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Fortress Japan fund targets $800m

The New York-based alternative investment firm’s Asian fund debut is to target up to $800m of equity from investors ahead of a final close in the first half of 2010, PERE has learnt

New York-based Fortress Investment Group is targeting up to $800 million of equity for the Fortress Japan Opportunity Fund – its first fund focused solely on a country in Asia.

The fund has yet to hold a final close on the yen-denominated vehicle as it hopes to attract more capital, according to an LP source, but is expected to bring fundraising to a close during the first half of 2010.

Fortress has revealed little information on the vehicle to date, however in August, then-chief executive Wesley Edens said during earnings calls the firm had held “several closings” for its first Asian real estate fund.

He added it was unclear what the fund’s eventual size would be but that it had already raised approximately $275 million “in newly created funds focusing on Asian real estate and credit, of which $135 million was raised during the second quarter”.

Fortress made its first acquisition in Japan in August, buying 1,200 home loans from subsidiaries of Lehman Brothers, as part of the failed Wall Street Bank’s Asia arm bankruptcy process.

The firm’s Asia real estate investment platform is led by Tom Pulley in Tokyo. Pulley reports to Peter Briger, president and head of Fortress’ hybrid hedge fund business.

Fortress was unavailable for comment.