Fortress Investment Group Will Acquire Certain Capital Positions
Fortress Investment Group, a New York based company has announced today that it has gotten into an agreement with Colony Capital. The agreement means that one or several Fortress’ affiliates will be considered as General Partner & Manger to the CDCFs of Colony.
Under the agreement, Fortress Investment Group will acquire certain capital positions belonging to Colony including positions associated with about 100 properties in the United States and Europe. This means that Fortress will have a higher stake in the management of Colony’s assets in New York and outside the country.
The transaction also means that the Fortress Investment Group has fully acquired the remaining portfolio from Colony that had previously been reclassified. Besides, the acquisition gives Fortress an opportunity to offer a solution to Colony’s OED assets within one transaction. But it will at the same time assure proper and continued stewardship for investors focused on CDC.
The mixed OED portfolio is distinguished by investment types like junior debt, senior debt, or equity. Some investors will be affected because of their earlier agreement with Colony. However, Fortress Investment Group has assured everyone of an amicable solution.
“We are so excited to announce this win-win agreement with Colony and anticipate serving our new partners and maximizing value across a diversified portfolio,” said Noah Shore, Fortress Managing Director. “This business arrangement perfectly suits our purpose and goal; we believe that our experience and expertise will yield more and better fruits to our investors” added Mr. Shore.
On his part, the President and Chief Executive Officer of Colony, Marc Ganzi said that he believed Fortress Investment Group has the capacity and ability to manage these assets.
“I have known Fortress for many years and I have no doubt that they are going to do a great job in the management of our assets,” said Ganzi. The transaction is set to be completed in the last quarter of 2021.