Fortress Investment Group and Lighthouse Investment Partners have agreed to merge their global multi-strategy hedge funds, aiming to leverage each other’s expertise in response to growing investor demand for diversified hedge fund strategies, according to a report by Bloomberg.
The report cites an internal Lighthouse memo seen by Bloomberg as revealing that under a preliminary agreement, the firms will co-manage the newly combined fund, led by Lighthouse CEO Sean McGould and Fortress Multi-Manager Group CIO Jeff Runnfeldt. The financial details of the partnership have not disclosed, but the deal is expected to be finalised in Q1 2025.
The new fund will replace Fortress’s existing multi-manager strategy, reflecting a broader trend among hedge fund investors seeking steady, cross-asset returns. Leading multi-strategy firms like Millennium Management and Citadel have seen such strong demand that they have had to limit new investments.
“It has become clear that a growing segment of allocators is seeking an offering that is more diverse than our current hedge fund products,” Lighthouse wrote in the memo.
Lighthouse manages approximately $16bn, with a network of 150 portfolio managers, about half of whom are employees or invest exclusively for the firm. Fortress, known for its expertise in private credit, equity, and real estate, manages around $50bn and has been expanding its hedge fund operations. In late 2023, Fortress acquired a multi-manager fund from PineBridge Investments and brought in Runnfeldt, a former Global Head of Equities at Balyasny Asset Management, as CIO.
