Fortress dips on IPO costs

Fortress Investment Group LLC posted a third-quarter net loss due to the cost of issuing stock to employees and executives in its initiation public offering.
The Chicago-based private equity and hedge fund firm posted a net loss of $37.6 million, or 52 cents a share, in the third quarter, from earnings of $64.7 million a year earlier.
Fee-paying assets under management at the end of the third quarter increased 62% to $31.2 billion, according to a statement.
Excluding a $54 million accounting charge from a principals’ agreement connected to the company’s February IPO, quarterly profit totaled $17 million.
Fortress collected $219 million for managing clients’ investments, compared with $122 million in fees in the third quarter of 2006.
Assets under management totaled $39.9 billion at the end of the third quarter, up from $29.9 billion during the year-ago period.