Fortress IPO launch finishes with a bang
By Aaron Siegel
February 12, 2007, 12:00 PM EST
|
|
Fortress Financial Group LLC, the first hedge fund and private equity firm to go public on a U.S. exchange, saw its stock rise 68% on its first day of trading on Friday, increasing to $35 from an offering price of $18.50.
It finished and finished the trading day at $31 per share.
The company sold 34.29 million shares, or about 8.6% of the firm's management company.
As a result of the smash debut, the Fortress' five principals Wesley Edens, Peter Briger, Robert Kauffman, Randal Nardone and Michael Novogratz kept 77.7% of the votes in the firm, which is worth approximately $9.7 billion, according to The Wall Street Journal.
The company said it returned 39.7% per year on its private equity funds since 1999 and its hedge funds have brought in 14% a year since 2000.
After Friday's close, Fortress shares traded at roughly 40 times last year's earnings, according to the report.
Fortress had $29.9 billion in assets as of Sept. 2006, up from $1.2 billion in Dec. 2001.
Reproductions and distribution of the above news story are strictly prohibited. To order reprints and/or request permission to use the article in full or partial format please contact our Reprint Sales Manager at (732) 723-0569.
