The Fortress Investment Group, the first publicly listed hedge fund in the United States, has bought back a stake from Nomura, one of its principal investors.
The news is a boon to Fortress, which paid $363.4 million for its 12 percent stake, and sent its shares climbing 5.8 percent to $8.45 on Thursday morning. Based in New York, Fortress has $58 billion under management and offers a variety of private equity and hedge fund products.
“We are very pleased to announce a transaction that provides compelling benefits to both Fortress shareholders and to the corporate objectives of a valued business partner,†said Wesley R. Edens, the co-chairman and co-founder of Fortress.
Nomura sold its remaining stake in the company to Fortress for $6 a share, representing a 25 percent discount to Fortress’s closing share price of $7.99 on Wednesday. As part of the transaction, Nomura will provide investment banking services to Fortress.
“We’re looking forward to continuing our relationship with Fortress, and are excited about the opportunity to contribute in an investment banking role to Fortress’s future success,†David Findlay, chief executive of Nomura Holding American, said in a statement.
Nomura originally paid $888 million, or $16.12 per share, for a 15 percent stake in Fortress in December 2006. At the time, Nomura said it planned to expand sales of Fortress’s products in Asia.
The move by Nomura comes as banks around the world begin to examine their portfolios and shed noncore assets in light of new Basel III banking regulations that force banks to hold more capital and reduce their risk.
When Fortress listed on the New York Stock Exchange in February 2007, it sold its shares for $18.50 a share.
