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Fortress Buying Back Nomura’s 12% Stake After Seven Years

Fortress Investment Group LLC (FIG), the first publicly traded alternative-asset manager in the U.S., repurchased a 12 percent stake that Nomura Holdings Inc. (8604) took more than seven years ago.

Fortress paid $363.4 million, or $6 a share, for the stake, according to a statement today from the New York-based firm. The stock is still below the $18.50 at which Fortress sold shares to the public in 2007.

Nomura, which is based in Tokyo and ranks as Japan’s largest securities firm, bought a 15 percent stake in Fortress in December 2006 for $888 million, paying $16.12 a share to the company’s principal executives, who included co-founders Wes Edens, Bob Kauffman and Randy Nardone, as well as partners Pete Briger and Michael Novogratz. Fortress, which oversees $58 billion in hedge funds, credit assets and private-equity funds, plummeted in the years after its IPO, reaching a low of 95 cents in December 2008.

“Nomura’s early investment in Fortress and the expertise they have provided as a strategic partner have contributed significantly to the growth and evolution of our company,” Edens said in the statement.

Fortress rose 6 percent, the most since April 22, to $8.47 at the close of trading in New York. The stock has lost 1.1 percent this year.

Nomura helped Fortress raise its two Japan Opportunity Funds, which invest in distressed real estate loans and other troubled assets. Fortress’s second Japan fund closed in 2012 with $1.65 billion, following a 2010 pool that raised $800 million.

Fortress over the past 14 months has bought 112 million shares from early investors, spending $543 million, according to the company.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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