Fortress Investment Group (NYSE: FIG) completed its acquisition of fixed income asset manager Logan Circle Partners this week. The addition of Logan Circle Partners brings traditional strategies to Fortress’s investment management platform. Logan Circle specializes in “portfolios for institutional investors in strategies that include core/core plus, short, intermediate and long duration, corporate and high yield.”
The agreement stipulates that Fortress Investment Group “will pay approximately $21 million 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.” Fortress CEO Daniel Mudd commented, “We are pleased to complete the acquisition of Logan Circle, which will enable Fortress to better meet the evolving needs of our global investors through a broader range of credit investment opportunities.”
Logan Circle Partners was founded by Managing Partner Jude Driscoll who was previously the CEO of Delaware Investments. In 2007 Logan Circle announced the successful closing of an agreement with Delaware Investments to transition members of Delaware’s fixed income team to the firm. Before the Fortress transaction, Logan Circle was a joint venture between its employees and Guggenheim Partners LLC
Commenting on the acquisition, Jude Driscoll stated, “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.” Mr. Driscoll and other Logan senior leadership will report to Fortress CEO Daniel Mudd, but will continue to manage the business’s day-to-day affairs.
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