (liquidating) (U) | 633,058 | — | 100 | % | 73,294 | 653 | |||||||||||||||||||||||||||||||||||||||||
Managed accounts | 3,674 | 46,950 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Worden Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 261,995 | 683 | 90 | % | 877 | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Japan Income Fund | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 58,870 | N/A | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Value Recovery Funds (V) | |||||||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 7,444 | 9,278 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 68,723 | $ | — | 100 | % | $ | 86 | $ | — | |||||||||||||||||||||||||||||||||||||
Managed accounts | 210,281 | 25,950 | 27.1 | % | 43 | — | |||||||||||||||||||||||||||||||||||||||||
(A) | Vintage represents the year in which the fund was formed. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Represents the contractual maturity date including the assumed exercise of all extension options, which in some cases may require the approval of the applicable fund advisory board. Private equity funds that have reached their maturity date are included in the table to the extent they have generated incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | Includes an increase to the NAV surplus related to the U.S. income tax expense of certain investment entities, which is considered a distribution for the purposes of computing incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | A NAV deficit represents the gain needed to cross the incentive income threshold (as described in (F) below), excluding the impact of any relevant performance (i.e. preferred return) thresholds (as described in (E) below). | ||||||||||||||||||||||||||||||||||||||||||||||
(E) | Represents the gain needed to achieve the current relevant performance thresholds, assuming the gain described in (D) above is already achieved. | ||||||||||||||||||||||||||||||||||||||||||||||
(F) | Represents the immediate increase in NAV needed for Fortress to begin earning incentive income, including the achievement of any relevant performance thresholds. It does not include the amount needed to earn back intrinsic clawback (see (J) below), if any. Incentive income is not recorded as revenue until it is received and any related contingencies are resolved (see (I) below). For the publicly traded permanent capital vehicles, represents the immediate increase of the entity's applicable supplemental measure of operating performance needed for Fortress to begin earning incentive income. As of March 31, 2015, as a result of Newcastle not meeting the incentive income threshold, Fortress does not expect to earn incentive income from Newcastle for an indeterminate period of time. Subsequent to March 31, 2015, Fortress entered into an amended management agreement with Eurocastle. The amendment reset the earnings threshold for Fortress to earn incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(G) | Represents the amount of additional incentive income Fortress would receive if the fund were liquidated at the end of the period at its NAV. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. As of March 31, 2015, a portion of Long Dated Value Fund I and Real Estate Opportunities Fund II's capital is above their incentive income threshold. | ||||||||||||||||||||||||||||||||||||||||||||||
(H) | Represents the amount of net incentive income previously received from the fund since inception. | ||||||||||||||||||||||||||||||||||||||||||||||
(I) | Represents the amount of incentive income previously received from the fund which is still subject to contingencies and is therefore recorded on the consolidated balance sheet as Deferred Incentive Income. This amount will either be recorded as revenue when all related contingencies are resolved, or, if the fund does not meet certain performance thresholds, will be returned by Fortress to the fund (i.e., “clawed back”). | ||||||||||||||||||||||||||||||||||||||||||||||
(J) | Represents the amount of incentive income previously received from the fund that would be clawed back (i.e., returned by Fortress to the fund) if the fund were liquidated at the end of the period at its NAV, excluding the effect of any tax adjustments. Employees, former employees and affiliates of Fortress would be required to return a portion of this incentive income that was paid to them under profit sharing arrangements. “Gross” and “Net” refer to amounts that are gross and net, respectively, of this employee/affiliate portion of the intrinsic clawback. Fortress remains liable to the funds for these amounts even if it is unable to collect the amounts from employees/affiliates. Fortress withheld a portion of the amounts due to employees under these profit sharing arrangements as a reserve against future clawback; as of March 31, 2015, Fortress held $32.9 million of such amounts on behalf of employees related to all of the private equity funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(K) | The Fund I distributed incentive income amount is presented for the total fund, of which Fortress was entitled to approximately 50%. | ||||||||||||||||||||||||||||||||||||||||||||||
(L) | Represents the portion of a fund’s or managed account's NAV or trading level that is eligible to earn incentive income. For the publicly traded permanent capital vehicles, represents the equity basis that is used to calculate incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(M) | Represents, for those investors whose NAV is below the performance threshold Fortress needs to obtain before it can earn incentive income from such investors (their “incentive income threshold” or “high water mark”), the amount by which their aggregate incentive income thresholds exceed their aggregate NAVs. The amount by which the NAV of each investor within this category is below their respective incentive income threshold varies and, therefore, Fortress may begin earning incentive income from certain investors before this entire amount is earned back. Fortress earns incentive income whenever the assets of new investors, as well as of investors whose NAV exceeds their incentive income threshold, increase in value. For Fortress Japan Income Fund, Fortress earns incentive income based on investment income, which does not include unrealized and realized gains and losses, earned in excess of a preferred return threshold. | ||||||||||||||||||||||||||||||||||||||||||||||
(N) | Represents the percentage which is computed by dividing (i) the aggregate NAV of all investors who are at or above their respective incentive income thresholds, by (ii) the total incentive income eligible NAV of the fund. The amount by which the NAV of each fund investor who is not in this category is below their respective incentive income threshold may vary, and may vary significantly. This percentage represents the performance of only the main fund investments and managed accounts relative to their respective incentive income thresholds. It does not incorporate the impact of unrealized losses on sidepocket investments that can reduce the amount of incentive income earned from certain funds. See footnote (R) below. | ||||||||||||||||||||||||||||||||||||||||||||||
(O) | Represents the amount of additional incentive income Fortress would earn from the fund or managed account if it were liquidated at the end of the period at its NAV. This amount is currently subject to performance contingencies generally until the end of the year or, in the case of sidepocket investments, until such investments are realized. Main Fund Investments (Liquidating) pay incentive income only after all capital is returned. For the Fortress Japan Income Fund, represents the amount of incentive income Fortress would earn from the fund assuming the amount of investment income earned in excess of the preferred return threshold was distributed as of the end of the period. For the Value Recovery Fund managed accounts, Fortress can earn incentive income if aggregate realizations exceed an agreed threshold. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
(P) | Represents the amount of incentive income Fortress has earned which is not subject to clawback. For the publicly traded permanent capital vehicles, represents the life-to-date incentive income amount that Fortress has earned and which is not subject to clawback. | ||||||||||||||||||||||||||||||||||||||||||||||
(Q) | The Drawbridge Global Macro SPV (the “SPV”), which was established in February 2009 to liquidate illiquid investments and distribute the proceeds to then existing investors, is not subject to incentive income and is therefore not presented in the table. However, realized gains or losses within the SPV can decrease or increase, respectively, the gain needed to cross the incentive income threshold for investors with a corresponding investment in the main fund. The unrealized gains and losses within the SPV at March 31, 2015, as if they became realized, would not materially impact the amounts presented in the table. | ||||||||||||||||||||||||||||||||||||||||||||||
(R) | Represents investments held in sidepockets (also known as special investment accounts), which generally have investment profiles similar to private equity funds. The performance of these investments may impact Fortress’s ability to earn incentive income from main fund investments. For the credit hedge funds and Fortress Partners Funds, realized and unrealized losses from individual sidepockets below original cost may reduce the incentive income earned from main fund investments. For the Macro Funds, only realized losses from individual sidepockets reduce the incentive income earned from main fund investments. Based on current unrealized losses in Macro Fund sidepockets, if all of the Macro Fund sidepockets were liquidated at their NAV at March 31, 2015, the undistributed incentive income from the Macro main fund would not be impacted. | ||||||||||||||||||||||||||||||||||||||||||||||
(S) | Represents investments held in sidepockets for investors with no corresponding investment in the related main fund investments. In the case of the Macro Funds, such investors may have investments in the SPV (see (Q) above). | ||||||||||||||||||||||||||||||||||||||||||||||
(T) | Includes onshore and offshore funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(U) | Relates to accounts where investors have provided return of capital notices and are subject to payout as underlying fund investments are realized. | ||||||||||||||||||||||||||||||||||||||||||||||
(V) | Excludes the Value Recovery Funds which had a NAV of $181.6 million at March 31, 2015. Fortress began managing the third party originated Value Recovery Funds in June 2009 and generally does not expect to earn any significant incentive income from the fund investments. | ||||||||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015, Logan Circle, Fortress's fixed income asset manager, formed two new fixed income funds with net asset values as follows as of March 31, 2015: | |||||||||||||||||||||||||||||||||||||||||||||||
Logan Circle Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 10,090 | |||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 44,461 | ||||||||||||||||||||||||||||||||||||||||||||||
Total capital NAV | $ | 54,551 | |||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015, Fortress formed new credit PE funds which had capital commitments as follows as of March 31, 2015: | |||||||||||||||||||||||||||||||||||||||||||||||
Credit PE | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 30,000 | |||||||||||||||||||||||||||||||||||||||||||||
Fortress's affiliates | 36,035 | ||||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 3,614,910 | ||||||||||||||||||||||||||||||||||||||||||||||
Total capital commitments | $ | 3,680,945 | |||||||||||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015, Fortress's senior living management subsidiary (Blue Harbor) entered into agreements to manage two senior living properties which are owned by New Senior. Fortress will receive management fees equal to 5.0% of revenues (as defined in the agreements) and reimbursement of certain expenses, including the compensation expense of all on-site employees. |
INVESTMENTS_AND_FAIR_VALUE
INVESTMENTS AND FAIR VALUE | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Investments and Fair Value | |||||||||||||||||||||||||||||||||
INVESTMENTS AND FAIR VALUE | INVESTMENTS AND FAIR VALUE | ||||||||||||||||||||||||||||||||
Investments consist primarily of investments in equity method investees and options in certain investees. The investees are primarily Fortress Funds. | |||||||||||||||||||||||||||||||||
Investments can be summarized as follows: | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Equity method and other investees | $ | 1,183,347 | $ | 1,106,338 | |||||||||||||||||||||||||||||
Equity method investees, held at fair value (A) | 16,804 | 15,207 | |||||||||||||||||||||||||||||||
Total investments | $ | 1,200,151 | $ | 1,121,545 | |||||||||||||||||||||||||||||
Options in equity method investees | $ | 108,120 | $ | 71,844 | |||||||||||||||||||||||||||||
(A) | Includes publicly traded private equity portfolio companies and the publicly traded permanent capital vehicles (Newcastle, New Residential, Eurocastle, New Media and New Senior). | ||||||||||||||||||||||||||||||||
Gains (losses) are summarized as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 1,259 | $ | (835 | ) | ||||||||||||||||||||||||||||
Net realized gains (losses) from affiliate investments | (1,166 | ) | (574 | ) | |||||||||||||||||||||||||||||
Net unrealized gains (losses) | (2,362 | ) | (6,803 | ) | |||||||||||||||||||||||||||||
Net unrealized gains (losses) from affiliate investments | 33,830 | (2,843 | ) | ||||||||||||||||||||||||||||||
Total gains (losses) | $ | 31,561 | $ | (11,055 | ) | ||||||||||||||||||||||||||||
These gains (losses) were generated as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Mark to fair value on affiliate investments and options | $ | 32,785 | $ | (3,439 | ) | ||||||||||||||||||||||||||||
Mark to fair value on derivatives | 1,114 | (1,349 | ) | ||||||||||||||||||||||||||||||
Mark to fair value on equity securities | (509 | ) | 77 | ||||||||||||||||||||||||||||||
Gains (losses) on digital currency (Bitcoin) | (1,543 | ) | (6,176 | ) | |||||||||||||||||||||||||||||
Other | (286 | ) | (168 | ) | |||||||||||||||||||||||||||||
Total gains (losses) | $ | 31,561 | $ | (11,055 | ) | ||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Fortress holds investments in certain Fortress Funds which are primarily recorded based on the equity method of accounting. Fortress’s maximum exposure to loss with respect to these entities is generally equal to its investment plus its basis in any options received from such entities, plus any receivables from such entities as described in Note 6. In addition, unconsolidated affiliates also hold ownership interests in certain of these entities. Summary financial information related to these investments is as follows: | |||||||||||||||||||||||||||||||||
Fortress’s Investment | Earnings (Losses) from Equity Method Investees | ||||||||||||||||||||||||||||||||
March 31, | December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Private equity funds | $ | 697,552 | $ | 677,366 | $ | 25,856 | $ | 6,392 | |||||||||||||||||||||||||
Publicly traded portfolio companies (A)(B) | 1,267 | 1,035 | N/A | N/A | |||||||||||||||||||||||||||||
WWTAI | 5,798 | 5,284 | 218 | 35 | |||||||||||||||||||||||||||||
Newcastle (B) | 838 | 776 | N/A | N/A | |||||||||||||||||||||||||||||
New Residential (B) | 7,794 | 6,622 | N/A | N/A | |||||||||||||||||||||||||||||
Eurocastle (B) | 2,239 | 2,162 | N/A | N/A | |||||||||||||||||||||||||||||
New Media (B) | 1,792 | 1,769 | N/A | N/A | |||||||||||||||||||||||||||||
New Senior (B) | 2,874 | 2,843 | N/A | N/A | |||||||||||||||||||||||||||||
Total private equity | 720,154 | 697,857 | 26,074 | 6,427 | |||||||||||||||||||||||||||||
Liquid hedge funds (C) | 205,259 | 167,630 | 9,368 | 1,529 | |||||||||||||||||||||||||||||
Credit hedge funds | 57,207 | 57,224 | 1,968 | 2,369 | |||||||||||||||||||||||||||||
Credit PE funds | 190,294 | 183,127 | 5,065 | 10,008 | |||||||||||||||||||||||||||||
Other | 27,237 | 15,707 | (767 | ) | 41 | ||||||||||||||||||||||||||||
$ | 1,200,151 | $ | 1,121,545 | $ | 41,708 | $ | 20,374 | ||||||||||||||||||||||||||
(A) | Represents Fortress’s direct investments in the common stock of publicly traded private equity portfolio companies. | ||||||||||||||||||||||||||||||||
(B) | Fortress elected to record these investments at fair value pursuant to the fair value option for financial instruments. | ||||||||||||||||||||||||||||||||
(C) | Includes Fortress's investment in Affiliated Managers. | ||||||||||||||||||||||||||||||||
A summary of the changes in Fortress’s investments is as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||
Funds | Publicly Traded Portfolio Companies (A) | Permanent Capital Vehicles (A) | Liquid Hedge Funds (B) | Credit Hedge Funds | Credit PE Funds | Other | Total | ||||||||||||||||||||||||||
Investment, beginning | $ | 677,366 | $ | 1,035 | $ | 19,456 | $ | 167,630 | $ | 57,224 | $ | 183,127 | $ | 15,707 | $ | 1,121,545 | |||||||||||||||||
Earnings from equity method investees | 25,856 | N/A | 218 | 9,368 | 1,968 | 5,065 | (767 | ) | 41,708 | ||||||||||||||||||||||||
Other comprehensive income from equity | — | N/A | — | — | — | — | — | — | |||||||||||||||||||||||||
method investees | |||||||||||||||||||||||||||||||||
Contributions to equity method and other | 445 | — | 495 | 13,612 | 94,419 | 11,788 | 32 | 120,791 | |||||||||||||||||||||||||
investees (C) | |||||||||||||||||||||||||||||||||
Distributions of earnings from equity | (3,542 | ) | N/A | (179 | ) | (426 | ) | (2,396 | ) | (4,270 | ) | — | (10,813 | ) | |||||||||||||||||||
method and other investees | |||||||||||||||||||||||||||||||||
Distributions of capital from equity | (48 | ) | N/A | (20 | ) | (18,325 | ) | (94,008 | ) | (5,338 | ) | — | (117,739 | ) | |||||||||||||||||||
method and other investees (C) | |||||||||||||||||||||||||||||||||
Total distributions from equity method | (3,590 | ) | — | (199 | ) | (18,751 | ) | (96,404 | ) | (9,608 | ) | — | (128,552 | ) | |||||||||||||||||||
and other investees | |||||||||||||||||||||||||||||||||
Mark to fair value - during period (D) | (345 | ) | 232 | 1,622 | N/A | N/A | N/A | (53 | ) | 1,456 | |||||||||||||||||||||||
Net purchases of investments by consolidated funds | — | — | — | — | — | — | 12,318 | 12,318 | |||||||||||||||||||||||||
Translation adjustment | (39 | ) | — | (257 | ) | — | — | (78 | ) | — | (374 | ) | |||||||||||||||||||||
Dispositions | (2,683 | ) | — | — | — | — | — | — | (2,683 | ) | |||||||||||||||||||||||
Reclassification to Due to Affiliates (E) | 542 | — | — | — | — | — | — | 542 | |||||||||||||||||||||||||
Retained interest in Graticule (Note 1) | — | — | — | 33,400 | — | — | — | 33,400 | |||||||||||||||||||||||||
Investment, ending | $ | 697,552 | $ | 1,267 | $ | 21,335 | $ | 205,259 | $ | 57,207 | $ | 190,294 | $ | 27,237 | $ | 1,200,151 | |||||||||||||||||
Ending balance of undistributed earnings | $ | 84,132 | $ N/A | $ | 38 | $ | 16,546 | $ | 2,312 | $ | 11,205 | $ | 2,118 | $ | 116,351 | ||||||||||||||||||
(A) | Fortress elected to record the publicly traded private equity portfolio companies and the publicly traded permanent capital vehicles at fair value pursuant to the fair value option for financial instruments. | ||||||||||||||||||||||||||||||||
(B) | Includes Fortress's investment in Affiliated Managers. | ||||||||||||||||||||||||||||||||
(C) | The amounts presented above can be reconciled to the amounts presented on the statement of cash flows as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Contributions | Distributions of Capital | ||||||||||||||||||||||||||||||||
Per Consolidated Statements of Cash Flows | $ | 7,720 | $ | (107,370 | ) | ||||||||||||||||||||||||||||
Investments of incentive receivable amounts into Fortress Funds | 107,855 | — | |||||||||||||||||||||||||||||||
Change in distributions payable out of Fortress Funds | — | (4,849 | ) | ||||||||||||||||||||||||||||||
Net funded* | 5,216 | (5,216 | ) | ||||||||||||||||||||||||||||||
Other | — | (304 | ) | ||||||||||||||||||||||||||||||
Per Above | $ | 120,791 | $ | (117,739 | ) | ||||||||||||||||||||||||||||
* | In some instances, a private equity style fund may need to simultaneously make both a capital call (for new investments or expenses) and a capital distribution (related to realizations from existing investments). This results in a net funding. | ||||||||||||||||||||||||||||||||
(D) | Recorded to Gains (Losses). | ||||||||||||||||||||||||||||||||
(E) | Represents a portion of the general partner liability discussed in Note 9. | ||||||||||||||||||||||||||||||||
The following tables present summarized statements of operations for Fortress's significant equity method investees. The permanent capital vehicles, the publicly traded portfolio companies and Other are not presented as they are insignificant to Fortress’s investments. | |||||||||||||||||||||||||||||||||
Private Equity Funds (A) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Revenues and gains (losses) on investments | $ | 638,253 | $ | (39,338 | ) | ||||||||||||||||||||||||||||
Expenses | (52,613 | ) | (50,798 | ) | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | 585,640 | $ | (90,136 | ) | ||||||||||||||||||||||||||||
Fortress’s equity in net income (loss) | $ | 25,856 | $ | 6,392 | |||||||||||||||||||||||||||||
Liquid Hedge Funds | Credit Hedge Funds | Credit PE Funds (A) | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||
2015 (B) | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||
Revenues and gains | $ | 7,091 | $ | (155,299 | ) | $ | 254,234 | $ | 298,810 | $ | 328,119 | $ | 603,301 | ||||||||||||||||||||
(losses) on investments | |||||||||||||||||||||||||||||||||
Expenses | (65,737 | ) | (46,393 | ) | (101,871 | ) | (79,448 | ) | (70,139 | ) | (74,735 | ) | |||||||||||||||||||||
Net Income (Loss) | $ | (58,646 | ) | $ | (201,692 | ) | $ | 152,363 | $ | 219,362 | $ | 257,980 | $ | 528,566 | |||||||||||||||||||
Fortress’s equity in net | $ | 9,368 | $ | 1,529 | $ | 1,968 | $ | 2,369 | $ | 5,065 | $ | 10,008 | |||||||||||||||||||||
income (loss) | |||||||||||||||||||||||||||||||||
(A) | For Private Equity Funds, includes four entities which are recorded on a one quarter lag (i.e. current year balances reflected for these entities are for the period ended December 31, 2014). For Credit PE Funds, includes one entity which is recorded on a one quarter lag and several entities which are recorded on a one month lag. They are recorded on a lag because they are foreign entities, or they have substantial operations in foreign countries, and do not provide financial reports under GAAP within the reporting time frame necessary for U.S. public entities. | ||||||||||||||||||||||||||||||||
(B) | Includes the operating results of Affiliated Managers. | ||||||||||||||||||||||||||||||||
Investments in Variable Interest Entities and other Unconsolidated Entities | |||||||||||||||||||||||||||||||||
All of Fortress’s interests in unconsolidated entities relate to (i) entities in which Fortress has an investment, which are included on the consolidated balance sheet and described in Note 3, and/or (ii) entities from which Fortress earns fees, which are included in revenues and described in Note 2. These entities are primarily Fortress Funds which are VOEs and provide their limited partners or members unrelated to Fortress with the substantive ability to liquidate the Fortress Fund or otherwise remove Fortress as the general partner and/or manager. | |||||||||||||||||||||||||||||||||
No reconsideration events occurred during the three months ended March 31, 2015 or 2014, respectively, which caused a change in Fortress’s accounting, except as described below. | |||||||||||||||||||||||||||||||||
The following tables set forth certain information as of March 31, 2015 regarding variable interest entities in which Fortress held a variable interest. Entities initially classified as variable interest entities during the three months ended March 31, 2015: | |||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | |||||||||||||||||||||||||||||||||
Business | Number of VIEs | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Notes | ||||||||||||||||||||||||||||
Liquid Hedge Funds | 2 | $ | 216,390 | $ | — | $ | 49,639 | (D) | |||||||||||||||||||||||||
Credit PE Funds | 1 | 8,574 | — | 87 | (D) | ||||||||||||||||||||||||||||
All variable interest entities: | |||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Business | Number of VIEs | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Number of VIEs | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Notes | ||||||||||||||||||||||||
Private Equity Funds | 2 | $ | 116,166 | $ | — | $ | 99 | 2 | $ | 85,553 | $ | — | $ | 56 | (D) | ||||||||||||||||||
Permanent Capital Vehicles | 5 | 14,012,405 | 9,646,658 | 144,456 | 5 | 14,539,141 | 10,336,207 | 154,346 | (C) | ||||||||||||||||||||||||
Liquid Hedge Funds | 4 | 2,689,349 | 385,041 | 54,031 | 2 | 3,070,203 | 432,580 | 7,094 | (D) | ||||||||||||||||||||||||
Credit Hedge Funds | 8 | 2,128,044 | 398,930 | 4,551 | 8 | 1,976,328 | 152,806 | 25,474 | (D) (E) | ||||||||||||||||||||||||
Credit PE Funds | 31 | 795,370 | 229,522 | 8,328 | 30 | 735,855 | 143,743 | 5,897 | (D) (E) | ||||||||||||||||||||||||
Fortress is Primary Beneficiary | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Business | Number of VIEs | Gross Assets (A) | Financial Obligations (A) | Fortress Investment (B) | Number of VIEs | Gross Assets (A) | Financial Obligations (A) | Fortress Investment (B) | Notes | ||||||||||||||||||||||||
Private Equity Funds | 9 | $ | 70,668 | $ | — | $ | 20,035 | 9 | $ | 90,723 | $ | — | $ | 20,368 | (F) (G) | ||||||||||||||||||
Liquid Hedge Funds | 1 | 7,811 | — | 3,595 | 3 | 8,714 | — | 4,125 | (F) | ||||||||||||||||||||||||
Credit PE Funds | 2 | 440 | — | 20 | 2 | 434 | — | 22 | (F) | ||||||||||||||||||||||||
Logan Circle | 1 | 5,160 | — | 4,857 | 1 | 6,566 | — | 4,783 | (F) | ||||||||||||||||||||||||
(A) | Represents financial obligations of the VIEs which are not recourse to Fortress and assets of the VIEs which Fortress does not have the right to make use of to satisfy its obligations. Financial obligations include financial borrowings, derivative liabilities and short securities. In many cases, these VIEs have additional debt within unconsolidated subsidiaries. The debt obligations of the VIEs are not cross collateralized with the debt obligations of Fortress. Fortress has no obligation to satisfy the liabilities of the VIEs. The VIE’s debt obligations have no impact on Fortress’s cash flows and its ability to borrow or comply with its debt covenants under its revolving credit agreement. | ||||||||||||||||||||||||||||||||
(B) | Represents Fortress’s maximum exposure to loss with respect to these entities, which includes investments in these entities, plus any receivables due from these entities. In addition to the table above, Fortress is exposed to potential changes in cash flow and revenues attributable to the management fees and/or incentive income Fortress earns from those entities. For VIEs where Fortress is deemed to be the primary beneficiary, these investments and receivables are eliminated in consolidation but still represent Fortress’s economic exposure to the VIEs. | ||||||||||||||||||||||||||||||||
(C) | Includes permanent capital vehicles that are a VIE because the entity's at-risk equity holders as a group lack the characteristics of a controlling financial interest because the group of at-risk equity holders does not have the power, through voting rights or similar rights, to direct the activities that most significantly affect the success of the entity or impact the entity's economic performance. Fortress is not the primary beneficiary of these entities. Fortress and its related parties under common control as a group, where applicable, do not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to these entities. | ||||||||||||||||||||||||||||||||
(D) | Includes entities, primarily investing vehicles set up on behalf of the Fortress Funds to make investments, that are a VIE because the entity’s at-risk equity holders as a group lack the characteristics of a controlling financial interest because either (i) the group of at-risk equity holders does not have the power, through voting rights or similar rights, to direct the activities that most significantly affect the success of the entity or impact the entity's economic performance and/or (ii) the voting rights of an investor are not proportional to its obligation to absorb the income or loss of the entity and substantially all of the entity’s activities either involve or are conducted on behalf of that investor and its related parties. Fortress is not the primary beneficiary of these entities. Fortress and its related parties under common control as a group, where applicable, do not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to these entities. Due to a reconsideration in January 2015, Fortress no longer has the power to direct the activities that most significantly impact the economic performance of certain VIEs in the liquid hedge fund business. Therefore, Fortress is no longer deemed to be the primary beneficiary of these VIEs as of the reconsideration date. | ||||||||||||||||||||||||||||||||
(E) | Includes entities that are VIEs because the entity's equity investment at-risk is determined to be insufficient. Fortress is not the primary beneficiary of these entities because Fortress does not have the power to direct the activities that most significantly impact the economic performance of these entities. These entities represent an insignificant portion of the amounts presented in the table. | ||||||||||||||||||||||||||||||||
(F) | Includes entities that are a VIE because the entity's at-risk equity holders as a group lack the characteristics of a controlling financial interest because the group of at-risk equity holders does not have the power, through voting rights or similar rights, to direct the activities that most significantly affect the success of the entity or impact the entity's economic performance. Fortress is the investment manager of these entities. Fortress is determined to be the primary beneficiary of these entities since it has both power over the activities that most significantly affect the success of the entity or impact the entity’s economic performance and has the right to receive benefits or the obligation to absorb losses from the VIE that potentially could be significant to the entity. Due to a reconsideration in January 2015, Fortress no longer has the power to direct the activities that most significantly impact the economic performance of certain VIEs in the liquid hedge fund business. Therefore, Fortress is no longer deemed to be the primary beneficiary of these VIEs as of the reconsideration date. | ||||||||||||||||||||||||||||||||
(G) | Includes an entity that is a VIE because the entity’s equity investment at risk is determined to be insufficient. Fortress, as a result of directing the operations of the entity through its management contracts with certain funds, and providing financial support to the entity, was deemed to be its primary beneficiary. | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||
The following table presents information regarding Fortress’s financial instruments that are recorded at fair value. Investments denominated in foreign currencies have been translated at the period end exchange rate. Changes in fair value are recorded in Gains (Losses). | |||||||||||||||||||||||||||||||||
Fair Value | Valuation Method | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Assets (within Investments) | |||||||||||||||||||||||||||||||||
Common shares of publicly traded permanent capital vehicles | $ | 15,537 | $ | 14,172 | Level 1 - Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||
Common stock of publicly traded | 1,267 | 1,035 | Level 1 - Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||||
private equity portfolio companies | |||||||||||||||||||||||||||||||||
Total equity method investments | $ | 16,804 | $ | 15,207 | |||||||||||||||||||||||||||||
carried at fair value | |||||||||||||||||||||||||||||||||
Options in equity method investees | $ | 108,120 | $ | 71,844 | Level 2 - Option valuation models using significant observable inputs | ||||||||||||||||||||||||||||
Assets (within Other Assets) | |||||||||||||||||||||||||||||||||
Derivatives | $ | 28,156 | $ | 27,105 | Level 2 - See below | ||||||||||||||||||||||||||||
$ | — | $ | 17,627 | Level 1 - Quoted prices in active markets for identical assets | |||||||||||||||||||||||||||||
Equity Securities (A) | |||||||||||||||||||||||||||||||||
Liabilities (within Accrued | |||||||||||||||||||||||||||||||||
Compensation and Benefits) | |||||||||||||||||||||||||||||||||
Options in affiliates granted to | $ | (14,440 | ) | $ | (8,356 | ) | Level 2 - Option valuation models using significant observable inputs | ||||||||||||||||||||||||||
employees | |||||||||||||||||||||||||||||||||
Liabilities (within Other Liabilities) | |||||||||||||||||||||||||||||||||
Derivatives | $ | (1,166 | ) | $ | (932 | ) | Level 2 - See below | ||||||||||||||||||||||||||
(A) | The equity securities are held at fair value and classified as trading. All equity securities were sold during the three months ended March 31, 2015. | ||||||||||||||||||||||||||||||||
See Note 4 regarding the fair value of outstanding debt. | |||||||||||||||||||||||||||||||||
In January 2015, New Media issued 7.0 million shares of its common stock in a public offering at a price to the public of $21.70 per share. In connection with this offering, New Media compensated Fortress for its successful efforts in raising capital for New Media by granting options to Fortress to purchase 0.7 million shares of New Media's common stock at the public offering price, which were valued at $4.1 million. The options were fully vested upon issuance, become exercisable over thirty months and have a ten-year term. | |||||||||||||||||||||||||||||||||
In April 2015, New Residential issued 57.5 million shares of its common stock. For the purpose of compensating Fortress for its successful efforts in raising capital, New Residential granted options to Fortress to purchase 5.8 million shares of New Residential's common shares at a price of $15.25, which had a fair value of $9.0 million as of the grant date. The options were fully vested upon issuance, become exercisable over thirty months and have a ten-year term. | |||||||||||||||||||||||||||||||||
In April 2015, Eurocastle issued 39.8 million shares of its common stock in a public offering at a price to the public of €7.85 per share. In connection with this offering, Eurocastle compensated Fortress for its successful efforts in raising capital for Eurocastle by granting options to Fortress to purchase 4.0 million shares of Eurocastle's common stock at the public offering price, which were valued at $5.1 million as of the grant date. The options were fully vested upon issuance and have a ten-year term. | |||||||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Fortress is exposed to certain risks relating to its ongoing business operations. The primary risk managed by Fortress using derivative instruments is foreign currency risk. Fortress enters into foreign exchange forward contracts and options to economically hedge the risk of fluctuations in foreign exchange rates with respect to certain foreign currency denominated assets and expected revenues. Gains and losses on these contracts are reported currently in Gains (Losses). | |||||||||||||||||||||||||||||||||
Fortress’s derivative instruments are carried at fair value and are generally valued using models with observable market inputs that can be verified and which do not involve significant judgment. The significant observable inputs used in determining the fair value of the Level 2 derivative contracts are contractual cash flows and market based parameters such as foreign exchange rates. | |||||||||||||||||||||||||||||||||
Fortress’s derivatives (not designated as hedges) are recorded as follows: | |||||||||||||||||||||||||||||||||
Balance Sheet | March 31, 2015 (or three months ended) | Maturity | |||||||||||||||||||||||||||||||
Classification (A) | Fair Value | Notional Amount | Gains/(Losses) (B) | Date | |||||||||||||||||||||||||||||
Foreign exchange option contracts | Other Assets | $ | 25,910 | ¥ | 42,184,512 | $ | 1,046 | Jun-15 - Mar-18 | |||||||||||||||||||||||||
Foreign exchange option contracts | Other Liabilities | $ | (1,161 | ) | ¥ | 5,225,916 | $ | (24 | ) | Jun-15 - Mar-16 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other Assets | $ | 2,246 | ¥ | 2,853,587 | $ | 6 | Jun-15 - Jun-16 | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other Liabilities | $ | (5 | ) | ¥ | 912,500 | $ | 87 | 17-Dec | ||||||||||||||||||||||||
(A) | Fortress has a master netting agreement with its counterparty. | ||||||||||||||||||||||||||||||||
(B) | Reflects unrealized gains (losses) related to contracts existing at period end. Total net foreign exchange gains (losses) from derivatives were $1.1 million and $(1.3) million during the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||||||||||
Fortress's quarterly average derivative trading volume, based on the underlying notional amounts was $426.0 million as of March 31, 2015. | |||||||||||||||||||||||||||||||||
The following tables summarizes the fair value of Fortress's derivative contacts on a gross basis and any amount of offset as permitted by netting agreements as of March 31, 2015. | |||||||||||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||||||||||
Gross Amounts Offset | Assets Presented | ||||||||||||||||||||||||||||||||
Gross Amounts of | in the Consolidated | in the Consolidated | |||||||||||||||||||||||||||||||
Recognized Assets as of | Balance Sheet as of | Balance Sheet as of | |||||||||||||||||||||||||||||||
Offsetting of Derivative Assets | March 31, 2015 | 31-Mar-15 | March 31, 2015 | ||||||||||||||||||||||||||||||
Foreign exchange option contracts | $ | 28,476 | $ | (2,566 | ) | $ | 25,910 | ||||||||||||||||||||||||||
Foreign exchange forward contracts | 2,246 | — | 2,246 | ||||||||||||||||||||||||||||||
$ | 30,722 | $ | (2,566 | ) | $ | 28,156 | |||||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||||||||||
Gross Amounts Offset | Liabilities Presented | ||||||||||||||||||||||||||||||||
Gross Amounts of | in the Consolidated | in the Consolidated | |||||||||||||||||||||||||||||||
Recognized Liabilities as of | Balance Sheet as of | Balance Sheet as of | |||||||||||||||||||||||||||||||
Offsetting of Derivative Liabilities | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | ||||||||||||||||||||||||||||||
Foreign exchange option contracts | $ | (1,754 | ) | $ | 593 | $ | (1,161 | ) | |||||||||||||||||||||||||
Foreign exchange forward contracts | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||||||
$ | (1,759 | ) | $ | 593 | $ | (1,166 | ) | ||||||||||||||||||||||||||
The counterparty on the outstanding derivatives is Citibank N.A. |
DEBT_OBLIGATIONS
DEBT OBLIGATIONS | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
DEBT OBLIGATIONS | DEBT OBLIGATIONS | |||||||||||||||
Face Amount and Carrying Value | Contractual | Final | 31-Mar-15 | |||||||||||||
March 31, | December 31, | Interest | Stated | Amount | ||||||||||||
Debt Obligation | 2015 | 2014 | Rate | Maturity | Available for Draws | |||||||||||
Revolving credit agreement (A)(B) | $ | 75,000 | $ | 75,000 | LIBOR + 2.50% (C) | Feb-16 | $ | 72,332 | ||||||||
Total | $ | 75,000 | $ | 75,000 | ||||||||||||
(A) | Collateralized by substantially all of Fortress Operating Group’s assets as well as Fortress Operating Group’s rights to fees from the Fortress Funds and its equity interests therein, other than fees from Fortress's senior living property manager. | |||||||||||||||
(B) | The $150.0 million revolving debt facility includes a $15.0 million letter of credit subfacility of which $2.7 million was utilized. | |||||||||||||||
(C) | Subject to unused commitment fees of 0.4% per annum. | |||||||||||||||
Management believes the fair value of its outstanding debt was $75.1 million as of March 31, 2015 (classified as a level 3 valuation, which is based on internal models using discounted future contractual cash flows and market interest rates). | ||||||||||||||||
Fortress was in compliance with all of its debt covenants as of March 31, 2015. The following table sets forth the financial covenant requirements as of March 31, 2015. | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Requirement | Actual | Notes | ||||||||||||||
AUM, as defined | ≥ | $ | 25,000 | $ | 43,606 | (A) | ||||||||||
Consolidated Leverage Ratio | ≤ | 2 | 0.24 | (B) | ||||||||||||
Consolidated Interest Coverage Ratio | ≥ | 4 | 88.43 | (B) | ||||||||||||
(A) | Impacted by capital raised in funds, redemptions from funds, and valuations of fund investments. The AUM presented here is based on the definition of Management Fee Earning Assets contained in the Credit Agreement. | |||||||||||||||
(B) | The Consolidated Leverage Ratio is equal to Adjusted Net Funded Indebtedness, as defined, divided by the trailing four quarters’ Consolidated EBITDA, as defined. The Consolidated Interest Coverage Ratio is equal to the quotient of (A) the trailing four quarters' Consolidated EBITDA, as defined, divided by (B) the trailing four quarters' interest charges as defined in the Credit Agreement. Consolidated EBITDA, as defined, is impacted by the same factors as distributable earnings, except Consolidated EBITDA is not impacted by changes in clawback reserves or gains and losses, including impairment, on investments. |
INCOME_TAXES_AND_TAX_RELATED_P
INCOME TAXES AND TAX RELATED PAYMENTS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
INCOME TAXES AND TAX RELATED PAYMENTS | INCOME TAXES AND TAX RELATED PAYMENTS | |||||||
Fortress was established as a publicly traded partnership and also established a wholly owned corporate subsidiary. Accordingly, a substantial portion of Fortress’s income is earned by the corporate subsidiary and subject to U.S. federal and state income taxation, taxed at prevailing rates. The remainder of Fortress’s income is allocated directly to its shareholders and is not subject to a corporate level of taxation. | ||||||||
The provision for income taxes consists of the following: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Current | ||||||||
Federal income tax expense (benefit) | $ | (3,121 | ) | $ | (68 | ) | ||
Foreign income tax expense (benefit) | 1,127 | 3,138 | ||||||
State and local income tax expense (benefit) | 1,879 | 438 | ||||||
(115 | ) | 3,508 | ||||||
Deferred | ||||||||
Federal income tax expense (benefit) | 12,987 | 1,517 | ||||||
Foreign income tax expense (benefit) | 3,542 | 783 | ||||||
State and local income tax expense (benefit) | 1,985 | 186 | ||||||
18,514 | 2,486 | |||||||
Total expense (benefit) | $ | 18,399 | $ | 5,994 | ||||
The tax effects of temporary differences have resulted in deferred income tax assets and liabilities as follows: | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Total deferred tax assets | $ | 425,962 | $ | 439,159 | ||||
Less: | ||||||||
Valuation allowance | (13,907 | ) | (13,072 | ) | ||||
Deferred tax liabilities (A) | (14,277 | ) | (8,464 | ) | ||||
Deferred tax assets, net | $ | 397,778 | $ | 417,623 | ||||
(A) | The deferred tax liabilities primarily relate to timing differences in the recognition of income from options received from certain permanent capital vehicles. Deferred tax assets are shown net of deferred tax liabilities since they are both primarily of similar tax character and tax jurisdiction. | |||||||
The following table summarizes the change in the deferred tax asset valuation allowance: | ||||||||
Valuation Allowance at December 31, 2014 | $ | 13,072 | ||||||
Changes due to FIG Corp. ownership change | 1 | |||||||
Net increases (A) | 834 | |||||||
Valuation Allowance at March 31, 2015 | $ | 13,907 | ||||||
(A) | Primarily related to the change in the portion of the deferred tax asset that would be realized in connection with future capital gains. | |||||||
For the three months ended March 31, 2015, a net deferred income tax provision of $0.3 million was credited to other comprehensive income, primarily related to foreign currency translation. For the three months ended March 31, 2015, a current income tax benefit of $1.4 million was credited to paid-in capital, related to dividend equivalent payments on RSUs (Note 8), as applicable, which are currently deductible for income tax purposes. | ||||||||
Tax Receivable Agreement | ||||||||
Although the tax receivable agreement payments are calculated based on annual tax savings, for the three months ended March 31, 2015, the payments which would have been made pursuant to the tax receivable agreement, if such period was calculated by itself, were estimated to be $5.4 million. |
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES | RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES | |||||||||||||||||||||||||||||||
Affiliate Receivables and Payables | ||||||||||||||||||||||||||||||||
Due from affiliates was comprised of the following: | ||||||||||||||||||||||||||||||||
Private Equity | Liquid | Credit | ||||||||||||||||||||||||||||||
Permanent | Hedge | Hedge | Logan | |||||||||||||||||||||||||||||
Funds | Capital Vehicles | Funds | Funds | PE Funds | Circle | Other | Total | |||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 37,327 | $ | 14,545 | $ | 5,957 | $ | 7,487 | $ | 20,686 | $ | 621 | $ | — | $ | 86,623 | ||||||||||||||||
Expense reimbursements (A) | 18,926 | 8,548 | 16,738 | 9,427 | 10,624 | 61 | — | 64,324 | ||||||||||||||||||||||||
Dividends and distributions | — | 291 | — | — | — | — | — | 291 | ||||||||||||||||||||||||
Other | — | — | 169 | — | — | — | 16,769 | 16,938 | ||||||||||||||||||||||||
Total | $ | 56,253 | $ | 23,384 | $ | 22,864 | $ | 16,914 | $ | 31,310 | $ | 682 | $ | 16,769 | $ | 168,176 | ||||||||||||||||
Private Equity | Liquid | Credit | ||||||||||||||||||||||||||||||
Permanent | Hedge | Hedge | Logan | |||||||||||||||||||||||||||||
Funds | Capital Vehicles | Funds | Funds | PE Funds | Circle | Other | Total | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 35,970 | $ | 65,043 | $ | 15,634 | $ | 96,996 | $ | 18,393 | $ | 1,089 | $ | — | $ | 233,125 | ||||||||||||||||
Expense reimbursements (A) | 35,995 | 6,473 | 12,940 | 9,264 | 10,077 | 164 | — | 74,913 | ||||||||||||||||||||||||
Dividends and distributions | — | 295 | — | — | — | — | — | 295 | ||||||||||||||||||||||||
Other | — | 1,346 | — | — | — | — | 16,896 | 18,242 | ||||||||||||||||||||||||
Total | $ | 71,965 | $ | 73,157 | $ | 28,574 | $ | 106,260 | $ | 28,470 | $ | 1,253 | $ | 16,896 | $ | 326,575 | ||||||||||||||||
(A) | Net of allowances for uncollectible management fees and expense reimbursements of $12.2 million and $6.7 million as of March 31, 2015, respectively, and of $12.2 million and $6.6 million as of December 31, 2014, respectively. Allowances are recorded as General and Administrative expenses. | |||||||||||||||||||||||||||||||
As of March 31, 2015, amounts due from Fortress Funds recorded in Due from Affiliates included $36.1 million of past due management fees, excluding $12.2 million which has been fully reserved by Fortress, and $11.2 million of private equity general and administrative expenses advanced on behalf of certain Fortress Funds, excluding $6.7 million which has been fully reserved by Fortress. Although such funds are currently experiencing liquidity issues, Fortress believes the unreserved portion of these fees and reimbursable expenses will ultimately be collectible. The unreserved amounts are due from one fund and the amount represents less than 5% of this fund's NAV. | ||||||||||||||||||||||||||||||||
Due to affiliates was comprised of the following: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Principals - tax receivable agreement - Note 5 | $ | 289,338 | $ | 289,324 | ||||||||||||||||||||||||||||
Principals - Principal Performance Payments - Note 7 | 3,481 | 30,659 | ||||||||||||||||||||||||||||||
Distributions payable on Fortress Operating Group units | 11,142 | — | ||||||||||||||||||||||||||||||
Other | 5,589 | 11,411 | ||||||||||||||||||||||||||||||
General partner liability - Note 9 | 44,572 | 44,030 | ||||||||||||||||||||||||||||||
Total | $ | 354,122 | $ | 375,424 | ||||||||||||||||||||||||||||
Other Related Party Transactions | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, Other Revenues included $0.5 million and $0.6 million, respectively, of revenues from affiliates, primarily interest and dividends. | ||||||||||||||||||||||||||||||||
During 2015, Fortress advanced $1.8 million to one of its senior employees who is not an officer. These advances bear interest at LIBOR+4.00%. All principal and interest is due and payable no later than February 2019. In addition, one senior employee repaid advances aggregating $0.1 million. | ||||||||||||||||||||||||||||||||
Redeemable Non-Controlling Interests | ||||||||||||||||||||||||||||||||
The following table represents the activity in Redeemable Non-controlling Interests as presented in the consolidated balance sheets: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,717 | ||||||||||||||||||||||||||||||
Capital distributions | (1,592 | ) | ||||||||||||||||||||||||||||||
Redeemable Non-controlling Interests in income (loss) of Consolidated Subsidiaries | (16 | ) | ||||||||||||||||||||||||||||||
$ | 109 | |||||||||||||||||||||||||||||||
Principals’ and Others’ Interests in Consolidated Subsidiaries | ||||||||||||||||||||||||||||||||
These amounts relate to equity interests in Fortress’s consolidated, but not wholly owned, subsidiaries, which are held by the Principals, employees, and others. | ||||||||||||||||||||||||||||||||
This balance sheet caption was comprised of the following: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and a former senior | $ | 514,935 | $ | 556,720 | ||||||||||||||||||||||||||||
employee | ||||||||||||||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 66,447 | 80,333 | ||||||||||||||||||||||||||||||
Other | 2,251 | 2,303 | ||||||||||||||||||||||||||||||
Total | $ | 583,633 | $ | 639,356 | ||||||||||||||||||||||||||||
The Fortress Operating Group portion of these interests is computed as follows: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Fortress Operating Group equity (Note 12) | $ | 1,058,115 | $ | 1,152,297 | ||||||||||||||||||||||||||||
Less: Others' interests in equity of consolidated subsidiaries (Note 12) | (68,698 | ) | (82,636 | ) | ||||||||||||||||||||||||||||
Total Fortress shareholders' equity in Fortress Operating Group | $ | 989,417 | $ | 1,069,661 | ||||||||||||||||||||||||||||
Fortress Operating Group units outstanding (A) | 226,331,513 | 226,331,513 | ||||||||||||||||||||||||||||||
Class A shares outstanding | 208,554,885 | 208,535,157 | ||||||||||||||||||||||||||||||
Total | 434,886,398 | 434,866,670 | ||||||||||||||||||||||||||||||
Fortress Operating Group units as a percent of total (B) | 52 | % | 52 | % | ||||||||||||||||||||||||||||
Equity of Fortress Operating Group units held by the Principals and | $ | 514,935 | $ | 556,720 | ||||||||||||||||||||||||||||
a former senior employee | ||||||||||||||||||||||||||||||||
(A) | Held by the Principals and a former senior employee; exclusive of Class A shares. | |||||||||||||||||||||||||||||||
(B) | As a result, the Registrant owned 48.0% of Fortress Operating Group as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||||
This statement of operations caption was comprised of shares of consolidated net income (loss) related to the following: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and a former senior | $ | 51,605 | $ | 5,058 | ||||||||||||||||||||||||||||
employee | ||||||||||||||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 840 | 1,011 | ||||||||||||||||||||||||||||||
Other | (222 | ) | 8 | |||||||||||||||||||||||||||||
Total | $ | 52,223 | $ | 6,077 | ||||||||||||||||||||||||||||
The Fortress Operating Group portion of these interests is computed as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Fortress Operating Group net income (loss) (Note 12) | $ | 99,759 | $ | 10,826 | ||||||||||||||||||||||||||||
Adjust: | ||||||||||||||||||||||||||||||||
Others' interests in net (income) loss of consolidated subsidiaries (Note 12) | (618 | ) | (1,019 | ) | ||||||||||||||||||||||||||||
Redeemable Non-controlling interests in (income) loss of Consolidated | 16 | — | ||||||||||||||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||||||||||
Total Fortress shareholders' net income (loss) in Fortress Operating Group | $ | 99,157 | $ | 9,807 | ||||||||||||||||||||||||||||
Fortress Operating Group as a percent of total (A) | 52 | % | 51.6 | % | ||||||||||||||||||||||||||||
Fortress Operating Group net income (loss) attributable to the Principals and a former senior employee | $ | 51,605 | $ | 5,058 | ||||||||||||||||||||||||||||
(A) | Represents the weighted average percentage of total Fortress shareholders' net income (loss) in Fortress Operating Group attributable to the Principals and a former senior employee. | |||||||||||||||||||||||||||||||
The purpose of this schedule is to disclose the effects of changes in Fortress’s ownership interest in Fortress Operating Group on Fortress’s equity: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Net Income (loss) attributable to Class A shareholders | $ | 34,713 | $ | 3,024 | ||||||||||||||||||||||||||||
Transfers (to) from the Principals' and Others' Interests: | ||||||||||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the conversion of Fortress Operating Group units by the Principals and a former senior employee | — | — | ||||||||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the delivery of Class A shares primarily in connection with vested RSUs | 25 | 417 | ||||||||||||||||||||||||||||||
Increase in Fortress's shareholders' equity for the public offering of | — | 53,510 | ||||||||||||||||||||||||||||||
Class A shares and repurchase of Class B shares and FOGUs | ||||||||||||||||||||||||||||||||
Decrease in Fortress's shareholders' equity for the repurchase and cancellation of Class A shares and FOGUs | — | (101,156 | ) | |||||||||||||||||||||||||||||
Change from net income (loss) attributable to Fortress and transfers (to) from Principals’ and Others' Interests | $ | 34,738 | $ | (44,205 | ) | |||||||||||||||||||||||||||
EQUITYBASED_AND_OTHER_COMPENSA
EQUITY-BASED AND OTHER COMPENSATION | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
EQUITY-BASED AND OTHER COMPENSATION | EQUITY-BASED AND OTHER COMPENSATION | |||||||||||||
Fortress’s total compensation and benefits expense, including Principal Performance Payments, is comprised of the following: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Equity-based compensation, per below | $ | 14,345 | $ | 8,673 | ||||||||||
Profit-sharing expense, per below | 38,912 | 64,323 | ||||||||||||
Discretionary bonuses | 62,581 | 57,438 | ||||||||||||
Other payroll, taxes and benefits | 63,050 | 58,085 | ||||||||||||
$ | 178,888 | $ | 188,519 | |||||||||||
Equity-Based Compensation | ||||||||||||||
The following tables set forth information regarding equity-based compensation activities. | ||||||||||||||
RSUs | ||||||||||||||
Employees | Non-Employees | |||||||||||||
Number | Value (A) | Number | Value (A) | |||||||||||
Outstanding at December 31, 2014 | 20,153,746 | $ | 5.52 | 396,874 | $ | 6.51 | ||||||||
Issued | 11,875,354 | 6.89 | 111,540 | 7.61 | ||||||||||
Transfers | — | — | — | — | ||||||||||
Converted to Class A shares | — | — | — | — | ||||||||||
Forfeited | (363,545 | ) | 6.18 | — | — | |||||||||
Outstanding at March 31, 2015 (B) | 31,665,555 | $ | 6.02 | 508,414 | $ | 6.76 | ||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Expense incurred (B) | ||||||||||||||
Employee RSUs | $ | 11,004 | $ | 5,887 | ||||||||||
Non-Employee RSUs | 982 | 6 | ||||||||||||
Principal Performance Payments (C) | 2,359 | 2,780 | ||||||||||||
Total equity-based compensation expense | $ | 14,345 | $ | 8,673 | ||||||||||
(A) | Represents the weighted average grant date estimated fair value per share or unit. | |||||||||||||
(B) | In future periods, Fortress will further recognize compensation expense on its non-vested equity based awards outstanding as of March 31, 2015 of $118.3 million, with a weighted average recognition period of 4.2 years. | |||||||||||||
(C) | Accrued based on year-to-date performance; the actual number of RSUs granted are determined at year end. Based on year-to-date performance, a total of approximately 0.3 million RSUs would be awarded as Principal Performance Payments. | |||||||||||||
Fortress’s management reviewed the estimated forfeiture factor as of March 31, 2015 and, based on the actual forfeiture rate incurred and the remaining vesting period of certain grants, determined that the forfeiture assumptions for certain grants required adjustment. The result of these changes in estimates did not materially impact equity-based compensation expense. | ||||||||||||||
During January and February 2015, Fortress granted 11.4 million RSUs to its employees valued at an aggregate of $77.6 million, of which 6.5 million are dividend paying. These RSUs vest over a period of three to six years. | ||||||||||||||
In February 2015, Fortress awarded 0.5 million dividend paying RSUs as Principal Performance Payments based on 2014 results valued at an aggregate of $4.0 million on the grant date. These RSUs vest over three years. | ||||||||||||||
The expense for Principal Performance Payments was comprised of the following: | ||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||
Equity-Based | Profit Sharing | Total | ||||||||||||
Compensation | Expense | |||||||||||||
Private equity business | $ | — | $ | — | $ | — | ||||||||
Liquid hedge fund business | 499 | 280 | 779 | |||||||||||
Credit business | 1,860 | 2,523 | 4,383 | |||||||||||
Total | $ | 2,359 | $ | 2,803 | $ | 5,162 | ||||||||
In April 2010, in connection with the acquisition of Logan Circle, Fortress created the Logan Circle Comp Plan, as amended. The Logan Circle Comp Plan provides for annual bonuses which may be paid partially in RSUs, as well as for potential Class A share awards to certain employees related to the years 2016 and 2017. These awards are annual performance-based awards and depend on the future performance of Logan Circle in the specific years to which they relate. Furthermore, the amounts of RSUs or shares to be awarded are not fixed until the respective year is completed. As such, these awards are expensed over the related service period. If Logan Circle meets the future performance targets under this plan, the amounts to be awarded could be significant. Through March 31, 2015, no compensation expense was recognized under this plan as the satisfaction of the performance condition and amount of the award were not considered to be probable. | ||||||||||||||
Profit Sharing Expense | ||||||||||||||
Recognized profit sharing compensation expense (benefit) is summarized as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Private equity funds | $ | — | $ | — | ||||||||||
Permanent capital vehicles | 6,499 | 4,916 | ||||||||||||
Liquid hedge funds | 4,053 | 2,463 | ||||||||||||
Credit hedge funds | 11,609 | 15,634 | ||||||||||||
Credit PE funds | 13,948 | 34,412 | ||||||||||||
Principal Performance Payments (A) | 2,803 | 6,898 | ||||||||||||
Total | $ | 38,912 | $ | 64,323 | ||||||||||
(A) | Relates to all applicable segments. Accrued based on year-to-date performance; the actual payments due to each Principal are determined at year end. |
EARNINGS_PER_SHARE_AND_DISTRIB
EARNINGS PER SHARE AND DISTRIBUTIONS | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
EARNINGS PER SHARE AND DISTRIBUTIONS | EARNINGS PER SHARE AND DISTRIBUTIONS | |||||||||||||||
Fortress's potentially dilutive equity instruments fall primarily into two general categories: (i) instruments that Fortress has issued as part of its compensation plan, and (ii) ownership interests in Fortress's subsidiary, Fortress Operating Group, that are owned by the Principals (and a former senior employee) and are convertible into Class A shares. Based on the rules for calculating earnings per share, there are two general ways to measure dilution for a given instrument: (a) calculate the net number of shares that would be issued assuming any related proceeds are used to buy back outstanding shares (the treasury stock method), or (b) assume the gross number of shares are issued and calculate any related effects on net income available for shareholders (the if-converted and two-class methods). Fortress has applied these methods as prescribed by GAAP to each of its outstanding equity instruments as shown below. | ||||||||||||||||
Substantially all of Fortress's business is conducted at the Fortress Operating Group (“FOG”) level and FOG’s net income (loss) is allocated pro rata between the Fortress Operating Group units held by the Registrant, on the one hand, and the Principals and a former senior employee, on the other hand. The FOG income allocated to the Principals and a former senior employee is not subject to corporate income tax. A substantial portion of the Registrant’s income is allocated to FIG Corp. and is subject to U.S federal and state income taxation (taxed at prevailing rates), while the remainder of the Registrant’s portion of FOG income is allocated directly to its shareholders and is not subject to a corporate level of taxation. | ||||||||||||||||
The primary difference between basic and diluted earnings per share (“EPS”), if any, is income tax related. If the Principals and a former senior employee converted all of their Fortress Operating Group units into Class A shares, their portion of FOG’s income would become subject to corporate level taxation. Certain permanent differences in the Registrant’s tax calculation are not based on FIG Corp.’s ownership percentage of FOG. Thus, the effective tax rate changes when more income or loss is allocated to FIG Corp. This change in the effective tax rate results in incremental per share income or loss in the diluted EPS calculation, depending on whether the Registrant has income tax expense or benefit for the period. The comparison of the Registrant’s effective tax rate and the if-converted tax rate determines the dilutive or anti-dilutive impact of the Fortress Operating Group units held by the Principals and a former senior employee. | ||||||||||||||||
The computations of basic and diluted net income (loss) per Class A share are set forth below: | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Basic | Diluted | |||||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 207,713,350 | 207,713,350 | ||||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 7,231,768 | 7,231,768 | ||||||||||||||
Fully vested restricted Class A shares | 840,658 | 840,658 | ||||||||||||||
Fortress Operating Group units exchangeable into | — | — | ||||||||||||||
Class A shares (1) | ||||||||||||||||
Class A restricted shares and Class A restricted share units granted to employees and directors (eligible for dividend and dividend equivalent payments) (2) | — | — | ||||||||||||||
Class A restricted share units granted to employees (not eligible for dividend and dividend equivalent payments) (3) | — | 5,749,413 | ||||||||||||||
Total weighted average shares outstanding | 215,785,776 | 221,535,189 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 34,713 | $ | 34,713 | ||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated to, non-vested restricted Class A shares and restricted Class A share units (2) | (2,125 | ) | (2,125 | ) | ||||||||||||
Add back Principals' and others' interests in income of Fortress Operating Group, net of assumed income taxes at enacted rates, attributable to Fortress Operating Group units (1) | — | — | ||||||||||||||
Net income (loss) available to Class A shareholders | $ | 32,588 | $ | 32,588 | ||||||||||||
Weighted average shares outstanding | 215,785,776 | 221,535,189 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0.15 | $ | 0.15 | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Basic | Diluted | |||||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 212,061,656 | 212,061,656 | ||||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 3,899,986 | 3,899,986 | ||||||||||||||
Fully vested restricted Class A shares | 973,275 | 973,275 | ||||||||||||||
Fortress Operating Group units exchangeable into Class A shares (1) | — | — | ||||||||||||||
Class A restricted shares and Class A restricted share units granted to employees and | — | 1,450,688 | ||||||||||||||
directors (eligible for dividend and dividend equivalent payments) (2) | ||||||||||||||||
Class A restricted share units granted to employees (not eligible for dividend and | — | 10,648,173 | ||||||||||||||
dividend equivalent payments) (3) | ||||||||||||||||
Total weighted average shares outstanding | 216,934,917 | 229,033,778 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 3,024 | $ | 3,024 | ||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated | (204 | ) | (204 | ) | ||||||||||||
to, non-vested restricted Class A shares and restricted Class A share units (2) | ||||||||||||||||
Add back Principals' and others' interests in income of Fortress Operating | — | — | ||||||||||||||
Group, net of assumed income taxes at enacted rates, attributable to | ||||||||||||||||
Fortress Operating Group units (1) | ||||||||||||||||
Net income (loss) available to Class A shareholders | $ | 2,820 | $ | 2,820 | ||||||||||||
Weighted average shares outstanding | 216,934,917 | 229,033,778 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0.01 | $ | 0.01 | ||||||||||||
-1 | The Fortress Operating Group units not held by Fortress (that is, those held by the Principals and a former senior employee) are exchangeable into Class A shares on a one-to-one basis. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income (loss) per Class A share when the effect is dilutive using the if-converted method, which includes the income tax effects of nondiscretionary adjustments to the net income (loss) attributable to Class A shareholders from assumed conversion of these units. To the extent charges, particularly tax related charges, are incurred by the Registrant (i.e. not at the Fortress Operating Group level), the effect may be anti-dilutive. | |||||||||||||||
-2 | Restricted Class A shares granted to directors and certain restricted Class A share units granted to employees are eligible to receive dividend or dividend equivalent payments when dividends are declared and paid on Fortress’s Class A shares and therefore participate fully in the results of Fortress’s operations from the date they are granted. They are considered in the computation of both basic and diluted earnings per Class A share using the two-class method for participating securities, except during periods of net losses. | |||||||||||||||
-3 | Certain restricted Class A share units granted to employees are not entitled to dividend or dividend equivalent payments until they are vested and are therefore non-participating securities. These units are not included in the computation of basic earnings per share. They are included in the computation of diluted earnings per share when the effect is dilutive using the treasury stock method. The effect of the units on the calculation is generally anti-dilutive during periods of net losses. The weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding were: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Share Units | 11,703,251 | 12,436,247 | ||||||||||||||
The Class B shares have no net income (loss) per share as they do not participate in Fortress’s earnings (losses) or distributions. The Class B shares have no dividend or liquidation rights. Each Class B share, along with one Fortress Operating Group unit, can be exchanged for one Class A share, subject to certain limitations. The Class B shares have voting rights on a pari passu basis with the Class A shares. | ||||||||||||||||
Fortress’s dividend paying shares and units were as follows: | ||||||||||||||||
Weighted Average | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Class A shares | 207,713,350 | 212,061,656 | ||||||||||||||
Restricted Class A shares (directors) | 840,658 | 973,275 | ||||||||||||||
Restricted Class A share units (employees) (A) | 7,231,768 | 3,899,986 | ||||||||||||||
Restricted Class A share units (employees) (B) | 8,347,402 | 5,997,586 | ||||||||||||||
Fortress Operating Group units (Principals and a former senior | 226,331,513 | 245,925,038 | ||||||||||||||
employee) | ||||||||||||||||
Total | 450,464,691 | 468,857,541 | ||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||
Class A shares | 207,713,350 | 207,490,023 | ||||||||||||||
Restricted Class A shares (directors) | 841,535 | 1,045,134 | ||||||||||||||
Restricted Class A share units (employees) (A) | 7,567,557 | 194,287 | ||||||||||||||
Restricted Class A share units (employees) (B) | 11,159,183 | 7,002,003 | ||||||||||||||
Fortress Operating Group units (Principals and a former senior | 226,331,513 | 226,331,513 | ||||||||||||||
employee) | ||||||||||||||||
Total | 453,613,138 | 442,062,960 | ||||||||||||||
(A) | Represents fully vested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
(B) | Represents unvested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
On February 13, 2014, Fortress entered into a purchase agreement with Nomura Investment Managers U.S.A. ("Nomura") to acquire 60,568,275 Class A shares for $363.4 million. All of the purchased Class A shares (and underlying Fortress Operating Group units) were canceled and ceased to be outstanding. As part of the purchase agreement, Fortress agreed for each year, until the third anniversary of the date of the agreement, to engage Nomura and its affiliates to provide certain financial advisory and financing services and/or pay Nomura certain annual sums in lieu thereof equal to the difference, if any, between (i) $12.0 million minus (ii) all fees earned or received by Nomura for the services provided to Fortress and its affiliates during each year. | ||||||||||||||||
In connection with the agreement to engage Nomura and its affiliates as described above, Fortress recorded an estimated liability (included in Other liabilities on the consolidated balance sheets) of approximately $30.0 million, which has been recorded as a reduction to equity as part of the repurchase of Class A shares. During the three months ended March 31, 2015, Fortress paid $9.7 million to Nomura related to the estimated liability pursuant to the terms of the purchase agreement described above. | ||||||||||||||||
In March 2014, Fortress issued and sold 23,202,859 Class A shares for $186.6 million. Fortress used all of the proceeds from the sale of the Class A shares to purchase from the Principals an equivalent number of outstanding Fortress Operating Group units and an equal number of Class B shares. | ||||||||||||||||
Dividends and distributions during the three months ended March 31, 2015 are summarized as follows: | ||||||||||||||||
Declared in Current Year | ||||||||||||||||
Declared in Prior Year, Paid in Current Year | Declared and Paid | Declared but not yet Paid | Total | |||||||||||||
Dividends on Class A Shares | $ | — | $ | 79,251 | $ | — | $ | 79,251 | ||||||||
Dividend equivalents on restricted Class A share units (A) | — | 7,116 | — | 7,116 | ||||||||||||
Distributions to Fortress Operating Group unit holders | ||||||||||||||||
(Principals and a former senior employee) (B) | — | 86,006 | 11,142 | 97,148 | ||||||||||||
Total distributions | $ | — | $ | 172,373 | $ | 11,142 | $ | 183,515 | ||||||||
(A) | A portion of these dividend equivalents, if any, related to RSUs expected to be forfeited, is included as compensation expense in the consolidated statement of operations and is therefore considered an operating cash flow. | |||||||||||||||
(B) | Fortress Operating Group made tax-related distributions to the FOG unit holders (the Principals and a former senior employee). | |||||||||||||||
On May 6, 2015, Fortress declared a first quarter cash dividend of $0.08 per Class A share. The dividend is payable on May 21, 2015 to holders of record of Class A shares on May 18, 2015. The aggregate amount of this dividend payment, including dividend equivalent payments paid to holders of restricted Class A share units, is $18.2 million. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
Other than as described below, Fortress’s commitments and contingencies remain materially unchanged from December 31, 2014. | ||||
General Partner Liability — Certain of Fortress’s consolidated subsidiaries act as the general partner of various Fortress Funds and accordingly have potentially unlimited liability for the obligations of the funds under applicable partnership law principles. In the event that any such fund was to fall into a negative net equity position (Note 2), the full amount of the negative net equity would be recorded on the balance sheet of the general partner entity. Such amount would be recorded on the Fortress balance sheet in consolidation until it is legally resolved. While these entities are limited liability companies and generally have no material assets other than their general partner interests, these entities and Fortress may be subject to litigation in connection with such amounts if fund creditors choose to sue Fortress to seek repayment. See “Litigation” below. | ||||
In March 2011, a private equity fund fell into a negative equity position, after considering all of Fortress’s interests in such fund and its reserves related thereto. As described above, the amount of the negative equity was recorded, through earnings (losses) from equity method investees, by the general partner entity and is therefore included in the consolidated financial statements of Fortress. When the fund matures and is liquidated, Fortress will record a gain in the event and to the extent it does not fund this negative equity. The amount of negative equity recorded at March 31, 2015 was $44.6 million. | ||||
Litigation — Fortress is, from time to time, a defendant in legal actions from transactions conducted in the ordinary course of business. Management, after consultation with legal counsel, believes the ultimate liability arising from such actions that existed as of March 31, 2015, individually and in the aggregate, will not materially affect Fortress’s results of operations, liquidity or financial position. | ||||
In some cases, Fortress is named as a defendant in legal actions pertaining to one of the Fortress Funds and/or their portfolio companies. In such cases, Fortress is generally indemnified by the fund against potential losses arising from Fortress’s role as investment manager. | ||||
Private Equity Fund, Private Permanent Capital Vehicle and Credit PE Fund Capital Commitments — Fortress has remaining capital commitments, which aggregated $172.9 million as of March 31, 2015, primarily to certain of the Fortress Funds. These commitments can be drawn by the funds on demand. | ||||
Minimum Future Rentals — Fortress is a lessee under operating leases for office space located in a number of locations worldwide. | ||||
Minimum future rental payments (excluding expense escalations) under these leases are as follows: | ||||
April 1, 2015 to December 31, 2015 | $ | 19,061 | ||
2016 | 23,532 | |||
2017 | 12,747 | |||
2018 | 20,228 | |||
2019 | 19,612 | |||
2020 | 19,561 | |||
Thereafter | 259,822 | |||
Total | $ | 374,563 | ||
Rent expense, including operating expense escalations, during the three months ended March 31, 2015 and 2014 was $7.6 million and $5.5 million, respectively, and was included in general, administrative and other expense on the consolidated statements of operations. | ||||
During the three months ended March 31, 2015, Fortress entered into new lease agreements related to its primary office space in New York and which extends through October 2032. |
SEGMENT_REPORTING
SEGMENT REPORTING | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING | ||||||||||||||||||||||||||||||||
Fortress conducts its management and investment business through the following primary segments: (i) private equity funds, (ii) permanent capital vehicles, (iii) liquid hedge funds, (iv) credit hedge funds, (v) credit PE funds and (vi) Logan Circle. | |||||||||||||||||||||||||||||||||
The amounts not allocated to a segment consist primarily of interest expense, foreign currency translation and interest income. Assets not allocated to a segment consist primarily of cash and net deferred tax assets. | |||||||||||||||||||||||||||||||||
Management assesses Fortress’s segments on a Fortress Operating Group and pre-tax basis and therefore adds back the interests in consolidated subsidiaries related to Fortress Operating Group units (primarily held by the Principals) and income tax expense. | |||||||||||||||||||||||||||||||||
Management assesses the net performance of each segment based on its “distributable earnings” (“DE”) and utilizes “fund management distributable earnings” or “fund management DE” as a supplemental measure of segment performance. Neither distributable earnings or fund management DE is a measure of cash generated by operations which is available for distribution. Rather, they are supplemental measures of operating performance used by management in analyzing its segments and overall results. Neither distributable earnings or fund management DE should be considered as an alternative to cash flow, in accordance with GAAP, as a measure of Fortress’s liquidity, and they are not necessarily indicative of cash available to fund cash needs (including dividends and distributions). | |||||||||||||||||||||||||||||||||
“Distributable earnings” for the existing Fortress businesses is equal to net income (loss) attributable to Fortress’s Class A shareholders adjusted as follows: | |||||||||||||||||||||||||||||||||
Incentive Income | |||||||||||||||||||||||||||||||||
(i) a. | for Fortress Funds which are private equity funds, a private permanent capital vehicle and credit PE funds, adding (a) incentive income paid (or declared as a distribution) to Fortress, less an applicable reserve for potential future clawbacks if the likelihood of a clawback is deemed greater than remote by Fortress’s chief operating decision maker (net of the reversal of any prior such reserves that are no longer deemed necessary), minus (b) incentive income recorded in accordance with GAAP, | ||||||||||||||||||||||||||||||||
b. | for other Fortress Funds, at interim periods, adding (a) incentive income on an accrual basis as if the incentive income from these funds were payable on a quarterly basis, minus (b) incentive income recorded in accordance with GAAP, | ||||||||||||||||||||||||||||||||
c. | adding the receipt of cash or proceeds from the sale of shares received pursuant to the exercise of options in the publicly traded permanent capital vehicles, if any, in excess of their strike price, | ||||||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||||||
(ii) | with respect to income from certain investments in the Fortress Funds and certain other interests or assets that cannot be readily transferred or redeemed: | ||||||||||||||||||||||||||||||||
a. | for equity method investments in the private equity funds, private permanent capital vehicle and credit PE funds as well as indirect equity method investments in hedge fund special investment accounts (which generally have investment profiles similar to private equity funds), treating these investments as cost basis investments by adding (a) realizations of income, primarily dividends, from these funds, minus (b) impairment with respect to these funds, if necessary, minus (c) equity method earnings (or losses) recorded in accordance with GAAP, | ||||||||||||||||||||||||||||||||
b. | subtracting gains (or adding losses) on options held in the publicly traded permanent capital vehicles, | ||||||||||||||||||||||||||||||||
c. | subtracting unrealized gains (or adding unrealized losses) on derivatives, direct investments in publicly traded portfolio companies and in the publicly traded permanent capital vehicles, | ||||||||||||||||||||||||||||||||
(iii) | subtracting management fee income recorded in accordance with GAAP in connection with the receipt of these options from the publicly traded permanent capital vehicles, if any, | ||||||||||||||||||||||||||||||||
(iv) | subtracting the gain on transfer of Graticule, | ||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
(v) | adding or subtracting, as necessary, the employee profit sharing portion of incentive income described in (i) above to match the timing of the expense with the revenue, | ||||||||||||||||||||||||||||||||
(vi) | adding back equity-based compensation expense (including options in the publicly traded permanent capital vehicles assigned to employees, RSUs, and restricted shares), | ||||||||||||||||||||||||||||||||
(vii) | adding back the amortization of intangible assets and any impairment of goodwill or intangible assets recorded under GAAP, | ||||||||||||||||||||||||||||||||
(viii) | adding back the expense related to transfer of interest in Graticule, | ||||||||||||||||||||||||||||||||
(ix) | adding the income (or subtracting the loss) allocable to the interests in consolidated subsidiaries attributable to Fortress Operating Group units, | ||||||||||||||||||||||||||||||||
(x) | adding back income tax benefit or expense and any income or expense recorded in connection with the tax receivable agreement (Note 5). | ||||||||||||||||||||||||||||||||
Fund management DE is equal to distributable earnings excluding investment-related results (specifically, investment income (loss) and interest expense) and is used by management to measure performance of the operating (management) business on a stand-alone basis. Fortress defines its segment operating margin to be equal to fund management DE divided by segment revenues. | |||||||||||||||||||||||||||||||||
Total segment assets are equal to total GAAP assets adjusted for: | |||||||||||||||||||||||||||||||||
(i) | any difference between the GAAP carrying amount of equity method investments and their carrying amount for segment reporting purposes, which is generally fair value for publicly traded investments and net asset value for nonpublic investments, | ||||||||||||||||||||||||||||||||
(ii) | employees’ and others’ portions of investments, which are reported gross for GAAP purposes (as assets offset by Principals’ and others’ interests in equity of consolidated subsidiaries) but net for segment reporting purposes, | ||||||||||||||||||||||||||||||||
(iii) | the difference, if any, between the GAAP carrying amount of intangible assets and goodwill and their carrying amount for segment reporting purposes resulting from the distributable earnings adjustments listed above, and | ||||||||||||||||||||||||||||||||
(iv) | at interim periods, the accrued incentive income recorded for distributable earnings purposes in relation to the incentive income reconciling item in (i)(b) above. | ||||||||||||||||||||||||||||||||
Distributable Earnings Impairment | |||||||||||||||||||||||||||||||||
Clawback Reserve on Incentive Income for DE Purposes | |||||||||||||||||||||||||||||||||
Fortress had recognized incentive income for DE purposes from certain private equity funds, credit PE funds and the private permanent capital vehicle, which are subject to contingent clawback, as of March 31, 2015: | |||||||||||||||||||||||||||||||||
Fund (A) | Net Intrinsic Clawback (B) | Periods in Intrinsic Clawback | Prior Year End Inception-to-Date Net DE Reserve | Current | Current | Inception-to-Date Net DE Reserve | Notes | ||||||||||||||||||||||||||
Year-to-Date Gross DE Reserve (Reversal) | Year-to-Date Net DE Reserve (Reversal) | ||||||||||||||||||||||||||||||||
Fund III | $ | 45,108 | 29 Quarters | $ | 45,108 | $ | — | $ | — | $ | 45,108 | (C) | |||||||||||||||||||||
Total | $ | 45,108 | $ | 45,108 | $ | — | $ | — | $ | 45,108 | |||||||||||||||||||||||
(A) | Fortress has recognized incentive income for DE purposes from the following funds, which do not have intrinsic clawback and for which Fortress's CODM has determined no clawback reserve is necessary: WWTAI, Credit Opportunities Fund, Credit Opportunities Fund II, certain FCO Managed Accounts, Real Estate Opportunities Fund, Real Estate Opportunities REOC Fund, Net Lease Fund I, Japan Opportunity Fund and Global Opportunities Fund. | ||||||||||||||||||||||||||||||||
(B) | See Note 2. | ||||||||||||||||||||||||||||||||
(C) | The potential clawback on this fund has been fully reserved in prior periods. | ||||||||||||||||||||||||||||||||
Impairment Determination and Embedded Gain/Loss | |||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015, Fortress recorded $3.0 million of impairment on its direct and indirect investments in its funds for segment reporting purposes. As of March 31, 2015, Fortress had $9.4 million of unrealized losses on certain investments that have not been recorded as impairment. As of March 31, 2015, Fortress’s share of the net asset value of its direct and indirect investments exceeded its segment cost basis by $575.7 million, representing a net unrealized gain. | |||||||||||||||||||||||||||||||||
Embedded Incentive Income | |||||||||||||||||||||||||||||||||
As of March 31, 2015, Fortress had $1.2 billion of gross undistributed incentive income (Note 2), or $1.1 billion net of intrinsic clawback. Of the $1.2 billion, $23.2 million has been recognized in distributable earnings. This amount represents accrued hedge fund and Logan Circle incentive income recorded during the three months ended March 31, 2015. | |||||||||||||||||||||||||||||||||
In addition, if Fortress had exercised all of its in-the-money publicly traded permanent capital vehicle options (Note 3) and sold all of the resulting shares at their March 31, 2015 closing price, it would have recorded $99.5 million of gross additional distributable earnings, or $85.3 million net of employee interests. | |||||||||||||||||||||||||||||||||
Segment Results of Operations | |||||||||||||||||||||||||||||||||
Summary financial data on Fortress’s segments is presented on the following pages, together with a reconciliation to revenues, assets and net income (loss) for Fortress as a whole. Fortress’s investments in, and earnings (losses) from, its equity method investees by segment are presented in Note 3. | |||||||||||||||||||||||||||||||||
March 31, 2015 and the Three Months Then Ended | |||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||
Permanent | Liquid | Credit | |||||||||||||||||||||||||||||||
Funds | Capital Vehicles | Hedge Funds | Hedge Funds | PE Funds | Logan Circle | Unallocated | Total | ||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||||||
Management fees | $ | 29,140 | $ | 19,202 | $ | 20,989 | $ | 29,664 | $ | 26,348 | $ | 13,261 | $ | — | $ | 138,604 | |||||||||||||||||
Incentive income | — | 3,020 | 891 | 23,165 | 24,148 | 134 | — | 51,358 | |||||||||||||||||||||||||
Segment revenues - total | $ | 29,140 | $ | 22,222 | $ | 21,880 | $ | 52,829 | $ | 50,496 | $ | 13,395 | $ | — | $ | 189,962 | |||||||||||||||||
Fund management distributable | $ | 14,976 | $ | 3,769 | $ | (2,503 | ) | $ | 23,105 | $ | 6,366 | $ | (863 | ) | $ | — | $ | 44,850 | |||||||||||||||
earnings (loss) before earnings | |||||||||||||||||||||||||||||||||
from Affiliated Managers and | |||||||||||||||||||||||||||||||||
Principal Performance Payments (B) | |||||||||||||||||||||||||||||||||
Fund management distributable | $ | 14,976 | $ | 3,769 | $ | 6,779 | $ | 23,105 | $ | 6,366 | $ | (863 | ) | $ | — | $ | 54,132 | ||||||||||||||||
earnings (loss) before Principal | |||||||||||||||||||||||||||||||||
Performance Payments | |||||||||||||||||||||||||||||||||
Fund management distributable | $ | 14,976 | $ | 3,769 | $ | 6,499 | $ | 20,744 | $ | 5,780 | $ | (863 | ) | $ | — | $ | 50,905 | ||||||||||||||||
earnings (loss) | |||||||||||||||||||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 14,998 | $ | 4,109 | $ | 9,590 | $ | 21,731 | $ | 7,029 | $ | (1,119 | ) | $ | (1,141 | ) | $ | 55,197 | |||||||||||||||
Total segment assets | $ | 766,757 | $ | 160,945 | $ | 229,172 | $ | 76,850 | $ | 284,209 | $ | 52,818 | $ | 625,087 | (A) | $ | 2,195,838 | ||||||||||||||||
(A) | Unallocated assets includes cash of $141.6 million and net deferred tax assets of $397.8 million. | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||
Permanent | Liquid | Credit | |||||||||||||||||||||||||||||||
Funds | Capital Vehicles | Hedge Funds | Hedge Funds | PE Funds | Logan Circle | Unallocated | Total | ||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||||||
Management fees | $ | 35,422 | $ | 16,036 | $ | 33,478 | $ | 26,858 | $ | 24,642 | $ | 10,604 | $ | — | $ | 147,040 | |||||||||||||||||
Incentive income | 1,999 | 4,009 | 133 | 31,829 | 65,955 | — | — | 103,925 | |||||||||||||||||||||||||
Segment revenues - total | $ | 37,421 | $ | 20,045 | $ | 33,611 | $ | 58,687 | $ | 90,597 | $ | 10,604 | $ | — | $ | 250,965 | |||||||||||||||||
Fund management distributable | $ | 24,767 | $ | 6,027 | $ | 8,480 | $ | 26,561 | $ | 30,160 | $ | (2,071 | ) | $ | — | $ | 93,924 | ||||||||||||||||
earnings (loss) before Principal | |||||||||||||||||||||||||||||||||
Performance Payments (B) | |||||||||||||||||||||||||||||||||
Fund management distributable earnings (loss) | $ | 24,767 | $ | 5,344 | $ | 7,939 | $ | 22,024 | $ | 29,024 | $ | (2,071 | ) | $ | — | $ | 87,027 | ||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 28,259 | $ | 5,685 | $ | 8,785 | $ | 23,417 | $ | 32,733 | $ | (1,946 | ) | $ | (422 | ) | $ | 96,511 | |||||||||||||||
(B) | See Note 7. Fund management distributable earnings (loss) is only reduced for the profit sharing component of the Principal Performance Payments. | ||||||||||||||||||||||||||||||||
Reconciling items between segment measures and GAAP measures: | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Fund management distributable earnings | $ | 50,905 | $ | 87,027 | |||||||||||||||||||||||||||||
Investment income (loss) | 5,113 | 10,155 | |||||||||||||||||||||||||||||||
Interest expense | (821 | ) | (671 | ) | |||||||||||||||||||||||||||||
Pre-tax distributable earnings | 55,197 | 96,511 | |||||||||||||||||||||||||||||||
Adjust incentive income | |||||||||||||||||||||||||||||||||
Incentive income received from private equity funds, the private permanent capital vehicle and credit PE funds, subject to contingent repayment | (24,544 | ) | (65,955 | ) | |||||||||||||||||||||||||||||
Incentive income received from third parties, subject to | — | (86 | ) | ||||||||||||||||||||||||||||||
contingent repayment | |||||||||||||||||||||||||||||||||
Incentive income from private equity funds, the private permanent capital vehicle and credit PE funds, not subject to contingent repayment | 20,964 | 29,503 | |||||||||||||||||||||||||||||||
Incentive income from hedge funds and Logan Circle, subject to annual performance achievement | (23,169 | ) | (30,494 | ) | |||||||||||||||||||||||||||||
Incentive income received from the sale of shares related to options | — | — | |||||||||||||||||||||||||||||||
Reserve for clawback, gross (see discussion above) | — | (1,999 | ) | ||||||||||||||||||||||||||||||
(26,749 | ) | (69,031 | ) | ||||||||||||||||||||||||||||||
Adjust other income | |||||||||||||||||||||||||||||||||
Distributions of earnings from equity method investees* | (3,842 | ) | (9,228 | ) | |||||||||||||||||||||||||||||
Earnings (losses) from equity method investees* | 26,973 | 17,614 | |||||||||||||||||||||||||||||||
Gains (losses) on options in equity method investees | 32,328 | (4,785 | ) | ||||||||||||||||||||||||||||||
Gains (losses) on other investments | 704 | (4,844 | ) | ||||||||||||||||||||||||||||||
Impairment of investments (see discussion above) | 2,994 | 26 | |||||||||||||||||||||||||||||||
Adjust income from the receipt of options | 4,144 | — | |||||||||||||||||||||||||||||||
Gain on transfer of Graticule (see Note 1) | 134,400 | — | |||||||||||||||||||||||||||||||
197,701 | (1,217 | ) | |||||||||||||||||||||||||||||||
Adjust employee, Principal and director compensation | |||||||||||||||||||||||||||||||||
Adjust employee, Principal and director equity-based compensation expense | (20,460 | ) | (13,320 | ) | |||||||||||||||||||||||||||||
(including publicly traded permanent capital vehicle options assigned) | |||||||||||||||||||||||||||||||||
Adjust employee portion of incentive income from private equity funds, the private permanent capital vehicle and credit PE funds, accrued prior to the realization of incentive income | 84 | 1,135 | |||||||||||||||||||||||||||||||
(20,376 | ) | (12,185 | ) | ||||||||||||||||||||||||||||||
Adjust for the transfer of interest in Graticule (see Note 1) | (101,000 | ) | — | ||||||||||||||||||||||||||||||
Adjust amortization of intangible assets and impairment of goodwill and intangible | (83 | ) | (11 | ) | |||||||||||||||||||||||||||||
assets | |||||||||||||||||||||||||||||||||
Adjust non-controlling interests related to Fortress Operating Group units | (51,605 | ) | (5,058 | ) | |||||||||||||||||||||||||||||
Adjust tax receivable agreement liability | — | — | |||||||||||||||||||||||||||||||
Adjust income taxes | (18,372 | ) | (5,985 | ) | |||||||||||||||||||||||||||||
Total adjustments | (20,484 | ) | (93,487 | ) | |||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Class A Shareholders | 34,713 | 3,024 | |||||||||||||||||||||||||||||||
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 52,223 | 6,077 | |||||||||||||||||||||||||||||||
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | (16 | ) | — | ||||||||||||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 86,920 | $ | 9,101 | |||||||||||||||||||||||||||||
* This adjustment relates to all of the private equity, private permanent capital vehicle and credit PE Fortress Funds and hedge fund special investment accounts in which Fortress has an investment. | |||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||
Total segment assets | $ | 2,195,838 | |||||||||||||||||||||||||||||||
Adjust equity investments from segment carrying amount | (133 | ) | |||||||||||||||||||||||||||||||
Adjust investments gross of employees' and others' portion | 37,744 | ||||||||||||||||||||||||||||||||
Adjust intangible assets to cost | (22,919 | ) | |||||||||||||||||||||||||||||||
Accrued incentive income subject to annual performance achievement | (23,169 | ) | |||||||||||||||||||||||||||||||
Total assets (GAAP) | $ | 2,187,361 | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Total segment revenues | $ | 189,962 | $ | 250,965 | |||||||||||||||||||||||||||||
Adjust management fees | 250 | 292 | |||||||||||||||||||||||||||||||
Adjust incentive income* | (27,135 | ) | (69,031 | ) | |||||||||||||||||||||||||||||
Adjust income from the receipt of options | 4,144 | — | |||||||||||||||||||||||||||||||
Adjust other revenues (including expense reimbursements)** | 59,468 | 54,884 | |||||||||||||||||||||||||||||||
Total revenues (GAAP) | $ | 226,689 | $ | 237,110 | |||||||||||||||||||||||||||||
* Incentive income received from third parties, not subject to contingent repayment of $0.4 million and none during the three months ended March 31, 2015 and March 31, 2014, respectively, are included in segment measures as part of incentive income while included in GAAP as part of other revenues. | |||||||||||||||||||||||||||||||||
** Segment revenues do not include GAAP other revenues, except to the extent they represent management fees or incentive income; such revenues are included elsewhere in the calculation of distributable earnings. | |||||||||||||||||||||||||||||||||
Fortress’s depreciation and amortization expense by segment prior to the allocation of corporate and intra-segment depreciation and amortization expense to the business segments was as follows. Amortization expense, related to intangible assets, is not a component of distributable earnings. | |||||||||||||||||||||||||||||||||
Private Equity | Liquid | Credit | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | Funds | Permanent Capital Vehicles | Hedge Funds | Hedge Funds | PE Funds | Logan Circle | Corporate | Total | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||||
Depreciation | $ | 374 | $ | 235 | $ | 2,043 | $ | 1,390 | $ | 256 | $ | 280 | $ | 670 | $ | 5,248 | |||||||||||||||||
Amortization | — | — | — | — | — | 83 | — | 83 | |||||||||||||||||||||||||
Total | $ | 374 | $ | 235 | $ | 2,043 | $ | 1,390 | $ | 256 | $ | 363 | $ | 670 | $ | 5,331 | |||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Depreciation | $ | 394 | $ | 183 | $ | 1,253 | $ | 1,401 | $ | 200 | $ | 85 | $ | 774 | $ | 4,290 | |||||||||||||||||
Amortization | — | — | — | — | — | 11 | — | 11 | |||||||||||||||||||||||||
Total | $ | 394 | $ | 183 | $ | 1,253 | $ | 1,401 | $ | 200 | $ | 96 | $ | 774 | $ | 4,301 | |||||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
These financial statements include a discussion of material events, if any, which have occurred subsequent to March 31, 2015 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. | |
For additional subsequent events, see Notes 2, 3 and 8. |
CONSOLIDATING_FINANCIAL_INFORM
CONSOLIDATING FINANCIAL INFORMATION | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Consolidating Financial Information | ||||||||||||||||||||||||
CONSOLIDATING FINANCIAL INFORMATION | CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||||||||
The following consolidating financial information presents the balance sheet, statement of operations and statement of cash flows for Fortress Operating Group (on a combined basis), FOE II (New) LP and Fortress Investment Group LLC (including its consolidated subsidiaries other than those within Fortress Operating Group) on a deconsolidated basis, as well as the related eliminating entries for intercompany balances and transactions, which sum to Fortress Investment Group’s consolidated financial statements as of, and for the three months ended March 31, 2015. | ||||||||||||||||||||||||
Fortress Operating Group includes all of Fortress’s operating and investing entities. The upper tier Fortress Operating Group entities, other than FOE II (New) LP, are the obligors on Fortress’s credit agreement (Note 4). Segregating the financial results of this group of entities provides a more transparent view of the capital deployed in Fortress’s businesses as well as the relevant ratios for borrowing entities. | ||||||||||||||||||||||||
The consolidating balance sheet information is as follows: | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (B) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 144,542 | $ | 584 | $ | — | $ | 107 | $ | — | $ | 145,233 | ||||||||||||
Due from affiliates | 173,081 | 2,818 | (2,273 | ) | 10,266 | (15,716 | ) | 168,176 | ||||||||||||||||
Investments | 1,200,151 | 2,175 | (2,175 | ) | 474,482 | (474,482 | ) | 1,200,151 | ||||||||||||||||
Investments in options | 108,120 | — | — | — | — | 108,120 | ||||||||||||||||||
Deferred tax asset, net | — | — | — | 402,999 | (5,221 | ) | 397,778 | |||||||||||||||||
Other assets | 154,478 | 2,298 | — | 11,127 | — | 167,903 | ||||||||||||||||||
Total Assets | $ | 1,780,372 | $ | 7,875 | $ | (4,448 | ) | $ | 898,981 | $ | (495,419 | ) | $ | 2,187,361 | ||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Accrued compensation and benefits | $ | 136,129 | $ | 3,042 | $ | — | $ | — | $ | — | $ | 139,171 | ||||||||||||
Due to affiliates | 75,050 | 2,273 | (2,273 | ) | 294,788 | (15,716 | ) | 354,122 | ||||||||||||||||
Deferred incentive income | 307,737 | — | — | — | — | 307,737 | ||||||||||||||||||
Debt obligations payable | 75,000 | — | — | — | — | 75,000 | ||||||||||||||||||
Other liabilities | 127,990 | 627 | — | — | (5,221 | ) | 123,396 | |||||||||||||||||
Total Liabilities | 721,906 | 5,942 | (2,273 | ) | 294,788 | (20,937 | ) | 999,426 | ||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||
Redeemable Non-controlling Interests, | 109 | — | — | — | — | 109 | ||||||||||||||||||
Consolidated Subsidiaries | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Paid-in capital | 5,762,908 | 5,660 | (2,260 | ) | 1,922,312 | (5,766,308 | ) | 1,922,312 | ||||||||||||||||
Retained earnings (accumulated deficit) | (4,764,582 | ) | (3,727 | ) | 85 | (1,315,409 | ) | 4,768,224 | (1,315,409 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) | (8,667 | ) | — | — | (2,710 | ) | 8,667 | (2,710 | ) | |||||||||||||||
Total Fortress shareholders' equity (C) | 989,659 | 1,933 | (2,175 | ) | 604,193 | (989,417 | ) | 604,193 | ||||||||||||||||
Principals' and others' interests in equity | 68,698 | — | — | — | 514,935 | 583,633 | ||||||||||||||||||
of consolidated subsidiaries | ||||||||||||||||||||||||
Total Equity | 1,058,357 | 1,933 | (2,175 | ) | 604,193 | (474,482 | ) | 1,187,826 | ||||||||||||||||
Total Liabilities, Redeemable Non-controlling | $ | 1,780,372 | $ | 7,875 | $ | (4,448 | ) | $ | 898,981 | $ | (495,419 | ) | $ | 2,187,361 | ||||||||||
Interests and Equity | ||||||||||||||||||||||||
(A) | Excluding FOE II (New) LP. | |||||||||||||||||||||||
(B) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(C) | Includes the Principals’ (and a former senior employee's) equity in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
The consolidating statement of operations information is as follows: | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (B) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Management fees: affiliates | $ | 126,011 | $ | 1,696 | $ | — | $ | — | $ | — | $ | 127,707 | ||||||||||||
Management fees: non-affiliates | 15,246 | 45 | — | — | — | 15,291 | ||||||||||||||||||
Incentive income: affiliates | 24,223 | — | — | — | — | 24,223 | ||||||||||||||||||
Incentive income: non-affiliates | — | — | — | — | — | — | ||||||||||||||||||
Expense reimbursements: affiliates | 44,822 | 9,743 | — | — | — | 54,565 | ||||||||||||||||||
Expense reimbursements: non-affiliates | 2,293 | 955 | — | — | — | 3,248 | ||||||||||||||||||
Other revenues (affiliate portion disclosed in | 1,655 | — | — | — | — | 1,655 | ||||||||||||||||||
Note 6) | ||||||||||||||||||||||||
Total Revenues | 214,250 | 12,439 | — | — | — | 226,689 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Compensation and benefits | 166,684 | 12,204 | — | — | — | 178,888 | ||||||||||||||||||
General, administrative and other | 42,413 | 568 | — | — | — | 42,981 | ||||||||||||||||||
Depreciation and amortization | 5,302 | 29 | — | — | — | 5,331 | ||||||||||||||||||
Interest expense | 826 | 31 | (31 | ) | 22 | (9 | ) | 839 | ||||||||||||||||
Transfer of interest in Graticule (see Note 1) | 101,000 | — | — | — | — | 101,000 | ||||||||||||||||||
Total Expenses | 316,225 | 12,832 | (31 | ) | 22 | (9 | ) | 329,039 | ||||||||||||||||
Other Income (Loss) | ||||||||||||||||||||||||
Gains (losses) (affiliate portion disclosed in | 31,561 | — | — | — | — | 31,561 | ||||||||||||||||||
Note 3) | ||||||||||||||||||||||||
Tax receivable agreement liability adjustment | — | — | — | — | — | — | ||||||||||||||||||
Earnings (losses) from equity method investees | 41,708 | — | — | 47,561 | (47,561 | ) | 41,708 | |||||||||||||||||
Gain on transfer of Graticule (see Note 1) | 134,400 | — | — | — | — | 134,400 | ||||||||||||||||||
Total Other Income (Loss) | 207,669 | — | — | 47,561 | (47,561 | ) | 207,669 | |||||||||||||||||
Income (Loss) Before Income Taxes | 105,694 | (393 | ) | 31 | 47,539 | (47,552 | ) | 105,319 | ||||||||||||||||
Income tax benefit (expense) | (5,569 | ) | (4 | ) | — | (12,826 | ) | — | (18,399 | ) | ||||||||||||||
Net Income (Loss) | $ | 100,125 | $ | (397 | ) | $ | 31 | $ | 34,713 | $ | (47,552 | ) | $ | 86,920 | ||||||||||
Allocation of Net Income (Loss) | ||||||||||||||||||||||||
Principals' and Others' Interests in Income | $ | 618 | $ | — | $ | — | $ | — | $ | 51,605 | $ | 52,223 | ||||||||||||
(Loss) of Consolidated Subsidiaries | ||||||||||||||||||||||||
Redeemable Non-controlling Interests in Income | (16 | ) | — | — | — | — | (16 | ) | ||||||||||||||||
(Loss) | ||||||||||||||||||||||||
Net Income (Loss) Attributable to | 99,523 | (397 | ) | 31 | 34,713 | (99,157 | ) | 34,713 | ||||||||||||||||
Class A Shareholders (C) | ||||||||||||||||||||||||
$ | 100,125 | $ | (397 | ) | $ | 31 | $ | 34,713 | $ | (47,552 | ) | $ | 86,920 | |||||||||||
(A) | Excluding FOE II (New) LP. | |||||||||||||||||||||||
(B) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(C) | Includes net income (loss) attributable to the Principals’ (and a former senior employee’s) interests in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
The consolidating statement of cash flows information is as follows: | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Group LLC Consolidated (B) | ||||||||||||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||||
Net income (loss) | $ | 100,125 | $ | (397 | ) | $ | 31 | $ | 34,713 | $ | (47,552 | ) | $ | 86,920 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||||||||||||||||||
Depreciation and amortization | 5,302 | 29 | — | — | — | 5,331 | ||||||||||||||||||
Other amortization (included in interest expense) | 195 | — | — | — | — | 195 | ||||||||||||||||||
(Earnings) losses from equity method investees | (41,708 | ) | — | — | (47,561 | ) | 47,561 | (41,708 | ) | |||||||||||||||
Distributions of earnings from equity | 10,813 | — | — | — | — | 10,813 | ||||||||||||||||||
method investees | ||||||||||||||||||||||||
(Gains) losses | (31,561 | ) | — | — | — | — | (31,561 | ) | ||||||||||||||||
Deferred incentive income | (20,964 | ) | — | — | — | — | (20,964 | ) | ||||||||||||||||
Deferred tax (benefit) expense | 3,619 | — | — | 14,895 | — | 18,514 | ||||||||||||||||||
Options received from affiliates | (4,144 | ) | — | — | — | — | (4,144 | ) | ||||||||||||||||
Tax receivable agreement liability adjustment | — | — | — | — | — | — | ||||||||||||||||||
Equity-based compensation | 14,345 | — | — | — | — | 14,345 | ||||||||||||||||||
Options in affiliates granted to employees | 6,083 | — | — | — | — | 6,083 | ||||||||||||||||||
Other | 209 | — | — | — | — | 209 | ||||||||||||||||||
Transfer of Interest in Graticule (see Note 1) | 101,000 | — | — | — | — | 101,000 | ||||||||||||||||||
Gain on Transfer of Graticule (see Note 1) | (134,400 | ) | — | — | — | — | (134,400 | ) | ||||||||||||||||
Cash flows due to changes in | ||||||||||||||||||||||||
Due from affiliates | 51,341 | (164 | ) | — | — | 5,450 | 56,627 | |||||||||||||||||
Other assets | (8,041 | ) | (276 | ) | (31 | ) | (63 | ) | (9 | ) | (8,420 | ) | ||||||||||||
Accrued compensation and benefits | (235,148 | ) | (104 | ) | — | — | — | (235,252 | ) | |||||||||||||||
Due to affiliates | (32,118 | ) | — | — | 5,464 | (5,450 | ) | (32,104 | ) | |||||||||||||||
Deferred incentive income | 23,907 | — | — | — | — | 23,907 | ||||||||||||||||||
Other liabilities | 46,193 | 546 | — | (7,698 | ) | — | 39,041 | |||||||||||||||||
Purchase of investments by consolidated funds | (39,983 | ) | — | — | — | — | (39,983 | ) | ||||||||||||||||
Proceeds from sale of investments by consolidated | 32,000 | — | — | — | — | 32,000 | ||||||||||||||||||
funds | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (152,935 | ) | (366 | ) | — | (250 | ) | — | (153,551 | ) | ||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||||||||||
Contributions to equity method investees | (7,720 | ) | — | — | — | — | (7,720 | ) | ||||||||||||||||
Distributions of capital from equity method | 107,370 | — | — | 79,251 | (79,251 | ) | 107,370 | |||||||||||||||||
investees | ||||||||||||||||||||||||
Purchase of securities | (883 | ) | — | — | — | — | (883 | ) | ||||||||||||||||
Proceeds from sale of securities | 18,053 | — | — | — | — | 18,053 | ||||||||||||||||||
Purchase of fixed assets | (4,434 | ) | — | — | — | — | (4,434 | ) | ||||||||||||||||
Purchase of software and technology-related assets | — | — | — | — | — | — | ||||||||||||||||||
Net cash provided by (used in) investing activities | 112,386 | — | — | 79,251 | (79,251 | ) | 112,386 | |||||||||||||||||
Continued on next page. | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Group LLC Consolidated (B) | ||||||||||||||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||||||||||
Borrowings under debt obligations | — | — | — | — | — | — | ||||||||||||||||||
Proceeds from public offering (Note 8) | — | — | — | — | — | — | ||||||||||||||||||
Repurchase of Class B shares (Note 8) | — | — | — | — | — | — | ||||||||||||||||||
Payments to repurchase Class A shares (Note 8) | (9,676 | ) | — | — | — | — | (9,676 | ) | ||||||||||||||||
Dividends and dividend equivalents paid | (86,367 | ) | — | — | (79,251 | ) | 79,251 | (86,367 | ) | |||||||||||||||
Principals' and others' interests in equity of | 26 | — | — | — | — | 26 | ||||||||||||||||||
consolidated subsidiaries - contributions | ||||||||||||||||||||||||
Principals' and others' interests in equity of | (107,082 | ) | — | — | — | — | (107,082 | ) | ||||||||||||||||
consolidated subsidiaries - distributions | ||||||||||||||||||||||||
Excess tax benefits from delivery of RSUs | — | — | — | — | — | — | ||||||||||||||||||
Redeemable non-controlling interests - | (1,592 | ) | — | — | — | — | (1,592 | ) | ||||||||||||||||
distributions | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (204,691 | ) | — | — | (79,251 | ) | 79,251 | (204,691 | ) | |||||||||||||||
Net Increase (Decrease) in Cash and Cash | (245,240 | ) | (366 | ) | — | (250 | ) | — | (245,856 | ) | ||||||||||||||
Equivalents | ||||||||||||||||||||||||
Cash and Cash Equivalents, Beginning of Period | 389,782 | 950 | — | 357 | — | 391,089 | ||||||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 144,542 | $ | 584 | $ | — | $ | 107 | $ | — | $ | 145,233 | ||||||||||||
(A) | Excluding FOE II (New) LP. | |||||||||||||||||||||||
(B) | Other than Fortress Operating Group. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the FASB issued a comprehensive new revenue recognition standard for contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. This standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The entity will recognize revenue to reflect the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. In April 2015, the FASB approved issuing an exposure draft to extend the effective date of the new revenue recognition standard by a year for both public and non-public companies. The new standard is effective for Fortress beginning January 1, 2018. Early adoption is permitted but not before the original public entity effective date (that is, annual periods beginning after December 15, 2016). The standard permits the use of either the retrospective or cumulative effect transition method. Fortress is currently evaluating the impact on its consolidated financial statements upon the adoption of this new standard. | |
The FASB has recently issued or discussed a number of proposed standards on such topics as financial statement presentation, leases, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on Fortress’s financial reporting. Fortress has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. | |
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 eliminates the deferral of Statement of Financial Accounting Standards No. 167, Amendments to FASB Interpretation No. 46 (R) previously provided to investment companies and certain other entities pursuant to ASC 810-10-65-2. ASU 2015-02 also amends the evaluation of whether (1) fees paid to a decision maker or service provider represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a variable interest entity ("VIE") and (3) a reporting entity is the primary beneficiary of a VIE. ASU 2015-02 eliminates certain conditions for evaluating whether a fee paid to a decision maker or a service provider represents a variable interest. Fees received by a decision maker or service provider are no longer considered variable interests and are now excluded from the evaluation of whether the reporting entity is the primary beneficiary of a VIE if the fees are both customary and commensurate with the level of effort required for the services provided and the decision maker or service provider does not hold other interests in the entity being evaluated that would absorb more than an insignificant amount of the expected losses or returns of the entity. If the reporting entity determines that it does not have a variable interest in an entity, no further consolidation analysis is performed as the reporting entity would not be required to consolidate the entity. | |
The effective date of ASU 2015-02 is for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015 for public companies and early adoption is permitted. Fortress has elected to early adopt ASU 2015-02 on a retrospective basis as permitted, for all periods presented. The consolidated financial statements and related footnote disclosures have been adjusted for the impact of the adoption. The adoption did not result in a cumulative effect adjustment to Fortress’s retained earnings (accumulated deficit). Fortress’s accounting policy, updated for the adoption of ASU 2015-02, is described below. | |
Basis of Accounting and Consolidation | Basis of Accounting and Consolidation - The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The accompanying consolidated financial statements include the accounts of Fortress and its consolidated subsidiaries, which are comprised of VIEs in which it is the primary beneficiary as described below and voting interest entities (“VOEs”) in which it is determined to have a controlling financial interest under ASC 810, as amended by ASU 2015-02. |
For legal entities evaluated for consolidation, Fortress must determine whether the interests that it holds and fees paid to it qualify as a variable interest in the entity. This includes an evaluation of fees paid to Fortress where Fortress acts as a decision maker or service provider to the entity being evaluated. Fees received by Fortress are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length and (iii) Fortress’s other economic interests in the VIE held directly and indirectly through its related parties, as well as economic interests held by related parties under common control, where applicable, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits. | |
For those entities in which it has a variable interest, Fortress performs an analysis to first determine whether the entity is a VIE. This determination includes considering whether the entity’s equity investment at risk is sufficient, whether the voting rights of an investor are not proportional to its obligation to absorb the income or loss of the entity and substantially all of the entity's activities either involve or are conducted on behalf of that investor and its related parties and whether the entity’s at-risk equity holders have the characteristics of a controlling financial interest. A VIE must be consolidated by its primary beneficiary. Performance of such analysis requires the exercise of judgment. | |
The primary beneficiary of a VIE is generally defined as the party who has a controlling financial interest in the VIE. Fortress is generally deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to Fortress are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. Fortress also evaluates its economic interests in the VIE held directly by it and indirectly through its related parties, as well as economic interests held by related parties under common control, where applicable. The primary beneficiary evaluation is generally performed qualitatively on the basis of all facts and circumstances. However, quantitative information may also be considered in the analysis, as appropriate. These analyses require judgment. Changes in the economic interests (either by Fortress, related parties of Fortress or third parties) or amendments to the governing documents of the VIE could affect an entity's status as a VIE or the determination of the primary beneficiary. The primary beneficiary evaluation is updated continuously. | |
For VOEs, Fortress shall consolidate the entity if it has a controlling financial interest. Fortress has a controlling financial interest in a VOE if (i) for legal entities other than limited partnerships, Fortress owns a majority voting interest in the VOE or, for limited partnerships and similar entities, Fortress owns a majority of the entity’s kick-out rights through voting limited partnership interests and (ii) non-controlling shareholders or partners do not hold substantive participating rights and no other conditions exist that would indicate that Fortress does not control the entity. | |
For entities over which Fortress exercises significant influence but which do not meet the requirements for consolidation, Fortress uses the equity method of accounting whereby it records its share of the underlying income of these entities. These entities include the Fortress Funds. The evaluation of whether Fortress exerts control or significant influence over the financial and operational policies of an entity requires judgment based on the facts and circumstances surrounding each individual entity. | |
Virtually all of the Fortress Funds are, for GAAP purposes, investment companies. The Fortress Funds record realized and unrealized gains (losses) resulting from changes in the fair value of their investments as a component of current income. Additionally, these funds generally do not consolidate their majority-owned and controlled investments (the “Portfolio Companies”). | |
Distributions by Fortress and its subsidiaries are recognized when declared. | |
Redeemable Non-controlling Interests represent ownership interests which are redeemable and not owned by Fortress. | |
Principals’ and others’ interests in consolidated subsidiaries represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Fortress. This is primarily related to the Principals’ interests in Fortress Operating Group (Note 6). Non-Fortress interests also include employee interests in majority owned and controlled fund advisor and general partner entities. |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Schedule of financial statement guide | |||||
FINANCIAL STATEMENT GUIDE | |||||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Balance Sheet | |||||
Due from Affiliates | 6 | Generally, management fees, expense reimbursements and incentive income due from Fortress Funds. | |||
Investments and Investments in Options | 3 | Primarily the carrying value of Fortress’s investments in the Fortress Funds. | |||
Deferred Tax Asset, net | 5 | Relates to potential future net tax benefits. | |||
Due to Affiliates | 6 | Generally, amounts due to the Principals related to their interests in Fortress Operating Group and the tax receivable agreement. | |||
Deferred Incentive Income | 2 | Incentive income already received from certain Fortress Funds based on past performance, which is subject to contingent repayment based on future performance. | |||
Debt Obligations Payable | 4 | The balance outstanding on the credit agreement. | |||
Principals' and Others' Interests in Equity of Consolidated Subsidiaries | 6 | The GAAP basis of the Principals' and a former senior employee's ownership interests in Fortress Operating Group as well as employees' ownership interests in certain subsidiaries. | |||
Statement of Operations | |||||
Management Fees: Affiliates | 2 | Fees earned for managing Fortress Funds and other affiliates, generally determined based on the size of such funds. | |||
Management Fees: Non-Affiliates | 2 | Fees earned from managed accounts and the traditional fixed income asset management business, generally determined based on the amount managed. | |||
Incentive Income: Affiliates | 2 | Income earned from Fortress Funds, based on the performance of such funds. | |||
Incentive Income: Non- Affiliates | 2 | Income earned from managed accounts, based on the performance of such accounts. | |||
Compensation and Benefits | 7 | Includes equity-based, profit-sharing and other compensation to employees. | |||
Gains (Losses) | 3 | The result of asset dispositions or changes in the fair value of investments or other financial instruments which are marked to market (including the publicly traded permanent capital vehicles and publicly traded portfolio companies). | |||
Tax Receivable Agreement Liability Adjustment | 5 | Represents a change in the amount due to the Principals under the tax receivable agreement. | |||
Earnings (Losses) from Equity Method Investees | 3 | Fortress’s share of the net earnings (losses) of the Fortress Funds resulting from its investments in these funds. | |||
Continued on next page. | |||||
FINANCIAL STATEMENT GUIDE | |||||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Income Tax Benefit (Expense) | 5 | The net tax result related to the current period. Certain of Fortress’s revenues are not subject to taxes because they do not flow through taxable entities. Furthermore, Fortress has significant permanent differences between its GAAP and tax basis earnings. | |||
Principals’ and Others’ Interests in (Income) Loss of Consolidated Subsidiaries | 6 | Primarily the Principals’ and employees’ share of Fortress’s earnings based on their ownership interests in subsidiaries, including Fortress Operating Group. | |||
Earnings Per Share | 8 | GAAP earnings per Class A share based on Fortress’s capital structure, which is comprised of outstanding and unvested equity interests, including interests which participate in Fortress’s earnings, at both the Fortress and subsidiary levels. | |||
Other | |||||
Distributions | 8 | A summary of dividends and distributions, and the related outstanding shares and units, is provided. | |||
Distributable Earnings | 10 | A presentation of Fortress's financial performance by segment (fund type) is provided, on the basis of the operating performance measure used by Fortress’s management committee. |
MANAGEMENT_AGREEMENTS_AND_FORT1
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
Management and Agreement Fortress Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of management fees and incentive income recognized | Fortress recognized management fees and incentive income as follows: | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 29,140 | $ | 35,313 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | — | 149 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Permanent Capital Vehicles | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 19,002 | 15,178 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees, options: affil. | 4,144 | — | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 450 | 1,108 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 2,588 | 4,009 | |||||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 18,495 | 27,067 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 2,494 | 6,411 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 12 | 78 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Credit Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 29,654 | 26,834 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 10 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 653 | 1,304 | |||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 26,319 | 24,608 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 29 | 34 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 20,964 | 28,860 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | 643 | |||||||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 953 | 710 | |||||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 12,308 | 9,896 | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 6 | — | |||||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 127,707 | $ | 129,710 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | $ | 15,291 | $ | 17,622 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. (A) | $ | 24,223 | $ | 34,251 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | $ | — | $ | 643 | |||||||||||||||||||||||||||||||||||||||||||
(A) | See “Deferred Incentive Income” below. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of deferred incentive income from the Fortress Funds on an inception to date basis | Deferred incentive income from the Fortress Funds was comprised of the following, on an inception-to-date basis. This does not include any amounts related to third party funds, receipts from which are reflected as Other Liabilities until all contingencies are resolved. | ||||||||||||||||||||||||||||||||||||||||||||||
Distributed-Gross | Distributed-Recognized (A) | Distributed-Unrecognized (B) | Undistributed, net of intrinsic clawback (C) (D) | ||||||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of December 31, 2014 | $ | 1,243,441 | $ | (938,915 | ) | $ | 304,526 | $ | 868,549 | ||||||||||||||||||||||||||||||||||||||
Fortress Funds which matured (no longer subject | — | — | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||
to clawback) | |||||||||||||||||||||||||||||||||||||||||||||||
Share of income (loss) of Fortress Funds | N/A | N/A | N/A | 260,995 | |||||||||||||||||||||||||||||||||||||||||||
Distribution of private equity funds and credit PE | 23,851 | N/A | 23,851 | (23,851 | ) | ||||||||||||||||||||||||||||||||||||||||||
funds incentive income | |||||||||||||||||||||||||||||||||||||||||||||||
Distribution of private permanent capital vehicle | 395 | N/A | 395 | (395 | ) | ||||||||||||||||||||||||||||||||||||||||||
incentive income | |||||||||||||||||||||||||||||||||||||||||||||||
Recognition of previously deferred incentive income | N/A | (20,964 | ) | (20,964 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Changes in foreign exchange rates | (71 | ) | — | (71 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of March 31, 2015 | $ | 1,267,616 | (E) | $ | (959,879 | ) | $ | 307,737 | $ | 1,105,298 | (E) | ||||||||||||||||||||||||||||||||||||
Deferred incentive income including Fortress Funds | $ | 1,321,272 | $ | (1,013,535 | ) | ||||||||||||||||||||||||||||||||||||||||||
which matured | |||||||||||||||||||||||||||||||||||||||||||||||
(A) | All related contingencies have been resolved. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Reflected on the consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | At March 31, 2015, the net undistributed incentive income is comprised of $1.2 billion of gross undistributed incentive income, net of $66.9 million of intrinsic clawback. The net undistributed incentive income represents the amount that would be received by Fortress from the related funds if such funds were liquidated on March 31, 2015 at their net asset values. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | From inception to March 31, 2015, Fortress has paid $592.0 million of compensation expense under its employee profit sharing arrangements (Note 7) in connection with distributed incentive income, of which $21.5 million has not been expensed because management has determined that it is not probable of being incurred as an expense and will be recovered from the related individuals. As of March 31, 2015, Fortress has recovered $6.4 million from individuals relating to their clawback obligations. If the $1.2 billion of gross undistributed incentive income were realized, Fortress would recognize and pay an additional $570.2 million of compensation expense. | ||||||||||||||||||||||||||||||||||||||||||||||
(E) | See detailed reconciliations of Distributed-Gross and Undistributed, net of intrinsic clawback below. | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of distributed- gross incentive income | The amounts set forth under Distributed-Gross can be reconciled to the incentive income threshold tables (on the following pages) as follows: | ||||||||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Private Equity Funds | $ | 846,671 | |||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Private Equity Funds in Investment Period or Commitment | — | ||||||||||||||||||||||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Credit PE Funds | 738,698 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Credit PE Funds in Investment Period or Commitment Period | 10,293 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributed incentive income - Private Permanent Capital Vehicle in Investment Period or | 1,139 | ||||||||||||||||||||||||||||||||||||||||||||||
Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress Funds which are not subject to a clawback provision: | |||||||||||||||||||||||||||||||||||||||||||||||
— | NIH | (94,513 | ) | ||||||||||||||||||||||||||||||||||||||||||||
— | GAGACQ Fund | (51,476 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Portion of Fund I distributed incentive income that Fortress is not entitled to (see footnote K of incentive income threshold tables) | (183,196 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Distributed-Gross | $ | 1,267,616 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of undistributed incentive income | The amounts set forth under Undistributed, net of intrinsic clawback can be reconciled to the incentive income threshold tables (on the following pages) as follows: | ||||||||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Private Equity Funds | $ | 199,662 | |||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Private Equity Funds in Investment Period or Commitment | 2,196 | ||||||||||||||||||||||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Credit PE Funds | 786,667 | ||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Credit PE Funds in Investment Period or Commitment | 61,990 | ||||||||||||||||||||||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Private Permanent Capital Vehicle in Investment Period or | 7,997 | ||||||||||||||||||||||||||||||||||||||||||||||
Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Hedge Funds (total) | 113,560 | ||||||||||||||||||||||||||||||||||||||||||||||
Undistributed incentive income - Logan Circle | 129 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: | Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | (66,903 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Undistributed, net of intrinsic clawback | $ | 1,105,298 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment funds and incentive income thresholds | The following tables summarize information with respect to the Fortress Funds and their related incentive income thresholds as of March 31, 2015: | ||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
NIH (1998) | In Liquidation | $ | 415,574 | $ | (823,588 | ) | $ | — | $ N/A | $ | — | $ N/A | $ | — | $ | 94,513 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Fund I (1999) (K) | Closed May-13 | 1,015,943 | (2,847,929 | ) | — | N/A | N/A | N/A | — | 344,939 | — | — | — | ||||||||||||||||||||||||||||||||||
Fund II (2002) | In Liquidation | 1,974,298 | (3,442,900 | ) | 2,849 | 1,471,451 | — | N/A | 566 | 288,840 | — | — | — | ||||||||||||||||||||||||||||||||||
Fund III (2004) | In Liquidation | 2,762,992 | (2,138,524 | ) | 1,194,769 | 570,301 | 2,087,976 | 1,517,675 | — | 66,903 | 66,903 | 66,903 | 45,108 | ||||||||||||||||||||||||||||||||||
Fund III Coinvestment (2004) | In Liquidation | 273,649 | (225,188 | ) | 66,943 | 18,482 | 245,857 | 227,375 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV (2006) | 17-Jan | 3,639,561 | (1,310,995 | ) | 2,530,985 | 202,419 | 2,826,596 | 2,624,177 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV Coinvestment (2006) | 17-Jan | 762,696 | (257,810 | ) | 421,821 | (83,065 | ) | 603,859 | 686,924 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Fund V (2007) | 18-Feb | 4,103,713 | (1,433,561 | ) | 5,601,717 | 2,931,565 | — | N/A | 187,572 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund V Coinvestment (2007) | 18-Feb | 990,480 | (173,493 | ) | 516,870 | (300,117 | ) | 679,419 | 979,536 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
GAGACQ Fund (2004) (GAGFAH) | Closed Nov-09 | 545,663 | (595,401 | ) | — | N/A | N/A | N/A | — | 51,476 | — | — | — | ||||||||||||||||||||||||||||||||||
FRID (2005) (GAGFAH) | Closed Nov-14 | 1,220,229 | (1,202,153 | ) | — | N/A | N/A | N/A | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FRIC (2006) (Brookdale) | Closed Dec-14 | 328,754 | (291,330 | ) | — | N/A | N/A | N/A | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FICO (2006) (Intrawest) | 17-Jan | 724,525 | (5 | ) | (63,370 | ) | (787,890 | ) | 631,125 | 1,419,015 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FHIF (2006) (Holiday) | 17-Jan | 1,543,463 | (541,152 | ) | 1,815,501 | 813,190 | 1,206,617 | 393,427 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FECI (2007) (Florida East Coast Railway/Florida East Coast Industries) | 18-Feb | 982,779 | (455 | ) | 978,918 | (3,406 | ) | 784,929 | 788,335 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
MSR Opportunities Fund I A (2012) | 22-Aug | 339,382 | (126,528 | ) | 308,673 | 95,819 | — | N/A | 9,226 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities Fund I B (2012) | 22-Aug | 82,335 | (30,647 | ) | 74,684 | 22,996 | — | N/A | 2,298 | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 199,662 | $ | 846,671 | $ | 66,903 | $ | 66,903 | $ | 45,108 | ||||||||||||||||||||||||||||||||||||||
Private Equity Funds in Investment or Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
MSR Opportunities Fund II A (2013) | 23-Jul | $ | 75,941 | $ | (11,456 | ) | $ | 76,437 | $ | 11,952 | $ | — | $ N/A | $ | 1,765 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
MSR Opportunities Fund II B (2013) | 23-Jul | 1,084 | (163 | ) | 1,084 | 163 | — | N/A | 24 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II MA I (2013) | 23-Jul | 17,418 | (2,630 | ) | 17,542 | 2,754 | — | N/A | 407 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Italian NPL Opportunities (2013) | 24-Sep | 31,106 | (5,553 | ) | 23,801 | (1,752 | ) | 1,120 | 2,872 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 2,196 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Long Dated Value Fund I (2005) | 30-Apr | $ | 267,325 | $ | (89,359 | ) | $ | 322,043 | $ | 144,077 | $ | 151,122 | $ | 7,045 | $ | 25 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Long Dated Value Fund II (2005) | 30-Nov | 274,280 | (150,977 | ) | 200,899 | 77,596 | 119,943 | 42,347 | — | 412 | — | — | — | ||||||||||||||||||||||||||||||||||
Long Dated Value Fund III (2007) | Feb-32 | 343,156 | (278,861 | ) | 191,820 | 127,525 | — | N/A | 17,181 | 6,473 | — | — | — | ||||||||||||||||||||||||||||||||||
LDVF Patent Fund (2007) | 27-Nov | 36,073 | (33,633 | ) | 31,259 | 28,819 | — | N/A | 1,447 | 1,471 | — | — | — | ||||||||||||||||||||||||||||||||||
Real Assets Fund (2007) | 17-Jun | 359,024 | (351,783 | ) | 106,267 | 99,026 | — | N/A | 10,085 | 5,285 | — | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund (2008) | 20-Oct | 5,620,858 | (6,965,178 | ) | 1,335,010 | 2,679,330 | — | N/A | 184,467 | 342,112 | 148,313 | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund II (2009) | 22-Jul | 2,310,715 | (2,350,331 | ) | 1,158,429 | 1,198,045 | — | N/A | 141,010 | 93,964 | 24,881 | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund III (2011) | 24-Mar | 3,088,327 | (1,287,483 | ) | 2,434,035 | 633,191 | — | N/A | 103,127 | 20,852 | — | — | — | ||||||||||||||||||||||||||||||||||
FCO Managed Accounts (2008 - 2012) | Jun-22 to Mar-24 | 3,346,261 | (2,685,106 | ) | 1,882,640 | 1,221,485 | — | N/A | 144,119 | 94,631 | 31,599 | — | — | ||||||||||||||||||||||||||||||||||
SIP Managed Account (2010) | 20-Sep | 11,000 | (35,747 | ) | 13,583 | 38,330 | — | N/A | 2,717 | 4,949 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund (2009) | 19-Jun | 906,225 | (1,315,300 | ) | 598,080 | 1,007,155 | — | N/A | 99,922 | 116,624 | 19,714 | — | — | ||||||||||||||||||||||||||||||||||
Net Lease Fund I (2010) | 20-Feb | 152,851 | (225,430 | ) | 1,794 | 74,373 | — | N/A | 230 | 9,528 | 5,928 | — | — | ||||||||||||||||||||||||||||||||||
Real Estate Opportunities Fund (2011) | 24-Sep | 534,901 | (285,966 | ) | 393,686 | 144,751 | — | N/A | 10,262 | 2,376 | 1,359 | — | — | ||||||||||||||||||||||||||||||||||
Global Opportunities Fund (2010) | 20-Sep | 326,446 | (156,444 | ) | 241,034 | 71,032 | — | N/A | 12,260 | 1,965 | 1,965 | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Yen) (2011) | 21-Dec | 657,095 | (251,007 | ) | 639,416 | 233,328 | — | N/A | 33,581 | 14,481 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Dollar) (2011) | 21-Dec | 639,643 | (238,397 | ) | 637,652 | 236,406 | — | N/A | 24,673 | 20,928 | — | — | — | ||||||||||||||||||||||||||||||||||
Real Estate Opportunities REOC Fund (2011) | 23-Oct | 56,692 | (36,767 | ) | 41,073 | 21,148 | — | N/A | 1,561 | 2,647 | 1,160 | — | — | ||||||||||||||||||||||||||||||||||
$ | 786,667 | $ | 738,698 | $ | 234,919 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Credit PE Funds in Investment or Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
FCO Managed Accounts (2010-2015) | Apr-22 to Feb-28 | $ | 1,410,598 | $ | (778,148 | ) | $ | 998,941 | $ | 366,491 | $ | — | $ N/A | $ | 61,456 | $ | 10,293 | $ | 4,776 | $ | — | $ | — | ||||||||||||||||||||||||
Life Settlements Fund (2010) | 22-Dec | 397,361 | (299,330 | ) | 71,592 | (26,439 | ) | 77,770 | 104,209 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Life Settlements Fund MA (2010) | 22-Dec | 32,525 | (24,482 | ) | 5,639 | (2,404 | ) | 6,384 | 8,788 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Real Estate Opportunities Fund II (2014) | 27-May | 147,815 | (134 | ) | 154,584 | 6,903 | 6,928 | 25 | 534 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund III (Yen) (2014) | 24-Dec | 103,502 | — | 102,433 | (1,069 | ) | 638 | 1,707 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund III (Dollar) (2014) | 24-Dec | 83,061 | — | 82,401 | (660 | ) | 531 | 1,191 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund IV (2015) | 27-Feb | 142,897 | — | 143,239 | 342 | 846 | 504 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
$ | 61,990 | $ | 10,293 | $ | 4,776 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value ("NAV") | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Private Permanent Capital Vehicle in Investment Period or | |||||||||||||||||||||||||||||||||||||||||||||||
Commitment Period | |||||||||||||||||||||||||||||||||||||||||||||||
WWTAI (2011) | 25-Jan | $ | 761,180 | $ | (141,950 | ) | $ | 714,891 | $ | 95,661 | $ | — | $ N/A | $ | 7,997 | $ | 1,139 | $ | 1,139 | $ | — | $ | — | ||||||||||||||||||||||||
Fund | Equity Eligible for Incentive (L) | Gain to Cross Incentive Income Threshold (F) | Life-to-Date Incentive Income Crystallized (P) | ||||||||||||||||||||||||||||||||||||||||||||
Publicly Traded Permanent Capital Vehicles | |||||||||||||||||||||||||||||||||||||||||||||||
Newcastle | $ | 751,232 | $ (F) | $ | 41,283 | ||||||||||||||||||||||||||||||||||||||||||
Eurocastle | 433,404 | 191,710 | 39,217 | ||||||||||||||||||||||||||||||||||||||||||||
New Residential | 1,372,498 | — | 74,662 | ||||||||||||||||||||||||||||||||||||||||||||
New Media | 644,707 | 152 | 112 | ||||||||||||||||||||||||||||||||||||||||||||
New Senior | 812,815 | 4,953 | — | ||||||||||||||||||||||||||||||||||||||||||||
Incentive Income Eligible NAV (L) | Gain to Cross Incentive Income Threshold (M) | Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold (N) | Undistributed Incentive Income (O) | Year to Date Incentive Income Crystallized (P) | |||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Macro Funds (Q) (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 1,227,665 | $ | 75,993 | 0.1 | % | $ | 5 | $ | — | |||||||||||||||||||||||||||||||||||||
Single investor funds | 967,051 | 29,804 | 23.6 | % | 119 | 11 | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 8,891 | 6,736 | N/A | 69 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 119,684 | 65,826 | N/A | 1,541 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 447,710 | 10,105 | 54.6 | % | 233 | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Convex Asia Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 222,816 | 10,812 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Partners Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 12,975 | 2,869 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 90,645 | 4,634 | N/A | 5,208 | — | ||||||||||||||||||||||||||||||||||||||||||
Fortress Centaurus Global Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 116,027 | 197 | 85.5 | % | 557 | — | |||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Special Opportunities Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 4,777,613 | $ | — | 100 | % | $ | 21,249 | $ | — | |||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 60,513 | — | N/A | 4,515 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 196,931 | 48,445 | N/A | 5,893 | — | ||||||||||||||||||||||||||||||||||||||||||
Main fund investments (liquidating) (U) | 633,058 | — | 100 | % | 73,294 | 653 | |||||||||||||||||||||||||||||||||||||||||
Managed accounts | 3,674 | 46,950 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Worden Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 261,995 | 683 | 90 | % | 877 | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Japan Income Fund | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 58,870 | N/A | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Value Recovery Funds (V) | |||||||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 7,444 | 9,278 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 68,723 | $ | — | 100 | % | $ | 86 | $ | — | |||||||||||||||||||||||||||||||||||||
Managed accounts | 210,281 | 25,950 | 27.1 | % | 43 | — | |||||||||||||||||||||||||||||||||||||||||
(A) | Vintage represents the year in which the fund was formed. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Represents the contractual maturity date including the assumed exercise of all extension options, which in some cases may require the approval of the applicable fund advisory board. Private equity funds that have reached their maturity date are included in the table to the extent they have generated incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | Includes an increase to the NAV surplus related to the U.S. income tax expense of certain investment entities, which is considered a distribution for the purposes of computing incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | A NAV deficit represents the gain needed to cross the incentive income threshold (as described in (F) below), excluding the impact of any relevant performance (i.e. preferred return) thresholds (as described in (E) below). | ||||||||||||||||||||||||||||||||||||||||||||||
(E) | Represents the gain needed to achieve the current relevant performance thresholds, assuming the gain described in (D) above is already achieved. | ||||||||||||||||||||||||||||||||||||||||||||||
(F) | Represents the immediate increase in NAV needed for Fortress to begin earning incentive income, including the achievement of any relevant performance thresholds. It does not include the amount needed to earn back intrinsic clawback (see (J) below), if any. Incentive income is not recorded as revenue until it is received and any related contingencies are resolved (see (I) below). For the publicly traded permanent capital vehicles, represents the immediate increase of the entity's applicable supplemental measure of operating performance needed for Fortress to begin earning incentive income. As of March 31, 2015, as a result of Newcastle not meeting the incentive income threshold, Fortress does not expect to earn incentive income from Newcastle for an indeterminate period of time. Subsequent to March 31, 2015, Fortress entered into an amended management agreement with Eurocastle. The amendment reset the earnings threshold for Fortress to earn incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(G) | Represents the amount of additional incentive income Fortress would receive if the fund were liquidated at the end of the period at its NAV. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. As of March 31, 2015, a portion of Long Dated Value Fund I and Real Estate Opportunities Fund II's capital is above their incentive income threshold. | ||||||||||||||||||||||||||||||||||||||||||||||
(H) | Represents the amount of net incentive income previously received from the fund since inception. | ||||||||||||||||||||||||||||||||||||||||||||||
(I) | Represents the amount of incentive income previously received from the fund which is still subject to contingencies and is therefore recorded on the consolidated balance sheet as Deferred Incentive Income. This amount will either be recorded as revenue when all related contingencies are resolved, or, if the fund does not meet certain performance thresholds, will be returned by Fortress to the fund (i.e., “clawed back”). | ||||||||||||||||||||||||||||||||||||||||||||||
(J) | Represents the amount of incentive income previously received from the fund that would be clawed back (i.e., returned by Fortress to the fund) if the fund were liquidated at the end of the period at its NAV, excluding the effect of any tax adjustments. Employees, former employees and affiliates of Fortress would be required to return a portion of this incentive income that was paid to them under profit sharing arrangements. “Gross” and “Net” refer to amounts that are gross and net, respectively, of this employee/affiliate portion of the intrinsic clawback. Fortress remains liable to the funds for these amounts even if it is unable to collect the amounts from employees/affiliates. Fortress withheld a portion of the amounts due to employees under these profit sharing arrangements as a reserve against future clawback; as of March 31, 2015, Fortress held $32.9 million of such amounts on behalf of employees related to all of the private equity funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(K) | The Fund I distributed incentive income amount is presented for the total fund, of which Fortress was entitled to approximately 50%. | ||||||||||||||||||||||||||||||||||||||||||||||
(L) | Represents the portion of a fund’s or managed account's NAV or trading level that is eligible to earn incentive income. For the publicly traded permanent capital vehicles, represents the equity basis that is used to calculate incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(M) | Represents, for those investors whose NAV is below the performance threshold Fortress needs to obtain before it can earn incentive income from such investors (their “incentive income threshold” or “high water mark”), the amount by which their aggregate incentive income thresholds exceed their aggregate NAVs. The amount by which the NAV of each investor within this category is below their respective incentive income threshold varies and, therefore, Fortress may begin earning incentive income from certain investors before this entire amount is earned back. Fortress earns incentive income whenever the assets of new investors, as well as of investors whose NAV exceeds their incentive income threshold, increase in value. For Fortress Japan Income Fund, Fortress earns incentive income based on investment income, which does not include unrealized and realized gains and losses, earned in excess of a preferred return threshold. | ||||||||||||||||||||||||||||||||||||||||||||||
(N) | Represents the percentage which is computed by dividing (i) the aggregate NAV of all investors who are at or above their respective incentive income thresholds, by (ii) the total incentive income eligible NAV of the fund. The amount by which the NAV of each fund investor who is not in this category is below their respective incentive income threshold may vary, and may vary significantly. This percentage represents the performance of only the main fund investments and managed accounts relative to their respective incentive income thresholds. It does not incorporate the impact of unrealized losses on sidepocket investments that can reduce the amount of incentive income earned from certain funds. See footnote (R) below. | ||||||||||||||||||||||||||||||||||||||||||||||
(O) | Represents the amount of additional incentive income Fortress would earn from the fund or managed account if it were liquidated at the end of the period at its NAV. This amount is currently subject to performance contingencies generally until the end of the year or, in the case of sidepocket investments, until such investments are realized. Main Fund Investments (Liquidating) pay incentive income only after all capital is returned. For the Fortress Japan Income Fund, represents the amount of incentive income Fortress would earn from the fund assuming the amount of investment income earned in excess of the preferred return threshold was distributed as of the end of the period. For the Value Recovery Fund managed accounts, Fortress can earn incentive income if aggregate realizations exceed an agreed threshold. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
(P) | Represents the amount of incentive income Fortress has earned which is not subject to clawback. For the publicly traded permanent capital vehicles, represents the life-to-date incentive income amount that Fortress has earned and which is not subject to clawback. | ||||||||||||||||||||||||||||||||||||||||||||||
(Q) | The Drawbridge Global Macro SPV (the “SPV”), which was established in February 2009 to liquidate illiquid investments and distribute the proceeds to then existing investors, is not subject to incentive income and is therefore not presented in the table. However, realized gains or losses within the SPV can decrease or increase, respectively, the gain needed to cross the incentive income threshold for investors with a corresponding investment in the main fund. The unrealized gains and losses within the SPV at March 31, 2015, as if they became realized, would not materially impact the amounts presented in the table. | ||||||||||||||||||||||||||||||||||||||||||||||
(R) | Represents investments held in sidepockets (also known as special investment accounts), which generally have investment profiles similar to private equity funds. The performance of these investments may impact Fortress’s ability to earn incentive income from main fund investments. For the credit hedge funds and Fortress Partners Funds, realized and unrealized losses from individual sidepockets below original cost may reduce the incentive income earned from main fund investments. For the Macro Funds, only realized losses from individual sidepockets reduce the incentive income earned from main fund investments. Based on current unrealized losses in Macro Fund sidepockets, if all of the Macro Fund sidepockets were liquidated at their NAV at March 31, 2015, the undistributed incentive income from the Macro main fund would not be impacted. | ||||||||||||||||||||||||||||||||||||||||||||||
(S) | Represents investments held in sidepockets for investors with no corresponding investment in the related main fund investments. In the case of the Macro Funds, such investors may have investments in the SPV (see (Q) above). | ||||||||||||||||||||||||||||||||||||||||||||||
(T) | Includes onshore and offshore funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(U) | Relates to accounts where investors have provided return of capital notices and are subject to payout as underlying fund investments are realized. | ||||||||||||||||||||||||||||||||||||||||||||||
(V) | Excludes the Value Recovery Funds which had a NAV of $181.6 million at March 31, 2015. Fortress began managing the third party originated Value Recovery Funds in June 2009 and generally does not expect to earn any significant incentive income from the fund investments. | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Logan Circle fixed income fund | During the three months ended March 31, 2015, Logan Circle, Fortress's fixed income asset manager, formed two new fixed income funds with net asset values as follows as of March 31, 2015: | ||||||||||||||||||||||||||||||||||||||||||||||
Logan Circle Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 10,090 | |||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 44,461 | ||||||||||||||||||||||||||||||||||||||||||||||
Total capital NAV | $ | 54,551 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of PE funds formed during the period | During the three months ended March 31, 2015, Fortress formed new credit PE funds which had capital commitments as follows as of March 31, 2015: | ||||||||||||||||||||||||||||||||||||||||||||||
Credit PE | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 30,000 | |||||||||||||||||||||||||||||||||||||||||||||
Fortress's affiliates | 36,035 | ||||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 3,614,910 | ||||||||||||||||||||||||||||||||||||||||||||||
Total capital commitments | $ | 3,680,945 | |||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS_AND_FAIR_VALUE_Tab
INVESTMENTS AND FAIR VALUE (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Investments and Fair Value | |||||||||||||||||||||||||||||||||
Summary of investments | Investments can be summarized as follows: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Equity method and other investees | $ | 1,183,347 | $ | 1,106,338 | |||||||||||||||||||||||||||||
Equity method investees, held at fair value (A) | 16,804 | 15,207 | |||||||||||||||||||||||||||||||
Total investments | $ | 1,200,151 | $ | 1,121,545 | |||||||||||||||||||||||||||||
Options in equity method investees | $ | 108,120 | $ | 71,844 | |||||||||||||||||||||||||||||
(A) | Includes publicly traded private equity portfolio companies and the publicly traded permanent capital vehicles (Newcastle, New Residential, Eurocastle, New Media and New Senior). | ||||||||||||||||||||||||||||||||
Summary of gains (losses) | Gains (losses) are summarized as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 1,259 | $ | (835 | ) | ||||||||||||||||||||||||||||
Net realized gains (losses) from affiliate investments | (1,166 | ) | (574 | ) | |||||||||||||||||||||||||||||
Net unrealized gains (losses) | (2,362 | ) | (6,803 | ) | |||||||||||||||||||||||||||||
Net unrealized gains (losses) from affiliate investments | 33,830 | (2,843 | ) | ||||||||||||||||||||||||||||||
Total gains (losses) | $ | 31,561 | $ | (11,055 | ) | ||||||||||||||||||||||||||||
Schedule of gains (losses) generated | These gains (losses) were generated as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Mark to fair value on affiliate investments and options | $ | 32,785 | $ | (3,439 | ) | ||||||||||||||||||||||||||||
Mark to fair value on derivatives | 1,114 | (1,349 | ) | ||||||||||||||||||||||||||||||
Mark to fair value on equity securities | (509 | ) | 77 | ||||||||||||||||||||||||||||||
Gains (losses) on digital currency (Bitcoin) | (1,543 | ) | (6,176 | ) | |||||||||||||||||||||||||||||
Other | (286 | ) | (168 | ) | |||||||||||||||||||||||||||||
Total gains (losses) | $ | 31,561 | $ | (11,055 | ) | ||||||||||||||||||||||||||||
Summary of financial information related to equity method investments | Summary financial information related to these investments is as follows: | ||||||||||||||||||||||||||||||||
Fortress’s Investment | Earnings (Losses) from Equity Method Investees | ||||||||||||||||||||||||||||||||
March 31, | December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Private equity funds | $ | 697,552 | $ | 677,366 | $ | 25,856 | $ | 6,392 | |||||||||||||||||||||||||
Publicly traded portfolio companies (A)(B) | 1,267 | 1,035 | N/A | N/A | |||||||||||||||||||||||||||||
WWTAI | 5,798 | 5,284 | 218 | 35 | |||||||||||||||||||||||||||||
Newcastle (B) | 838 | 776 | N/A | N/A | |||||||||||||||||||||||||||||
New Residential (B) | 7,794 | 6,622 | N/A | N/A | |||||||||||||||||||||||||||||
Eurocastle (B) | 2,239 | 2,162 | N/A | N/A | |||||||||||||||||||||||||||||
New Media (B) | 1,792 | 1,769 | N/A | N/A | |||||||||||||||||||||||||||||
New Senior (B) | 2,874 | 2,843 | N/A | N/A | |||||||||||||||||||||||||||||
Total private equity | 720,154 | 697,857 | 26,074 | 6,427 | |||||||||||||||||||||||||||||
Liquid hedge funds (C) | 205,259 | 167,630 | 9,368 | 1,529 | |||||||||||||||||||||||||||||
Credit hedge funds | 57,207 | 57,224 | 1,968 | 2,369 | |||||||||||||||||||||||||||||
Credit PE funds | 190,294 | 183,127 | 5,065 | 10,008 | |||||||||||||||||||||||||||||
Other | 27,237 | 15,707 | (767 | ) | 41 | ||||||||||||||||||||||||||||
$ | 1,200,151 | $ | 1,121,545 | $ | 41,708 | $ | 20,374 | ||||||||||||||||||||||||||
(A) | Represents Fortress’s direct investments in the common stock of publicly traded private equity portfolio companies. | ||||||||||||||||||||||||||||||||
(B) | Fortress elected to record these investments at fair value pursuant to the fair value option for financial instruments. | ||||||||||||||||||||||||||||||||
(C) | Includes Fortress's investment in Affiliated Managers. | ||||||||||||||||||||||||||||||||
Summary of changes in investments in equity method investees | A summary of the changes in Fortress’s investments is as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||
Funds | Publicly Traded Portfolio Companies (A) | Permanent Capital Vehicles (A) | Liquid Hedge Funds (B) | Credit Hedge Funds | Credit PE Funds | Other | Total | ||||||||||||||||||||||||||
Investment, beginning | $ | 677,366 | $ | 1,035 | $ | 19,456 | $ | 167,630 | $ | 57,224 | $ | 183,127 | $ | 15,707 | $ | 1,121,545 | |||||||||||||||||
Earnings from equity method investees | 25,856 | N/A | 218 | 9,368 | 1,968 | 5,065 | (767 | ) | 41,708 | ||||||||||||||||||||||||
Other comprehensive income from equity | — | N/A | — | — | — | — | — | — | |||||||||||||||||||||||||
method investees | |||||||||||||||||||||||||||||||||
Contributions to equity method and other | 445 | — | 495 | 13,612 | 94,419 | 11,788 | 32 | 120,791 | |||||||||||||||||||||||||
investees (C) | |||||||||||||||||||||||||||||||||
Distributions of earnings from equity | (3,542 | ) | N/A | (179 | ) | (426 | ) | (2,396 | ) | (4,270 | ) | — | (10,813 | ) | |||||||||||||||||||
method and other investees | |||||||||||||||||||||||||||||||||
Distributions of capital from equity | (48 | ) | N/A | (20 | ) | (18,325 | ) | (94,008 | ) | (5,338 | ) | — | (117,739 | ) | |||||||||||||||||||
method and other investees (C) | |||||||||||||||||||||||||||||||||
Total distributions from equity method | (3,590 | ) | — | (199 | ) | (18,751 | ) | (96,404 | ) | (9,608 | ) | — | (128,552 | ) | |||||||||||||||||||
and other investees | |||||||||||||||||||||||||||||||||
Mark to fair value - during period (D) | (345 | ) | 232 | 1,622 | N/A | N/A | N/A | (53 | ) | 1,456 | |||||||||||||||||||||||
Net purchases of investments by consolidated funds | — | — | — | — | — | — | 12,318 | 12,318 | |||||||||||||||||||||||||
Translation adjustment | (39 | ) | — | (257 | ) | — | — | (78 | ) | — | (374 | ) | |||||||||||||||||||||
Dispositions | (2,683 | ) | — | — | — | — | — | — | (2,683 | ) | |||||||||||||||||||||||
Reclassification to Due to Affiliates (E) | 542 | — | — | — | — | — | — | 542 | |||||||||||||||||||||||||
Retained interest in Graticule (Note 1) | — | — | — | 33,400 | — | — | — | 33,400 | |||||||||||||||||||||||||
Investment, ending | $ | 697,552 | $ | 1,267 | $ | 21,335 | $ | 205,259 | $ | 57,207 | $ | 190,294 | $ | 27,237 | $ | 1,200,151 | |||||||||||||||||
Ending balance of undistributed earnings | $ | 84,132 | $ N/A | $ | 38 | $ | 16,546 | $ | 2,312 | $ | 11,205 | $ | 2,118 | $ | 116,351 | ||||||||||||||||||
(A) | Fortress elected to record the publicly traded private equity portfolio companies and the publicly traded permanent capital vehicles at fair value pursuant to the fair value option for financial instruments. | ||||||||||||||||||||||||||||||||
(B) | Includes Fortress's investment in Affiliated Managers. | ||||||||||||||||||||||||||||||||
(C) | The amounts presented above can be reconciled to the amounts presented on the statement of cash flows as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Contributions | Distributions of Capital | ||||||||||||||||||||||||||||||||
Per Consolidated Statements of Cash Flows | $ | 7,720 | $ | (107,370 | ) | ||||||||||||||||||||||||||||
Investments of incentive receivable amounts into Fortress Funds | 107,855 | — | |||||||||||||||||||||||||||||||
Change in distributions payable out of Fortress Funds | — | (4,849 | ) | ||||||||||||||||||||||||||||||
Net funded* | 5,216 | (5,216 | ) | ||||||||||||||||||||||||||||||
Other | — | (304 | ) | ||||||||||||||||||||||||||||||
Per Above | $ | 120,791 | $ | (117,739 | ) | ||||||||||||||||||||||||||||
* | In some instances, a private equity style fund may need to simultaneously make both a capital call (for new investments or expenses) and a capital distribution (related to realizations from existing investments). This results in a net funding. | ||||||||||||||||||||||||||||||||
(D) | Recorded to Gains (Losses). | ||||||||||||||||||||||||||||||||
(E) | Represents a portion of the general partner liability discussed in Note 9. | ||||||||||||||||||||||||||||||||
Schedule reconciling capital activity in equity method investments to the statement of cash flows | The amounts presented above can be reconciled to the amounts presented on the statement of cash flows as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Contributions | Distributions of Capital | ||||||||||||||||||||||||||||||||
Per Consolidated Statements of Cash Flows | $ | 7,720 | $ | (107,370 | ) | ||||||||||||||||||||||||||||
Investments of incentive receivable amounts into Fortress Funds | 107,855 | — | |||||||||||||||||||||||||||||||
Change in distributions payable out of Fortress Funds | — | (4,849 | ) | ||||||||||||||||||||||||||||||
Net funded* | 5,216 | (5,216 | ) | ||||||||||||||||||||||||||||||
Other | — | (304 | ) | ||||||||||||||||||||||||||||||
Per Above | $ | 120,791 | $ | (117,739 | ) | ||||||||||||||||||||||||||||
* | In some instances, a private equity style fund may need to simultaneously make both a capital call (for new investments or expenses) and a capital distribution (related to realizations from existing investments). This results in a net funding. | ||||||||||||||||||||||||||||||||
Schedule of ownership percentages in the tables reflective of the ownership interests held as of the end of the respective periods | The following tables present summarized statements of operations for Fortress's significant equity method investees. The permanent capital vehicles, the publicly traded portfolio companies and Other are not presented as they are insignificant to Fortress’s investments. | ||||||||||||||||||||||||||||||||
Private Equity Funds (A) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Revenues and gains (losses) on investments | $ | 638,253 | $ | (39,338 | ) | ||||||||||||||||||||||||||||
Expenses | (52,613 | ) | (50,798 | ) | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | 585,640 | $ | (90,136 | ) | ||||||||||||||||||||||||||||
Fortress’s equity in net income (loss) | $ | 25,856 | $ | 6,392 | |||||||||||||||||||||||||||||
Liquid Hedge Funds | Credit Hedge Funds | Credit PE Funds (A) | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||
2015 (B) | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||
Revenues and gains | $ | 7,091 | $ | (155,299 | ) | $ | 254,234 | $ | 298,810 | $ | 328,119 | $ | 603,301 | ||||||||||||||||||||
(losses) on investments | |||||||||||||||||||||||||||||||||
Expenses | (65,737 | ) | (46,393 | ) | (101,871 | ) | (79,448 | ) | (70,139 | ) | (74,735 | ) | |||||||||||||||||||||
Net Income (Loss) | $ | (58,646 | ) | $ | (201,692 | ) | $ | 152,363 | $ | 219,362 | $ | 257,980 | $ | 528,566 | |||||||||||||||||||
Fortress’s equity in net | $ | 9,368 | $ | 1,529 | $ | 1,968 | $ | 2,369 | $ | 5,065 | $ | 10,008 | |||||||||||||||||||||
income (loss) | |||||||||||||||||||||||||||||||||
(A) | For Private Equity Funds, includes four entities which are recorded on a one quarter lag (i.e. current year balances reflected for these entities are for the period ended December 31, 2014). For Credit PE Funds, includes one entity which is recorded on a one quarter lag and several entities which are recorded on a one month lag. They are recorded on a lag because they are foreign entities, or they have substantial operations in foreign countries, and do not provide financial reports under GAAP within the reporting time frame necessary for U.S. public entities. | ||||||||||||||||||||||||||||||||
(B) | Includes the operating results of Affiliated Managers. | ||||||||||||||||||||||||||||||||
Schedule of variable interest entities | The following tables set forth certain information as of March 31, 2015 regarding variable interest entities in which Fortress held a variable interest. Entities initially classified as variable interest entities during the three months ended March 31, 2015: | ||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | |||||||||||||||||||||||||||||||||
Business | Number of VIEs | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Notes | ||||||||||||||||||||||||||||
Liquid Hedge Funds | 2 | $ | 216,390 | $ | — | $ | 49,639 | (D) | |||||||||||||||||||||||||
Credit PE Funds | 1 | 8,574 | — | 87 | (D) | ||||||||||||||||||||||||||||
All variable interest entities: | |||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Business | Number of VIEs | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Number of VIEs | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Notes | ||||||||||||||||||||||||
Private Equity Funds | 2 | $ | 116,166 | $ | — | $ | 99 | 2 | $ | 85,553 | $ | — | $ | 56 | (D) | ||||||||||||||||||
Permanent Capital Vehicles | 5 | 14,012,405 | 9,646,658 | 144,456 | 5 | 14,539,141 | 10,336,207 | 154,346 | (C) | ||||||||||||||||||||||||
Liquid Hedge Funds | 4 | 2,689,349 | 385,041 | 54,031 | 2 | 3,070,203 | 432,580 | 7,094 | (D) | ||||||||||||||||||||||||
Credit Hedge Funds | 8 | 2,128,044 | 398,930 | 4,551 | 8 | 1,976,328 | 152,806 | 25,474 | (D) (E) | ||||||||||||||||||||||||
Credit PE Funds | 31 | 795,370 | 229,522 | 8,328 | 30 | 735,855 | 143,743 | 5,897 | (D) (E) | ||||||||||||||||||||||||
Fortress is Primary Beneficiary | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Business | Number of VIEs | Gross Assets (A) | Financial Obligations (A) | Fortress Investment (B) | Number of VIEs | Gross Assets (A) | Financial Obligations (A) | Fortress Investment (B) | Notes | ||||||||||||||||||||||||
Private Equity Funds | 9 | $ | 70,668 | $ | — | $ | 20,035 | 9 | $ | 90,723 | $ | — | $ | 20,368 | (F) (G) | ||||||||||||||||||
Liquid Hedge Funds | 1 | 7,811 | — | 3,595 | 3 | 8,714 | — | 4,125 | (F) | ||||||||||||||||||||||||
Credit PE Funds | 2 | 440 | — | 20 | 2 | 434 | — | 22 | (F) | ||||||||||||||||||||||||
Logan Circle | 1 | 5,160 | — | 4,857 | 1 | 6,566 | — | 4,783 | (F) | ||||||||||||||||||||||||
(A) | Represents financial obligations of the VIEs which are not recourse to Fortress and assets of the VIEs which Fortress does not have the right to make use of to satisfy its obligations. Financial obligations include financial borrowings, derivative liabilities and short securities. In many cases, these VIEs have additional debt within unconsolidated subsidiaries. The debt obligations of the VIEs are not cross collateralized with the debt obligations of Fortress. Fortress has no obligation to satisfy the liabilities of the VIEs. The VIE’s debt obligations have no impact on Fortress’s cash flows and its ability to borrow or comply with its debt covenants under its revolving credit agreement. | ||||||||||||||||||||||||||||||||
(B) | Represents Fortress’s maximum exposure to loss with respect to these entities, which includes investments in these entities, plus any receivables due from these entities. In addition to the table above, Fortress is exposed to potential changes in cash flow and revenues attributable to the management fees and/or incentive income Fortress earns from those entities. For VIEs where Fortress is deemed to be the primary beneficiary, these investments and receivables are eliminated in consolidation but still represent Fortress’s economic exposure to the VIEs. | ||||||||||||||||||||||||||||||||
(C) | Includes permanent capital vehicles that are a VIE because the entity's at-risk equity holders as a group lack the characteristics of a controlling financial interest because the group of at-risk equity holders does not have the power, through voting rights or similar rights, to direct the activities that most significantly affect the success of the entity or impact the entity's economic performance. Fortress is not the primary beneficiary of these entities. Fortress and its related parties under common control as a group, where applicable, do not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to these entities. | ||||||||||||||||||||||||||||||||
(D) | Includes entities, primarily investing vehicles set up on behalf of the Fortress Funds to make investments, that are a VIE because the entity’s at-risk equity holders as a group lack the characteristics of a controlling financial interest because either (i) the group of at-risk equity holders does not have the power, through voting rights or similar rights, to direct the activities that most significantly affect the success of the entity or impact the entity's economic performance and/or (ii) the voting rights of an investor are not proportional to its obligation to absorb the income or loss of the entity and substantially all of the entity’s activities either involve or are conducted on behalf of that investor and its related parties. Fortress is not the primary beneficiary of these entities. Fortress and its related parties under common control as a group, where applicable, do not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to these entities. Due to a reconsideration in January 2015, Fortress no longer has the power to direct the activities that most significantly impact the economic performance of certain VIEs in the liquid hedge fund business. Therefore, Fortress is no longer deemed to be the primary beneficiary of these VIEs as of the reconsideration date. | ||||||||||||||||||||||||||||||||
(E) | Includes entities that are VIEs because the entity's equity investment at-risk is determined to be insufficient. Fortress is not the primary beneficiary of these entities because Fortress does not have the power to direct the activities that most significantly impact the economic performance of these entities. These entities represent an insignificant portion of the amounts presented in the table. | ||||||||||||||||||||||||||||||||
(F) | Includes entities that are a VIE because the entity's at-risk equity holders as a group lack the characteristics of a controlling financial interest because the group of at-risk equity holders does not have the power, through voting rights or similar rights, to direct the activities that most significantly affect the success of the entity or impact the entity's economic performance. Fortress is the investment manager of these entities. Fortress is determined to be the primary beneficiary of these entities since it has both power over the activities that most significantly affect the success of the entity or impact the entity’s economic performance and has the right to receive benefits or the obligation to absorb losses from the VIE that potentially could be significant to the entity. Due to a reconsideration in January 2015, Fortress no longer has the power to direct the activities that most significantly impact the economic performance of certain VIEs in the liquid hedge fund business. Therefore, Fortress is no longer deemed to be the primary beneficiary of these VIEs as of the reconsideration date. | ||||||||||||||||||||||||||||||||
(G) | Includes an entity that is a VIE because the entity’s equity investment at risk is determined to be insufficient. Fortress, as a result of directing the operations of the entity through its management contracts with certain funds, and providing financial support to the entity, was deemed to be its primary beneficiary. | ||||||||||||||||||||||||||||||||
Schedule of information regarding the entity's financial instruments that are recorded at fair value | The following table presents information regarding Fortress’s financial instruments that are recorded at fair value. Investments denominated in foreign currencies have been translated at the period end exchange rate. Changes in fair value are recorded in Gains (Losses). | ||||||||||||||||||||||||||||||||
Fair Value | Valuation Method | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Assets (within Investments) | |||||||||||||||||||||||||||||||||
Common shares of publicly traded permanent capital vehicles | $ | 15,537 | $ | 14,172 | Level 1 - Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||
Common stock of publicly traded | 1,267 | 1,035 | Level 1 - Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||||
private equity portfolio companies | |||||||||||||||||||||||||||||||||
Total equity method investments | $ | 16,804 | $ | 15,207 | |||||||||||||||||||||||||||||
carried at fair value | |||||||||||||||||||||||||||||||||
Options in equity method investees | $ | 108,120 | $ | 71,844 | Level 2 - Option valuation models using significant observable inputs | ||||||||||||||||||||||||||||
Assets (within Other Assets) | |||||||||||||||||||||||||||||||||
Derivatives | $ | 28,156 | $ | 27,105 | Level 2 - See below | ||||||||||||||||||||||||||||
$ | — | $ | 17,627 | Level 1 - Quoted prices in active markets for identical assets | |||||||||||||||||||||||||||||
Equity Securities (A) | |||||||||||||||||||||||||||||||||
Liabilities (within Accrued | |||||||||||||||||||||||||||||||||
Compensation and Benefits) | |||||||||||||||||||||||||||||||||
Options in affiliates granted to | $ | (14,440 | ) | $ | (8,356 | ) | Level 2 - Option valuation models using significant observable inputs | ||||||||||||||||||||||||||
employees | |||||||||||||||||||||||||||||||||
Liabilities (within Other Liabilities) | |||||||||||||||||||||||||||||||||
Derivatives | $ | (1,166 | ) | $ | (932 | ) | Level 2 - See below | ||||||||||||||||||||||||||
(A) | The equity securities are held at fair value and classified as trading. All equity securities were sold during the three months ended March 31, 2015. | ||||||||||||||||||||||||||||||||
Schedule of the entity's derivatives (not designated as hedges) | Fortress’s derivatives (not designated as hedges) are recorded as follows: | ||||||||||||||||||||||||||||||||
Balance Sheet | March 31, 2015 (or three months ended) | Maturity | |||||||||||||||||||||||||||||||
Classification (A) | Fair Value | Notional Amount | Gains/(Losses) (B) | Date | |||||||||||||||||||||||||||||
Foreign exchange option contracts | Other Assets | $ | 25,910 | ¥ | 42,184,512 | $ | 1,046 | Jun-15 - Mar-18 | |||||||||||||||||||||||||
Foreign exchange option contracts | Other Liabilities | $ | (1,161 | ) | ¥ | 5,225,916 | $ | (24 | ) | Jun-15 - Mar-16 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other Assets | $ | 2,246 | ¥ | 2,853,587 | $ | 6 | Jun-15 - Jun-16 | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other Liabilities | $ | (5 | ) | ¥ | 912,500 | $ | 87 | 17-Dec | ||||||||||||||||||||||||
(A) | Fortress has a master netting agreement with its counterparty. | ||||||||||||||||||||||||||||||||
(B) | Reflects unrealized gains (losses) related to contracts existing at period end. Total net foreign exchange gains (losses) from derivatives were $1.1 million and $(1.3) million during the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||||||||||
Offsetting of financial assets and derivative assets | The following tables summarizes the fair value of Fortress's derivative contacts on a gross basis and any amount of offset as permitted by netting agreements as of March 31, 2015. | ||||||||||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||||||||||
Gross Amounts Offset | Assets Presented | ||||||||||||||||||||||||||||||||
Gross Amounts of | in the Consolidated | in the Consolidated | |||||||||||||||||||||||||||||||
Recognized Assets as of | Balance Sheet as of | Balance Sheet as of | |||||||||||||||||||||||||||||||
Offsetting of Derivative Assets | March 31, 2015 | 31-Mar-15 | March 31, 2015 | ||||||||||||||||||||||||||||||
Foreign exchange option contracts | $ | 28,476 | $ | (2,566 | ) | $ | 25,910 | ||||||||||||||||||||||||||
Foreign exchange forward contracts | 2,246 | — | 2,246 | ||||||||||||||||||||||||||||||
$ | 30,722 | $ | (2,566 | ) | $ | 28,156 | |||||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||||||||||
Gross Amounts Offset | Liabilities Presented | ||||||||||||||||||||||||||||||||
Gross Amounts of | in the Consolidated | in the Consolidated | |||||||||||||||||||||||||||||||
Recognized Liabilities as of | Balance Sheet as of | Balance Sheet as of | |||||||||||||||||||||||||||||||
Offsetting of Derivative Liabilities | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | ||||||||||||||||||||||||||||||
Foreign exchange option contracts | $ | (1,754 | ) | $ | 593 | $ | (1,161 | ) | |||||||||||||||||||||||||
Foreign exchange forward contracts | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||||||
$ | (1,759 | ) | $ | 593 | $ | (1,166 | ) | ||||||||||||||||||||||||||
Offsetting of financial liabilities and derivative liabilities | The following tables summarizes the fair value of Fortress's derivative contacts on a gross basis and any amount of offset as permitted by netting agreements as of March 31, 2015. | ||||||||||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||||||||||
Gross Amounts Offset | Assets Presented | ||||||||||||||||||||||||||||||||
Gross Amounts of | in the Consolidated | in the Consolidated | |||||||||||||||||||||||||||||||
Recognized Assets as of | Balance Sheet as of | Balance Sheet as of | |||||||||||||||||||||||||||||||
Offsetting of Derivative Assets | March 31, 2015 | 31-Mar-15 | March 31, 2015 | ||||||||||||||||||||||||||||||
Foreign exchange option contracts | $ | 28,476 | $ | (2,566 | ) | $ | 25,910 | ||||||||||||||||||||||||||
Foreign exchange forward contracts | 2,246 | — | 2,246 | ||||||||||||||||||||||||||||||
$ | 30,722 | $ | (2,566 | ) | $ | 28,156 | |||||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||||||||||
Gross Amounts Offset | Liabilities Presented | ||||||||||||||||||||||||||||||||
Gross Amounts of | in the Consolidated | in the Consolidated | |||||||||||||||||||||||||||||||
Recognized Liabilities as of | Balance Sheet as of | Balance Sheet as of | |||||||||||||||||||||||||||||||
Offsetting of Derivative Liabilities | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | ||||||||||||||||||||||||||||||
Foreign exchange option contracts | $ | (1,754 | ) | $ | 593 | $ | (1,161 | ) | |||||||||||||||||||||||||
Foreign exchange forward contracts | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||||||
$ | (1,759 | ) | $ | 593 | $ | (1,166 | ) | ||||||||||||||||||||||||||
DEBT_OBLIGATIONS_Tables
DEBT OBLIGATIONS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of debt instruments | ||||||||||||||||
Face Amount and Carrying Value | Contractual | Final | 31-Mar-15 | |||||||||||||
March 31, | December 31, | Interest | Stated | Amount | ||||||||||||
Debt Obligation | 2015 | 2014 | Rate | Maturity | Available for Draws | |||||||||||
Revolving credit agreement (A)(B) | $ | 75,000 | $ | 75,000 | LIBOR + 2.50% (C) | Feb-16 | $ | 72,332 | ||||||||
Total | $ | 75,000 | $ | 75,000 | ||||||||||||
(A) | Collateralized by substantially all of Fortress Operating Group’s assets as well as Fortress Operating Group’s rights to fees from the Fortress Funds and its equity interests therein, other than fees from Fortress's senior living property manager. | |||||||||||||||
(B) | The $150.0 million revolving debt facility includes a $15.0 million letter of credit subfacility of which $2.7 million was utilized. | |||||||||||||||
(C) | Subject to unused commitment fees of 0.4% per annum. | |||||||||||||||
Schedule of the financial covenant requirements | The following table sets forth the financial covenant requirements as of March 31, 2015. | |||||||||||||||
31-Mar-15 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Requirement | Actual | Notes | ||||||||||||||
AUM, as defined | ≥ | $ | 25,000 | $ | 43,606 | (A) | ||||||||||
Consolidated Leverage Ratio | ≤ | 2 | 0.24 | (B) | ||||||||||||
Consolidated Interest Coverage Ratio | ≥ | 4 | 88.43 | (B) | ||||||||||||
(A) | Impacted by capital raised in funds, redemptions from funds, and valuations of fund investments. The AUM presented here is based on the definition of Management Fee Earning Assets contained in the Credit Agreement. | |||||||||||||||
(B) | The Consolidated Leverage Ratio is equal to Adjusted Net Funded Indebtedness, as defined, divided by the trailing four quarters’ Consolidated EBITDA, as defined. The Consolidated Interest Coverage Ratio is equal to the quotient of (A) the trailing four quarters' Consolidated EBITDA, as defined, divided by (B) the trailing four quarters' interest charges as defined in the Credit Agreement. Consolidated EBITDA, as defined, is impacted by the same factors as distributable earnings, except Consolidated EBITDA is not impacted by changes in clawback reserves or gains and losses, including impairment, on investments. |
INCOME_TAXES_AND_TAX_RELATED_P1
INCOME TAXES AND TAX RELATED PAYMENTS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of components of provision for income taxes | The provision for income taxes consists of the following: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Current | ||||||||
Federal income tax expense (benefit) | $ | (3,121 | ) | $ | (68 | ) | ||
Foreign income tax expense (benefit) | 1,127 | 3,138 | ||||||
State and local income tax expense (benefit) | 1,879 | 438 | ||||||
(115 | ) | 3,508 | ||||||
Deferred | ||||||||
Federal income tax expense (benefit) | 12,987 | 1,517 | ||||||
Foreign income tax expense (benefit) | 3,542 | 783 | ||||||
State and local income tax expense (benefit) | 1,985 | 186 | ||||||
18,514 | 2,486 | |||||||
Total expense (benefit) | $ | 18,399 | $ | 5,994 | ||||
Schedule of tax effects of temporary differences that have resulted in deferred income tax assets and liabilities | The tax effects of temporary differences have resulted in deferred income tax assets and liabilities as follows: | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Total deferred tax assets | $ | 425,962 | $ | 439,159 | ||||
Less: | ||||||||
Valuation allowance | (13,907 | ) | (13,072 | ) | ||||
Deferred tax liabilities (A) | (14,277 | ) | (8,464 | ) | ||||
Deferred tax assets, net | $ | 397,778 | $ | 417,623 | ||||
(A) | The deferred tax liabilities primarily relate to timing differences in the recognition of income from options received from certain permanent capital vehicles. Deferred tax assets are shown net of deferred tax liabilities since they are both primarily of similar tax character and tax jurisdiction. | |||||||
Summary of the change in the deferred tax asset valuation allowance | The following table summarizes the change in the deferred tax asset valuation allowance: | |||||||
Valuation Allowance at December 31, 2014 | $ | 13,072 | ||||||
Changes due to FIG Corp. ownership change | 1 | |||||||
Net increases (A) | 834 | |||||||
Valuation Allowance at March 31, 2015 | $ | 13,907 | ||||||
(A) | Primarily related to the change in the portion of the deferred tax asset that would be realized in connection with future capital gains. |
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of components of due from affiliates | Due from affiliates was comprised of the following: | |||||||||||||||||||||||||||||||
Private Equity | Liquid | Credit | ||||||||||||||||||||||||||||||
Permanent | Hedge | Hedge | Logan | |||||||||||||||||||||||||||||
Funds | Capital Vehicles | Funds | Funds | PE Funds | Circle | Other | Total | |||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 37,327 | $ | 14,545 | $ | 5,957 | $ | 7,487 | $ | 20,686 | $ | 621 | $ | — | $ | 86,623 | ||||||||||||||||
Expense reimbursements (A) | 18,926 | 8,548 | 16,738 | 9,427 | 10,624 | 61 | — | 64,324 | ||||||||||||||||||||||||
Dividends and distributions | — | 291 | — | — | — | — | — | 291 | ||||||||||||||||||||||||
Other | — | — | 169 | — | — | — | 16,769 | 16,938 | ||||||||||||||||||||||||
Total | $ | 56,253 | $ | 23,384 | $ | 22,864 | $ | 16,914 | $ | 31,310 | $ | 682 | $ | 16,769 | $ | 168,176 | ||||||||||||||||
Private Equity | Liquid | Credit | ||||||||||||||||||||||||||||||
Permanent | Hedge | Hedge | Logan | |||||||||||||||||||||||||||||
Funds | Capital Vehicles | Funds | Funds | PE Funds | Circle | Other | Total | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 35,970 | $ | 65,043 | $ | 15,634 | $ | 96,996 | $ | 18,393 | $ | 1,089 | $ | — | $ | 233,125 | ||||||||||||||||
Expense reimbursements (A) | 35,995 | 6,473 | 12,940 | 9,264 | 10,077 | 164 | — | 74,913 | ||||||||||||||||||||||||
Dividends and distributions | — | 295 | — | — | — | — | — | 295 | ||||||||||||||||||||||||
Other | — | 1,346 | — | — | — | — | 16,896 | 18,242 | ||||||||||||||||||||||||
Total | $ | 71,965 | $ | 73,157 | $ | 28,574 | $ | 106,260 | $ | 28,470 | $ | 1,253 | $ | 16,896 | $ | 326,575 | ||||||||||||||||
(A) | Net of allowances for uncollectible management fees and expense reimbursements of $12.2 million and $6.7 million as of March 31, 2015, respectively, and of $12.2 million and $6.6 million as of December 31, 2014, respectively. Allowances are recorded as General and Administrative expenses. | |||||||||||||||||||||||||||||||
Schedule of components of due to affiliates | Due to affiliates was comprised of the following: | |||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Principals - tax receivable agreement - Note 5 | $ | 289,338 | $ | 289,324 | ||||||||||||||||||||||||||||
Principals - Principal Performance Payments - Note 7 | 3,481 | 30,659 | ||||||||||||||||||||||||||||||
Distributions payable on Fortress Operating Group units | 11,142 | — | ||||||||||||||||||||||||||||||
Other | 5,589 | 11,411 | ||||||||||||||||||||||||||||||
General partner liability - Note 9 | 44,572 | 44,030 | ||||||||||||||||||||||||||||||
Total | $ | 354,122 | $ | 375,424 | ||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The following table represents the activity in Redeemable Non-controlling Interests as presented in the consolidated balance sheets: | |||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,717 | ||||||||||||||||||||||||||||||
Capital distributions | (1,592 | ) | ||||||||||||||||||||||||||||||
Redeemable Non-controlling Interests in income (loss) of Consolidated Subsidiaries | (16 | ) | ||||||||||||||||||||||||||||||
$ | 109 | |||||||||||||||||||||||||||||||
Amounts related to equity interests, which are held by the Principals, employees, and others | This balance sheet caption was comprised of the following: | |||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and a former senior | $ | 514,935 | $ | 556,720 | ||||||||||||||||||||||||||||
employee | ||||||||||||||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 66,447 | 80,333 | ||||||||||||||||||||||||||||||
Other | 2,251 | 2,303 | ||||||||||||||||||||||||||||||
Total | $ | 583,633 | $ | 639,356 | ||||||||||||||||||||||||||||
Portion of interest of Fortress Operating Group | The Fortress Operating Group portion of these interests is computed as follows: | |||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Fortress Operating Group equity (Note 12) | $ | 1,058,115 | $ | 1,152,297 | ||||||||||||||||||||||||||||
Less: Others' interests in equity of consolidated subsidiaries (Note 12) | (68,698 | ) | (82,636 | ) | ||||||||||||||||||||||||||||
Total Fortress shareholders' equity in Fortress Operating Group | $ | 989,417 | $ | 1,069,661 | ||||||||||||||||||||||||||||
Fortress Operating Group units outstanding (A) | 226,331,513 | 226,331,513 | ||||||||||||||||||||||||||||||
Class A shares outstanding | 208,554,885 | 208,535,157 | ||||||||||||||||||||||||||||||
Total | 434,886,398 | 434,866,670 | ||||||||||||||||||||||||||||||
Fortress Operating Group units as a percent of total (B) | 52 | % | 52 | % | ||||||||||||||||||||||||||||
Equity of Fortress Operating Group units held by the Principals and | $ | 514,935 | $ | 556,720 | ||||||||||||||||||||||||||||
a former senior employee | ||||||||||||||||||||||||||||||||
(A) | Held by the Principals and a former senior employee; exclusive of Class A shares. | |||||||||||||||||||||||||||||||
(B) | As a result, the Registrant owned 48.0% of Fortress Operating Group as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||||
Statement of operations caption comprising of shares of consolidated net income (loss) | This statement of operations caption was comprised of shares of consolidated net income (loss) related to the following: | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and a former senior | $ | 51,605 | $ | 5,058 | ||||||||||||||||||||||||||||
employee | ||||||||||||||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 840 | 1,011 | ||||||||||||||||||||||||||||||
Other | (222 | ) | 8 | |||||||||||||||||||||||||||||
Total | $ | 52,223 | $ | 6,077 | ||||||||||||||||||||||||||||
Schedule of interest computation of an entity | The Fortress Operating Group portion of these interests is computed as follows: | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Fortress Operating Group net income (loss) (Note 12) | $ | 99,759 | $ | 10,826 | ||||||||||||||||||||||||||||
Adjust: | ||||||||||||||||||||||||||||||||
Others' interests in net (income) loss of consolidated subsidiaries (Note 12) | (618 | ) | (1,019 | ) | ||||||||||||||||||||||||||||
Redeemable Non-controlling interests in (income) loss of Consolidated | 16 | — | ||||||||||||||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||||||||||
Total Fortress shareholders' net income (loss) in Fortress Operating Group | $ | 99,157 | $ | 9,807 | ||||||||||||||||||||||||||||
Fortress Operating Group as a percent of total (A) | 52 | % | 51.6 | % | ||||||||||||||||||||||||||||
Fortress Operating Group net income (loss) attributable to the Principals and a former senior employee | $ | 51,605 | $ | 5,058 | ||||||||||||||||||||||||||||
(A) | Represents the weighted average percentage of total Fortress shareholders' net income (loss) in Fortress Operating Group attributable to the Principals and a former senior employee. | |||||||||||||||||||||||||||||||
Statement showing effects of changes in the entity's ownership interest in Fortress Operating Group on the entity's equity | The purpose of this schedule is to disclose the effects of changes in Fortress’s ownership interest in Fortress Operating Group on Fortress’s equity: | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Net Income (loss) attributable to Class A shareholders | $ | 34,713 | $ | 3,024 | ||||||||||||||||||||||||||||
Transfers (to) from the Principals' and Others' Interests: | ||||||||||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the conversion of Fortress Operating Group units by the Principals and a former senior employee | — | — | ||||||||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the delivery of Class A shares primarily in connection with vested RSUs | 25 | 417 | ||||||||||||||||||||||||||||||
Increase in Fortress's shareholders' equity for the public offering of | — | 53,510 | ||||||||||||||||||||||||||||||
Class A shares and repurchase of Class B shares and FOGUs | ||||||||||||||||||||||||||||||||
Decrease in Fortress's shareholders' equity for the repurchase and cancellation of Class A shares and FOGUs | — | (101,156 | ) | |||||||||||||||||||||||||||||
Change from net income (loss) attributable to Fortress and transfers (to) from Principals’ and Others' Interests | $ | 34,738 | $ | (44,205 | ) | |||||||||||||||||||||||||||
EQUITYBASED_AND_OTHER_COMPENSA1
EQUITY-BASED AND OTHER COMPENSATION (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of total compensation and benefits expense, excluding Principals Agreement Compensation, but including Principal Performance Payments | Fortress’s total compensation and benefits expense, including Principal Performance Payments, is comprised of the following: | |||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Equity-based compensation, per below | $ | 14,345 | $ | 8,673 | ||||||||||
Profit-sharing expense, per below | 38,912 | 64,323 | ||||||||||||
Discretionary bonuses | 62,581 | 57,438 | ||||||||||||
Other payroll, taxes and benefits | 63,050 | 58,085 | ||||||||||||
$ | 178,888 | $ | 188,519 | |||||||||||
Schedule of equity-based compensation activities | The following tables set forth information regarding equity-based compensation activities. | |||||||||||||
RSUs | ||||||||||||||
Employees | Non-Employees | |||||||||||||
Number | Value (A) | Number | Value (A) | |||||||||||
Outstanding at December 31, 2014 | 20,153,746 | $ | 5.52 | 396,874 | $ | 6.51 | ||||||||
Issued | 11,875,354 | 6.89 | 111,540 | 7.61 | ||||||||||
Transfers | — | — | — | — | ||||||||||
Converted to Class A shares | — | — | — | — | ||||||||||
Forfeited | (363,545 | ) | 6.18 | — | — | |||||||||
Outstanding at March 31, 2015 (B) | 31,665,555 | $ | 6.02 | 508,414 | $ | 6.76 | ||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Expense incurred (B) | ||||||||||||||
Employee RSUs | $ | 11,004 | $ | 5,887 | ||||||||||
Non-Employee RSUs | 982 | 6 | ||||||||||||
Principal Performance Payments (C) | 2,359 | 2,780 | ||||||||||||
Total equity-based compensation expense | $ | 14,345 | $ | 8,673 | ||||||||||
(A) | Represents the weighted average grant date estimated fair value per share or unit. | |||||||||||||
(B) | In future periods, Fortress will further recognize compensation expense on its non-vested equity based awards outstanding as of March 31, 2015 of $118.3 million, with a weighted average recognition period of 4.2 years. | |||||||||||||
(C) | Accrued based on year-to-date performance; the actual number of RSUs granted are determined at year end. Based on year-to-date performance, a total of approximately 0.3 million RSUs would be awarded as Principal Performance Payments. | |||||||||||||
Schedule of the expense accrual for the Principal Performance Payments by segment | The expense for Principal Performance Payments was comprised of the following: | |||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||
Equity-Based | Profit Sharing | Total | ||||||||||||
Compensation | Expense | |||||||||||||
Private equity business | $ | — | $ | — | $ | — | ||||||||
Liquid hedge fund business | 499 | 280 | 779 | |||||||||||
Credit business | 1,860 | 2,523 | 4,383 | |||||||||||
Total | $ | 2,359 | $ | 2,803 | $ | 5,162 | ||||||||
Schedule of recognized profit sharing compensation expense | Recognized profit sharing compensation expense (benefit) is summarized as follows: | |||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Private equity funds | $ | — | $ | — | ||||||||||
Permanent capital vehicles | 6,499 | 4,916 | ||||||||||||
Liquid hedge funds | 4,053 | 2,463 | ||||||||||||
Credit hedge funds | 11,609 | 15,634 | ||||||||||||
Credit PE funds | 13,948 | 34,412 | ||||||||||||
Principal Performance Payments (A) | 2,803 | 6,898 | ||||||||||||
Total | $ | 38,912 | $ | 64,323 | ||||||||||
(A) | Relates to all applicable segments. Accrued based on year-to-date performance; the actual payments due to each Principal are determined at year end. |
EARNINGS_PER_SHARE_AND_DISTRIB1
EARNINGS PER SHARE AND DISTRIBUTIONS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Schedule of computations of basic and diluted net income (loss) per Class A share | The computations of basic and diluted net income (loss) per Class A share are set forth below: | |||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Basic | Diluted | |||||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 207,713,350 | 207,713,350 | ||||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 7,231,768 | 7,231,768 | ||||||||||||||
Fully vested restricted Class A shares | 840,658 | 840,658 | ||||||||||||||
Fortress Operating Group units exchangeable into | — | — | ||||||||||||||
Class A shares (1) | ||||||||||||||||
Class A restricted shares and Class A restricted share units granted to employees and directors (eligible for dividend and dividend equivalent payments) (2) | — | — | ||||||||||||||
Class A restricted share units granted to employees (not eligible for dividend and dividend equivalent payments) (3) | — | 5,749,413 | ||||||||||||||
Total weighted average shares outstanding | 215,785,776 | 221,535,189 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 34,713 | $ | 34,713 | ||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated to, non-vested restricted Class A shares and restricted Class A share units (2) | (2,125 | ) | (2,125 | ) | ||||||||||||
Add back Principals' and others' interests in income of Fortress Operating Group, net of assumed income taxes at enacted rates, attributable to Fortress Operating Group units (1) | — | — | ||||||||||||||
Net income (loss) available to Class A shareholders | $ | 32,588 | $ | 32,588 | ||||||||||||
Weighted average shares outstanding | 215,785,776 | 221,535,189 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0.15 | $ | 0.15 | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Basic | Diluted | |||||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 212,061,656 | 212,061,656 | ||||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 3,899,986 | 3,899,986 | ||||||||||||||
Fully vested restricted Class A shares | 973,275 | 973,275 | ||||||||||||||
Fortress Operating Group units exchangeable into Class A shares (1) | — | — | ||||||||||||||
Class A restricted shares and Class A restricted share units granted to employees and | — | 1,450,688 | ||||||||||||||
directors (eligible for dividend and dividend equivalent payments) (2) | ||||||||||||||||
Class A restricted share units granted to employees (not eligible for dividend and | — | 10,648,173 | ||||||||||||||
dividend equivalent payments) (3) | ||||||||||||||||
Total weighted average shares outstanding | 216,934,917 | 229,033,778 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 3,024 | $ | 3,024 | ||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated | (204 | ) | (204 | ) | ||||||||||||
to, non-vested restricted Class A shares and restricted Class A share units (2) | ||||||||||||||||
Add back Principals' and others' interests in income of Fortress Operating | — | — | ||||||||||||||
Group, net of assumed income taxes at enacted rates, attributable to | ||||||||||||||||
Fortress Operating Group units (1) | ||||||||||||||||
Net income (loss) available to Class A shareholders | $ | 2,820 | $ | 2,820 | ||||||||||||
Weighted average shares outstanding | 216,934,917 | 229,033,778 | ||||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0.01 | $ | 0.01 | ||||||||||||
-1 | The Fortress Operating Group units not held by Fortress (that is, those held by the Principals and a former senior employee) are exchangeable into Class A shares on a one-to-one basis. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income (loss) per Class A share when the effect is dilutive using the if-converted method, which includes the income tax effects of nondiscretionary adjustments to the net income (loss) attributable to Class A shareholders from assumed conversion of these units. To the extent charges, particularly tax related charges, are incurred by the Registrant (i.e. not at the Fortress Operating Group level), the effect may be anti-dilutive. | |||||||||||||||
-2 | Restricted Class A shares granted to directors and certain restricted Class A share units granted to employees are eligible to receive dividend or dividend equivalent payments when dividends are declared and paid on Fortress’s Class A shares and therefore participate fully in the results of Fortress’s operations from the date they are granted. They are considered in the computation of both basic and diluted earnings per Class A share using the two-class method for participating securities, except during periods of net losses. | |||||||||||||||
-3 | Certain restricted Class A share units granted to employees are not entitled to dividend or dividend equivalent payments until they are vested and are therefore non-participating securities. These units are not included in the computation of basic earnings per share. They are included in the computation of diluted earnings per share when the effect is dilutive using the treasury stock method. The effect of the units on the calculation is generally anti-dilutive during periods of net losses. The weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding were: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Share Units | 11,703,251 | 12,436,247 | ||||||||||||||
Schedule of weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding | The weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding were: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Share Units | 11,703,251 | 12,436,247 | ||||||||||||||
Schedule of Fortress's dividend paying shares and units | Fortress’s dividend paying shares and units were as follows: | |||||||||||||||
Weighted Average | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Class A shares | 207,713,350 | 212,061,656 | ||||||||||||||
Restricted Class A shares (directors) | 840,658 | 973,275 | ||||||||||||||
Restricted Class A share units (employees) (A) | 7,231,768 | 3,899,986 | ||||||||||||||
Restricted Class A share units (employees) (B) | 8,347,402 | 5,997,586 | ||||||||||||||
Fortress Operating Group units (Principals and a former senior | 226,331,513 | 245,925,038 | ||||||||||||||
employee) | ||||||||||||||||
Total | 450,464,691 | 468,857,541 | ||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||
Class A shares | 207,713,350 | 207,490,023 | ||||||||||||||
Restricted Class A shares (directors) | 841,535 | 1,045,134 | ||||||||||||||
Restricted Class A share units (employees) (A) | 7,567,557 | 194,287 | ||||||||||||||
Restricted Class A share units (employees) (B) | 11,159,183 | 7,002,003 | ||||||||||||||
Fortress Operating Group units (Principals and a former senior | 226,331,513 | 226,331,513 | ||||||||||||||
employee) | ||||||||||||||||
Total | 453,613,138 | 442,062,960 | ||||||||||||||
(A) | Represents fully vested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
(B) | Represents unvested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
Schedule of Fortress's dividends and distributions | Dividends and distributions during the three months ended March 31, 2015 are summarized as follows: | |||||||||||||||
Declared in Current Year | ||||||||||||||||
Declared in Prior Year, Paid in Current Year | Declared and Paid | Declared but not yet Paid | Total | |||||||||||||
Dividends on Class A Shares | $ | — | $ | 79,251 | $ | — | $ | 79,251 | ||||||||
Dividend equivalents on restricted Class A share units (A) | — | 7,116 | — | 7,116 | ||||||||||||
Distributions to Fortress Operating Group unit holders | ||||||||||||||||
(Principals and a former senior employee) (B) | — | 86,006 | 11,142 | 97,148 | ||||||||||||
Total distributions | $ | — | $ | 172,373 | $ | 11,142 | $ | 183,515 | ||||||||
(A) | A portion of these dividend equivalents, if any, related to RSUs expected to be forfeited, is included as compensation expense in the consolidated statement of operations and is therefore considered an operating cash flow. | |||||||||||||||
(B) | Fortress Operating Group made tax-related distributions to the FOG unit holders (the Principals and a former senior employee). |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of minimum future rental payments (excluding expense escalations) under operating leases | Minimum future rental payments (excluding expense escalations) under these leases are as follows: | |||
April 1, 2015 to December 31, 2015 | $ | 19,061 | ||
2016 | 23,532 | |||
2017 | 12,747 | |||
2018 | 20,228 | |||
2019 | 19,612 | |||
2020 | 19,561 | |||
Thereafter | 259,822 | |||
Total | $ | 374,563 | ||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||
Clawback Reserve on Incentive Income for DE Purposes | Fortress had recognized incentive income for DE purposes from certain private equity funds, credit PE funds and the private permanent capital vehicle, which are subject to contingent clawback, as of March 31, 2015: | ||||||||||||||||||||||||||||||||
Fund (A) | Net Intrinsic Clawback (B) | Periods in Intrinsic Clawback | Prior Year End Inception-to-Date Net DE Reserve | Current | Current | Inception-to-Date Net DE Reserve | Notes | ||||||||||||||||||||||||||
Year-to-Date Gross DE Reserve (Reversal) | Year-to-Date Net DE Reserve (Reversal) | ||||||||||||||||||||||||||||||||
Fund III | $ | 45,108 | 29 Quarters | $ | 45,108 | $ | — | $ | — | $ | 45,108 | (C) | |||||||||||||||||||||
Total | $ | 45,108 | $ | 45,108 | $ | — | $ | — | $ | 45,108 | |||||||||||||||||||||||
(A) | Fortress has recognized incentive income for DE purposes from the following funds, which do not have intrinsic clawback and for which Fortress's CODM has determined no clawback reserve is necessary: WWTAI, Credit Opportunities Fund, Credit Opportunities Fund II, certain FCO Managed Accounts, Real Estate Opportunities Fund, Real Estate Opportunities REOC Fund, Net Lease Fund I, Japan Opportunity Fund and Global Opportunities Fund. | ||||||||||||||||||||||||||||||||
(B) | See Note 2. | ||||||||||||||||||||||||||||||||
(C) | The potential clawback on this fund has been fully reserved in prior periods. | ||||||||||||||||||||||||||||||||
Summary of financial data on Fortress's segments | March 31, 2015 and the Three Months Then Ended | ||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||
Permanent | Liquid | Credit | |||||||||||||||||||||||||||||||
Funds | Capital Vehicles | Hedge Funds | Hedge Funds | PE Funds | Logan Circle | Unallocated | Total | ||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||||||
Management fees | $ | 29,140 | $ | 19,202 | $ | 20,989 | $ | 29,664 | $ | 26,348 | $ | 13,261 | $ | — | $ | 138,604 | |||||||||||||||||
Incentive income | — | 3,020 | 891 | 23,165 | 24,148 | 134 | — | 51,358 | |||||||||||||||||||||||||
Segment revenues - total | $ | 29,140 | $ | 22,222 | $ | 21,880 | $ | 52,829 | $ | 50,496 | $ | 13,395 | $ | — | $ | 189,962 | |||||||||||||||||
Fund management distributable | $ | 14,976 | $ | 3,769 | $ | (2,503 | ) | $ | 23,105 | $ | 6,366 | $ | (863 | ) | $ | — | $ | 44,850 | |||||||||||||||
earnings (loss) before earnings | |||||||||||||||||||||||||||||||||
from Affiliated Managers and | |||||||||||||||||||||||||||||||||
Principal Performance Payments (B) | |||||||||||||||||||||||||||||||||
Fund management distributable | $ | 14,976 | $ | 3,769 | $ | 6,779 | $ | 23,105 | $ | 6,366 | $ | (863 | ) | $ | — | $ | 54,132 | ||||||||||||||||
earnings (loss) before Principal | |||||||||||||||||||||||||||||||||
Performance Payments | |||||||||||||||||||||||||||||||||
Fund management distributable | $ | 14,976 | $ | 3,769 | $ | 6,499 | $ | 20,744 | $ | 5,780 | $ | (863 | ) | $ | — | $ | 50,905 | ||||||||||||||||
earnings (loss) | |||||||||||||||||||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 14,998 | $ | 4,109 | $ | 9,590 | $ | 21,731 | $ | 7,029 | $ | (1,119 | ) | $ | (1,141 | ) | $ | 55,197 | |||||||||||||||
Total segment assets | $ | 766,757 | $ | 160,945 | $ | 229,172 | $ | 76,850 | $ | 284,209 | $ | 52,818 | $ | 625,087 | (A) | $ | 2,195,838 | ||||||||||||||||
(A) | Unallocated assets includes cash of $141.6 million and net deferred tax assets of $397.8 million. | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||
Permanent | Liquid | Credit | |||||||||||||||||||||||||||||||
Funds | Capital Vehicles | Hedge Funds | Hedge Funds | PE Funds | Logan Circle | Unallocated | Total | ||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||||||
Management fees | $ | 35,422 | $ | 16,036 | $ | 33,478 | $ | 26,858 | $ | 24,642 | $ | 10,604 | $ | — | $ | 147,040 | |||||||||||||||||
Incentive income | 1,999 | 4,009 | 133 | 31,829 | 65,955 | — | — | 103,925 | |||||||||||||||||||||||||
Segment revenues - total | $ | 37,421 | $ | 20,045 | $ | 33,611 | $ | 58,687 | $ | 90,597 | $ | 10,604 | $ | — | $ | 250,965 | |||||||||||||||||
Fund management distributable | $ | 24,767 | $ | 6,027 | $ | 8,480 | $ | 26,561 | $ | 30,160 | $ | (2,071 | ) | $ | — | $ | 93,924 | ||||||||||||||||
earnings (loss) before Principal | |||||||||||||||||||||||||||||||||
Performance Payments (B) | |||||||||||||||||||||||||||||||||
Fund management distributable earnings (loss) | $ | 24,767 | $ | 5,344 | $ | 7,939 | $ | 22,024 | $ | 29,024 | $ | (2,071 | ) | $ | — | $ | 87,027 | ||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 28,259 | $ | 5,685 | $ | 8,785 | $ | 23,417 | $ | 32,733 | $ | (1,946 | ) | $ | (422 | ) | $ | 96,511 | |||||||||||||||
(B) | See Note 7. Fund management distributable earnings (loss) is only reduced for the profit sharing component of the Principal Performance Payments. | ||||||||||||||||||||||||||||||||
Schedule of reconciliation of net income (loss) | Reconciling items between segment measures and GAAP measures: | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Fund management distributable earnings | $ | 50,905 | $ | 87,027 | |||||||||||||||||||||||||||||
Investment income (loss) | 5,113 | 10,155 | |||||||||||||||||||||||||||||||
Interest expense | (821 | ) | (671 | ) | |||||||||||||||||||||||||||||
Pre-tax distributable earnings | 55,197 | 96,511 | |||||||||||||||||||||||||||||||
Adjust incentive income | |||||||||||||||||||||||||||||||||
Incentive income received from private equity funds, the private permanent capital vehicle and credit PE funds, subject to contingent repayment | (24,544 | ) | (65,955 | ) | |||||||||||||||||||||||||||||
Incentive income received from third parties, subject to | — | (86 | ) | ||||||||||||||||||||||||||||||
contingent repayment | |||||||||||||||||||||||||||||||||
Incentive income from private equity funds, the private permanent capital vehicle and credit PE funds, not subject to contingent repayment | 20,964 | 29,503 | |||||||||||||||||||||||||||||||
Incentive income from hedge funds and Logan Circle, subject to annual performance achievement | (23,169 | ) | (30,494 | ) | |||||||||||||||||||||||||||||
Incentive income received from the sale of shares related to options | — | — | |||||||||||||||||||||||||||||||
Reserve for clawback, gross (see discussion above) | — | (1,999 | ) | ||||||||||||||||||||||||||||||
(26,749 | ) | (69,031 | ) | ||||||||||||||||||||||||||||||
Adjust other income | |||||||||||||||||||||||||||||||||
Distributions of earnings from equity method investees* | (3,842 | ) | (9,228 | ) | |||||||||||||||||||||||||||||
Earnings (losses) from equity method investees* | 26,973 | 17,614 | |||||||||||||||||||||||||||||||
Gains (losses) on options in equity method investees | 32,328 | (4,785 | ) | ||||||||||||||||||||||||||||||
Gains (losses) on other investments | 704 | (4,844 | ) | ||||||||||||||||||||||||||||||
Impairment of investments (see discussion above) | 2,994 | 26 | |||||||||||||||||||||||||||||||
Adjust income from the receipt of options | 4,144 | — | |||||||||||||||||||||||||||||||
Gain on transfer of Graticule (see Note 1) | 134,400 | — | |||||||||||||||||||||||||||||||
197,701 | (1,217 | ) | |||||||||||||||||||||||||||||||
Adjust employee, Principal and director compensation | |||||||||||||||||||||||||||||||||
Adjust employee, Principal and director equity-based compensation expense | (20,460 | ) | (13,320 | ) | |||||||||||||||||||||||||||||
(including publicly traded permanent capital vehicle options assigned) | |||||||||||||||||||||||||||||||||
Adjust employee portion of incentive income from private equity funds, the private permanent capital vehicle and credit PE funds, accrued prior to the realization of incentive income | 84 | 1,135 | |||||||||||||||||||||||||||||||
(20,376 | ) | (12,185 | ) | ||||||||||||||||||||||||||||||
Adjust for the transfer of interest in Graticule (see Note 1) | (101,000 | ) | — | ||||||||||||||||||||||||||||||
Adjust amortization of intangible assets and impairment of goodwill and intangible | (83 | ) | (11 | ) | |||||||||||||||||||||||||||||
assets | |||||||||||||||||||||||||||||||||
Adjust non-controlling interests related to Fortress Operating Group units | (51,605 | ) | (5,058 | ) | |||||||||||||||||||||||||||||
Adjust tax receivable agreement liability | — | — | |||||||||||||||||||||||||||||||
Adjust income taxes | (18,372 | ) | (5,985 | ) | |||||||||||||||||||||||||||||
Total adjustments | (20,484 | ) | (93,487 | ) | |||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Class A Shareholders | 34,713 | 3,024 | |||||||||||||||||||||||||||||||
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 52,223 | 6,077 | |||||||||||||||||||||||||||||||
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | (16 | ) | — | ||||||||||||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 86,920 | $ | 9,101 | |||||||||||||||||||||||||||||
* This adjustment relates to all of the private equity, private permanent capital vehicle and credit PE Fortress Funds and hedge fund special investment accounts in which Fortress has an investment | |||||||||||||||||||||||||||||||||
Schedule of reconciliation of assets | |||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||
Total segment assets | $ | 2,195,838 | |||||||||||||||||||||||||||||||
Adjust equity investments from segment carrying amount | (133 | ) | |||||||||||||||||||||||||||||||
Adjust investments gross of employees' and others' portion | 37,744 | ||||||||||||||||||||||||||||||||
Adjust intangible assets to cost | (22,919 | ) | |||||||||||||||||||||||||||||||
Accrued incentive income subject to annual performance achievement | (23,169 | ) | |||||||||||||||||||||||||||||||
Total assets (GAAP) | $ | 2,187,361 | |||||||||||||||||||||||||||||||
Schedule of reconciliation of revenues | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Total segment revenues | $ | 189,962 | $ | 250,965 | |||||||||||||||||||||||||||||
Adjust management fees | 250 | 292 | |||||||||||||||||||||||||||||||
Adjust incentive income* | (27,135 | ) | (69,031 | ) | |||||||||||||||||||||||||||||
Adjust income from the receipt of options | 4,144 | — | |||||||||||||||||||||||||||||||
Adjust other revenues (including expense reimbursements)** | 59,468 | 54,884 | |||||||||||||||||||||||||||||||
Total revenues (GAAP) | $ | 226,689 | $ | 237,110 | |||||||||||||||||||||||||||||
* Incentive income received from third parties, not subject to contingent repayment of $0.4 million and none during the three months ended March 31, 2015 and March 31, 2014, respectively, are included in segment measures as part of incentive income while included in GAAP as part of other revenues. | |||||||||||||||||||||||||||||||||
** Segment revenues do not include GAAP other revenues, except to the extent they represent management fees or incentive income; such revenues are included elsewhere in the calculation of distributable earnings. | |||||||||||||||||||||||||||||||||
Schedule of Fortress's depreciation and amortization expense by segment | Fortress’s depreciation and amortization expense by segment prior to the allocation of corporate and intra-segment depreciation and amortization expense to the business segments was as follows. Amortization expense, related to intangible assets, is not a component of distributable earnings. | ||||||||||||||||||||||||||||||||
Private Equity | Liquid | Credit | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | Funds | Permanent Capital Vehicles | Hedge Funds | Hedge Funds | PE Funds | Logan Circle | Corporate | Total | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||||
Depreciation | $ | 374 | $ | 235 | $ | 2,043 | $ | 1,390 | $ | 256 | $ | 280 | $ | 670 | $ | 5,248 | |||||||||||||||||
Amortization | — | — | — | — | — | 83 | — | 83 | |||||||||||||||||||||||||
Total | $ | 374 | $ | 235 | $ | 2,043 | $ | 1,390 | $ | 256 | $ | 363 | $ | 670 | $ | 5,331 | |||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Depreciation | $ | 394 | $ | 183 | $ | 1,253 | $ | 1,401 | $ | 200 | $ | 85 | $ | 774 | $ | 4,290 | |||||||||||||||||
Amortization | — | — | — | — | — | 11 | — | 11 | |||||||||||||||||||||||||
Total | $ | 394 | $ | 183 | $ | 1,253 | $ | 1,401 | $ | 200 | $ | 96 | $ | 774 | $ | 4,301 | |||||||||||||||||
CONSOLIDATING_FINANCIAL_INFORM1
CONSOLIDATING FINANCIAL INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Consolidating Financial Information | ||||||||||||||||||||||||
Schedule of consolidating balance sheet information | The consolidating balance sheet information is as follows: | |||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (B) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 144,542 | $ | 584 | $ | — | $ | 107 | $ | — | $ | 145,233 | ||||||||||||
Due from affiliates | 173,081 | 2,818 | (2,273 | ) | 10,266 | (15,716 | ) | 168,176 | ||||||||||||||||
Investments | 1,200,151 | 2,175 | (2,175 | ) | 474,482 | (474,482 | ) | 1,200,151 | ||||||||||||||||
Investments in options | 108,120 | — | — | — | — | 108,120 | ||||||||||||||||||
Deferred tax asset, net | — | — | — | 402,999 | (5,221 | ) | 397,778 | |||||||||||||||||
Other assets | 154,478 | 2,298 | — | 11,127 | — | 167,903 | ||||||||||||||||||
Total Assets | $ | 1,780,372 | $ | 7,875 | $ | (4,448 | ) | $ | 898,981 | $ | (495,419 | ) | $ | 2,187,361 | ||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Accrued compensation and benefits | $ | 136,129 | $ | 3,042 | $ | — | $ | — | $ | — | $ | 139,171 | ||||||||||||
Due to affiliates | 75,050 | 2,273 | (2,273 | ) | 294,788 | (15,716 | ) | 354,122 | ||||||||||||||||
Deferred incentive income | 307,737 | — | — | — | — | 307,737 | ||||||||||||||||||
Debt obligations payable | 75,000 | — | — | — | — | 75,000 | ||||||||||||||||||
Other liabilities | 127,990 | 627 | — | — | (5,221 | ) | 123,396 | |||||||||||||||||
Total Liabilities | 721,906 | 5,942 | (2,273 | ) | 294,788 | (20,937 | ) | 999,426 | ||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||
Redeemable Non-controlling Interests, | 109 | — | — | — | — | 109 | ||||||||||||||||||
Consolidated Subsidiaries | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Paid-in capital | 5,762,908 | 5,660 | (2,260 | ) | 1,922,312 | (5,766,308 | ) | 1,922,312 | ||||||||||||||||
Retained earnings (accumulated deficit) | (4,764,582 | ) | (3,727 | ) | 85 | (1,315,409 | ) | 4,768,224 | (1,315,409 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) | (8,667 | ) | — | — | (2,710 | ) | 8,667 | (2,710 | ) | |||||||||||||||
Total Fortress shareholders' equity (C) | 989,659 | 1,933 | (2,175 | ) | 604,193 | (989,417 | ) | 604,193 | ||||||||||||||||
Principals' and others' interests in equity | 68,698 | — | — | — | 514,935 | 583,633 | ||||||||||||||||||
of consolidated subsidiaries | ||||||||||||||||||||||||
Total Equity | 1,058,357 | 1,933 | (2,175 | ) | 604,193 | (474,482 | ) | 1,187,826 | ||||||||||||||||
Total Liabilities, Redeemable Non-controlling | $ | 1,780,372 | $ | 7,875 | $ | (4,448 | ) | $ | 898,981 | $ | (495,419 | ) | $ | 2,187,361 | ||||||||||
Interests and Equity | ||||||||||||||||||||||||
(A) | Excluding FOE II (New) LP. | |||||||||||||||||||||||
(B) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(C) | Includes the Principals’ (and a former senior employee's) equity in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
Schedule of consolidating statement of operations information | The consolidating statement of operations information is as follows: | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (B) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Management fees: affiliates | $ | 126,011 | $ | 1,696 | $ | — | $ | — | $ | — | $ | 127,707 | ||||||||||||
Management fees: non-affiliates | 15,246 | 45 | — | — | — | 15,291 | ||||||||||||||||||
Incentive income: affiliates | 24,223 | — | — | — | — | 24,223 | ||||||||||||||||||
Incentive income: non-affiliates | — | — | — | — | — | — | ||||||||||||||||||
Expense reimbursements: affiliates | 44,822 | 9,743 | — | — | — | 54,565 | ||||||||||||||||||
Expense reimbursements: non-affiliates | 2,293 | 955 | — | — | — | 3,248 | ||||||||||||||||||
Other revenues (affiliate portion disclosed in | 1,655 | — | — | — | — | 1,655 | ||||||||||||||||||
Note 6) | ||||||||||||||||||||||||
Total Revenues | 214,250 | 12,439 | — | — | — | 226,689 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Compensation and benefits | 166,684 | 12,204 | — | — | — | 178,888 | ||||||||||||||||||
General, administrative and other | 42,413 | 568 | — | — | — | 42,981 | ||||||||||||||||||
Depreciation and amortization | 5,302 | 29 | — | — | — | 5,331 | ||||||||||||||||||
Interest expense | 826 | 31 | (31 | ) | 22 | (9 | ) | 839 | ||||||||||||||||
Transfer of interest in Graticule (see Note 1) | 101,000 | — | — | — | — | 101,000 | ||||||||||||||||||
Total Expenses | 316,225 | 12,832 | (31 | ) | 22 | (9 | ) | 329,039 | ||||||||||||||||
Other Income (Loss) | ||||||||||||||||||||||||
Gains (losses) (affiliate portion disclosed in | 31,561 | — | — | — | — | 31,561 | ||||||||||||||||||
Note 3) | ||||||||||||||||||||||||
Tax receivable agreement liability adjustment | — | — | — | — | — | — | ||||||||||||||||||
Earnings (losses) from equity method investees | 41,708 | — | — | 47,561 | (47,561 | ) | 41,708 | |||||||||||||||||
Gain on transfer of Graticule (see Note 1) | 134,400 | — | — | — | — | 134,400 | ||||||||||||||||||
Total Other Income (Loss) | 207,669 | — | — | 47,561 | (47,561 | ) | 207,669 | |||||||||||||||||
Income (Loss) Before Income Taxes | 105,694 | (393 | ) | 31 | 47,539 | (47,552 | ) | 105,319 | ||||||||||||||||
Income tax benefit (expense) | (5,569 | ) | (4 | ) | — | (12,826 | ) | — | (18,399 | ) | ||||||||||||||
Net Income (Loss) | $ | 100,125 | $ | (397 | ) | $ | 31 | $ | 34,713 | $ | (47,552 | ) | $ | 86,920 | ||||||||||
Allocation of Net Income (Loss) | ||||||||||||||||||||||||
Principals' and Others' Interests in Income | $ | 618 | $ | — | $ | — | $ | — | $ | 51,605 | $ | 52,223 | ||||||||||||
(Loss) of Consolidated Subsidiaries | ||||||||||||||||||||||||
Redeemable Non-controlling Interests in Income | (16 | ) | — | — | — | — | (16 | ) | ||||||||||||||||
(Loss) | ||||||||||||||||||||||||
Net Income (Loss) Attributable to | 99,523 | (397 | ) | 31 | 34,713 | (99,157 | ) | 34,713 | ||||||||||||||||
Class A Shareholders (C) | ||||||||||||||||||||||||
$ | 100,125 | $ | (397 | ) | $ | 31 | $ | 34,713 | $ | (47,552 | ) | $ | 86,920 | |||||||||||
(A) | Excluding FOE II (New) LP. | |||||||||||||||||||||||
(B) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(C) | Includes net income (loss) attributable to the Principals’ (and a former senior employee’s) interests in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
Schedule of consolidating statement of cash flows information | The consolidating statement of cash flows information is as follows: | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Group LLC Consolidated (B) | ||||||||||||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||||
Net income (loss) | $ | 100,125 | $ | (397 | ) | $ | 31 | $ | 34,713 | $ | (47,552 | ) | $ | 86,920 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||||||||||||||||||
Depreciation and amortization | 5,302 | 29 | — | — | — | 5,331 | ||||||||||||||||||
Other amortization (included in interest expense) | 195 | — | — | — | — | 195 | ||||||||||||||||||
(Earnings) losses from equity method investees | (41,708 | ) | — | — | (47,561 | ) | 47,561 | (41,708 | ) | |||||||||||||||
Distributions of earnings from equity | 10,813 | — | — | — | — | 10,813 | ||||||||||||||||||
method investees | ||||||||||||||||||||||||
(Gains) losses | (31,561 | ) | — | — | — | — | (31,561 | ) | ||||||||||||||||
Deferred incentive income | (20,964 | ) | — | — | — | — | (20,964 | ) | ||||||||||||||||
Deferred tax (benefit) expense | 3,619 | — | — | 14,895 | — | 18,514 | ||||||||||||||||||
Options received from affiliates | (4,144 | ) | — | — | — | — | (4,144 | ) | ||||||||||||||||
Tax receivable agreement liability adjustment | — | — | — | — | — | — | ||||||||||||||||||
Equity-based compensation | 14,345 | — | — | — | — | 14,345 | ||||||||||||||||||
Options in affiliates granted to employees | 6,083 | — | — | — | — | 6,083 | ||||||||||||||||||
Other | 209 | — | — | — | — | 209 | ||||||||||||||||||
Transfer of Interest in Graticule (see Note 1) | 101,000 | — | — | — | — | 101,000 | ||||||||||||||||||
Gain on Transfer of Graticule (see Note 1) | (134,400 | ) | — | — | — | — | (134,400 | ) | ||||||||||||||||
Cash flows due to changes in | ||||||||||||||||||||||||
Due from affiliates | 51,341 | (164 | ) | — | — | 5,450 | 56,627 | |||||||||||||||||
Other assets | (8,041 | ) | (276 | ) | (31 | ) | (63 | ) | (9 | ) | (8,420 | ) | ||||||||||||
Accrued compensation and benefits | (235,148 | ) | (104 | ) | — | — | — | (235,252 | ) | |||||||||||||||
Due to affiliates | (32,118 | ) | — | — | 5,464 | (5,450 | ) | (32,104 | ) | |||||||||||||||
Deferred incentive income | 23,907 | — | — | — | — | 23,907 | ||||||||||||||||||
Other liabilities | 46,193 | 546 | — | (7,698 | ) | — | 39,041 | |||||||||||||||||
Purchase of investments by consolidated funds | (39,983 | ) | — | — | — | — | (39,983 | ) | ||||||||||||||||
Proceeds from sale of investments by consolidated | 32,000 | — | — | — | — | 32,000 | ||||||||||||||||||
funds | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (152,935 | ) | (366 | ) | — | (250 | ) | — | (153,551 | ) | ||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||||||||||
Contributions to equity method investees | (7,720 | ) | — | — | — | — | (7,720 | ) | ||||||||||||||||
Distributions of capital from equity method | 107,370 | — | — | 79,251 | (79,251 | ) | 107,370 | |||||||||||||||||
investees | ||||||||||||||||||||||||
Purchase of securities | (883 | ) | — | — | — | — | (883 | ) | ||||||||||||||||
Proceeds from sale of securities | 18,053 | — | — | — | — | 18,053 | ||||||||||||||||||
Purchase of fixed assets | (4,434 | ) | — | — | — | — | (4,434 | ) | ||||||||||||||||
Purchase of software and technology-related assets | — | — | — | — | — | — | ||||||||||||||||||
Net cash provided by (used in) investing activities | 112,386 | — | — | 79,251 | (79,251 | ) | 112,386 | |||||||||||||||||
Continued on next page. | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Fortress Operating Group Combined (A) | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Group LLC Consolidated (B) | ||||||||||||||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||||||||||
Borrowings under debt obligations | — | — | — | — | — | — | ||||||||||||||||||
Proceeds from public offering (Note 8) | — | — | — | — | — | — | ||||||||||||||||||
Repurchase of Class B shares (Note 8) | — | — | — | — | — | — | ||||||||||||||||||
Payments to repurchase Class A shares (Note 8) | (9,676 | ) | — | — | — | — | (9,676 | ) | ||||||||||||||||
Dividends and dividend equivalents paid | (86,367 | ) | — | — | (79,251 | ) | 79,251 | (86,367 | ) | |||||||||||||||
Principals' and others' interests in equity of | 26 | — | — | — | — | 26 | ||||||||||||||||||
consolidated subsidiaries - contributions | ||||||||||||||||||||||||
Principals' and others' interests in equity of | (107,082 | ) | — | — | — | — | (107,082 | ) | ||||||||||||||||
consolidated subsidiaries - distributions | ||||||||||||||||||||||||
Excess tax benefits from delivery of RSUs | — | — | — | — | — | — | ||||||||||||||||||
Redeemable non-controlling interests - | (1,592 | ) | — | — | — | — | (1,592 | ) | ||||||||||||||||
distributions | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (204,691 | ) | — | — | (79,251 | ) | 79,251 | (204,691 | ) | |||||||||||||||
Net Increase (Decrease) in Cash and Cash | (245,240 | ) | (366 | ) | — | (250 | ) | — | (245,856 | ) | ||||||||||||||
Equivalents | ||||||||||||||||||||||||
Cash and Cash Equivalents, Beginning of Period | 389,782 | 950 | — | 357 | — | 391,089 | ||||||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 144,542 | $ | 584 | $ | — | $ | 107 | $ | — | $ | 145,233 | ||||||||||||
(A) | Excluding FOE II (New) LP. | |||||||||||||||||||||||
(B) | Other than Fortress Operating Group. |
ORGANIZATION_AND_BASIS_OF_PRES3
ORGANIZATION AND BASIS OF PRESENTATION (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
category | |||
source | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of primary sources of income from the Fortress Funds | 3 | ||
Minority interest | 48.00% | 48.00% | |
Net unrealized gains (losses) from affiliate investments | $134,400 | $0 | |
Non-cash expense | 101,000 | 0 | |
Investments | 33,400 | 0 | |
Number of principal categories in a family of real assets funds focused on investing in tangible and intangible assets | 4 | ||
Graticule Asset Management | |||
Schedule of Equity Method Investments [Line Items] | |||
Net unrealized gains (losses) from affiliate investments | 134,400 | ||
Non-cash expense | 101,000 | ||
Investments | $33,400 | ||
Graticule Asset Management | During 2015 | |||
Schedule of Equity Method Investments [Line Items] | |||
Minority interest | 30.00% | ||
Graticule Asset Management | After 2015 | |||
Schedule of Equity Method Investments [Line Items] | |||
Minority interest | 27.00% |
MANAGEMENT_AGREEMENTS_AND_FORT2
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Management Fees and Incentive Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
source | ||
Schedule of Management Agreements [Line Items] | ||
Number of principal sources of income from agreements with the Fortress Funds | 2 | |
Management fees: affil. | $127,707 | $129,710 |
Management fees, options: affil. | 4,144 | 0 |
Management fees: non-affil. | 15,291 | 17,622 |
Incentive income: affil. | 24,223 | 34,251 |
Incentive income: non-affil. | 0 | 643 |
Private Equity Funds | ||
Schedule of Management Agreements [Line Items] | ||
Management fees: affil. | 29,140 | 35,313 |
Management fees: non-affil. | 0 | 149 |
Incentive income: affil. | 0 | 0 |
Permanent Capital Vehicles | ||
Schedule of Management Agreements [Line Items] | ||
Management fees: affil. | 19,002 | 15,178 |
Management fees, options: affil. | 4,144 | 0 |
Management fees: non-affil. | 450 | 1,108 |
Incentive income: affil. | 2,588 | 4,009 |
Liquid Hedge Funds | ||
Schedule of Management Agreements [Line Items] | ||
Management fees: affil. | 18,495 | 27,067 |
Management fees: non-affil. | 2,494 | 6,411 |
Incentive income: affil. | 12 | 78 |
Incentive income: non-affil. | 0 | 0 |
Credit Hedge Funds | ||
Schedule of Management Agreements [Line Items] | ||
Management fees: affil. | 29,654 | 26,834 |
Management fees: non-affil. | 10 | 24 |
Incentive income: affil. | 653 | 1,304 |
Credit PE Funds | ||
Schedule of Management Agreements [Line Items] | ||
Management fees: affil. | 26,319 | 24,608 |
Management fees: non-affil. | 29 | 34 |
Incentive income: affil. | 20,964 | 28,860 |
Incentive income: non-affil. | 0 | 643 |
Logan Circle | ||
Schedule of Management Agreements [Line Items] | ||
Management fees: affil. | 953 | 710 |
Management fees: non-affil. | 12,308 | 9,896 |
Incentive income: affil. | 6 | 0 |
Incentive income: non-affil. | $0 | $0 |
MANAGEMENT_AGREEMENTS_AND_FORT3
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Deferred Incentive Income) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Management and Agreement Fortress Funds | ||
Additional incentive income from affiliates which would be recognized if incentive income was not contingent on the results of the subsequent quarters | $23,200,000 | $30,500,000 |
Incentive income distributions from credit PE funds which represented tax distributions | 21,000,000 | 28,900,000 |
Distributed-Gross | ||
Deferred incentive income as of the beginning of the period | 1,243,441,000 | |
Fortress Funds which matured (no longer subject to clawback) | 0 | |
Distribution of private equity funds and credit PE funds incentive income | 23,851,000 | |
Distribution of private permanent capital vehicle incentive income | -395,000 | |
Changes in foreign exchange rates | -71,000 | |
Deferred incentive income as of the end of the period | 1,267,616,000 | |
Deferred incentive income including Fortress Funds which matured | 1,321,272,000 | |
Distributed-Recognized | ||
Deferred incentive income as of the beginning of the period | -938,915,000 | |
Fortress Funds which matured (no longer subject to clawback) | 0 | |
Recognition of previously deferred incentive income | -20,964,000 | -29,503,000 |
Deferred incentive income as of the end of the period | -959,879,000 | |
Deferred incentive income including Fortress Funds which matured | -1,013,535,000 | |
Distributed-Unrecognized | ||
Deferred incentive income as of the beginning of the period | 304,526,000 | |
Distribution of private equity funds and credit PE funds incentive income | 23,851,000 | |
Distribution of private permanent capital vehicle incentive income | -395,000 | |
Recognition of previously deferred incentive income | -20,964,000 | -29,503,000 |
Changes in foreign exchange rates | -71,000 | |
Deferred incentive income as of the end of the period | 307,737,000 | |
Undistributed, net of intrinsic clawback | ||
Deferred incentive income as of the beginning of the period | 868,549,000 | |
Share of income (loss) of Fortress Funds | 260,995,000 | |
Distribution of private equity funds and credit PE funds incentive income | 23,851,000 | |
Deferred incentive income as of the end of the period | 1,105,298,000 | |
Gross undistributed incentive income | 1,200,000,000 | |
Intrinsic clawback | 66,900,000 | |
Compensation expense paid under employee profit sharing arrangements in connection with distributed incentive income | 592,000,000 | |
Portion of compensation expense paid under employee profit sharing arrangements in connection with distributed incentive income which has not been expensed | 21,500,000 | |
Clawback obligations recovered from individuals | 6,400,000 | |
Additional expense which would be recognized and paid if gross undistributed incentive income were realized | $570,200,000 |
MANAGEMENT_AGREEMENTS_AND_FORT4
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Distributed-Gross Reconciled to Incentive Income Threshold) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | $1,267,616 | $1,243,441 |
Private Equity Funds | Outside of Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 846,671 | |
Private Equity Funds | Outside of Investment Period | NIH (1998) | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 94,513 | |
Fortress Funds which are not subject to clawback provision | -94,513 | |
Private Equity Funds | Outside of Investment Period | GAGACQ Fund (2004) | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 51,476 | |
Fortress Funds which are not subject to clawback provision | -51,476 | |
Private Equity Funds | Outside of Investment Period | Fund I (1999) | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 344,939 | |
Distributed incentive income that Company is not entitled to | -183,196 | |
Private Equity Funds | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 0 | |
Credit PE Funds | Outside of Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 738,698 | |
Credit PE Funds | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | 10,293 | |
Permanent Capital Vehicles | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income distributed gross | $1,139 |
MANAGEMENT_AGREEMENTS_AND_FORT5
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Undistributed, Net of Intrinsic Clawback Reconciled to Incentive Income Threshold) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Management Agreements [Line Items] | ||
Less: Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | ($66,900) | |
Undistributed, net of intrinsic clawback | 1,105,298 | 868,549 |
Private Equity Funds | Outside of Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | 199,662 | |
Less: Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | -66,903 | |
Private Equity Funds | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | 2,196 | |
Less: Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | 0 | |
Credit PE Funds | Outside of Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | 786,667 | |
Less: Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | 0 | |
Credit PE Funds | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | 61,990 | |
Less: Gross intrinsic clawback per incentive income threshold tables - Private Equity Funds | 0 | |
Permanent Capital Vehicles | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | 7,997 | |
Hedge Funds Business | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | 113,560 | |
Logan Circle | ||
Schedule of Management Agreements [Line Items] | ||
Deferred incentive income undistributed gross of intrinsic clawback | $129 |
MANAGEMENT_AGREEMENTS_AND_FORT6
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (HWM) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule of Management Agreements [Line Items] | ||
Gross undistributed incentive income | $1,200,000,000 | |
Distributed Incentive Income | 1,267,616,000 | 1,243,441,000 |
Distributed incentive income subject to clawback | 307,737,000 | 304,526,000 |
Gross Intrinsic Clawback | 66,900,000 | |
Net Intrinsic Clawback | 45,108,000 | |
Portion of amount due to employees under profit sharing arrangements withheld as reserve against future clawback | 32,900,000 | |
Newcastle | ||
Schedule of Management Agreements [Line Items] | ||
Equity Eligible for Incentive Income | 751,232,000 | |
Life to Date Incentive Income Crystallized | 41,283,000 | |
Eurocastle | ||
Schedule of Management Agreements [Line Items] | ||
Gain to Cross Incentive Income Threshold | 191,710,000 | |
Equity Eligible for Incentive Income | 433,404,000 | |
Life to Date Incentive Income Crystallized | 39,217,000 | |
New Residential | ||
Schedule of Management Agreements [Line Items] | ||
Gain to Cross Incentive Income Threshold | 0 | |
Equity Eligible for Incentive Income | 1,372,498,000 | |
Life to Date Incentive Income Crystallized | 74,662,000 | |
New Media | ||
Schedule of Management Agreements [Line Items] | ||
Gain to Cross Incentive Income Threshold | 152,000 | |
Equity Eligible for Incentive Income | 644,707,000 | |
Life to Date Incentive Income Crystallized | 112,000 | |
New Senior | ||
Schedule of Management Agreements [Line Items] | ||
Gain to Cross Incentive Income Threshold | 4,953,000 | |
Equity Eligible for Incentive Income | 812,815,000 | |
Life to Date Incentive Income Crystallized | 0 | |
Private Equity Funds | Outside of Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Gross undistributed incentive income | 199,662,000 | |
Distributed Incentive Income | 846,671,000 | |
Distributed incentive income subject to clawback | 66,903,000 | |
Gross Intrinsic Clawback | 66,903,000 | |
Net Intrinsic Clawback | 45,108,000 | |
Private Equity Funds | Outside of Investment Period | NIH (1998) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 415,574,000 | |
Inception to Date Distributions | -823,588,000 | |
Net Asset Value (“NAVâ€) | 0 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 94,513,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | Fund I (1999) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 1,015,943,000 | |
Inception to Date Distributions | -2,847,929,000 | |
Net Asset Value (“NAVâ€) | 0 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 344,939,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Percentage of undistributed and distributed income which the entity is entitled | 50.00% | |
Private Equity Funds | Outside of Investment Period | Fund II (2002) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 1,974,298,000 | |
Inception to Date Distributions | -3,442,900,000 | |
Net Asset Value (“NAVâ€) | 2,849,000 | |
NAV Surplus (Deficit) | 1,471,451,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 566,000 | |
Distributed Incentive Income | 288,840,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | Fund III (2004) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 2,762,992,000 | |
Inception to Date Distributions | -2,138,524,000 | |
Net Asset Value (“NAVâ€) | 1,194,769,000 | |
NAV Surplus (Deficit) | 570,301,000 | |
Current Preferred Return Threshold | 2,087,976,000 | |
Gain to Cross Incentive Income Threshold | 1,517,675,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 66,903,000 | |
Distributed incentive income subject to clawback | 66,903,000 | |
Gross Intrinsic Clawback | 66,903,000 | |
Net Intrinsic Clawback | 45,108,000 | |
Private Equity Funds | Outside of Investment Period | Fund III Coinvestment (2004) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 273,649,000 | |
Inception to Date Distributions | -225,188,000 | |
Net Asset Value (“NAVâ€) | 66,943,000 | |
NAV Surplus (Deficit) | 18,482,000 | |
Current Preferred Return Threshold | 245,857,000 | |
Gain to Cross Incentive Income Threshold | 227,375,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | Fund IV (2006) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 3,639,561,000 | |
Inception to Date Distributions | -1,310,995,000 | |
Net Asset Value (“NAVâ€) | 2,530,985,000 | |
NAV Surplus (Deficit) | 202,419,000 | |
Current Preferred Return Threshold | 2,826,596,000 | |
Gain to Cross Incentive Income Threshold | 2,624,177,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | Fund IV Coinvestment (2006) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 762,696,000 | |
Inception to Date Distributions | -257,810,000 | |
Net Asset Value (“NAVâ€) | 421,821,000 | |
NAV Surplus (Deficit) | -83,065,000 | |
Current Preferred Return Threshold | 603,859,000 | |
Gain to Cross Incentive Income Threshold | 686,924,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | Fund V (2007) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 4,103,713,000 | |
Inception to Date Distributions | -1,433,561,000 | |
Net Asset Value (“NAVâ€) | 5,601,717,000 | |
NAV Surplus (Deficit) | 2,931,565,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 187,572,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | Fund V Coinvestment (2007) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 990,480,000 | |
Inception to Date Distributions | -173,493,000 | |
Net Asset Value (“NAVâ€) | 516,870,000 | |
NAV Surplus (Deficit) | -300,117,000 | |
Current Preferred Return Threshold | 679,419,000 | |
Gain to Cross Incentive Income Threshold | 979,536,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | GAGACQ Fund (2004) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 545,663,000 | |
Inception to Date Distributions | -595,401,000 | |
Net Asset Value (“NAVâ€) | 0 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 51,476,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | FRID (2005) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 1,220,229,000 | |
Inception to Date Distributions | -1,202,153,000 | |
Net Asset Value (“NAVâ€) | 0 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | FRIC (2006) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 328,754,000 | |
Inception to Date Distributions | -291,330,000 | |
Net Asset Value (“NAVâ€) | 0 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | FICO (2006) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 724,525,000 | |
Inception to Date Distributions | -5,000 | |
Net Asset Value (“NAVâ€) | -63,370,000 | |
NAV Surplus (Deficit) | -787,890,000 | |
Current Preferred Return Threshold | 631,125,000 | |
Gain to Cross Incentive Income Threshold | 1,419,015,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | FHIF (2006) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 1,543,463,000 | |
Inception to Date Distributions | -541,152,000 | |
Net Asset Value (“NAVâ€) | 1,815,501,000 | |
NAV Surplus (Deficit) | 813,190,000 | |
Current Preferred Return Threshold | 1,206,617,000 | |
Gain to Cross Incentive Income Threshold | 393,427,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | FECI (2007) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 982,779,000 | |
Inception to Date Distributions | -455,000 | |
Net Asset Value (“NAVâ€) | 978,918,000 | |
NAV Surplus (Deficit) | -3,406,000 | |
Current Preferred Return Threshold | 784,929,000 | |
Gain to Cross Incentive Income Threshold | 788,335,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | MSR Opportunities Fund I A (2012) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 339,382,000 | |
Inception to Date Distributions | -126,528,000 | |
Net Asset Value (“NAVâ€) | 308,673,000 | |
NAV Surplus (Deficit) | 95,819,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 9,226,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | Outside of Investment Period | MSR Opportunities Fund I B (2012) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 82,335,000 | |
Inception to Date Distributions | -30,647,000 | |
Net Asset Value (“NAVâ€) | 74,684,000 | |
NAV Surplus (Deficit) | 22,996,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 2,298,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Gross undistributed incentive income | 2,196,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | In Investment Period | MSR Opportunities Fund II A (2013) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 75,941,000 | |
Inception to Date Distributions | -11,456,000 | |
Net Asset Value (“NAVâ€) | 76,437,000 | |
NAV Surplus (Deficit) | 11,952,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 1,765,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | In Investment Period | MSR Opportunities Fund II B (2013) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 1,084,000 | |
Inception to Date Distributions | -163,000 | |
Net Asset Value (“NAVâ€) | 1,084,000 | |
NAV Surplus (Deficit) | 163,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 24,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | In Investment Period | MSR Opportunities II MA I (2013) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 17,418,000 | |
Inception to Date Distributions | -2,630,000 | |
Net Asset Value (“NAVâ€) | 17,542,000 | |
NAV Surplus (Deficit) | 2,754,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 407,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Equity Funds | In Investment Period | Italian NPL Opportunities (2013) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 31,106,000 | |
Inception to Date Distributions | -5,553,000 | |
Net Asset Value (“NAVâ€) | 23,801,000 | |
NAV Surplus (Deficit) | -1,752,000 | |
Current Preferred Return Threshold | 1,120,000 | |
Gain to Cross Incentive Income Threshold | 2,872,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Gross undistributed incentive income | 786,667,000 | |
Distributed Incentive Income | 738,698,000 | |
Distributed incentive income subject to clawback | 234,919,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Long Dated Value Fund I (2005) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 267,325,000 | |
Inception to Date Distributions | -89,359,000 | |
Net Asset Value (“NAVâ€) | 322,043,000 | |
NAV Surplus (Deficit) | 144,077,000 | |
Current Preferred Return Threshold | 151,122,000 | |
Gain to Cross Incentive Income Threshold | 7,045,000 | |
Gross undistributed incentive income | 25,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Long Dated Value Fund II (2005) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 274,280,000 | |
Inception to Date Distributions | -150,977,000 | |
Net Asset Value (“NAVâ€) | 200,899,000 | |
NAV Surplus (Deficit) | 77,596,000 | |
Current Preferred Return Threshold | 119,943,000 | |
Gain to Cross Incentive Income Threshold | 42,347,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 412,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Long Dated Value Fund III (2007) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 343,156,000 | |
Inception to Date Distributions | -278,861,000 | |
Net Asset Value (“NAVâ€) | 191,820,000 | |
NAV Surplus (Deficit) | 127,525,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 17,181,000 | |
Distributed Incentive Income | 6,473,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | LDVF Patent Fund (2007) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 36,073,000 | |
Inception to Date Distributions | -33,633,000 | |
Net Asset Value (“NAVâ€) | 31,259,000 | |
NAV Surplus (Deficit) | 28,819,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 1,447,000 | |
Distributed Incentive Income | 1,471,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Real Assets Fund (2007) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 359,024,000 | |
Inception to Date Distributions | -351,783,000 | |
Net Asset Value (“NAVâ€) | 106,267,000 | |
NAV Surplus (Deficit) | 99,026,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 10,085,000 | |
Distributed Incentive Income | 5,285,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Credit Opportunities Fund (2008) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 5,620,858,000 | |
Inception to Date Distributions | -6,965,178,000 | |
Net Asset Value (“NAVâ€) | 1,335,010,000 | |
NAV Surplus (Deficit) | 2,679,330,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 184,467,000 | |
Distributed Incentive Income | 342,112,000 | |
Distributed incentive income subject to clawback | 148,313,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Credit Opportunities Fund II (2009) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 2,310,715,000 | |
Inception to Date Distributions | -2,350,331,000 | |
Net Asset Value (“NAVâ€) | 1,158,429,000 | |
NAV Surplus (Deficit) | 1,198,045,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 141,010,000 | |
Distributed Incentive Income | 93,964,000 | |
Distributed incentive income subject to clawback | 24,881,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Credit Opportunities Fund III (2011) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 3,088,327,000 | |
Inception to Date Distributions | -1,287,483,000 | |
Net Asset Value (“NAVâ€) | 2,434,035,000 | |
NAV Surplus (Deficit) | 633,191,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 103,127,000 | |
Distributed Incentive Income | 20,852,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | FCO Managed Accounts (2008-2012) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 3,346,261,000 | |
Inception to Date Distributions | -2,685,106,000 | |
Net Asset Value (“NAVâ€) | 1,882,640,000 | |
NAV Surplus (Deficit) | 1,221,485,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 144,119,000 | |
Distributed Incentive Income | 94,631,000 | |
Distributed incentive income subject to clawback | 31,599,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | SIP Managed Account (2010) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 11,000,000 | |
Inception to Date Distributions | -35,747,000 | |
Net Asset Value (“NAVâ€) | 13,583,000 | |
NAV Surplus (Deficit) | 38,330,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 2,717,000 | |
Distributed Incentive Income | 4,949,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Japan Opportunity Fund (2009) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 906,225,000 | |
Inception to Date Distributions | -1,315,300,000 | |
Net Asset Value (“NAVâ€) | 598,080,000 | |
NAV Surplus (Deficit) | 1,007,155,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 99,922,000 | |
Distributed Incentive Income | 116,624,000 | |
Distributed incentive income subject to clawback | 19,714,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Net Lease Fund I (2010) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 152,851,000 | |
Inception to Date Distributions | -225,430,000 | |
Net Asset Value (“NAVâ€) | 1,794,000 | |
NAV Surplus (Deficit) | 74,373,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 230,000 | |
Distributed Incentive Income | 9,528,000 | |
Distributed incentive income subject to clawback | 5,928,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Real Estate Opportunities Fund (2011) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 534,901,000 | |
Inception to Date Distributions | -285,966,000 | |
Net Asset Value (“NAVâ€) | 393,686,000 | |
NAV Surplus (Deficit) | 144,751,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 10,262,000 | |
Distributed Incentive Income | 2,376,000 | |
Distributed incentive income subject to clawback | 1,359,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Global Opportunities Fund (2010) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 326,446,000 | |
Inception to Date Distributions | -156,444,000 | |
Net Asset Value (“NAVâ€) | 241,034,000 | |
NAV Surplus (Deficit) | 71,032,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 12,260,000 | |
Distributed Incentive Income | 1,965,000 | |
Distributed incentive income subject to clawback | 1,965,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Japan Opportunity Fund II (Yen) (2011) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 657,095,000 | |
Inception to Date Distributions | -251,007,000 | |
Net Asset Value (“NAVâ€) | 639,416,000 | |
NAV Surplus (Deficit) | 233,328,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 33,581,000 | |
Distributed Incentive Income | 14,481,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Japan Opportunity Fund II (Dollar) (2011) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 639,643,000 | |
Inception to Date Distributions | -238,397,000 | |
Net Asset Value (“NAVâ€) | 637,652,000 | |
NAV Surplus (Deficit) | 236,406,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 24,673,000 | |
Distributed Incentive Income | 20,928,000 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | Outside of Investment Period | Real Estate Opportunities REOC Fund (2011) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 56,692,000 | |
Inception to Date Distributions | -36,767,000 | |
Net Asset Value (“NAVâ€) | 41,073,000 | |
NAV Surplus (Deficit) | 21,148,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 1,561,000 | |
Distributed Incentive Income | 2,647,000 | |
Distributed incentive income subject to clawback | 1,160,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | ||
Schedule of Management Agreements [Line Items] | ||
Gross undistributed incentive income | 61,990,000 | |
Distributed Incentive Income | 10,293,000 | |
Distributed incentive income subject to clawback | 4,776,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | FCO Managed Accounts (2010-2015) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 1,410,598,000 | |
Inception to Date Distributions | -778,148,000 | |
Net Asset Value (“NAVâ€) | 998,941,000 | |
NAV Surplus (Deficit) | 366,491,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 61,456,000 | |
Distributed Incentive Income | 10,293,000 | |
Distributed incentive income subject to clawback | 4,776,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | Life Settlements Fund (2010) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 397,361,000 | |
Inception to Date Distributions | -299,330,000 | |
Net Asset Value (“NAVâ€) | 71,592,000 | |
NAV Surplus (Deficit) | -26,439,000 | |
Current Preferred Return Threshold | 77,770,000 | |
Gain to Cross Incentive Income Threshold | 104,209,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | Life Settlements Fund MA (2010) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 32,525,000 | |
Inception to Date Distributions | -24,482,000 | |
Net Asset Value (“NAVâ€) | 5,639,000 | |
NAV Surplus (Deficit) | -2,404,000 | |
Current Preferred Return Threshold | 6,384,000 | |
Gain to Cross Incentive Income Threshold | 8,788,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | Real Estate Opportunities Fund II (2014) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 147,815,000 | |
Inception to Date Distributions | -134,000 | |
Net Asset Value (“NAVâ€) | 154,584,000 | |
NAV Surplus (Deficit) | 6,903,000 | |
Current Preferred Return Threshold | 6,928,000 | |
Gain to Cross Incentive Income Threshold | 25,000 | |
Gross undistributed incentive income | 534,000 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | Japan Opportunity Fund III (Yen) (2014) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 103,502,000 | |
Inception to Date Distributions | 0 | |
Net Asset Value (“NAVâ€) | 102,433,000 | |
NAV Surplus (Deficit) | -1,069,000 | |
Current Preferred Return Threshold | 638,000 | |
Gain to Cross Incentive Income Threshold | 1,707,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | Japan Opportunity Fund III (Dollar) (2014) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 83,061,000 | |
Inception to Date Distributions | 0 | |
Net Asset Value (“NAVâ€) | 82,401,000 | |
NAV Surplus (Deficit) | -660,000 | |
Current Preferred Return Threshold | 531,000 | |
Gain to Cross Incentive Income Threshold | 1,191,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Credit PE Funds | In Investment Period | Credit Opportunities Fund IV (2015) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 142,897,000 | |
Inception to Date Distributions | 0 | |
Net Asset Value (“NAVâ€) | 143,239,000 | |
NAV Surplus (Deficit) | 342,000 | |
Current Preferred Return Threshold | 846,000 | |
Gain to Cross Incentive Income Threshold | 504,000 | |
Gross undistributed incentive income | 0 | |
Distributed Incentive Income | 0 | |
Distributed incentive income subject to clawback | 0 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Private Permanent Capital Vehicle | In Investment Period | WWTAI (2011) | ||
Schedule of Management Agreements [Line Items] | ||
Inception to Date Capital Invested | 761,180,000 | |
Inception to Date Distributions | -141,950,000 | |
Net Asset Value (“NAVâ€) | 714,891,000 | |
NAV Surplus (Deficit) | 95,661,000 | |
Current Preferred Return Threshold | 0 | |
Gross undistributed incentive income | 7,997,000 | |
Distributed Incentive Income | 1,139,000 | |
Distributed incentive income subject to clawback | 1,139,000 | |
Gross Intrinsic Clawback | 0 | |
Net Intrinsic Clawback | 0 | |
Liquid Hedge Funds | Macro Funds | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 1,227,665,000 | |
Gain to Cross Incentive Income Threshold | 75,993,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 0.10% | |
Gross undistributed incentive income | 5,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Liquid Hedge Funds | Macro Funds | Single investor funds | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 967,051,000 | |
Gain to Cross Incentive Income Threshold | 29,804,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 23.60% | |
Gross undistributed incentive income | 119,000 | |
Year to Date Incentive Income Crystallized | 11,000 | |
Liquid Hedge Funds | Macro Funds | Sidepocket investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 8,891,000 | |
Gain to Cross Incentive Income Threshold | 6,736,000 | |
Gross undistributed incentive income | 69,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Liquid Hedge Funds | Macro Funds | Sidepocket investments - redeemers | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 119,684,000 | |
Gain to Cross Incentive Income Threshold | 65,826,000 | |
Gross undistributed incentive income | 1,541,000 | |
Year to Date Incentive Income Crystallized | 1,000 | |
Liquid Hedge Funds | Macro Funds | Managed accounts | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 447,710,000 | |
Gain to Cross Incentive Income Threshold | 10,105,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 54.60% | |
Gross undistributed incentive income | 233,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Liquid Hedge Funds | Fortress Convex Asia Funds | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 222,816,000 | |
Gain to Cross Incentive Income Threshold | 10,812,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 0.00% | |
Gross undistributed incentive income | 0 | |
Year to Date Incentive Income Crystallized | 0 | |
Liquid Hedge Funds | Fortress Partners Funds | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 12,975,000 | |
Gain to Cross Incentive Income Threshold | 2,869,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 0.00% | |
Gross undistributed incentive income | 0 | |
Year to Date Incentive Income Crystallized | 0 | |
Liquid Hedge Funds | Fortress Partners Funds | Sidepocket investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 90,645,000 | |
Gain to Cross Incentive Income Threshold | 4,634,000 | |
Gross undistributed incentive income | 5,208,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Liquid Hedge Funds | Fortress Centaurus Global Funds | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 116,027,000 | |
Gain to Cross Incentive Income Threshold | 197,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 85.50% | |
Gross undistributed incentive income | 557,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Special Opportunities Funds | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 4,777,613,000 | |
Gain to Cross Incentive Income Threshold | 0 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 100.00% | |
Gross undistributed incentive income | 21,249,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Special Opportunities Funds | Sidepocket investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 60,513,000 | |
Gain to Cross Incentive Income Threshold | 0 | |
Gross undistributed incentive income | 4,515,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Special Opportunities Funds | Sidepocket investments - redeemers | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 196,931,000 | |
Gain to Cross Incentive Income Threshold | 48,445,000 | |
Gross undistributed incentive income | 5,893,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Special Opportunities Funds | Main fund investments (liquidating) | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 633,058,000 | |
Gain to Cross Incentive Income Threshold | 0 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 100.00% | |
Gross undistributed incentive income | 73,294,000 | |
Year to Date Incentive Income Crystallized | 653,000 | |
Credit Hedge Funds | Special Opportunities Funds | Managed accounts | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 3,674,000 | |
Gain to Cross Incentive Income Threshold | 46,950,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 0.00% | |
Gross undistributed incentive income | 0 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Worden Funds | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 261,995,000 | |
Gain to Cross Incentive Income Threshold | 683,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 90.00% | |
Gross undistributed incentive income | 877,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Fortress Japan Income Fund | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 58,870,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 0.00% | |
Gross undistributed incentive income | 0 | |
Year to Date Incentive Income Crystallized | 0 | |
Credit Hedge Funds | Value Recovery Funds | Managed accounts | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 7,444,000 | |
Gain to Cross Incentive Income Threshold | 9,278,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 0.00% | |
Gross undistributed incentive income | 0 | |
Year to Date Incentive Income Crystallized | 0 | |
NAV of fund excluded | 181,600,000 | |
Logan Circle | Main fund investments | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 68,723,000 | |
Gain to Cross Incentive Income Threshold | 0 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 100.00% | |
Gross undistributed incentive income | 86,000 | |
Year to Date Incentive Income Crystallized | 0 | |
Logan Circle | Managed accounts | ||
Schedule of Management Agreements [Line Items] | ||
Incentive Income Eligible NAV | 210,281,000 | |
Gain to Cross Incentive Income Threshold | 25,950,000 | |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | 27.10% | |
Gross undistributed incentive income | 43,000 | |
Year to Date Incentive Income Crystallized | $0 |
MANAGEMENT_AGREEMENTS_AND_FORT7
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Fixed Income) (Details) (Logan Circle, Fixed Income Funds, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
fund | |
Schedule of Management Agreements [Line Items] | |
Number of new funds under management | 2 |
Capital Net Asset Value | $54,551 |
Fortress | |
Schedule of Management Agreements [Line Items] | |
Capital Net Asset Value | 10,090 |
Third party investors | |
Schedule of Management Agreements [Line Items] | |
Capital Net Asset Value | $44,461 |
MANAGEMENT_AGREEMENTS_AND_FORT8
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Credit PE Funds) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Fortress | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | |
Management Fees Received as a Percent of Revenue | 5.00% |
New Senior | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | |
Number of Properties Owned by Investee | 2 |
Credit PE Funds | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | |
Capital commitments | 3,680,945 |
Credit PE Funds | Fortress | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | |
Capital commitments | 30,000 |
Credit PE Funds | Fortress's affiliates | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | |
Capital commitments | 36,035 |
Credit PE Funds | Third party investors | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | |
Capital commitments | 3,614,910 |
INVESTMENTS_AND_FAIR_VALUE_Inv
INVESTMENTS AND FAIR VALUE (Investments, Gains (Losses) and Generation) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Investments | |||
Equity method and other investees | $1,183,347 | $1,106,338 | |
Equity method investees, held at fair value (A) | 16,804 | 15,207 | |
Total investments | 1,200,151 | 1,121,545 | |
Options in equity method investees | 108,120 | 71,844 | |
Gains (losses) from investments | |||
Net realized gains (losses) | 1,259 | -835 | |
Net realized gains (losses) from affiliate investments | -1,166 | -574 | |
Net unrealized gains (losses) | -2,362 | -6,803 | |
Net unrealized gains (losses) from affiliate investments | 33,830 | -2,843 | |
Total gains (losses) | 31,561 | -11,055 | |
Gains (losses) | |||
Mark to fair value on affiliate investments and options | 32,785 | -3,439 | |
Mark to fair value on derivatives | 1,114 | -1,349 | |
Mark to fair value on equity securities | -509 | 77 | |
Gains (losses) on digital currency (Bitcoin) | -1,543 | -6,176 | |
Other | -286 | -168 | |
Total gains (losses) | $31,561 | ($11,055) |
INVESTMENTS_AND_FAIR_VALUE_Sum
INVESTMENTS AND FAIR VALUE (Summary Financial Information Related to Investments) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | $1,200,151 | $1,121,545 | |
Fortress's investment at fair value | 16,804 | 15,207 | |
Earnings (losses) from equity method investees | 41,708 | 20,374 | |
Private Equity Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 697,552 | 677,366 | |
Earnings (losses) from equity method investees | 25,856 | 6,392 | |
Publicly traded portfolio companies | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress's investment at fair value | 1,267 | 1,035 | |
WWTAI | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 5,798 | 5,284 | |
Earnings (losses) from equity method investees | 218 | 35 | |
Newcastle | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress's investment at fair value | 838 | 776 | |
New Residential | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress's investment at fair value | 7,794 | 6,622 | |
Eurocastle | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress's investment at fair value | 2,239 | 2,162 | |
New Media | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress's investment at fair value | 1,792 | 1,769 | |
New Senior | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress's investment at fair value | 2,874 | 2,843 | |
Total private equity | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 720,154 | 697,857 | |
Earnings (losses) from equity method investees | 26,074 | 6,427 | |
Liquid Hedge Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 205,259 | 167,630 | |
Earnings (losses) from equity method investees | 9,368 | 1,529 | |
Credit Hedge Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 57,207 | 57,224 | |
Earnings (losses) from equity method investees | 1,968 | 2,369 | |
Credit PE funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 190,294 | 183,127 | |
Earnings (losses) from equity method investees | 5,065 | 10,008 | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Fortress’s Investment | 27,237 | 15,707 | |
Earnings (losses) from equity method investees | ($767) | $41 |
INVESTMENTS_AND_FAIR_VALUE_Sum1
INVESTMENTS AND FAIR VALUE (Summary of Changes in Fortress’s Investments in Equity Method Investees) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in investments in equity method investees | ||
Investment, beginning | $1,121,545 | |
Earnings (losses) from equity method investees | 41,708 | 20,374 |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 120,791 | |
Distributions of earnings from equity method and other investees | -10,813 | |
Distributions of capital from equity method investees | -117,739 | |
Total distributions from equity method and other investees | -128,552 | |
Mark to fair value - during period | 1,456 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 12,318 | |
Purchase of investments | 39,983 | 0 |
Translation adjustment | -374 | |
Dispositions | -2,683 | |
Reclassification to Due to Affiliates | 542 | |
Retained equity interest related to Graticule transfer | 33,400 | 0 |
Investment, ending | 1,200,151 | |
Ending balance of undistributed earnings | 116,351 | |
Private Equity Funds | ||
Changes in investments in equity method investees | ||
Investment, beginning | 677,366 | |
Earnings (losses) from equity method investees | 25,856 | 6,392 |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 445 | |
Distributions of earnings from equity method and other investees | -3,542 | |
Distributions of capital from equity method investees | -48 | |
Total distributions from equity method and other investees | -3,590 | |
Mark to fair value - during period | -345 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 0 | |
Translation adjustment | -39 | |
Dispositions | -2,683 | |
Reclassification to Due to Affiliates | 542 | |
Retained equity interest related to Graticule transfer | 0 | |
Investment, ending | 697,552 | |
Ending balance of undistributed earnings | 84,132 | |
Private Equity Portfolio Companies and Permanent Capital Vehicles | ||
Changes in investments in equity method investees | ||
Investment, beginning | 1,035 | |
Contributions to equity method investees | 0 | |
Total distributions from equity method and other investees | 0 | |
Mark to fair value - during period | 232 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 0 | |
Translation adjustment | 0 | |
Dispositions | 0 | |
Reclassification to Due to Affiliates | 0 | |
Retained equity interest related to Graticule transfer | 0 | |
Investment, ending | 1,267 | |
Permanent Capital Vehicles | ||
Changes in investments in equity method investees | ||
Investment, beginning | 19,456 | |
Earnings (losses) from equity method investees | 218 | |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 495 | |
Distributions of earnings from equity method and other investees | -179 | |
Distributions of capital from equity method investees | -20 | |
Total distributions from equity method and other investees | -199 | |
Mark to fair value - during period | 1,622 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 0 | |
Translation adjustment | -257 | |
Dispositions | 0 | |
Reclassification to Due to Affiliates | 0 | |
Retained equity interest related to Graticule transfer | 0 | |
Investment, ending | 21,335 | |
Ending balance of undistributed earnings | 38 | |
Liquid Hedge Funds | ||
Changes in investments in equity method investees | ||
Investment, beginning | 167,630 | |
Earnings (losses) from equity method investees | 9,368 | 1,529 |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 13,612 | |
Distributions of earnings from equity method and other investees | -426 | |
Distributions of capital from equity method investees | -18,325 | |
Total distributions from equity method and other investees | -18,751 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 0 | |
Translation adjustment | 0 | |
Dispositions | 0 | |
Reclassification to Due to Affiliates | 0 | |
Retained equity interest related to Graticule transfer | 33,400 | |
Investment, ending | 205,259 | |
Ending balance of undistributed earnings | 16,546 | |
Credit Hedge Funds | ||
Changes in investments in equity method investees | ||
Investment, beginning | 57,224 | |
Earnings (losses) from equity method investees | 1,968 | 2,369 |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 94,419 | |
Distributions of earnings from equity method and other investees | -2,396 | |
Distributions of capital from equity method investees | -94,008 | |
Total distributions from equity method and other investees | -96,404 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 0 | |
Translation adjustment | 0 | |
Dispositions | 0 | |
Reclassification to Due to Affiliates | 0 | |
Retained equity interest related to Graticule transfer | 0 | |
Investment, ending | 57,207 | |
Ending balance of undistributed earnings | 2,312 | |
Credit PE Funds | ||
Changes in investments in equity method investees | ||
Investment, beginning | 183,127 | |
Earnings (losses) from equity method investees | 5,065 | 10,008 |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 11,788 | |
Distributions of earnings from equity method and other investees | -4,270 | |
Distributions of capital from equity method investees | -5,338 | |
Total distributions from equity method and other investees | -9,608 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 0 | |
Translation adjustment | -78 | |
Dispositions | 0 | |
Reclassification to Due to Affiliates | 0 | |
Retained equity interest related to Graticule transfer | 0 | |
Investment, ending | 190,294 | |
Ending balance of undistributed earnings | 11,205 | |
Other | ||
Changes in investments in equity method investees | ||
Investment, beginning | 15,707 | |
Earnings (losses) from equity method investees | -767 | 41 |
Other comprehensive income from equity method investees | 0 | |
Contributions to equity method investees | 32 | |
Distributions of earnings from equity method and other investees | 0 | |
Distributions of capital from equity method investees | 0 | |
Total distributions from equity method and other investees | 0 | |
Mark to fair value - during period | -53 | |
Equity Method Investments, Net Purchases By Consolidated Funds | 12,318 | |
Translation adjustment | 0 | |
Dispositions | 0 | |
Reclassification to Due to Affiliates | 0 | |
Retained equity interest related to Graticule transfer | 0 | |
Investment, ending | 27,237 | |
Ending balance of undistributed earnings | $2,118 |
INVESTMENTS_AND_FAIR_VALUE_Amo
INVESTMENTS AND FAIR VALUE (Amounts Presented on the Statement of Cash Flows) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Contributions | ||
Per Consolidated Statements of Cash Flows | $7,720 | $7,031 |
Investments of incentive receivable amounts into Fortress Funds | 107,855 | 233,260 |
Net funded | 5,216 | |
Other | 0 | |
Per Above | 120,791 | |
Distributions of Capital | ||
Per Consolidated Statements of Cash Flows | -107,370 | -231,158 |
Investments of incentive receivable amounts into Fortress Funds | 0 | |
Change in distributions payable out of Fortress Funds | -4,849 | |
Net funded | -5,216 | |
Other | -304 | |
Per Above | $117,739 |
INVESTMENTS_AND_FAIR_VALUE_Sum2
INVESTMENTS AND FAIR VALUE (Summarized Statements of Operations for Significant Equity Method Investees) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Fortress’s equity in net income (loss) | $41,708 | $20,374 |
Private Equity Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues and gains (losses) on investments | 638,253 | -39,338 |
Expenses | -52,613 | -50,798 |
Net Income (Loss) | 585,640 | -90,136 |
Fortress’s equity in net income (loss) | 25,856 | 6,392 |
Number of entities reported using lagging financial information | 4 | |
Lag in preparation of summary of financial information (in quarters) | 1 | |
Liquid Hedge Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues and gains (losses) on investments | 7,091 | -155,299 |
Expenses | -65,737 | -46,393 |
Net Income (Loss) | -58,646 | -201,692 |
Fortress’s equity in net income (loss) | 9,368 | 1,529 |
Credit Hedge Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues and gains (losses) on investments | 254,234 | 298,810 |
Expenses | -101,871 | -79,448 |
Net Income (Loss) | 152,363 | 219,362 |
Fortress’s equity in net income (loss) | 1,968 | 2,369 |
Credit PE Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues and gains (losses) on investments | 328,119 | 603,301 |
Expenses | -70,139 | -74,735 |
Net Income (Loss) | 257,980 | 528,566 |
Fortress’s equity in net income (loss) | $5,065 | $10,008 |
Number of entities reported using lagging financial information | 1 | |
Lag in preparation of summary of financial information (in quarters) | 1 | |
Lag in preparation of summary of financial information (in months) | 1 month |
INVESTMENTS_AND_FAIR_VALUE_Ent
INVESTMENTS AND FAIR VALUE (Entities Information) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | variable_interest_entity | variable_interest_entity |
Fortress is not Primary Beneficiary | Private Equity Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 2 | 2 |
Gross Assets | $116,166 | $85,553 |
Financial Obligations | 0 | 0 |
Fortress Investment | 99 | 56 |
Fortress is not Primary Beneficiary | Permanent Capital Vehicles | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 5 | 5 |
Gross Assets | 14,012,405 | 14,539,141 |
Financial Obligations | 9,646,658 | 10,336,207 |
Fortress Investment | 144,456 | 154,346 |
Fortress is not Primary Beneficiary | Liquid Hedge Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 4 | 2 |
Gross Assets | 2,689,349 | 3,070,203 |
Financial Obligations | 385,041 | 432,580 |
Fortress Investment | 54,031 | 7,094 |
Fortress is not Primary Beneficiary | Credit Hedge Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 8 | 8 |
Gross Assets | 2,128,044 | 1,976,328 |
Financial Obligations | 398,930 | 152,806 |
Fortress Investment | 4,551 | 25,474 |
Fortress is not Primary Beneficiary | Credit PE Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 31 | 30 |
Gross Assets | 795,370 | 735,855 |
Financial Obligations | 229,522 | 143,743 |
Fortress Investment | 8,328 | 5,897 |
Fortress is not Primary Beneficiary | Investments made in current year | Liquid Hedge Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 2 | |
Gross Assets | 216,390 | |
Financial Obligations | 0 | |
Fortress Investment | 49,639 | |
Fortress is not Primary Beneficiary | Investments made in current year | Credit PE Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 1 | |
Gross Assets | 8,574 | |
Financial Obligations | 0 | |
Fortress Investment | 87 | |
Fortress is Primary Beneficiary | Private Equity Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 9 | 9 |
Gross Assets | 70,668 | 90,723 |
Financial Obligations | 0 | 0 |
Fortress Investment | 20,035 | 20,368 |
Fortress is Primary Beneficiary | Liquid Hedge Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 1 | 3 |
Gross Assets | 7,811 | 8,714 |
Financial Obligations | 0 | 0 |
Fortress Investment | 3,595 | 4,125 |
Fortress is Primary Beneficiary | Credit PE Funds | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 2 | 2 |
Gross Assets | 440 | 434 |
Financial Obligations | 0 | 0 |
Fortress Investment | 20 | 22 |
Fortress is Primary Beneficiary | Logan Circle | ||
Investments in Variable Interest Entities | ||
Number of VIEs | 1 | 1 |
Gross Assets | 5,160 | 6,566 |
Financial Obligations | 0 | 0 |
Fortress Investment | $4,857 | $4,783 |
INVESTMENTS_AND_FAIR_VALUE_Fai
INVESTMENTS AND FAIR VALUE (Fair Value of Financial Instruments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets (within Investments) | ||
Total equity method investments carried at fair value | $16,804 | $15,207 |
Options in equity method investees | 108,120 | 71,844 |
Level 1 | Permanent Capital Vehicles | Common stock | ||
Assets (within Investments) | ||
Total equity method investments carried at fair value | 15,537 | 14,172 |
Level 1 | Publicly traded portfolio companies | Common stock | ||
Assets (within Investments) | ||
Total equity method investments carried at fair value | 1,267 | 1,035 |
Level 1 | Logan Circle | ||
Assets (within Other Assets) | ||
Equity Securities | 0 | 17,627 |
Level 2 | ||
Assets (within Other Assets) | ||
Derivatives | 28,156 | 27,105 |
Liabilities (within Accrued Compensation and Benefits) | ||
Options in affiliates granted to employees | -14,440 | -8,356 |
Liabilities (within Other Liabilities) | ||
Derivatives | -1,166 | -932 |
Level 2 | Permanent Capital Vehicles | ||
Assets (within Investments) | ||
Options in equity method investees | $108,120 | $71,844 |
INVESTMENTS_AND_FAIR_VALUE_Fai1
INVESTMENTS AND FAIR VALUE (Fair Value of Financial Instruments Narrative) (Details) | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 |
New Media | Subsequent event | Subsequent event | Subsequent event | |
USD ($) | New Residential | Eurocastle | Eurocastle | |
USD ($) | USD ($) | EUR (€) | ||
Investment [Line Items] | ||||
Public offering (in shares) | 7,000,000 | 57,500,000 | 39,800,000 | |
Price per share | $21.70 | $15.25 | € 7.85 | |
Shares purchased | 700,000 | 5,800,000 | 4,000,000 | |
Equity Method Investment, Options Grants in Period, Value | $4.10 | $9 | $5.10 | |
Exercisable period | 30 months | 30 months | ||
Options term | 10 years | 10 years | 10 years |
INVESTMENTS_AND_FAIR_VALUE_Der
INVESTMENTS AND FAIR VALUE (Derivatives) (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | |
Foreign Exchange Option [Member] | Foreign Exchange Option [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Option [Member] | Foreign Exchange Option [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | |||
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | |||
Derivatives | ||||||||||
Derivative asset, fair value | $25,910 | $2,246 | ||||||||
Derivative liability, fair value | -1,161 | -5 | ||||||||
Notional Amount | 426,000 | 42,184,512 | 2,853,587 | 5,225,916 | 912,500 | |||||
Gains/(Losses) | 1,046 | 6 | -24 | 87 | ||||||
Mark to fair value on derivatives | 1,114 | -1,349 | ||||||||
Notional amount | $426,000 | ¥ 42,184,512 | ¥ 2,853,587 | ¥ 5,225,916 | ¥ 912,500 |
INVESTMENTS_AND_FAIR_VALUE_Der1
INVESTMENTS AND FAIR VALUE (Derivative Offsets) (Details) (Citibank N.A. [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Offsetting Assets [Line Items] | |
Gross amounts of recognized assets | $30,722 |
Gross amounts offset in the Consolidated Balance Sheet | -2,566 |
Net amounts of assets presented in the Consolidated Balance Sheet | 28,156 |
Gross amounts of recognized liabilities | -1,759 |
Gross amounts offset in the Consolidated Balance Sheet | 593 |
Net amount of liabilities presented in the Consolidated Balance Sheet | -1,166 |
Foreign Exchange Option [Member] | |
Offsetting Assets [Line Items] | |
Gross amounts of recognized assets | 28,476 |
Gross amounts offset in the Consolidated Balance Sheet | -2,566 |
Net amounts of assets presented in the Consolidated Balance Sheet | 25,910 |
Gross amounts of recognized liabilities | -1,754 |
Gross amounts offset in the Consolidated Balance Sheet | 593 |
Net amount of liabilities presented in the Consolidated Balance Sheet | -1,161 |
Foreign Exchange Forward [Member] | |
Offsetting Assets [Line Items] | |
Gross amounts of recognized assets | 2,246 |
Gross amounts offset in the Consolidated Balance Sheet | 0 |
Net amounts of assets presented in the Consolidated Balance Sheet | 2,246 |
Gross amounts of recognized liabilities | -5 |
Gross amounts offset in the Consolidated Balance Sheet | 0 |
Net amount of liabilities presented in the Consolidated Balance Sheet | ($5) |
DEBT_OBLIGATIONS_Schedule_of_D
DEBT OBLIGATIONS (Schedule of Debt) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
DEBT OBLIGATIONS | ||
Face Amount and Carrying Value | $75,000,000 | $75,000,000 |
Fair value of debt | 75,100,000 | |
Revolving debt | ||
DEBT OBLIGATIONS | ||
Face Amount and Carrying Value | 75,000,000 | 75,000,000 |
Final Stated Maturity | 28-Feb-16 | |
Amount Available for Draws | 72,332,000 | |
Maximum borrowing amount | 150,000,000 | |
Unused commitment fees (as a percent) | 0.40% | |
Revolving debt | LIBOR | ||
DEBT OBLIGATIONS | ||
Contractual interest rate, spread (as a percent) | 2.50% | |
Letter of credit subfacility | ||
DEBT OBLIGATIONS | ||
Maximum borrowing amount | 15,000,000 | |
Amount utilized | $2,700,000 |
DEBT_OBLIGATIONS_Debt_Covenant
DEBT OBLIGATIONS (Debt Covenants) (Details) (USD $) | Mar. 31, 2015 |
DEBT OBLIGATIONS | |
Assets under Management, Actual | $43,606,000,000 |
Consolidated Leverage Ratio, Actual | 0.24 |
Consolidated Interest Coverage Ratio, Actual | 88.43 |
Minimum | |
DEBT OBLIGATIONS | |
Assets under Management, Requirement | $25,000,000,000 |
Consolidated Interest Coverage Ratio, Requirement | 4 |
Maximum | |
DEBT OBLIGATIONS | |
Consolidated Leverage Ratio, Requirement | 2 |
INCOME_TAXES_AND_TAX_RELATED_P2
INCOME TAXES AND TAX RELATED PAYMENTS (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Line Items] | ||
Deferred income tax expense (benefit) | $18,514,000 | $2,486,000 |
Current income tax benefit credited to paid-in capital, related to dividend equivalent payments on RSUs | 1,400,000 | |
Payments pursuant to the tax receivable agreement | 5,400,000 | |
Equity Method Investee | ||
Income Tax Disclosure [Line Items] | ||
Deferred income tax expense (benefit) | $300,000 |
INCOME_TAXES_AND_TAX_RELATED_P3
INCOME TAXES AND TAX RELATED PAYMENTS (Provision for Income Taxes) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Current | ||
Federal income tax expense (benefit) | ($3,121) | ($68) |
Foreign income tax expense (benefit) | 1,127 | 3,138 |
State and local income tax expense (benefit) | 1,879 | 438 |
Total current tax expense | -115 | 3,508 |
Deferred | ||
Federal income tax expense (benefit) | 12,987 | 1,517 |
Foreign income tax expense (benefit) | 3,542 | 783 |
State and local income tax expense (benefit) | 1,985 | 186 |
Deferred income tax expense (benefit) | 18,514 | 2,486 |
Total expense (benefit) | $18,399 | $5,994 |
INCOME_TAXES_AND_TAX_RELATED_P4
INCOME TAXES AND TAX RELATED PAYMENTS (Tax Effect of Temporary Differences) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Total deferred tax assets | $425,962 | $439,159 |
Less: | ||
Valuation allowance | -13,907 | -13,072 |
Deferred tax liabilities | -14,277 | -8,464 |
Deferred tax assets, net | $397,778 | $417,623 |
INCOME_TAXES_AND_TAX_RELATED_P5
INCOME TAXES AND TAX RELATED PAYMENTS (Changes in Deferred Tax Asset Valuation Allowance) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Valuation Allowance at December 31, 2014 | $13,072 | |
Valuation Allowance at March 31, 2015 | 13,907 | 13,072 |
Due to Change in Ownership | ||
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Valuation allowance for deferred tax asset, change in amount | 1 | |
Due to Factors Other Than Change in Ownership | ||
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Valuation allowance for deferred tax asset, change in amount | $834 |
RELATED_PARTY_TRANSACTIONS_AND2
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Affiliate Receivables and Payables) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Due from Affiliates | ||
Management fees and incentive income | $86,623,000 | $233,125,000 |
Expense reimbursements | 64,324,000 | 74,913,000 |
Dividends and distributions | 291,000 | 295,000 |
Other | 16,938,000 | 18,242,000 |
Total | 168,176,000 | 326,575,000 |
Allowances for uncollectible management fees | 12,200,000 | 12,200,000 |
Allowances for uncollectible expense reimbursements | 6,700,000 | 6,600,000 |
Past due management fees receivable | 36,100,000 | |
Private equity general and administrative expenses advanced on behalf of certain Fortress Funds | 11,200,000 | |
Unreserved amount as percentage of NAV, both individually and in the aggregate (less than 5%) | 5.00% | |
Due to Affiliates | ||
Principals - tax receivable agreement | 289,338,000 | 289,324,000 |
Principals - Principal Performance Payments | 3,481,000 | 30,659,000 |
Distributions payable on Fortress Operating Group units | 11,142,000 | 0 |
Other | 5,589,000 | 11,411,000 |
General partner liability | 44,572,000 | 44,030,000 |
Total | 354,122,000 | 375,424,000 |
Private Equity Funds | ||
Due from Affiliates | ||
Management fees and incentive income | 37,327,000 | 35,970,000 |
Expense reimbursements | 18,926,000 | 35,995,000 |
Dividends and distributions | 0 | 0 |
Other | 0 | 0 |
Total | 56,253,000 | 71,965,000 |
Permanent Capital Vehicles | ||
Due from Affiliates | ||
Management fees and incentive income | 14,545,000 | 65,043,000 |
Expense reimbursements | 8,548,000 | 6,473,000 |
Dividends and distributions | 291,000 | 295,000 |
Other | 0 | 1,346,000 |
Total | 23,384,000 | 73,157,000 |
Liquid Hedge Funds | ||
Due from Affiliates | ||
Management fees and incentive income | 5,957,000 | 15,634,000 |
Expense reimbursements | 16,738,000 | 12,940,000 |
Dividends and distributions | 0 | 0 |
Other | 169,000 | 0 |
Total | 22,864,000 | 28,574,000 |
Credit Hedge Funds | ||
Due from Affiliates | ||
Management fees and incentive income | 7,487,000 | 96,996,000 |
Expense reimbursements | 9,427,000 | 9,264,000 |
Dividends and distributions | 0 | 0 |
Other | 0 | 0 |
Total | 16,914,000 | 106,260,000 |
Credit PE funds | ||
Due from Affiliates | ||
Management fees and incentive income | 20,686,000 | 18,393,000 |
Expense reimbursements | 10,624,000 | 10,077,000 |
Dividends and distributions | 0 | 0 |
Other | 0 | 0 |
Total | 31,310,000 | 28,470,000 |
Logan Circle | ||
Due from Affiliates | ||
Management fees and incentive income | 621,000 | 1,089,000 |
Expense reimbursements | 61,000 | 164,000 |
Dividends and distributions | 0 | 0 |
Other | 0 | 0 |
Total | 682,000 | 1,253,000 |
Other | ||
Due from Affiliates | ||
Management fees and incentive income | 0 | 0 |
Expense reimbursements | 0 | 0 |
Dividends and distributions | 0 | 0 |
Other | 16,769,000 | 16,896,000 |
Total | $16,769,000 | $16,896,000 |
RELATED_PARTY_TRANSACTIONS_AND3
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Other Related Party Transactions) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Related Party Transaction [Line Items] | ||
Revenues from affiliates included in other revenues | $0.50 | $0.60 |
Senior employee | ||
Related Party Transaction [Line Items] | ||
Advances made to senior employees | 1.8 | |
Number of employees who received advances | 1 | |
Number of employees who repaid advances | 1 | |
Advances repaid by senior employees | $0.10 | |
Senior employee | LIBOR | ||
Related Party Transaction [Line Items] | ||
Interest rate on advances to employees | 4.00% |
RELATED_PARTY_TRANSACTIONS_AND4
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Redeemable Non-controlling Interests) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) In Redeemable Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $1,717 | |
Capital distributions | -1,592 | |
Redeemable Non-controlling Interests in Income (Loss) | -16 | 0 |
Ending balance | $109 |
RELATED_PARTY_TRANSACTIONS_AND5
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Balance Sheet Caption) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Related Party Transactions [Abstract] | ||
Fortress Operating Group units held by the Principals and a former senior employee | $514,935 | $556,720 |
Employee interests in majority owned and controlled fund advisor and general partner entities | 66,447 | 80,333 |
Other | 2,251 | 2,303 |
Total | $583,633 | $639,356 |
RELATED_PARTY_TRANSACTIONS_AND6
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Balance Sheet Caption - Fortress Operating Group) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Total Equity | $1,187,826 | $1,282,955 |
Less: Others' interests in equity of consolidated subsidiaries | -583,633 | -639,356 |
Total Fortress shareholder's equity in Fortress Operating Group | 604,193 | 643,599 |
Equity of Fortress Operating Group units held by the Principals and a former senior employee | 514,935 | 556,720 |
Shares owned by registrant (as a percent) | 48.00% | 48.00% |
Class B Shares | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Common stock, shares outstanding | 226,331,513 | 226,331,513 |
Class A Shares | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Common stock, shares outstanding | 208,554,885 | 208,535,157 |
Class A and Class B Shares | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Common stock, shares outstanding | 434,886,398 | 434,866,670 |
Fortress Operating Group portion of interests | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Total Equity | 1,058,115 | 1,152,297 |
Less: Others' interests in equity of consolidated subsidiaries | -68,698 | -82,636 |
Total Fortress shareholder's equity in Fortress Operating Group | 989,417 | 1,069,661 |
Fortress Operating Group units as a percent of the total | 52.00% | 52.00% |
Equity of Fortress Operating Group units held by the Principals and a former senior employee | $514,935 | $556,720 |
Fortress Operating Group portion of interests | Class B Shares | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Common stock, shares outstanding | 226,331,513 | 226,331,513 |
Fortress Operating Group portion of interests | Class A Shares | ||
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ||
Common stock, shares outstanding | 208,554,885 | 208,535,157 |
RELATED_PARTY_TRANSACTIONS_AND7
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Statement of Operations Caption) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Related Party Transactions [Abstract] | ||
Fortress Operating Group units held by the Principals and a former senior employee | $51,605 | $5,058 |
Employee interests in majority owned and controlled fund advisor and general partner entities | 840 | 1,011 |
Other | -222 | 8 |
Total | $52,223 | $6,077 |
RELATED_PARTY_TRANSACTIONS_AND8
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Statement of Operations Caption - Fortress Operating Group) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Related Party Transaction [Line Items] | ||
Fortress Operating Group net income (loss) | $86,920 | $9,101 |
Less: Others' interests in net income (loss) of consolidated subsidiaries | -52,223 | -6,077 |
Fortress Operating Group net income (loss) attributable to the Principals and a former senior employee | 51,605 | 5,058 |
Fortress Operating Group portion of interests | ||
Related Party Transaction [Line Items] | ||
Fortress Operating Group net income (loss) | 99,759 | 10,826 |
Less: Others' interests in net income (loss) of consolidated subsidiaries | -618 | -1,019 |
Redeemable Non-controlling interests in (income) loss of Consolidated Subsidiaries | 16 | 0 |
Net Income (Loss) Attributable to Parent | $99,157 | $9,807 |
Fortress Operating Group as a percent of total | 52.00% | 51.60% |
RELATED_PARTY_TRANSACTIONS_AND9
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Changes in Ownership Interest) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in the Registrant's Equity due to Changes in Ownership in the Consolidated Operating Group Subsidiary | ||
Increase in Fortress’s shareholders’ equity for the conversion of Fortress Operating Group units by the Principals and one senior employee | $0 | $0 |
Increase in Fortress’s shareholders’ equity for the delivery of Class A shares primarily in connection with vested RSUs and RPUs | 25 | 417 |
Increase in Fortress's shareholders' equity for the public offering of Class A shares and repurchase of Class B shares and FOGUs | 0 | 53,510 |
Decrease in Fortress's shareholders' equity for the repurchase and cancellation of Class A shares and FOGUs | 0 | -101,156 |
Change from net income (loss) attributable to Fortress and transfers (to) from Principals’ and Others’ Interests | 34,738 | -44,205 |
Class A Shares | ||
Changes in the Registrant's Equity due to Changes in Ownership in the Consolidated Operating Group Subsidiary | ||
Net income (loss) attributable to Fortress | $34,713 | $3,024 |
EQUITYBASED_AND_OTHER_COMPENSA2
EQUITY-BASED AND OTHER COMPENSATION (Compensation and Benefit Expenses and Equity-Based Compensation Activities) (Details) (USD $) | 3 Months Ended | 2 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | |
Equity-Based Compensation | |||
Equity-based compensation, per below | $14,345,000 | $8,673,000 | |
Profit-sharing expense, per below | 38,912,000 | 64,323,000 | |
Discretionary bonuses | 62,581,000 | 57,438,000 | |
Other payroll, taxes and benefits | 63,050,000 | 58,085,000 | |
Total compensation and benefit expense | 178,888,000 | 188,519,000 | |
Additional disclosures | |||
Unrecognized compensation expense on non-vested equity based awards | 118,300,000 | ||
Weighted average recognition period (in years) | 4 years 2 months 16 days | ||
Principal Performance Payments | |||
Equity-Based Compensation | |||
Equity-based compensation, per below | 2,359,000 | 2,780,000 | |
Profit-sharing expense, per below | 2,803,000 | 6,898,000 | |
RSUs | |||
Number of shares and units | |||
Issued (in shares) | 11,400,000 | ||
RSUs | Employees | |||
Equity-Based Compensation | |||
Equity-based compensation, per below | 11,004,000 | 5,887,000 | |
Number of shares and units | |||
Outstanding at the beginning of the period (in shares) | 20,153,746 | 20,153,746 | |
Issued (in shares) | 11,875,354 | ||
Transfers (in shares) | 0 | ||
Converted (in shares) | 0 | ||
Forfeited (in shares) | -363,545 | ||
Balance outstanding at the end of the period (in shares) | 31,665,555 | ||
Weighted average grant date estimated fair value per share or unit | |||
Balance outstanding at the beginning of the period (in dollars per share) | $5.52 | 5.52 | |
Issued (in dollars per share) | $6.89 | ||
Transfers (in dollars per share) | $0 | ||
Converted (in dollars per share) | $0 | ||
Forfeited (in dollars per share) | $6.18 | ||
Balance outstanding at the end of the period (in dollars per share) | $6.02 | ||
RSUs | Non-Employees | |||
Equity-Based Compensation | |||
Equity-based compensation, per below | $982,000 | $6,000 | |
Number of shares and units | |||
Outstanding at the beginning of the period (in shares) | 396,874 | 396,874 | |
Issued (in shares) | 111,540 | ||
Transfers (in shares) | 0 | ||
Converted (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Balance outstanding at the end of the period (in shares) | 508,414 | ||
Weighted average grant date estimated fair value per share or unit | |||
Balance outstanding at the beginning of the period (in dollars per share) | $6.51 | 6.51 | |
Issued (in dollars per share) | $7.61 | ||
Transfers (in dollars per share) | $0 | ||
Converted (in dollars per share) | $0 | ||
Forfeited (in dollars per share) | $0 | ||
Balance outstanding at the end of the period (in dollars per share) | $6.76 | ||
RSUs | Principal Performance Payments | |||
Additional disclosures | |||
Awards expected to be granted on the basis of year-to-date performance (in shares) | 300,000 |
EQUITYBASED_AND_OTHER_COMPENSA3
EQUITY-BASED AND OTHER COMPENSATION (Narrative) (Details) (USD $) | 1 Months Ended | 2 Months Ended |
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2015 |
RSUs | ||
Equity-Based Compensation | ||
Issued (in shares) | 11,400,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments other than options, granted in period, fair value | 77.6 | |
RSUs | Minimum | ||
Equity-Based Compensation | ||
Vesting period (in years) | 3 years | |
RSUs | Maximum | ||
Equity-Based Compensation | ||
Vesting period (in years) | 6 years | |
Dividend Paying RSUs | ||
Equity-Based Compensation | ||
Issued (in shares) | 500,000 | 6,500,000 |
Issued (value) | $4 | |
Vesting period (in years) | 3 years |
EQUITYBASED_AND_OTHER_COMPENSA4
EQUITY-BASED AND OTHER COMPENSATION (Principal Performance Payments Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred and equity related compensation | ||
Equity-based compensation | $14,345 | $8,673 |
Profit Sharing Expense | 38,912 | 64,323 |
Principal Performance Payments | ||
Deferred and equity related compensation | ||
Equity-based compensation | 2,359 | 2,780 |
Profit Sharing Expense | 2,803 | 6,898 |
Total equity-based compensation and profit sharing expense accrual | 5,162 | |
Private Equity Business | Principal Performance Payments | ||
Deferred and equity related compensation | ||
Equity-based compensation | 0 | |
Profit Sharing Expense | 0 | |
Total equity-based compensation and profit sharing expense accrual | 0 | |
Liquid Hedge Funds | ||
Deferred and equity related compensation | ||
Profit Sharing Expense | 4,053 | 2,463 |
Liquid Hedge Funds | Principal Performance Payments | ||
Deferred and equity related compensation | ||
Equity-based compensation | 499 | |
Profit Sharing Expense | 280 | |
Total equity-based compensation and profit sharing expense accrual | 779 | |
Credit Business | Principal Performance Payments | ||
Deferred and equity related compensation | ||
Equity-based compensation | 1,860 | |
Profit Sharing Expense | 2,523 | |
Total equity-based compensation and profit sharing expense accrual | $4,383 |
EQUITYBASED_AND_OTHER_COMPENSA5
EQUITY-BASED AND OTHER COMPENSATION (Profit Sharing Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | $38,912 | $64,323 |
Principal Performance Payments | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | 2,803 | 6,898 |
Private Equity Funds | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | 0 | 0 |
Permanent Capital Vehicles | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | 6,499 | 4,916 |
Liquid Hedge Funds | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | 4,053 | 2,463 |
Liquid Hedge Funds | Principal Performance Payments | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | 280 | |
Credit Hedge Funds | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | 11,609 | 15,634 |
Credit PE Funds | ||
Recognized Profit Sharing Compensation | ||
Profit Sharing Expense | $13,948 | $34,412 |
EARNINGS_PER_SHARE_AND_DISTRIB2
EARNINGS PER SHARE AND DISTRIBUTIONS (Computations of Basic and Diluted EPS) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
category | ||
Schedule of Earnings per Share [Line Items] | ||
Number of general categories of potentially dilutive equity instruments | 2 | |
Weighted average shares outstanding | ||
Class A shares outstanding | 207,713,350 | 212,061,656 |
Fully vested restricted Class A share units with dividend equivalent rights | 7,231,768 | 3,899,986 |
Fully vested restricted Class A shares | 840,658 | 973,275 |
Total weighted average shares outstanding | 215,785,776 | 216,934,917 |
Basic net income (loss) per Class A share | ||
Dividend equivalents declared on non-vested restricted Class A shares and restricted Class A share units | ($2,125) | ($204) |
Net income (loss) available to Class A shareholders | 32,588 | 2,820 |
Total weighted average shares outstanding | 215,785,776 | 216,934,917 |
Basic net income (loss) per Class A share (in dollars per share) | $0.15 | $0.01 |
Weighted average shares outstanding | ||
Class A shares outstanding | 207,713,350 | 212,061,656 |
Fully vested restricted Class A share units with dividend equivalent rights | 7,231,768 | 3,899,986 |
Fully vested restricted Class A shares | 840,658 | 973,275 |
Fortress Operating Group units and fully vested RPUs exchangeable into Class A shares | 0 | 0 |
Class A restricted shares and Class A restricted share units granted to employees and directors (eligible for dividend and dividend equivalent payments) | 0 | 1,450,688 |
Class A restricted share units granted to employees (not eligible for dividend and dividend equivalent payments) | 5,749,413 | 10,648,173 |
Total weighted average shares outstanding | 221,535,189 | 229,033,778 |
Diluted net income (loss) per Class A share | ||
Dividend equivalents declared on non-vested restricted Class A shares and restricted Class A share units | -2,125 | -204 |
Add back Principals’ and others’ interests in loss of Fortress Operating Group, net of assumed corporate income taxes at enacted rates, attributable to Fortress Operating Group units and fully vested RPUs exchangeable into Class A shares (1) | 0 | 0 |
Net income (loss) available to Class A shareholders | 32,588 | 2,820 |
Total weighted average shares outstanding | 221,535,189 | 229,033,778 |
Diluted net income (loss) per Class A share (in dollars per share) | $0.15 | $0.01 |
Number of Units Along with Class B Share Exchangeable for Each Class a Share | 1 | |
Number of Shares Exchanged for Each Unit Along with Class B Share | 1 | |
Share Units | 11,703,251 | 12,436,247 |
Class A Shares | ||
Basic net income (loss) per Class A share | ||
Net income (loss) attributable to Class A shareholders | 34,713 | 3,024 |
Diluted net income (loss) per Class A share | ||
Net income (loss) attributable to Class A shareholders | $34,713 | $3,024 |
EARNINGS_PER_SHARE_AND_DISTRIB3
EARNINGS PER SHARE AND DISTRIBUTIONS (Dividend Paying Shares and Units) (Details) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 13, 2014 | Dec. 31, 2014 | |
Dividend paying shares and units | |||||
Weighted average dividend paying shares and units | 450,464,691 | 468,857,541 | |||
Dividend paying shares and units | 453,613,138 | 442,062,960 | |||
Number of Units Along with Class B Share Exchangeable for Each Class a Share | 1 | ||||
Number of Shares Exchanged for Each Unit Along with Class B Share | 1 | ||||
Fortress Operating Group units (Principals and one senior employee) | |||||
Dividend paying shares and units | |||||
Weighted average dividend paying shares and units | 226,331,513 | 245,925,038 | |||
Dividend paying shares and units | 226,331,513 | 226,331,513 | |||
Restricted Class A shares (directors) | |||||
Dividend paying shares and units | |||||
Weighted average dividend paying shares and units | 840,658 | 973,275 | |||
Dividend paying shares and units | 841,535 | 1,045,134 | |||
Restricted Class A share units fully vested (employees) | |||||
Dividend paying shares and units | |||||
Weighted average dividend paying shares and units | 7,231,768 | 3,899,986 | |||
Dividend paying shares and units | 7,567,557 | 194,287 | |||
Restricted Class A share units nonvested (employees) | |||||
Dividend paying shares and units | |||||
Weighted average dividend paying shares and units | 8,347,402 | 5,997,586 | |||
Dividend paying shares and units | 11,159,183 | 7,002,003 | |||
Class A Shares | |||||
Dividend paying shares and units | |||||
Weighted average dividend paying shares and units | 207,713,350 | 212,061,656 | |||
Dividend paying shares and units | 207,713,350 | 207,490,023 | |||
Purchase price, amount to be paid | 9,676,000 | 363,410,000 | |||
Common stock | Class A Shares | |||||
Dividend paying shares and units | |||||
Public offering (in shares) | 23,202,859 | ||||
Proceeds from issuance of common stock | 186,600,000 | ||||
Nomura | |||||
Dividend paying shares and units | |||||
Shares Acquired | 60,568,275 | ||||
Purchase price, amount to be paid | 363,400,000 | ||||
Contingent Consideration, Liability | 12,000,000 | ||||
Liabilities, Fair Value | 30,000,000 | ||||
Payment of contingent liability | 9,700,000 |
EARNINGS_PER_SHARE_AND_DISTRIB4
EARNINGS PER SHARE AND DISTRIBUTIONS (Dividends and Distributions) (Details) (USD $) | 3 Months Ended | 0 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | 6-May-15 |
Dividends and distributions | ||
Declared in Prior Year, Paid in Current Year | $0 | |
Declared and Paid | 172,373 | |
Declared but not yet Paid | 11,142 | |
Total | 183,515 | |
Fortress Operating Group unit holders | ||
Dividends and distributions | ||
Declared in Prior Year, Paid in Current Year | 0 | |
Declared and Paid | 86,006 | |
Declared but not yet Paid | 11,142 | |
Total | 97,148 | |
Restricted Class A share units | ||
Dividends and distributions | ||
Declared in Prior Year, Paid in Current Year | 0 | |
Declared and Paid | 7,116 | |
Declared but not yet Paid | 0 | |
Total | 7,116 | |
Class A Shares | ||
Dividends and distributions | ||
Declared in Prior Year, Paid in Current Year | 0 | |
Declared and Paid | 79,251 | |
Declared but not yet Paid | 0 | |
Total | 79,251 | |
Class A Shares | Subsequent event | ||
Dividends and distributions | ||
Declared and Paid | $18,200 | |
Cash dividend declared (in dollars per share) | $0.08 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
General Partner Liability | ||
Amount of negative equity recorded | $44,600,000 | |
Private Equity Fund and Credit PE Fund Capital Commitments | ||
Private equity fund, private placement capital vehicle, and credit PE fund capital commitments | 172,900,000 | |
Minimum Future Rentals | ||
April 1, 2015 to December 31, 2015 | 19,061,000 | |
2016 | 23,532,000 | |
2017 | 12,747,000 | |
2018 | 20,228,000 | |
2019 | 19,612,000 | |
2020 | 19,561,000 | |
Thereafter | 259,822,000 | |
Total | 374,563,000 | |
Rent expense under operating leases | $7,600,000 | $5,500,000 |
SEGMENT_REPORTING_Clawback_Res
SEGMENT REPORTING (Clawback Reserve, Impairment Determination, Embedded Incentive Income) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Clawback Reserve on Incentive Income for DE Purposes | |||
Net Intrinsic Clawback (B) | $45,108,000 | ||
Prior Year End Inception-to-Date Net DE Reserve | 45,108,000 | ||
Current Year-to-Date Gross DE Reserve (Reversal) | 0 | 1,999,000 | |
Current Year-to-Date Net DE Reserve (Reversal) | 0 | ||
Inception-to-Date Net DE Reserve | 45,108,000 | ||
Impairment determination | |||
Impairment on direct and indirect investments | 2,994,000 | 26,000 | |
Unrealized losses on certain investments that have not been recorded as impairment for DE purposes | 9,400,000 | ||
Unrealized gains on investments | 575,700,000 | ||
Embedded Incentive Income [Abstract] | |||
Deferred Incentive Income Undistributed Gross | 1,200,000,000 | ||
Deferred Incentive Income Undistributed Net of Intrinsic Clawback | 1,105,298,000 | 868,549,000 | |
Gross undistributed incentive income recognized in distributable earnings | 23,169,000 | 30,494,000 | |
Permanent Capital Vehicles | |||
Embedded Incentive Income [Abstract] | |||
Gross Additional Distributable Earnings on Exercise of in Money Options | 99,500,000 | ||
Net Additional Distributable Earnings on Exercise of in Money Options | 85,300,000 | ||
Fund III | |||
Clawback Reserve on Incentive Income for DE Purposes | |||
Net Intrinsic Clawback (B) | 45,108,000 | ||
Periods in Intrinsic Clawback | 87 months | ||
Prior Year End Inception-to-Date Net DE Reserve | 45,108,000 | ||
Current Year-to-Date Gross DE Reserve (Reversal) | 0 | ||
Current Year-to-Date Net DE Reserve (Reversal) | 0 | ||
Inception-to-Date Net DE Reserve | $45,108,000 |
SEGMENT_REPORTING_Segment_Resu
SEGMENT REPORTING (Segment Results of Operations) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Segment revenues | |||
Management fees | $138,604,000 | $147,040,000 | |
Incentive income | 51,358,000 | 103,925,000 | |
Segment revenues - total | 189,962,000 | 250,965,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | 44,850,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 54,132,000 | 93,924,000 | |
Fund management distributable earnings (loss) | 50,905,000 | 87,027,000 | |
Pre-tax distributable earnings (loss) | 55,197,000 | 96,511,000 | |
Total segment assets | 2,195,838,000 | ||
Deferred tax asset, net | 397,778,000 | 417,623,000 | |
Private Equity Funds | |||
Segment revenues | |||
Management fees | 29,140,000 | 35,422,000 | |
Incentive income | 0 | 1,999,000 | |
Segment revenues - total | 29,140,000 | 37,421,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | 14,976,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 14,976,000 | 24,767,000 | |
Fund management distributable earnings (loss) | 14,976,000 | 24,767,000 | |
Pre-tax distributable earnings (loss) | 14,998,000 | 28,259,000 | |
Total segment assets | 766,757,000 | ||
Permanent Capital Vehicles | |||
Segment revenues | |||
Management fees | 19,202,000 | 16,036,000 | |
Incentive income | 3,020,000 | 4,009,000 | |
Segment revenues - total | 22,222,000 | 20,045,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | 3,769,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 3,769,000 | 6,027,000 | |
Fund management distributable earnings (loss) | 3,769,000 | 5,344,000 | |
Pre-tax distributable earnings (loss) | 4,109,000 | 5,685,000 | |
Total segment assets | 160,945,000 | ||
Liquid Hedge Funds | |||
Segment revenues | |||
Management fees | 20,989,000 | 33,478,000 | |
Incentive income | 891,000 | 133,000 | |
Segment revenues - total | 21,880,000 | 33,611,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | -2,503,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 6,779,000 | 8,480,000 | |
Fund management distributable earnings (loss) | 6,499,000 | 7,939,000 | |
Pre-tax distributable earnings (loss) | 9,590,000 | 8,785,000 | |
Total segment assets | 229,172,000 | ||
Credit Hedge Funds | |||
Segment revenues | |||
Management fees | 29,664,000 | 26,858,000 | |
Incentive income | 23,165,000 | 31,829,000 | |
Segment revenues - total | 52,829,000 | 58,687,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | 23,105,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 23,105,000 | 26,561,000 | |
Fund management distributable earnings (loss) | 20,744,000 | 22,024,000 | |
Pre-tax distributable earnings (loss) | 21,731,000 | 23,417,000 | |
Total segment assets | 76,850,000 | ||
Credit PE Funds | |||
Segment revenues | |||
Management fees | 26,348,000 | 24,642,000 | |
Incentive income | 24,148,000 | 65,955,000 | |
Segment revenues - total | 50,496,000 | 90,597,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | 6,366,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 6,366,000 | 30,160,000 | |
Fund management distributable earnings (loss) | 5,780,000 | 29,024,000 | |
Pre-tax distributable earnings (loss) | 7,029,000 | 32,733,000 | |
Total segment assets | 284,209,000 | ||
Logan Circle | |||
Segment revenues | |||
Management fees | 13,261,000 | 10,604,000 | |
Incentive income | 134,000 | 0 | |
Segment revenues - total | 13,395,000 | 10,604,000 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | -863,000 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | -863,000 | -2,071,000 | |
Fund management distributable earnings (loss) | -863,000 | -2,071,000 | |
Pre-tax distributable earnings (loss) | -1,119,000 | -1,946,000 | |
Total segment assets | 52,818,000 | ||
Unallocated | |||
Segment revenues | |||
Management fees | 0 | 0 | |
Incentive income | 0 | 0 | |
Segment revenues - total | 0 | 0 | |
Fund management distributable earnings (loss) before earnings from Affiliated Managers and Principal Performance Payments | 0 | ||
Fund management distributable earnings (loss) before Principal Performance Payments | 0 | 0 | |
Fund management distributable earnings (loss) | 0 | 0 | |
Pre-tax distributable earnings (loss) | -1,141,000 | -422,000 | |
Total segment assets | 625,087,000 | ||
Cash | 141,600,000 | ||
Deferred tax asset, net | $397,800,000 |
SEGMENT_REPORTING_Reconciling_
SEGMENT REPORTING (Reconciling Items) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciling items between segment measures and GAAP measures: | ||
Fund management distributable earnings | $50,905 | $87,027 |
Investment income (loss) | 5,113 | 10,155 |
Interest expense | -821 | -671 |
Pre-tax distributable earnings | 55,197 | 96,511 |
Adjust incentive income | ||
Incentive income received from private equity funds, the private permanent capital vehicle and credit PE funds, subject to contingent repayment | -24,544 | -65,955 |
Incentive income received from third parties, subject to contingent repayment | 0 | -86 |
Incentive income from private equity funds, the private permanent capital vehicle and credit PE funds, not subject to contingent repayment | 20,964 | 29,503 |
Incentive income from hedge funds and Logan Circle, subject to annual performance achievement | -23,169 | -30,494 |
Incentive income received from the sale of shares related to options | 0 | 0 |
Reserve for clawback, gross (see discussion above) | 0 | -1,999 |
Adjust incentive income | -26,749 | -69,031 |
Adjust other income | ||
Distributions of earnings from equity method investees | -3,842 | -9,228 |
Earnings (losses) from equity method investees | 26,973 | 17,614 |
Gains (losses) on options in equity method investees | 32,328 | -4,785 |
Gains (losses) on other investments | 704 | -4,844 |
Impairment of investments (see discussion above) | 2,994 | 26 |
Adjust income from the receipt of options | 4,144 | 0 |
Gain on transfer of Graticule | 134,400 | 0 |
Adjust other income | 197,701 | -1,217 |
Adjust employee, Principal and director compensation | ||
Adjust employee, Principal and director equity-based compensation expense (including Castle options assigned) | -20,460 | -13,320 |
Adjust employee portion of incentive income from private equity funds accrued prior to the realization of incentive income | 84 | 1,135 |
Adjust employee, Principal and director compensation | -20,376 | -12,185 |
Noncash Expense | -101,000 | 0 |
Adjust amortization of intangible assets and impairment of goodwill and intangible assets | -83 | -11 |
Adjust non-controlling interests related to Fortress Operating Group units | -51,605 | -5,058 |
Adjust tax receivable agreement liability | 0 | 0 |
Adjust income taxes | -18,372 | -5,985 |
Total adjustments | -20,484 | -93,487 |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 52,223 | 6,077 |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | -16 | 0 |
Net Income | 86,920 | 9,101 |
Class A Shares | ||
Adjust employee, Principal and director compensation | ||
Net income (loss) attributable to Class A shareholders | $34,713 | $3,024 |
SEGMENT_REPORTING_Segment_Asse
SEGMENT REPORTING (Segment Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting [Abstract] | ||
Total segment assets | $2,195,838 | |
Adjust equity investments from segment carrying amount | -133 | |
Adjust investments gross of employees' and others' portion | 37,744 | |
Adjust intangible assets to cost | -22,919 | |
Accrued incentive income subject to annual performance achievement | -23,169 | |
Total Assets | $2,187,361 | $2,502,384 |
SEGMENT_REPORTING_Segment_Reve
SEGMENT REPORTING (Segment Revenues) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting [Abstract] | ||
Segment revenues | $189,962,000 | $250,965,000 |
Adjust management fees | 250,000 | 292,000 |
Adjust incentive income | -27,135,000 | -69,031,000 |
Adjust income from the receipt of options | 4,144,000 | 0 |
Adjust other revenues (including expense reimbursements) | 59,468,000 | 54,884,000 |
Total Revenues | 226,689,000 | 237,110,000 |
Incentive income received from third parties, not subject to contingent repayment | $400,000 | $0 |
SEGMENT_REPORTING_Depreciation
SEGMENT REPORTING (Depreciation and Amortization Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Depreciation | $5,248 | $4,290 |
Amortization | 83 | 11 |
Total depreciation and amortization | 5,331 | 4,301 |
Private Equity Funds | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 374 | 394 |
Amortization | 0 | 0 |
Total depreciation and amortization | 374 | 394 |
Permanent Capital Vehicles | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 235 | 183 |
Amortization | 0 | 0 |
Total depreciation and amortization | 235 | 183 |
Liquid Hedge Funds | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 2,043 | 1,253 |
Amortization | 0 | 0 |
Total depreciation and amortization | 2,043 | 1,253 |
Credit Hedge Funds | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 1,390 | 1,401 |
Amortization | 0 | 0 |
Total depreciation and amortization | 1,390 | 1,401 |
Credit PE Funds | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 256 | 200 |
Amortization | 0 | 0 |
Total depreciation and amortization | 256 | 200 |
Logan Circle | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 280 | 85 |
Amortization | 83 | 11 |
Total depreciation and amortization | 363 | 96 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 670 | 774 |
Amortization | 0 | 0 |
Total depreciation and amortization | $670 | $774 |
CONSOLIDATING_FINANCIAL_INFORM2
CONSOLIDATING FINANCIAL INFORMATION (Consolidating Balance Sheet Information) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $145,233 | $391,089 | $185,413 | $364,583 |
Due from affiliates | 168,176 | 326,575 | ||
Investments | 1,200,151 | 1,121,545 | ||
Investments in options | 108,120 | 71,844 | ||
Deferred tax asset, net | 397,778 | 417,623 | ||
Other assets | 167,903 | 173,708 | ||
Total Assets | 2,187,361 | 2,502,384 | ||
Liabilities | ||||
Accrued compensation and benefits | 139,171 | 374,709 | ||
Due to affiliates | 354,122 | 375,424 | ||
Deferred incentive income | 307,737 | 304,526 | ||
Debt obligations payable | 75,000 | 75,000 | ||
Other liabilities | 123,396 | 88,053 | ||
Total Liabilities | 999,426 | 1,217,712 | ||
Commitments and Contingencies | ||||
Redeemable Non-controlling Interests, Investment Company - consolidated VIE | 109 | 1,717 | ||
Equity | ||||
Paid-in capital | 1,922,312 | 1,996,137 | ||
Retained earnings (accumulated deficit) | -1,315,409 | -1,350,122 | ||
Accumulated other comprehensive income (loss) | -2,710 | -2,416 | ||
Total Fortress shareholders’ equity | 604,193 | 643,599 | ||
Principals’ and others’ interests in equity of consolidated subsidiaries | 583,633 | 639,356 | ||
Total Equity | 1,187,826 | 1,282,955 | ||
Total Liabilities, Redeemable Non-controlling Interests and Equity | 2,187,361 | 2,502,384 | ||
Fortress Operating Group Combined | ||||
Assets | ||||
Cash and cash equivalents | 144,542 | 389,782 | ||
Due from affiliates | 173,081 | |||
Investments | 1,200,151 | |||
Investments in options | 108,120 | |||
Deferred tax asset, net | 0 | |||
Other assets | 154,478 | |||
Total Assets | 1,780,372 | |||
Liabilities | ||||
Accrued compensation and benefits | 136,129 | |||
Due to affiliates | 75,050 | |||
Deferred incentive income | 307,737 | |||
Debt obligations payable | 75,000 | |||
Other liabilities | 127,990 | |||
Total Liabilities | 721,906 | |||
Commitments and Contingencies | ||||
Redeemable Non-controlling Interests, Investment Company - consolidated VIE | 109 | |||
Equity | ||||
Paid-in capital | 5,762,908 | |||
Retained earnings (accumulated deficit) | -4,764,582 | |||
Accumulated other comprehensive income (loss) | -8,667 | |||
Total Fortress shareholders’ equity | 989,659 | |||
Principals’ and others’ interests in equity of consolidated subsidiaries | 68,698 | |||
Total Equity | 1,058,357 | |||
Total Liabilities, Redeemable Non-controlling Interests and Equity | 1,780,372 | |||
FOE II LP | ||||
Assets | ||||
Cash and cash equivalents | 584 | 950 | ||
Due from affiliates | 2,818 | |||
Investments | 2,175 | |||
Investments in options | 0 | |||
Deferred tax asset, net | 0 | |||
Other assets | 2,298 | |||
Total Assets | 7,875 | |||
Liabilities | ||||
Accrued compensation and benefits | 3,042 | |||
Due to affiliates | 2,273 | |||
Deferred incentive income | 0 | |||
Debt obligations payable | 0 | |||
Other liabilities | 627 | |||
Total Liabilities | 5,942 | |||
Commitments and Contingencies | ||||
Redeemable Non-controlling Interests, Investment Company - consolidated VIE | 0 | |||
Equity | ||||
Paid-in capital | 5,660 | |||
Retained earnings (accumulated deficit) | -3,727 | |||
Accumulated other comprehensive income (loss) | 0 | |||
Total Fortress shareholders’ equity | 1,933 | |||
Principals’ and others’ interests in equity of consolidated subsidiaries | 0 | |||
Total Equity | 1,933 | |||
Total Liabilities, Redeemable Non-controlling Interests and Equity | 7,875 | |||
Fortress Operating Group Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Due from affiliates | -2,273 | |||
Investments | -2,175 | |||
Investments in options | 0 | |||
Deferred tax asset, net | 0 | |||
Other assets | 0 | |||
Total Assets | -4,448 | |||
Liabilities | ||||
Accrued compensation and benefits | 0 | |||
Due to affiliates | -2,273 | |||
Deferred incentive income | 0 | |||
Debt obligations payable | 0 | |||
Other liabilities | 0 | |||
Total Liabilities | -2,273 | |||
Commitments and Contingencies | ||||
Redeemable Non-controlling Interests, Investment Company - consolidated VIE | 0 | |||
Equity | ||||
Paid-in capital | -2,260 | |||
Retained earnings (accumulated deficit) | 85 | |||
Accumulated other comprehensive income (loss) | 0 | |||
Total Fortress shareholders’ equity | -2,175 | |||
Principals’ and others’ interests in equity of consolidated subsidiaries | 0 | |||
Total Equity | -2,175 | |||
Total Liabilities, Redeemable Non-controlling Interests and Equity | -4,448 | |||
Fortress Investment Group LLC Consolidated (Other than FOG) | ||||
Assets | ||||
Cash and cash equivalents | 107 | 357 | ||
Due from affiliates | 10,266 | |||
Investments | 474,482 | |||
Investments in options | 0 | |||
Deferred tax asset, net | 402,999 | |||
Other assets | 11,127 | |||
Total Assets | 898,981 | |||
Liabilities | ||||
Accrued compensation and benefits | 0 | |||
Due to affiliates | 294,788 | |||
Deferred incentive income | 0 | |||
Debt obligations payable | 0 | |||
Other liabilities | 0 | |||
Total Liabilities | 294,788 | |||
Commitments and Contingencies | ||||
Redeemable Non-controlling Interests, Investment Company - consolidated VIE | 0 | |||
Equity | ||||
Paid-in capital | 1,922,312 | |||
Retained earnings (accumulated deficit) | -1,315,409 | |||
Accumulated other comprehensive income (loss) | -2,710 | |||
Total Fortress shareholders’ equity | 604,193 | |||
Principals’ and others’ interests in equity of consolidated subsidiaries | 0 | |||
Total Equity | 604,193 | |||
Total Liabilities, Redeemable Non-controlling Interests and Equity | 898,981 | |||
Elimination Adjustments | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Due from affiliates | -15,716 | |||
Investments | -474,482 | |||
Investments in options | 0 | |||
Deferred tax asset, net | -5,221 | |||
Other assets | 0 | |||
Total Assets | -495,419 | |||
Liabilities | ||||
Accrued compensation and benefits | 0 | |||
Due to affiliates | -15,716 | |||
Deferred incentive income | 0 | |||
Debt obligations payable | 0 | |||
Other liabilities | -5,221 | |||
Total Liabilities | -20,937 | |||
Commitments and Contingencies | ||||
Redeemable Non-controlling Interests, Investment Company - consolidated VIE | 0 | |||
Equity | ||||
Paid-in capital | -5,766,308 | |||
Retained earnings (accumulated deficit) | 4,768,224 | |||
Accumulated other comprehensive income (loss) | 8,667 | |||
Total Fortress shareholders’ equity | -989,417 | |||
Principals’ and others’ interests in equity of consolidated subsidiaries | 514,935 | |||
Total Equity | -474,482 | |||
Total Liabilities, Redeemable Non-controlling Interests and Equity | ($495,419) |
CONSOLIDATING_FINANCIAL_INFORM3
CONSOLIDATING FINANCIAL INFORMATION (Consolidating Statement of Operations Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Management fees: affiliates | $127,707 | $129,710 |
Management fees: non-affiliates | 15,291 | 17,622 |
Incentive income: affiliates | 24,223 | 34,251 |
Incentive income: non-affiliates | 0 | 643 |
Expense reimbursements: affiliates | 54,565 | 51,186 |
Expense reimbursements: non-affiliates | 3,248 | 2,448 |
Other revenues (affiliate portion disclosed in Note 6) | 1,655 | 1,250 |
Total Revenues | 226,689 | 237,110 |
Expenses | ||
Compensation and benefits | 178,888 | 188,519 |
General, administrative and other | 42,981 | 37,823 |
Depreciation and amortization | 5,331 | 4,301 |
Interest expense | 839 | 691 |
Transfer of interest in Graticule | 101,000 | 0 |
Total Expenses | 329,039 | 231,334 |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 31,561 | -11,055 |
Tax receivable agreement liability adjustment | 0 | 0 |
Earnings (losses) from equity method investees | 41,708 | 20,374 |
Gain on transfer of Graticule | 134,400 | 0 |
Total Other Income (Loss) | 207,669 | 9,319 |
Income (Loss) Before Income Taxes | 105,319 | 15,095 |
Income tax benefit (expense) | -18,399 | -5,994 |
Net Income (Loss) | 86,920 | 9,101 |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 52,223 | 6,077 |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | -16 | 0 |
Fortress Operating Group Combined | ||
Revenues | ||
Management fees: affiliates | 126,011 | |
Management fees: non-affiliates | 15,246 | |
Incentive income: affiliates | 24,223 | |
Incentive income: non-affiliates | 0 | |
Expense reimbursements: affiliates | 44,822 | |
Expense reimbursements: non-affiliates | 2,293 | |
Other revenues (affiliate portion disclosed in Note 6) | 1,655 | |
Total Revenues | 214,250 | |
Expenses | ||
Compensation and benefits | 166,684 | |
General, administrative and other | 42,413 | |
Depreciation and amortization | 5,302 | |
Interest expense | 826 | |
Transfer of interest in Graticule | 101,000 | |
Total Expenses | 316,225 | |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 31,561 | |
Tax receivable agreement liability adjustment | 0 | |
Earnings (losses) from equity method investees | 41,708 | |
Gain on transfer of Graticule | 134,400 | |
Total Other Income (Loss) | 207,669 | |
Income (Loss) Before Income Taxes | 105,694 | |
Income tax benefit (expense) | -5,569 | |
Net Income (Loss) | 100,125 | |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 618 | |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | -16 | |
FOE II LP | ||
Revenues | ||
Management fees: affiliates | 1,696 | |
Management fees: non-affiliates | 45 | |
Incentive income: affiliates | 0 | |
Incentive income: non-affiliates | 0 | |
Expense reimbursements: affiliates | 9,743 | |
Expense reimbursements: non-affiliates | 955 | |
Other revenues (affiliate portion disclosed in Note 6) | 0 | |
Total Revenues | 12,439 | |
Expenses | ||
Compensation and benefits | 12,204 | |
General, administrative and other | 568 | |
Depreciation and amortization | 29 | |
Interest expense | 31 | |
Transfer of interest in Graticule | 0 | |
Total Expenses | 12,832 | |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Earnings (losses) from equity method investees | 0 | |
Gain on transfer of Graticule | 0 | |
Total Other Income (Loss) | 0 | |
Income (Loss) Before Income Taxes | -393 | |
Income tax benefit (expense) | -4 | |
Net Income (Loss) | -397 | |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Fortress Operating Group Eliminations | ||
Revenues | ||
Management fees: affiliates | 0 | |
Management fees: non-affiliates | 0 | |
Incentive income: affiliates | 0 | |
Incentive income: non-affiliates | 0 | |
Expense reimbursements: affiliates | 0 | |
Expense reimbursements: non-affiliates | 0 | |
Other revenues (affiliate portion disclosed in Note 6) | 0 | |
Total Revenues | 0 | |
Expenses | ||
Compensation and benefits | 0 | |
General, administrative and other | 0 | |
Depreciation and amortization | 0 | |
Interest expense | -31 | |
Transfer of interest in Graticule | 0 | |
Total Expenses | -31 | |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Earnings (losses) from equity method investees | 0 | |
Gain on transfer of Graticule | 0 | |
Total Other Income (Loss) | 0 | |
Income (Loss) Before Income Taxes | 31 | |
Income tax benefit (expense) | 0 | |
Net Income (Loss) | 31 | |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Fortress Investment Group LLC Consolidated (Other than FOG) | ||
Revenues | ||
Management fees: affiliates | 0 | |
Management fees: non-affiliates | 0 | |
Incentive income: affiliates | 0 | |
Incentive income: non-affiliates | 0 | |
Expense reimbursements: affiliates | 0 | |
Expense reimbursements: non-affiliates | 0 | |
Other revenues (affiliate portion disclosed in Note 6) | 0 | |
Total Revenues | 0 | |
Expenses | ||
Compensation and benefits | 0 | |
General, administrative and other | 0 | |
Depreciation and amortization | 0 | |
Interest expense | 22 | |
Transfer of interest in Graticule | 0 | |
Total Expenses | 22 | |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Earnings (losses) from equity method investees | 47,561 | |
Gain on transfer of Graticule | 0 | |
Total Other Income (Loss) | 47,561 | |
Income (Loss) Before Income Taxes | 47,539 | |
Income tax benefit (expense) | -12,826 | |
Net Income (Loss) | 34,713 | |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Elimination Adjustments | ||
Revenues | ||
Management fees: affiliates | 0 | |
Management fees: non-affiliates | 0 | |
Incentive income: affiliates | 0 | |
Incentive income: non-affiliates | 0 | |
Expense reimbursements: affiliates | 0 | |
Expense reimbursements: non-affiliates | 0 | |
Other revenues (affiliate portion disclosed in Note 6) | 0 | |
Total Revenues | 0 | |
Expenses | ||
Compensation and benefits | 0 | |
General, administrative and other | 0 | |
Depreciation and amortization | 0 | |
Interest expense | -9 | |
Transfer of interest in Graticule | 0 | |
Total Expenses | -9 | |
Other Income (Loss) | ||
Gains (losses) (affiliate portion disclosed in Note 3) | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Earnings (losses) from equity method investees | -47,561 | |
Gain on transfer of Graticule | 0 | |
Total Other Income (Loss) | -47,561 | |
Income (Loss) Before Income Taxes | -47,552 | |
Income tax benefit (expense) | 0 | |
Net Income (Loss) | -47,552 | |
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 51,605 | |
Redeemable non-controlling interests in Income (Loss) of Consolidated Subsidiaries | 0 | |
Class A Shares | ||
Other Income (Loss) | ||
Net income (loss) attributable to Class A shareholders | 34,713 | 3,024 |
Class A Shares | Fortress Operating Group Combined | ||
Other Income (Loss) | ||
Net income (loss) attributable to Class A shareholders | 99,523 | |
Class A Shares | FOE II LP | ||
Other Income (Loss) | ||
Net income (loss) attributable to Class A shareholders | -397 | |
Class A Shares | Fortress Operating Group Eliminations | ||
Other Income (Loss) | ||
Net income (loss) attributable to Class A shareholders | 31 | |
Class A Shares | Fortress Investment Group LLC Consolidated (Other than FOG) | ||
Other Income (Loss) | ||
Net income (loss) attributable to Class A shareholders | 34,713 | |
Class A Shares | Elimination Adjustments | ||
Other Income (Loss) | ||
Net income (loss) attributable to Class A shareholders | ($99,157) |
CONSOLIDATING_FINANCIAL_INFORM4
CONSOLIDATING FINANCIAL INFORMATION (Consolidating Statement of Cash Flows Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net income (loss) | $86,920 | $9,101 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 5,331 | 4,301 |
Other amortization (included in interest expense) | 195 | 195 |
(Earnings) losses from equity method investees | -41,708 | -20,374 |
Distributions of earnings from equity method investees | 10,813 | 25,784 |
(Gains) losses | -31,561 | 11,055 |
Deferred incentive income | -20,964 | -29,503 |
Deferred tax (benefit) expense | 18,514 | 2,486 |
Options received from affiliates | -4,144 | 0 |
Tax receivable agreement liability adjustment | 0 | 0 |
Equity-based compensation | 14,345 | 8,673 |
Options in affiliates granted to employees | 6,083 | 4,553 |
Other | 209 | 44 |
Transfer of interest in Graticule | 101,000 | 0 |
Gain on transfer of Graticule | 134,400 | 0 |
Cash flows due to changes in | ||
Due from affiliates | 56,627 | 39,640 |
Other assets | -8,420 | 40,358 |
Accrued compensation and benefits | -235,252 | -263,426 |
Due to affiliates | -32,104 | -32,690 |
Deferred incentive income | 23,907 | 63,458 |
Other liabilities | 39,041 | 35,553 |
Purchase of investments by consolidated funds | -39,983 | 0 |
Proceeds from sale of investments by consolidated funds | 32,000 | 0 |
Net cash provided by (used in) operating activities | -153,551 | -100,792 |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | -7,720 | -7,031 |
Distributions of capital from equity method investees | 107,370 | 231,158 |
Purchase of securities | -883 | 0 |
Proceeds from sale of securities | 18,053 | 0 |
Purchase of fixed assets | -4,434 | -1,797 |
Purchase of software and technology-related assets | 0 | -14,965 |
Net cash provided by (used in) investing activities | 112,386 | 207,365 |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | 125,000 |
Proceeds from public offering | 0 | 186,551 |
Repurchase of shares and RSUs | -9,676 | |
Declared and Paid | 86,367 | 15,359 |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | 26 | 1,191 |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | -107,082 | -33,590 |
Excess tax benefits from delivery of RSUs | 0 | 425 |
Redeemable non-controlling interests - distributions | -1,592 | 0 |
Net cash provided by (used in) financing activities | -204,691 | -285,743 |
Net Increase (Decrease) in Cash and Cash Equivalents | -245,856 | -179,170 |
Cash and Cash Equivalents, Beginning of Period | 391,089 | 364,583 |
Cash and Cash Equivalents, End of Period | 145,233 | 185,413 |
Fortress Operating Group Combined | ||
Cash Flows From Operating Activities | ||
Net income (loss) | 100,125 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 5,302 | |
Other amortization (included in interest expense) | 195 | |
(Earnings) losses from equity method investees | -41,708 | |
Distributions of earnings from equity method investees | 10,813 | |
(Gains) losses | -31,561 | |
Deferred incentive income | -20,964 | |
Deferred tax (benefit) expense | 3,619 | |
Options received from affiliates | -4,144 | |
Tax receivable agreement liability adjustment | 0 | |
Equity-based compensation | 14,345 | |
Options in affiliates granted to employees | 6,083 | |
Other | 209 | |
Transfer of interest in Graticule | 101,000 | |
Gain on transfer of Graticule | 134,400 | |
Cash flows due to changes in | ||
Due from affiliates | 51,341 | |
Other assets | -8,041 | |
Accrued compensation and benefits | -235,148 | |
Due to affiliates | -32,118 | |
Deferred incentive income | 23,907 | |
Other liabilities | 46,193 | |
Purchase of investments by consolidated funds | -39,983 | |
Proceeds from sale of investments by consolidated funds | 32,000 | |
Net cash provided by (used in) operating activities | -152,935 | |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | -7,720 | |
Distributions of capital from equity method investees | 107,370 | |
Purchase of securities | -883 | |
Proceeds from sale of securities | 18,053 | |
Purchase of fixed assets | -4,434 | |
Purchase of software and technology-related assets | 0 | |
Net cash provided by (used in) investing activities | 112,386 | |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | |
Proceeds from public offering | 0 | |
Repurchase of shares and RSUs | -9,676 | |
Declared and Paid | 86,367 | |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | 26 | |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | -107,082 | |
Excess tax benefits from delivery of RSUs | 0 | |
Redeemable non-controlling interests - distributions | -1,592 | |
Net cash provided by (used in) financing activities | -204,691 | |
Net Increase (Decrease) in Cash and Cash Equivalents | -245,240 | |
Cash and Cash Equivalents, Beginning of Period | 389,782 | |
Cash and Cash Equivalents, End of Period | 144,542 | |
FOE II LP | ||
Cash Flows From Operating Activities | ||
Net income (loss) | -397 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 29 | |
Other amortization (included in interest expense) | 0 | |
(Earnings) losses from equity method investees | 0 | |
Distributions of earnings from equity method investees | 0 | |
(Gains) losses | 0 | |
Deferred incentive income | 0 | |
Deferred tax (benefit) expense | 0 | |
Options received from affiliates | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Equity-based compensation | 0 | |
Options in affiliates granted to employees | 0 | |
Other | 0 | |
Transfer of interest in Graticule | 0 | |
Gain on transfer of Graticule | 0 | |
Cash flows due to changes in | ||
Due from affiliates | -164 | |
Other assets | -276 | |
Accrued compensation and benefits | -104 | |
Due to affiliates | 0 | |
Deferred incentive income | 0 | |
Other liabilities | 546 | |
Purchase of investments by consolidated funds | 0 | |
Proceeds from sale of investments by consolidated funds | 0 | |
Net cash provided by (used in) operating activities | -366 | |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | 0 | |
Distributions of capital from equity method investees | 0 | |
Purchase of securities | 0 | |
Proceeds from sale of securities | 0 | |
Purchase of fixed assets | 0 | |
Purchase of software and technology-related assets | 0 | |
Net cash provided by (used in) investing activities | 0 | |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | |
Proceeds from public offering | 0 | |
Repurchase of shares and RSUs | 0 | |
Declared and Paid | 0 | |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | 0 | |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | 0 | |
Excess tax benefits from delivery of RSUs | 0 | |
Redeemable non-controlling interests - distributions | 0 | |
Net cash provided by (used in) financing activities | 0 | |
Net Increase (Decrease) in Cash and Cash Equivalents | -366 | |
Cash and Cash Equivalents, Beginning of Period | 950 | |
Cash and Cash Equivalents, End of Period | 584 | |
Fortress Operating Group Eliminations | ||
Cash Flows From Operating Activities | ||
Net income (loss) | 31 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 0 | |
Other amortization (included in interest expense) | 0 | |
(Earnings) losses from equity method investees | 0 | |
Distributions of earnings from equity method investees | 0 | |
(Gains) losses | 0 | |
Deferred incentive income | 0 | |
Deferred tax (benefit) expense | 0 | |
Options received from affiliates | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Equity-based compensation | 0 | |
Options in affiliates granted to employees | 0 | |
Other | 0 | |
Transfer of interest in Graticule | 0 | |
Gain on transfer of Graticule | 0 | |
Cash flows due to changes in | ||
Due from affiliates | 0 | |
Other assets | -31 | |
Accrued compensation and benefits | 0 | |
Due to affiliates | 0 | |
Deferred incentive income | 0 | |
Other liabilities | 0 | |
Purchase of investments by consolidated funds | 0 | |
Proceeds from sale of investments by consolidated funds | 0 | |
Net cash provided by (used in) operating activities | 0 | |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | 0 | |
Distributions of capital from equity method investees | 0 | |
Purchase of securities | 0 | |
Proceeds from sale of securities | 0 | |
Purchase of fixed assets | 0 | |
Purchase of software and technology-related assets | 0 | |
Net cash provided by (used in) investing activities | 0 | |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | |
Proceeds from public offering | 0 | |
Repurchase of shares and RSUs | 0 | |
Declared and Paid | 0 | |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | 0 | |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | 0 | |
Excess tax benefits from delivery of RSUs | 0 | |
Redeemable non-controlling interests - distributions | 0 | |
Net cash provided by (used in) financing activities | 0 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | |
Cash and Cash Equivalents, Beginning of Period | 0 | |
Cash and Cash Equivalents, End of Period | 0 | |
Fortress Investment Group LLC Consolidated (Other than FOG) | ||
Cash Flows From Operating Activities | ||
Net income (loss) | 34,713 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 0 | |
Other amortization (included in interest expense) | 0 | |
(Earnings) losses from equity method investees | -47,561 | |
Distributions of earnings from equity method investees | 0 | |
(Gains) losses | 0 | |
Deferred incentive income | 0 | |
Deferred tax (benefit) expense | 14,895 | |
Options received from affiliates | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Equity-based compensation | 0 | |
Options in affiliates granted to employees | 0 | |
Other | 0 | |
Transfer of interest in Graticule | 0 | |
Gain on transfer of Graticule | 0 | |
Cash flows due to changes in | ||
Due from affiliates | 0 | |
Other assets | -63 | |
Accrued compensation and benefits | 0 | |
Due to affiliates | 5,464 | |
Deferred incentive income | 0 | |
Other liabilities | -7,698 | |
Purchase of investments by consolidated funds | 0 | |
Proceeds from sale of investments by consolidated funds | 0 | |
Net cash provided by (used in) operating activities | -250 | |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | 0 | |
Distributions of capital from equity method investees | 79,251 | |
Purchase of securities | 0 | |
Proceeds from sale of securities | 0 | |
Purchase of fixed assets | 0 | |
Purchase of software and technology-related assets | 0 | |
Net cash provided by (used in) investing activities | 79,251 | |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | |
Proceeds from public offering | 0 | |
Repurchase of shares and RSUs | 0 | |
Declared and Paid | 79,251 | |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | 0 | |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | 0 | |
Excess tax benefits from delivery of RSUs | 0 | |
Redeemable non-controlling interests - distributions | 0 | |
Net cash provided by (used in) financing activities | -79,251 | |
Net Increase (Decrease) in Cash and Cash Equivalents | -250 | |
Cash and Cash Equivalents, Beginning of Period | 357 | |
Cash and Cash Equivalents, End of Period | 107 | |
Elimination Adjustments | ||
Cash Flows From Operating Activities | ||
Net income (loss) | -47,552 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 0 | |
Other amortization (included in interest expense) | 0 | |
(Earnings) losses from equity method investees | 47,561 | |
Distributions of earnings from equity method investees | 0 | |
(Gains) losses | 0 | |
Deferred incentive income | 0 | |
Deferred tax (benefit) expense | 0 | |
Options received from affiliates | 0 | |
Tax receivable agreement liability adjustment | 0 | |
Equity-based compensation | 0 | |
Options in affiliates granted to employees | 0 | |
Other | 0 | |
Transfer of interest in Graticule | 0 | |
Gain on transfer of Graticule | 0 | |
Cash flows due to changes in | ||
Due from affiliates | 5,450 | |
Other assets | -9 | |
Accrued compensation and benefits | 0 | |
Due to affiliates | -5,450 | |
Deferred incentive income | 0 | |
Other liabilities | 0 | |
Purchase of investments by consolidated funds | 0 | |
Proceeds from sale of investments by consolidated funds | 0 | |
Net cash provided by (used in) operating activities | 0 | |
Cash Flows From Investing Activities | ||
Contributions to equity method investees | 0 | |
Distributions of capital from equity method investees | -79,251 | |
Purchase of securities | 0 | |
Proceeds from sale of securities | 0 | |
Purchase of fixed assets | 0 | |
Purchase of software and technology-related assets | 0 | |
Net cash provided by (used in) investing activities | -79,251 | |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | |
Proceeds from public offering | 0 | |
Repurchase of shares and RSUs | 0 | |
Declared and Paid | -79,251 | |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | 0 | |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | 0 | |
Excess tax benefits from delivery of RSUs | 0 | |
Redeemable non-controlling interests - distributions | 0 | |
Net cash provided by (used in) financing activities | 79,251 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | |
Cash and Cash Equivalents, Beginning of Period | 0 | |
Cash and Cash Equivalents, End of Period | 0 | |
Class B Shares | ||
Cash Flows From Financing Activities | ||
Repurchase of Class B shares | 0 | -186,551 |
Class B Shares | Fortress Operating Group Combined | ||
Cash Flows From Financing Activities | ||
Repurchase of Class B shares | 0 | |
Class B Shares | FOE II LP | ||
Cash Flows From Financing Activities | ||
Repurchase of Class B shares | 0 | |
Class B Shares | Fortress Operating Group Eliminations | ||
Cash Flows From Financing Activities | ||
Repurchase of Class B shares | 0 | |
Class B Shares | Fortress Investment Group LLC Consolidated (Other than FOG) | ||
Cash Flows From Financing Activities | ||
Repurchase of Class B shares | 0 | |
Class B Shares | Elimination Adjustments | ||
Cash Flows From Financing Activities | ||
Repurchase of Class B shares | $0 |