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FINANCIAL SUMMARY

• Fortress declares a distribution of $0.05 per dividend paying share for the second quarter of 2012
• Assets under management increased to $47.8 billion as of June 30, 2012, not including uncalled capital, or "dry powder," of $7.4 billion, which will become fee-paying assets under management when invested
• GAAP net income of $14 million in the second quarter of 2012; GAAP book value per share of $2.17 as of June 30, 2012
• Pre-tax distributable earnings of $50 million, or $0.09 per dividend paying share, in the second quarter of 2012
• Net cash and investments of $2.12 per dividend paying share as of June 30, 2012
• $507 million of embedded incentive income across the funds as of June 30, 2012

BUSINESS HIGHLIGHTS

• Raised $1.1 billion of third-party capital across alternatives businesses in the quarter, bringing total third-party capital raised year-to-date through June 30, 2012 to $4.0 billion
• Recorded $1.7 billion of net inflows for Logan Circle during the quarter, bringing total net inflows year-to-date through June 30, 2012 to $4.0 billion
• Delivered strong investment performance across all businesses:
• Net second quarter 2012 returns of 3.3% in the Drawbridge Special Opportunities Fund, 1.7% in the Fortress Macro Funds and 0.9% in the Fortress Asia Macro Funds; net first half 2012 returns of 7.6% in the Drawbridge Special Opportunities Fund, 8.0% in the Fortress Macro Funds and 6.8% in the Fortress Asia Macro Funds
• Private Equity fund valuations increased 5.4% during the quarter, and 10.5% year-to-date through June 30, 2012
• Net annualized inception-to-date IRRs through quarter end for the Credit Opportunities Fund and Credit Opportunities Fund II of 26.9% and 16.9%, respectively
• 12 of Logan Circle's 15 strategies outperformed respective benchmarks in the first half of 2012; since inception, 14 out of 15 strategies have outperformed their respective benchmarks
• Subsequent to quarter end:
• Raised $167 million of permanent equity capital for Newcastle Investment Corp.
• Entered into agreement to sell Private Equity portfolio company RailAmerica for an all cash purchase price of $27.50 per share, with expected close in the fourth quarter of 2012.

SUMMARY FINANCIAL RESULTS

Fortress's business model is highly diversified, and management believes that this positions the company to capitalize on opportunities for investing, capital formation and harvesting profits that can occur at different points in any cycle for our individual businesses. The cornerstone of Fortress's business model is its ability to generate stable and predictable management fees, which is a function of the majority of alternative assets under management residing in long-term investment structures. Fortress's alternatives businesses also generate variable incentive income based on performance, and this incentive income can contribute meaningfully to financial results. Balance sheet investments represent a third component of Fortress's business model, and the company has built substantial value in these investments, which are made in Fortress funds alongside the company's limited partners.

Press release

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