Fortress closes senior debt fund on $590m

FSLF has culled capital commitments from 56 investors since its October launch.

Fortress Investment Group has raised $590 million for its Fortress Secured Lending Fund, surpassing its original fundraising target of $500 million, the company said on Wednesday.

The fund is focused on senior loans secured by portfolios of consumer and small business loans, according to a statement. FSLF attracted capital commitments from 56 investors, including 30 which are new to Fortress.

The firm expects the FSLF to become its “primary funding source” for the specialty finance lending business, Fortress Credit and Real Estate, expanding both its product offerings and investor base, the statement reads.

The firm was not immediately available to comment further.

The Fortress Secured Lending fund invests primarily in the US, but may also invest in western Europe and elsewhere, according to the firm’s latest annual report. FSLF made its first sale last October and will mature in September 2024.

The fund had raised $320.9 million by December, with the minimum investment set at $50,000, a filing with the US Securities and Exchange Commission from that month shows.

In general, the Fortress credit funds have management fee rates between 1-1.5 percent and generate incentive income of between 10-20 percent of a fund's profits, according to the 2016 report.

The credit and real estate financing platform overall totalled $18.1 billion in assets at 31 December. That compares with the $69.6 billion in assets under management the Fortress Investment Group had at the end of last year.

Fortress operates as an independent business within the Japanese telecommunications company SoftBank, which purchased the New York asset manager for $3.3 billion earlier this year, as Private Debt Investor reported.