An affiliate of Fortress Investment Group is to become co-manager with Mount Kellett Capital Management of the Mount Kellett investment funds and related accounts (the funds).
Mount Kellett affiliates will continue to serve as general partner of the Funds. Additionally, affiliates of Fortress will become special limited partners of the Funds. Financial terms of the transaction were not disclosed.
The strategic alliance between Mount Kellett and Fortress brings together teams with significant special situations experience and sector specific knowledge, particularly in credit and global real estate. Mount Kellett will benefit from the scale and resources contained within the institutional framework of Fortress, a global alternative asset manager with USD69.9 billion in assets under management. The senior leadership of both companies have a decades-long history of working together.
“We are pleased to join with Mount Kellett and their experienced team of investment professionals who possess deep knowledge of special situations and opportunistic investing,” says Peter L Briger, Jr, Fortress Principal and Co-Chairman of the Board of Directors. “In addition, we have worked with Mark McGoldrick for decades and are pleased to be able to do so again.”
“Fortress has a world class Credit business, with exceptional people, disciplined investment acumen, a deep understanding of our strategies and a strong institutional framework,” says Mark McGoldrick, Chief Investment Officer of Mount Kellett. “We are very pleased to be partnering with Fortress. Our investors will benefit from the access and support of a global operational platform and the combined asset management expertise of the Mount Kellett and Fortress teams across the distressed and special situations spectrum.”
The transaction is subject to receipt of Mount Kellett investor consent and certain other approvals and the execution of definitive agreements. The transaction is expected to close on or about 30 June, 2015.