Under the terms of the agreement, Fortress will pay approximately $21m in cash with the potential for an additional payment at the end of 2011, contingent on the growth and performance of Logan Circle’s business.
Daniel Mudd, CEO of Fortress, said: “We believe this is a unique opportunity to diversify and expand Fortress’s investment management business. Logan Circle has a high quality management team and a fundamental credit focus which is complementary to our existing approach.
“I am delighted that Jude Driscoll and his team will join Fortress. Jude and his portfolio management and research team have a strong track record and extensive experience, which will immediately broaden our market perspective.”
Mr Driscoll, founder of Logan Circle Partners, said: “I’m extremely excited for Logan Circle to join Fortress. While our investment approach and the day-to-day operations of Logan Circle will remain the same, Fortress’s size and global infrastructure, along with its intellectual capital and transaction flow will meaningfully enhance our ability to build our platform.”
The transaction is expected to close by the end of the second quarter of 2010 and is subject to customary approvals. Post closing, Mr Driscoll and the senior leadership team at Logan Circle will continue to manage the business, which will report directly to Mr Mudd.
Logan Circle is a fixed income asset manager with approximately $12bn in assets under management. Logan Circle manages portfolios for institutional investors in strategies that include core/core plus, short, intermediate and long duration, corporate and high yield.
New York-based Fortress is a global investment management firm, specializing in alternative investments, with approximately $32bn in assets under management as of September 30, 2009.
