This article could be subtitled the "The power of high water marks and performance fee's".
From DealBook: The company’s pretax distributable earnings, which do not include the expenses associated with going public in 2007, nearly tripled in 2010 to $372 million, or 72 cents a share...As of last quarter, nearly all of the funds managed by Fortress had surpassed their so-called high-water marks, which meant the firm could begin charging incentive fees for profits generated. That translated into $170 million in incentive fees from Fortress’ hedge funds, from $16 million in 2009. Private equity credit funds earned six times their 2009 levels, grabbing $158 million in fees. Fees for rest of the private equity portfolio increased 13 percent to $41 million."
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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