Fortress Investment Group has succeeded in meeting its capital raising target for its Fortress Japan Opportunity Fund, its first private equity real estate fund for Asia.
According to PERE sources familiar with the matter, the New York-based alternative investment firm is expected to hold a final closing of ¥80 billion (€729 million; $871 million) imminently for the fund, which is to invest in distressed debt opportunities in Japan.
The closing comes less than 12 months after Fortress hit the fundraising trail for the vehicle. Investors in the fund were a mix of Japanese and international investors and a typical LP commitment size for the vehicle was approximately $15 million.
Fortress’s Asia platform, led by former head of Japan for DLJ Real Estate Capital Partners Tom Pulley, has already made investments from the vehicle including the purchase of 1,200 homes loans from subsidiaries of Lehman Brothers last August as part of the failed Wall Street Bank’s bankruptcy process.
Fortress had $41.6 billion in assets under management from investments in credit and fixed income assets as well as real estate, as of March 31, 2010, having grown from $2.5 billion in assets under management in 2002. Fortress makes most of its real estate investments through its Castles business, which had $3.1 billion of assets under management, although real estate investments can also be made via the private equity side of its debt business, according to its website.
Nomura Holdings advised Fortress on its capital raising. Fortress was unavailable for comment at press time.