Fortress shares slide after offering is priced

Shares of Fortress Investment Group LLC fell today after the investment manager said it priced a stock offering.
MAY 15, 2009
By  Bloomberg
Shares of Fortress Investment Group LLC fell today after the investment manager said it priced a stock offering. Fortress said it priced the offering of 40 million Class A shares at $5 per share, giving the company gross proceeds of $200 million. The underwriters of the offer have an option to buy as many as 6 million shares over the next 30 days. Shares of the company closed at $5.26 on Thursday, and they fell 70 cents, or 13.3 percent, to $4.56 in afternoon trading today. As of May 6, Fortress had 94.6 million Class A shares and 312.1 million Class B shares on the market. As a result, the offering dilutes the value of Fortress shares by about 10 to 11 percent. Roger Smith, an analyst for Fox-Pitt Kelton Cochran, said Fortress could gain $60 million to $130 million in management fees if it spends $100 million of the proceeds from the offering to invest in new funds.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.