Market Overview

Fortress Reports Third Quarter 2017 Results

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Fortress Investment Group LLC (NYSE:FIG) ("Fortress" or the "Company")
today reported its third quarter 2017 financial results.

FINANCIAL SUMMARY

  • Management Fee Paying Assets Under Management ("AUM") of $36.1 billion
    as of September 30, 2017, down 2% compared to the previous quarter's
    AUM, adjusted to exclude the Logan Circle business which Fortress sold
    in September 2017
  • GAAP net income of $190 million, or $0.37 per diluted Class A share,
    for the third quarter of 2017, compared to GAAP net income of $58
    million, or $0.07 per diluted Class A share, for the third quarter of
    2016
  • GAAP net income of $215 million, or $0.43 per diluted Class A share,
    for the first nine months of 2017, compared to GAAP net income of $16
    million, or $0.02 per diluted Class A share, for the first nine months
    of 2016
  • Pre-tax distributable earnings ("DE") of $291 million, or $0.73 per
    dividend paying share, for the third quarter of 2017, compared to
    pre-tax DE of $90 million, or $0.23 per dividend paying share, for the
    third quarter of 2016
  • Pre-tax DE of $451 million, or $1.14 per dividend paying share, for
    the first nine months of 2017, compared to pre-tax DE of $255 million,
    or $0.64 per dividend paying share, for the first nine months of 2016
  • Net cash and investments of $1.4 billion, or $3.54 per dividend paying
    share, as of September 30, 2017
  • $1.4 billion of gross embedded incentive income across funds and
    permanent capital vehicles as of September 30, 2017, that has not yet
    been recognized in DE
  • Total uncalled capital, or "dry powder," of $7.5 billion as of
    September 30, 2017, including $4.5 billion available for general
    investment purposes

BUSINESS HIGHLIGHTS

  • Completed the sale of Logan Circle Partners, L.P. ("Logan Circle") to
    MetLife, Inc. ("MetLife")
  • Raised $1.8 billion of capital across alternative investment
    businesses in the first nine months of 2017
  • Investment performance summary as of September 30, 2017:
    • Annualized inception-to-date net IRRs for Credit Opportunities
      Fund ("FCO"), FCO II and FCO III of 22.9%, 15.6% and 10.3%,
      respectively
    • Third quarter and year-to-date 2017 net returns of 2.0% and 5.6%,
      respectively, for the Drawbridge Special Opportunities Fund
      ("DBSO") LP

_____________________________

Note: This release contains certain Non-GAAP financial measures.
Fortress urges you to read the "Non-GAAP Information" section below and
to review the exhibits in this release for reconciliations of these
measures to the comparable GAAP measures.

PROPOSED ACQUISITION BY SOFTBANK

On July 12, 2017, Fortress announced that, at its special meeting of
shareholders, the Company's shareholders had voted, among other things,
in favor of the proposal to adopt the previously announced merger
agreement pursuant to which certain subsidiaries of SoftBank Group Corp.
("SoftBank") will acquire Fortress for approximately $3.3 billion in
cash. Of the votes cast in respect of the proposal to adopt the merger
agreement, approximately 99.7% of shares voted in favor. The transaction
is anticipated to close in the fourth quarter of 2017, subject to
certain regulatory approvals and other customary closing conditions,
after which Fortress will operate as an independent business within
SoftBank under the continuing leadership of Fortress Principals Pete
Briger, Wes Edens and Randy Nardone.

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. Fortress's
business model generates stable and predictable management fees, which
is a function of the majority of Fortress's alternative AUM residing in
long-term investment structures. Fortress's alternative investment
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
funds' limited partners. The table below summarizes Fortress's operating
results for the three months ended September 30, 2017. The condensed
consolidated GAAP statement of operations and balance sheet are
presented on pages 10-11 of this press release.

                   
3Q 2Q 3Q % Change YTD YTD % Change
2017 2017 2016 QoQ   YoY 2017 2016   QoQ
(in millions, except per share amount)
GAAP
Revenues $ 254 $ 247 $ 261 3 % (3 )% $ 734 $ 725 1 %
Expenses 248 210 225 18 % 10 % 699 671 4 %
Other Income (loss) 231 8 29 N/A N/A 240 (27 ) N/A
Net income (loss) 190 32 58 494 % 228 % 215 16 N/A
Net income (loss) attributable to Class A Shareholders   89   15   31 493 % 187 %   100   8   N/A  
Per diluted share $ 0.37 $ 0.06 $ 0.07 N/A   N/A   $ 0.43 $ 0.02   N/A  
Weighted average Class A shares outstanding, diluted 394 395 390 394 390
 
Distributable Earnings
Fund management DE $ 100 $ 82 $ 88 22 % 14 % $ 243 $ 249 (2 )%
Pre-tax DE   291   86   90 238 % 223 %   451   255   77 %
Per dividend paying share/unit $ 0.73 $ 0.22 $ 0.23 232 % 217 % $ 1.14 $ 0.64   78 %
Weighted average dividend paying shares and units outstanding 396 397 394 397 396
 
Assets Under Management
Private Equity and Permanent Capital $ 14,172 $ 14,682 $ 13,917 (3 )% 2 % $ 14,172 $ 13,917 2 %
Credit1 16,816 17,708 18,287 (5 )% (8 )% 16,816 18,287 (8 )%
Liquid Markets2 5,121 4,558 4,541 12 % 13 % 5,121 4,541 13 %
Logan Circle3   -   35,483   33,386 N/A   N/A     -   33,386   N/A  
Total Assets Under Management $ 36,109 $ 72,431 $ 70,131 (50 )% (49 )% $ 36,109 $ 70,131   (49 )%
 

____________________

1 The Assets Under Management presented for Credit
includes $1,371 million of AUM related to co-managed funds as of 3Q
2017.
2 The Assets Under Management presented for Liquid
Markets includes $5,083 million of AUM related to the Affiliated
Manager as of 3Q 2017.
3 Fortress sold the Logan Circle business in September
2017.
 

GAAP RESULTS

Fortress recorded GAAP net income of $190 million, or $0.37 per diluted
Class A share, for the third quarter of 2017, compared to GAAP net
income of $58 million, or $0.07 per diluted Class A share, for the third
quarter of 2016. Our diluted earnings per share includes the income tax
effects to net income (loss) attributable to Class A shareholders from
the assumed conversion of Fortress Operating Group units to Class A
shares in periods when the effect is dilutive.

The year-over-year change in Fortress's third quarter 2017 GAAP net
income was primarily driven by a $202 million increase in other income,
partially offset by a $40 million increase in income tax expense, a $23
million increase in expenses and a $7 million decrease in revenues.

The $202 million increase in other income was primarily due to the
completed sale of Logan Circle, which resulted in a gain on sale of $189
million, net of selling expenses.

The $23 million increase in expenses was primarily related to higher
compensation and benefits expense.

The $7 million decrease in revenues was primarily related to lower
incentive income from non-affiliates, lower other revenues and lower
management fees from affiliates and non-affiliates, partially offset by
higher incentive income from affiliates.

SEGMENT RESULTS (NON-GAAP)

This section provides information about each of Fortress's businesses:
(i) Credit Hedge Funds and Credit PE Funds, (ii) Private Equity Funds
and Permanent Capital Vehicles, (iii) Liquid Hedge Funds, and (iv) Logan
Circle. Fortress uses DE as the primary metric to manage its businesses
and gauge the Company's performance, and it uses DE exclusively to
report segment results. All DE figures are presented on a pre-tax basis.
Consolidated segment results are non-GAAP information and are not
presented as a substitute for Fortress's GAAP results. Fortress urges
you to read "Non-GAAP Information" below.

             
As of September 30, 2017
  Private Equity Credit Funds

Liquid Hedge
Funds

Logan Circle
Partners10

(in millions) Total Funds  

Permanent
Capital Vehicles

Hedge Funds PE Funds
 
Assets Under Management4 $ 36,109 $ 6,249 $ 7,923 $ 8,452 $ 8,364 $ 5,121 $ -
Dry Powder $ 7,484 $ 627 $ - $ 365 $ 6,492 N/A N/A
Average Management Fee Rate5 1.2 % 1.5 % 2.0 % 1.3 % 1.0 % N/A
 
Incentive Eligible NAV Above Incentive Income Threshold6 $ 22,123 $ 1,973 $ 4,840 $ 6,042 $ 9,268 $ - $ -
 
Undistributed Incentive Income: Unrecognized $ 1,402 $ 254 $ 56 $ 69 $ 1,023 $ - $ -
Undistributed Incentive Income: Recognized $ 98     -     34     64     -     -     -  
Undistributed Incentive Income7 $ 1,500   $ 254   $ 90   $ 133   $ 1,023   $ -   $ -  
 
Three Months Ended September 30, 2017
Private Equity Credit Funds

Liquid Hedge
Funds

Logan Circle
Partners10

(in millions) Total Funds

Permanent
Capital Vehicles

  Hedge Funds   PE Funds
 
Third-Party Capital Raised $ 242 $ - $ - $ 242 $ - $ - $ -
 
Segment Revenues
Management fees $ 131 $ 20 $ 31 $ 37 $ 29 $ 1 $ 13
Incentive income   140     11     58     28     42     1     -  
Total 271 31 89 65 71 2 13
Segment Expenses
Operating expenses8 (122 ) (7 ) (34 ) (27 ) (32 ) (2 ) (15 )
Profit sharing compensation expenses   (41 )   (3 )   (3 )   (13 )   (22 )   -     -  
Total (163 ) (10 ) (37 ) (40 ) (54 ) (2 ) (15 )
 
Earnings From Affiliated Manager 4 - - - - 4 -
 
Principal Performance Payments (12 ) (2 ) (6 ) (2 ) (2 ) - -
             
Fund Management DE8 $ 100   $ 19   $ 46   $ 23   $ 15   $ 4   $ (2 )
 
Net Investment Income9 191 15 - 1 6 - 170
             
Pre-tax Distributable Earnings8,9 $ 291   $ 34   $ 46   $ 24   $ 21   $ 4   $ 168  
 

__________________________

4 The Assets Under Management presented for the Credit
Hedge Funds includes $1,371 million related to co-managed funds and
$743 million related to the third party originated JP Funds and
Value Recovery Funds. The Assets Under Management presented for the
Liquid Hedge Funds includes $5,083 million related to the Affiliated
Manager.
5 The Average Management Fee Rate presented for the
Credit Hedge Funds excludes the co-managed funds and third-party
originated JP Funds and Value Recovery Funds (see footnote 4 above).
The Average Management Fee Rate presented for the Liquid Hedge Funds
excludes the Affiliated Manager.
6 The Incentive Eligible NAV Above Incentive Income
Threshold presented for Credit Hedge Funds excludes co-managed
funds, certain third party originated funds and sidepocket
investments and for Liquid Hedge Funds, excludes the Affiliated
Manager and sidepocket investments. The Incentive Eligible NAV Above
Incentive Income Threshold presented for Private Equity Funds and
Credit PE Funds (except for a portion of Long Dated Value Fund I,
whose capital was above the incentive income threshold as of
September 30, 2017), represents total fund NAV. The Incentive
Eligible NAV Above Incentive Income Threshold presented for the
Permanent Capital Vehicles represents the equity basis that is used
to calculate incentive income.
7 Undistributed Incentive Income - Recognized represents
the results of the main fund investments for the Credit Hedge Funds
including the impact of realized gains and losses and unrealized
losses on sidepocket investments. Undistributed Incentive Income -
Unrecognized represents the results of the Private Equity Funds,
Credit PE Funds and Liquid and Credit Hedge Fund sidepocket and
redeeming capital account (RCA) investments which have not been
recognized in Distributable Earnings and will be recognized when
realized. The Undistributed Incentive Income presented for the
Credit Hedge Funds excludes co-managed funds and certain third party
originated funds and for Liquid Hedge Funds, excludes the Affiliated
Manager. Undistributed Incentive Income for Credit PE Funds includes
$5 million of net unrealized gains that would have been recorded in
Distributable Earnings if Fortress had settled Japanese Yen foreign
exchange derivative contracts used to economically hedge estimated
future incentive income it had outstanding as of September 30, 2017.
Undistributed Incentive Income for Permanent Capital Vehicles
includes $56 million of incentive income that would have been
recorded in Distributable Earnings if Fortress had (i) exercised all
of its in-the-money options it holds in the Permanent Capital
Vehicles and sold all of the resulting shares, (ii) sold all of its
Permanent Capital Vehicle common shares which it received as
incentive income and (iii) sold all of its Permanent Capital Vehicle
common shares which it received from previously exercised Permanent
Capital Vehicle options, based on their respective September 30,
2017 closing prices.
8 Includes Unallocated Expenses of $5 million incurred by
Fortress related to the proposed acquisition by SoftBank.
9 Includes Unallocated Investment Income of $1 million
and Unallocated Expenses of $2 million.
10 Fortress sold the Logan Circle business in September
2017.
 

Pre-tax DE was $291 million in the third quarter of 2017, up from $90
million in the third quarter of 2016, primarily due to higher investment
income and incentive income, partially offset by higher operating
expenses and lower management fees.

Management fees were $131 million in the third quarter of 2017, down
from $136 million in the third quarter of 2016. The decrease was
primarily due to lower management fees from the Credit PE Funds, Credit
Hedge Funds, Logan Circle and Private Equity Funds, partially offset by
higher management fees from the Permanent Capital Vehicles.

Incentive income in the third quarter of 2017 totaled $140 million, up
from $113 million in the third quarter of 2016, primarily due to higher
incentive income from the Permanent Capital Vehicles and Private Equity
Funds, partially offset by lower incentive income from the Credit PE
Funds and Credit Hedge Funds.

Earnings from the Affiliated Manager totaled $4 million in the third
quarter of 2017, up from $3 million in the third quarter of 2016.

The Company's segment revenues and distributable earnings will
fluctuate materially depending upon the performance of its funds and the
realization events within its private equity businesses, as well as
other factors.
Accordingly, the revenues and distributable
earnings in any particular period should not be expected to be
indicative of future results.

ASSETS UNDER MANAGEMENT

As of September 30, 2017, AUM totaled $36.1 billion. As of quarter end,
approximately 85% of AUM was in funds with long-term investment
structures.

During the quarter, Fortress's AUM decreased primarily due to (i) the
sale of Logan Circle which had $37.1 billion of AUM, (ii) $2.1 billion
of capital distributions to investors, (iii) $0.2 billion in
distributions to investors in redeeming capital accounts, and (iv) a
$0.2 billion capital reset adjustment. These decreases to AUM were
partially offset by (i) $0.6 billion in market-driven valuation gains,
(ii) a $0.5 billion increase in the AUM of the Affiliated Manager and
co-managed funds, (iii) a $0.3 billion increase in invested capital, and
(iv) $0.2 billion of new capital raised that was directly added to AUM.

As of September 30, 2017, the Credit Funds and Private Equity Funds had
$6.9 billion and $0.6 billion of uncalled capital, respectively, that
will become AUM if called. Uncalled capital or dry powder – capital
committed to the funds but not invested and generating management fees –
includes $3.0 billion that is only available for follow-on investments,
management fees and other fund expenses.

BUSINESS SEGMENT RESULTS

Below is a discussion of third quarter 2017 segment results and business
highlights.

Credit:

  • DBSO LP had third quarter and year-to-date 2017 net returns of 2.0%
    and 5.6%, respectively
  • DBSO Ltd had third quarter and year-to-date 2017 net returns of
    2.6% and 5.8%, respectively
  • FCO, FCO II, FCO III, FJOF and FJOF II (Yen) recorded annualized
    inception-to-date net IRRs of 22.9%, 15.6%, 10.3%, 27.7% and 27.8%,
    respectively, through September 30, 2017
  • Nearly $1.2 billion of gross embedded incentive income that has not
    yet been recognized in DE

(See supplemental data on pages 17-18 for more detail on Credit
results)

The Credit business, which includes our Credit PE Funds and Credit Hedge
Funds, generated pre-tax DE of $45 million in the third quarter of 2017,
down from $68 million in the third quarter of 2016. The year-over-year
decrease in DE was primarily driven by lower incentive income, partially
offset by lower profit sharing expense.

The Credit Hedge Funds generated pre-tax DE of $24 million for the
quarter, down from $36 million in the third quarter of 2016, primarily
due to lower incentive income. Fortress's flagship credit hedge fund,
DBSO LP, had net returns of 2.0% for the quarter and annualized
inception to date net returns of 10.6% as of September 30, 2017.

The Credit PE Funds generated pre-tax DE of $21 million in the quarter,
compared to $32 million in the third quarter of 2016, primarily due to
lower incentive income. Over the last twelve months, the Credit PE Funds
have recognized $161 million of gross incentive income, while gross
unrecognized Credit PE incentive income has increased $129 million
year-over-year to $1.0 billion as of September 30, 2017.

Private Equity and Permanent Capital Vehicles:

  • Permanent Capital Vehicles generated $58 million of incentive
    income in the quarter
  • PE Fund valuations appreciated 3.2% in the quarter

(See supplemental data on pages 15-16 for more detail on Private
Equity results)

The Private Equity business recorded pre-tax DE of $80 million in the
third quarter of 2017, up from $27 million in the third quarter of 2016.
The year-over-year increase was primarily driven by higher incentive
income and higher investment income.

The Permanent Capital Vehicles generated pre-tax DE of $46 million in
the quarter, up from $14 million in the third quarter of 2016, primarily
due to higher incentive income. The Private Equity Funds generated
pre-tax DE of $34 million, up from $13 million in the third quarter of
2016, primarily due to higher investment income and higher incentive
income.

Liquid Hedge Funds:

  • Earnings from the Affiliated Manager totaled $4 million in the
    quarter

(See supplemental data on page 19 for more detail on Liquid Hedge
Funds results)

The Liquid Hedge Funds recorded pre-tax DE of $4 million in the third
quarter of 2017, up from a $5 million pre-tax DE loss in the third
quarter of 2016. The year-over-year increase was due to higher earnings
from the Affiliated Manager and lower operating expenses.

Logan Circle:

  • Completed the sale of Logan Circle to MetLife

(See supplemental data on page 20 for more detail on Logan Circle
results)

Logan Circle recorded $168 million of pre-tax DE for the third quarter
of 2017, including $170 million of investment income primarily related
to the completed sale of Logan Circle to MetLife in September 2017.

LIQUIDITY & CAPITAL

As of September 30, 2017, Fortress had cash and cash equivalents of $666
million and debt obligations of $105 million.

As of September 30, 2017, Fortress had approximately $0.9 billion of
investments in Fortress funds and options in publicly traded permanent
capital vehicles and a total of $183 million in outstanding commitments
to its funds. In addition, the NAV of Fortress's investments in its own
funds exceeded its segment cost basis by $507 million at quarter end,
representing net unrealized gains that have not yet been recognized for
segment reporting purposes.

DIVIDEND

In connection with the proposed merger between Fortress and an affiliate
of SoftBank, Fortress has contractually agreed that it will not pay any
dividends with respect to periods ending after March 31, 2017 while the
merger agreement remains in effect.

NON-GAAP INFORMATION

DE is a supplemental metric used by management to measure Fortress's
operating performance. DE is a measure that management uses to manage,
and thus report on, Fortress's segments, namely: Private Equity,
Permanent Capital Vehicles, Credit Hedge Funds, Credit PE Funds, Liquid
Hedge Funds and Logan Circle. DE differs from GAAP net income in a
number of material ways. For a detailed description of the calculation
of pre-tax DE and fund management DE, see Exhibit 3 to this release and
note 10 to the financial statements included in the Company's most
recent quarterly report on Form 10-Q.

Fortress aggregates its segment results to report consolidated segment
results, as shown in the table under "Summary Financial Results" and in
the "Total" column of the table under "Consolidated Segment Results
(Non-GAAP)." The consolidated segment results are non-GAAP financial
information. Management believes that consolidated segment results
provide a meaningful basis for comparison among present and future
periods. However, consolidated segment results should not be considered
a substitute for Fortress's consolidated GAAP results. The exhibits to
this release contain reconciliations of the components of Fortress's
consolidated segment results to the comparable GAAP measures, and
Fortress urges you to review these exhibits. Fortress also uses weighted
average dividend paying shares and units outstanding (used to calculate
pre-tax DE per dividend paying share) and net cash and investments. The
exhibits to this release contain reconciliations of these measures to
the comparable GAAP measures, and Fortress urges you to review these
exhibits.

ABOUT FORTRESS

Fortress Investment Group LLC is a leading, highly diversified global
investment firm with $36.1 billion in assets under management as of
September 30, 2017. Founded in 1998, Fortress manages assets on behalf
of over 1,750 institutional clients and private investors worldwide
across a range of credit, real estate, permanent capital and private
equity investment strategies. Fortress is publicly traded on the New
York Stock Exchange (NYSE:FIG). For more information regarding Fortress
Investment Group LLC or to be added to its e-mail distribution list,
please visit www.fortress.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this communication may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are generally identified by the use
of words such as "outlook," "believe," "expect," "potential,"
"continue," "may," "will," "should," "could," "would," "seek,"
"approximately," "predict," "intend," "plan," "estimate," "anticipate,"
"opportunity," "pipeline," "comfortable," "assume," "remain,"
"maintain," "sustain," "achieve" or the negative version of those words
or other comparable words. Forward-looking statements are not historical
facts, but instead represent only Fortress's beliefs as of the date of
this communication regarding future events, many of which, by their
nature, are inherently uncertain and outside of Fortress's control.
Numerous factors could cause actual events to differ from these
forward-looking statements, and any such differences could cause our
actual results to differ materially from the results expressed or
implied by these forward-looking statements. Such factors include but
are not limited to the following: (1) conditions to the closing of the
merger, including the obtaining of required regulatory approvals, may
not be satisfied; (2) the merger may involve unexpected costs,
liabilities or delays; (3) the business of Fortress may suffer as a
result of uncertainty surrounding the merger; (4) the outcome of any
legal proceedings related to the merger; (5) Fortress may be adversely
affected by other economic, business, and/or competitive factors,
including the net asset value of assets in certain of Fortress's funds;
(6) the occurrence of any event, change or other circumstances that
could give rise to the termination of the merger agreement; (7) risks
that the merger disrupts current plans and operations and the potential
difficulties in employee retention as a result of the merger; (8) other
risks to consummation of the merger, including the risk that the merger
will not be consummated within the expected time period or at all; and
(9) the risks described from time to time in Fortress's reports filed
with the SEC under the heading "Risk Factors," including the Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K and in other of Fortress's filings with the SEC. In
addition, new risks and uncertainties emerge from time to time, and it
is not possible for Fortress to predict or assess the impact of every
factor that may cause its actual results to differ from those expressed
or implied in any forward-looking statements.

Accordingly, you should not place undue reliance on any forward-looking
statements contained in this communication, and you should not regard
any forward-looking statement as a representation by Fortress or any
other person that the future plans, estimates or expectations currently
contemplated by Fortress will be achieved. Fortress can give no
assurance that the expectations of any forward-looking statement will be
obtained. Such forward-looking statements speak only as of the date of
this communication. Fortress expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Fortress's
expectations with regard thereto or any change in events, conditions or
circumstances on which any statement is based.

 

Fortress Investment Group LLC

Condensed Consolidated Statements of Operations (Unaudited)

(dollars in thousands, except per share data)

       
Three Months Ended September 30, Nine Months Ended June 30,
2017   2016 2017   2016
Revenues
Management fees: affiliates $ 117,229 $ 123,491 $ 363,108 $ 377,269
Management fees: non-affiliates 12,435 14,455 41,132 42,066
Incentive income: affiliates 59,434 17,396 145,219 71,334
Incentive income: non-affiliates 570 31,000 1,761 40,862
Expense reimbursements: affiliates 55,073 54,602 167,860 166,041
Expense reimbursements: non-affiliates 271 1,258 1,182 4,064
Other revenues   9,351     18,943     13,318     23,832  
Total Revenues   254,363     261,145     733,580     725,468  
 
Expenses
Compensation and benefits 200,645 184,159 546,037 539,643
General, administrative and other 41,048 33,046 133,573 104,942
Depreciation and amortization 4,135 5,275 13,010 17,362
Interest expense   2,246     2,643     6,451     8,662  
Total Expenses   248,074     225,123     699,071     670,609  
 
Other Income (Loss)
Gains (losses) 19,640 1,862 21,706 (22,077 )
Tax receivable agreement liability adjustment - - - (2,699 )
Earnings (losses) from equity method investees 22,577 27,467 29,221 (2,420 )
Gain on sale of Logan Circle   188,638     -     188,638     -  
Total Other Income (Loss)   230,855     29,329     239,565     (27,196 )
 
Income (Loss) Before Income Taxes 237,144 65,351 274,074 27,663
Income tax benefit (expense)   (46,840 )   (7,008 )   (58,795 )   (11,863 )
Net Income (Loss) $ 190,304   $ 58,343   $ 215,279   $ 15,800  
Allocation of Net Income (Loss)
Principals' and Others' Interests in Income (Loss) of Consolidated
Subsidiaries
101,484 27,181 115,200 7,609
Net Income (Loss) Attributable to Class A Shareholders   88,820     31,162     100,079     8,191  
$ 190,304   $ 58,343   $ 215,279   $ 15,800  
 

Earnings (Loss) Per Class A Share

Net income (loss) per Class A share, basic $ 0.39   $ 0.14   $ 0.44   $ 0.03  
Net income (loss) per Class A share, diluted $ 0.37   $ 0.07   $ 0.43   $ 0.02  
Weighted average number of Class A shares outstanding, basic   219,388,077     216,913,032     220,044,051     218,160,131  
Weighted average number of Class A shares outstanding, diluted   394,250,689     390,293,844     394,234,346     390,240,731  
 
 

Fortress Investment Group LLC

Condensed Consolidated Balance Sheets

(dollars in thousands)

       

September 30, 2017

(Unaudited)

December 31, 2016
Assets
Cash and cash equivalents $ 665,566 $ 397,125
Due from affiliates 240,122 320,633
Investments 842,421 880,001
Investments in options 69,414 53,206
Deferred tax asset, net 408,560 424,244
Other assets   91,393     126,165  
Total Assets $ 2,317,476   $ 2,201,374  
 
Liabilities and Equity
 
Liabilities
Accrued compensation and benefits $ 304,042 $ 370,413
Due to affiliates 391,271 360,769
Deferred incentive income 398,211 330,354
Debt obligations payable 105,000 182,838
Other liabilities   125,784     69,255  
Total Liabilities   1,324,308     1,313,629  
 
Commitments and Contingencies
 
Equity
Class A shares, no par value, 1,000,000,000 shares authorized,
219,367,912
and 216,891,601 shares issued and outstanding at September 30, 2017
and
December 31, 2016, respectively - -
Class B shares, no par value, 750,000,000 shares authorized,
169,207,335
issued and outstanding at September 30, 2017 and December 31, 2016,
respectively
- -
Paid-in capital 1,874,340 1,899,163
Retained earnings (accumulated deficit) (1,234,351 ) (1,333,828 )
Accumulated other comprehensive income (loss)   (2,643 )   (1,094 )
 
Total Fortress shareholders' equity 637,346 564,241
Principals' and others' interests in equity of consolidated
subsidiaries
  355,822     323,504  
Total Equity   993,168     887,745  
$ 2,317,476   $ 2,201,374  
 
 

Fortress Investment Group LLC

Exhibit 1-a

Supplemental Data for the Three Months Ended September 30, 2017
and 2016

     
Three Months Ended September 30, 2017
  Private Equity   Credit Funds  

Liquid Hedge
Funds

  Logan Circle
(in millions) Total Funds  

Permanent Capital
Vehicles

  Hedge Funds   PE Funds
Assets Under Management
AUM - July 1, 2017 $ 72,431 $ 6,850 $ 7,832 $ 8,310 $ 9,398 $ 4,558 $ 35,483
Capital raised 199 - - 199 - - -
Equity raised (Permanent Capital Vehicles) - - - - - - -
Increase in invested capital 332 111 - - 219 2 -
Redemptions (17 ) - - (17 ) - - -
RCA distributions11 (178 ) - - (178 ) - - -
Return of capital distributions (2,056 ) (964 ) (36 ) 1 (1,057 ) - -
Adjustment for capital reset (183 ) - - - (183 ) - -
Crystallized Incentive Income (3 ) - - (3 ) - - -
Change in AUM of Affiliated Manager and co-managed funds 505 - - (62 ) - 567 -
Divested Businesses (37,098 ) - - - - - (37,098 )
Net Client Flows 888 - - - - - 888
Income (loss) and foreign exchange   1,289     252     127     202     (13 )   (6 )   727  
AUM - Ending Balance $ 36,109 $ 6,249 $ 7,923 $ 8,452 $ 8,364 $ 5,121 $ -
 
Third-Party Capital Raised $ 242   $ -   $ -   $ 242   $ -   $ -   $ -  
 
Segment Revenues
Management fees $ 131 $ 20 $ 31 $ 37 $ 29 $ 1 $ 13
Incentive income   140     11     58     28     42     1     -  
Total 271 31 89 65 71 2 13
 
Segment Expenses
Operating expenses12 (122 ) (7 ) (34 ) (27 ) (32 ) (2 ) (15 )
Profit sharing compensation expenses   (41 )   (3 )   (3 )   (13 )   (22 )   -     -  
Total (163 ) (10 ) (37 ) (40 ) (54 ) (2 ) (15 )
 
Earnings From Affiliated Manager 4 - - - - 4 -
             
Fund Management DE (before Principal Performance Payments)   112     21     52     25     17     4     (2 )
 
Principal Performance Payments (12 ) (2 ) (6 ) (2 ) (2 ) - -
             
Fund Management DE   100     19     46     23     15     4     (2 )
 
Investment Income 192 15 - 1 6 - 170
Unallocated Investment Income 1
Unallocated Expenses (2 )
             
Pre-tax Distributable Earnings $ 291   $ 34   $ 46   $ 24   $ 21   $ 4   $ 168  
Pre-tax Distributable Earnings per Dividend Paying Share $ 0.73  
 
           
Three Months Ended September 30, 2016
  Private Equity   Credit Funds

Liquid Hedge
Funds

Logan Circle
(in millions) Total Funds  

Permanent Capital
Vehicles

Hedge Funds PE Funds
Assets Under Management
AUM - July 1, 2016 $ 70,195 $ 6,640 $ 6,644 $ 8,966 $ 9,243 $ 4,622 $ 34,080
Capital raised 120 - - - 120 - -
Equity raised (Permanent Capital Vehicles) 279 - 279 - - - -
Increase in invested capital 335 1 - - 334 - -
Redemptions (209 ) - - (1 ) - (208 ) -
RCA distributions11 (141 ) - - (141 ) - - -
Return of capital distributions (408 ) (115 ) (45 ) - (248 ) - -
Crystallized Incentive Income (6 ) - - (6 ) - - -
Change in AUM of Affiliated Manager and co-managed funds (113 ) - - (240 ) - 127 -
Net Client Flows (1,453 ) - - - - - (1,453 )
Income (loss) and foreign exchange   1,532     545     (32 )   226     34     -     759  
AUM - Ending Balance $ 70,131 $ 7,071 $ 6,846 $ 8,804 $ 9,483 $ 4,541 $ 33,386
 
Third-Party Capital Raised $ 399   $ -   $ 279   $ -   $ 120   $ -   $ -  
 
Segment Revenues
Management fees $ 136 $ 21 $ 28 $ 39 $ 32 $ 1 $ 15
Incentive income   113     -     10     44     59     -     -  
Total 249 21 38 83 91 1 15
 
Segment Expenses
Operating expenses (104 ) (8 ) (17 ) (25 ) (34 ) (7 ) (13 )
Profit sharing compensation expenses   (50 )   -     (5 )   (16 )   (29 )   -     -  
Total (154 ) (8 ) (22 ) (41 ) (63 ) (7 ) (13 )
 
Earnings From Affiliated Manager 3 - - - - 3 -
             
Fund Management DE (before Principal Performance Payments)   98     13     16     42     28     (3 )   2  
 
Principal Performance Payments (10 ) - (2 ) (8 ) - - -
             
Fund Management DE   88     13     14     34     28     (3 )   2  
 
Investment Income 4 - - 2 4 (2 ) -
Unallocated Expenses (2 )
             
Pre-tax Distributable Earnings $ 90   $ 13   $ 14   $ 36   $ 32   $ (5 ) $ 2  
Pre-tax Distributable Earnings per Dividend Paying Share $ 0.23  
 

_______________________

11 Represents distributions from (i) assets held by
redeeming capital accounts in the Drawbridge Special Opportunities
Funds, and (ii) the Value Recovery Funds.
12 Includes Unallocated Expenses of $5 million incurred
by Fortress related to the proposed acquisition by SoftBank.
 
 

Fortress Investment Group LLC

Exhibit 1-a

Supplemental Data for the Nine Months Ended September 30, 2017
and 2016

     
Nine Months Ended September 30, 2017
  Private Equity   Credit Funds  

Liquid Hedge
Funds

  Logan Circle
(in millions) Total Funds  

Permanent Capital
Vehicles

Hedge Funds   PE Funds
Assets Under Management
AUM - January 1, 2017 $ 69,627 $ 6,532 $ 6,961 $ 8,803 $ 9,306 $ 4,589 $ 33,436
Capital raised 226 - - 226 - - -
Equity raised (Permanent Capital Vehicles) 835 - 835 - - - -
Increase in invested capital 1,073 133 - 44 894 2 -
Redemptions (160 ) - - (160 ) - - -
RCA distributions13 (497 ) - - (497 ) - - -
Return of capital distributions (3,040 ) (1,083 ) (150 ) (7 ) (1,630 ) (170 ) -
Adjustment for capital reset (183 ) - - - (183 ) - -
Crystallized Incentive Income (111 ) - - (111 ) - - -
Equity buyback (5 ) - (5 ) - - - -
Change in AUM of Affiliated Manager and co-managed funds 393 - - (325 ) - 718 -
Divested Businesses (37,098 ) - - - - - (37,098 )
Net Client Flows 1,230 - - - - - 1,230
Income (loss) and foreign exchange   3,819     667     282     479     (23 )   (18 )   2,432  
AUM - Ending Balance $ 36,109 $ 6,249 $ 7,923 $ 8,452 $ 8,364 $ 5,121 $ -
 
Third-Party Capital Raised $ 1,846   $ -   $ 835   $ 309   $ 702   $ -   $ -  
 
Segment Revenues
Management fees $ 398 $ 60 $ 92 $ 112 $ 89 $ 2 $ 43
Incentive income   327     12     122     75     117     1     -  
Total 725 72 214 187 206 3 43
 
Segment Expenses
Operating expenses14 (365 ) (22 ) (87 ) (82 ) (95 ) (7 ) (44 )
Profit sharing compensation expenses   (98 )   (3 )   (3 )   (32 )   (60 )   -     -  
Total (463 ) (25 ) (90 ) (114 ) (155 ) (7 ) (44 )
 
Earnings From Affiliated Manager 11 - - - - 11 -
             
Fund Management DE (before Principal Performance Payments)   273     47     124     73     51     7     (1 )
 
Principal Performance Payments (30 ) (2 ) (16 ) (7 ) (5 ) - -
             
Fund Management DE   243     45     108     66     46     7     (1 )
 
Investment Income 212 15 2 4 10 11 170
Unallocated Investment Income 2
Unallocated Expenses (6 )
             
Pre-tax Distributable Earnings $ 451   $ 60   $ 110   $ 70   $ 56   $ 18   $ 169  
Pre-tax Distributable Earnings per Dividend Paying Share $ 1.14  
 
     
Nine Months Ended September 30, 2016
       
Private Equity Credit Funds

Liquid Hedge
Funds

Logan Circle
(in millions) Total Funds  

Permanent Capital
Vehicles

Hedge Funds   PE Funds
Assets Under Management
AUM - January 1, 2016 $ 70,501 $ 8,991 $ 6,816 $ 8,799 $ 9,308 $ 5,409 $ 31,178
Capital raised 523 - - 268 176 79 -
Equity raised (Permanent Capital Vehicles) 279 - 279 - - - -
Increase in invested capital 765 19 - 66 680 - -
Capital acquisitions 682 - - 682 - - -
Redemptions (532 ) - - (65 ) - (467 ) -
RCA distributions13 (314 ) - - (314 ) - - -
Return of capital distributions (1,834 ) (717 ) (105 ) (4 ) (979 ) (29 ) -
Adjustment for capital reset (650 ) (650 ) - - - - -
Crystallized Incentive Income (63 ) - - (63 ) - - -
Equity buyback (125 ) - (125 ) - - - -
Change in AUM of Affiliated Manager and co-managed funds (1,271 ) - - (1,015 ) - (256 ) -
Divested Businesses (177 ) - - - - (177 ) -
Net Client Flows (1,174 ) - - - - - (1,174 )
Income (loss) and foreign exchange   3,521     (572 )   (19 )   450     298     (18 )   3,382  
AUM - Ending Balance $ 70,131 $ 7,071 $ 6,846 $ 8,804 $ 9,483 $ 4,541 $ 33,386
 
Third-Party Capital Raised $ 833   $ -   $ 279   $ 299   $ 176   $ 79   $ -  
Segment Revenues
Management fees $ 418 $ 73 $ 82 $ 113 $ 94 $ 13 $ 43
Incentive income   308     -     26     84     197     1     -  
Total 726 73 108 197 291 14 43
 
Segment Expenses
Operating expenses (319 ) (28 ) (54 ) (80 ) (95 ) (23 ) (39 )
Profit sharing compensation expenses   (139 )   -     (9 )   (30 )   (99 )   (1 )   -  
Total (458 ) (28 ) (63 ) (110 ) (194 ) (24 ) (39 )
 
Earnings From Affiliated Manager 5 - - - - 5 -
             
Fund Management DE (before Principal Performance Payments)   273     45     45     87     97     (5 )   4  
 
Principal Performance Payments (24 ) - (6 ) (14 ) (4 ) - -
             
Fund Management DE   249     45     39     73     93     (5 )   4  
 
Investment Income 15 (1 ) 2 3 14 (4 ) 1
Unallocated Expenses (9 )
             
Pre-tax Distributable Earnings $ 255   $ 44   $ 41   $ 76   $ 107   $ (9 ) $ 5  
Pre-tax Distributable Earnings per Dividend Paying Share $ 0.64  
 
 

______________________

13 Represents distributions from (i) assets held by
redeeming capital accounts in the Drawbridge Special Opportunities
Funds, and (ii) the Value Recovery Funds.
14 Includes Unallocated Expenses of $28 million incurred
by Fortress related to the proposed acquisition by SoftBank.
 
 

Fortress Investment Group LLC

Exhibit 2-a

Assets Under Management and Fund Management DE

(dollars in millions)

             
Three Months Ended

Full Year

2016

Three Months Ended

Nine Months Ended
September 30,
2017

Fortress

March 31,

2016

 

June 30,

2016

 

September 30,

2016

 

December 31,

2016

March 31,

2017

 

June 30,

2017

 

September 30,

2017

Assets Under Management
Private Equity Funds $ 7,179 $ 6,640 $ 7,071 $ 6,532 $ 6,532 $ 6,695 $ 6,850 $ 6,249 $ 6,249
Permanent Capital Vehicles 6,773 6,644 6,846 6,961 6,961 7,816 7,832 7,923 7,923
Credit Hedge Funds15 9,336 8,966 8,804 8,803 8,803 8,633 8,310 8,452 8,452
Credit Private Equity Funds 9,353 9,243 9,483 9,306 9,306 9,098 9,398 8,364 8,364
Liquid Hedge Funds16 5,195 4,622 4,541 4,589 4,589 4,198 4,558 5,121 5,121
Logan Circle17   32,801     34,080     33,386     33,436     33,436     33,719     35,483     -     -  
AUM - Ending Balance $ 70,637   $ 70,195   $ 70,131   $ 69,627   $ 69,627   $ 70,159   $ 72,431   $ 36,109   $ 36,109  
 
Third-Party Capital Raised $ 348   $ 86   $ 399   $ 437   $ 1,270   $ 1,550   $ 54   $ 242   $ 1,846  
 
Segment Revenues
Management fees $ 141 $ 141 $ 136 $ 133 $ 551 $ 133 $ 134 $ 131 $ 398
Incentive income   64     131     113     133     441     103     84     140     327  
Total 205 272 249 266 992 236 218 271 725
 
Segment Expenses
Operating expenses18 (109 ) (106 ) (104 ) (119 ) (438 ) (127 ) (116 ) (122 ) (365 )
Profit sharing compensation expenses   (31 )   (58 )   (50 )   (49 )   (188 )   (40 )   (17 )   (41 )   (98 )
Total (140 ) (164 ) (154 ) (168 ) (626 ) (167 ) (133 ) (163 ) (463 )
 
Earnings From Affiliated Manager 1 1 3 10 15 1 6 4 11
                 
Fund Management DE (before Principal Performance Payments)   66     109     98     108     381     70     91     112     273  
 
Principal Performance Payments (3 ) (11 ) (10 ) (12 ) (36 ) (9 ) (9 ) (12 ) (30 )
                 
Fund Management DE $ 63   $ 98   $ 88   $ 96   $ 345   $ 61   $ 82   $ 100   $ 243  
 
Net Investment Income 1 3 2 11 17 13 4 191 208
                 
Pre-tax Distributable Earnings $ 64   $ 101   $ 90   $ 107   $ 362   $ 74   $ 86   $ 291   $ 451  
 

________________________

15 The Assets Under Management presented for the Credit
Hedge Funds includes $1,371 million related to co-managed funds as
of 3Q 2017.
16 The Assets Under Management presented for the Liquid
Hedge Funds includes $5,083 million related to the Affiliated
Manager as of 3Q 2017.
17 Fortress sold the Logan Circle business in September
2017.
18 Includes Unallocated Expenses of $21 million, $2
million and $5 million incurred by Fortress related to the proposed
acquisition by SoftBank in 1Q 2017, 2Q 2017 and 3Q 2017,
respectively.
 
   

Fortress Investment Group LLC

Exhibit 2-b

Assets Under Management and Fund Management DE

(dollars in millions)

         
Three Months Ended

Full Year
2016

Three Months Ended

Nine Months Ended
September 30, 2017

Private Equity Funds

March 31,

2016

 

June 30,

2016

 

September 30,

2016

December 31,

2016

March 31,

2017

 

June 30,

2017

 

September 30,

2017

 
Assets Under Management
Main Funds19 $ 4,907 $ 4,479 $ 4,980 $ 4,502 $ 4,502 $ 4,676 $ 4,660 $ 4,234 $ 4,234
Coinvestment Funds20 1,552 1,463 1,412 1,374 1,374 1,378 1,617 1,464 1,464
MSR Opportunities Funds21 333 309 285 261 261 239 220 203 203
Italian NPL Opportunities Fund 231 225 228 213 213 216 163 151 151
Fortress Equity Partners   156     164     166     182     182     186     190     197     197  
AUM - Ending Balance $ 7,179   $ 6,640   $ 7,071   $ 6,532   $ 6,532   $ 6,695   $ 6,850   $ 6,249   $ 6,249  
 
Third-Party Capital Raised $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ -  
 
Segment Revenues
Management fees $ 26 $ 26 $ 21 $ 21 $ 94 $ 20 $ 20 $ 20 $ 60
Incentive income   -     -     -     -     -     -     1     11     12  
Total 26 26 21 21 94 20 21 31 72
 
Segment Expenses
Operating expenses (10 ) (10 ) (8 ) (8 ) (36 ) (8 ) (7 ) (7 ) (22 )
Profit sharing compensation expenses   -     -     -     -     -     -     -     (3 )   (3 )
Total (10 ) (10 ) (8 ) (8 ) (36 ) (8 ) (7 ) (10 ) (25 )
                 
Fund Management DE (before Principal Performance Payments)   16     16     13     13     58     12     14     21     47  
 
Principal Performance Payments - - - - - - - (2 ) (2 )
                 
Fund Management DE $ 16   $ 16   $ 13   $ 13   $ 58   $ 12   $ 14   $ 19   $ 45  
 
Net Investment Income (2 ) 1 - 2 1 - - 15 15
                 
Pre-tax Distributable Earnings $ 14   $ 17   $ 13   $ 15   $ 59   $ 12   $ 14   $ 34   $ 60  
 

____________________

19 Combined AUM for Fund IV and Fund V.
20 Combined AUM for Fund IV Coinvestment, Fund V
Coinvestment, FHIF and FECI.
21 Combined AUM for MSR Opportunities Fund I A, MSR
Opportunities Fund I B, MSR Opportunities Fund II A, MSR
Opportunities Fund II B and MSR Opportunities Fund MA I.
 
 

Fortress Investment Group LLC

Exhibit 2-c

Assets Under Management and Fund Management DE

(dollars in millions)

 
      Three Months Ended  

Full Year

2016

  Three Months Ended  

Nine Months Ended
September 30, 2017

Permanent Capital Vehicles

March 31,

2016

 

June 30,

2016

 

September 30,

2016

 

December 31,

2016

March 31,

2017

 

June 30,

2017

 

September 30,

2017

 
Assets Under Management
Drive Shack Inc. $ 680 $ 680 $ 680 $ 680 $ 680 $ 680 $ 681 $ 681 $ 681
New Residential Investment Corp. 2,689 2,689 2,948 2,948 2,948 3,782 3,782 3,782 3,782
Eurocastle Investment Limited 608 510 486 488 488 587 627 745 745
New Media Investment Group Inc. 637 637 637 772 772 712 707 707 707
New Senior Investment Group Inc. 1,024 1,024 1,024 1,024 1,024 1,020 1,020 1,020 1,020
Fortress Transportation and Infrastructure Investors LLC   1,135     1,104     1,071     1,049     1,049     1,035     1,015     988     988  
AUM - Ending Balance $ 6,773   $ 6,644   $ 6,846   $ 6,961   $ 6,961   $ 7,816   $ 7,832   $ 7,923   $ 7,923  
 
Third-Party Capital Raised $ -   $ -   $ 279   $ 135   $ 414   $ 835   $ -   $ -   $ 835  
 
Segment Revenues
Management fees $ 27 $ 27 $ 28 $ 28 $ 110 $ 31 $ 30 $ 31 $ 92
Incentive income   2     14     10     41     67     16     48     58     122  
Total 29 41 38 69 177 47 78 89 214
 
Segment Expenses
Operating expenses (19 ) (18 ) (17 ) (26 ) (80 ) (24 ) (29 ) (34 ) (87 )
Profit sharing compensation expenses   (1 )   (3 )   (5 )   (6 )   (15 )   -     -     (3 )   (3 )
Total (20 ) (21 ) (22 ) (32 ) (95 ) (24 ) (29 ) (37 ) (90 )
                 
Fund Management DE (before Principal Performance Payments)   9     20     16     37     82     23     49     52     124  
 
Principal Performance Payments (1 ) (3 ) (2 ) (6 ) (12 ) (4 ) (6 ) (6 ) (16 )
                 
Fund Management DE $ 8   $ 17   $ 14   $ 31   $ 70   $ 19   $ 43   $ 46   $ 108  
 
Net Investment Income 1 1 - 1 3 1 1 - 2
                 
Pre-tax Distributable Earnings $ 9   $ 18   $ 14   $ 32   $ 73   $ 20   $ 44   $ 46   $ 110  
 
   

Fortress Investment Group LLC

Exhibit 2-d

Assets Under Management and Fund Management DE

(dollars in millions)

 
      Three Months Ended

Full Year
2016

  Three Months Ended

Nine Months Ended
September 30, 2017

Credit Hedge Funds

March 31,

2016

 

June 30,

2016

 

September 30,

2016

 

December 31,

2016

March 31,

2017

 

June 30,

2017

 

September 30,

2017

 
Assets Under Management
Drawbridge Special Opportunities Funds22 $ 5,816 $ 5,928 $ 6,019 $ 6,153 $ 6,153 $ 6,054 $ 6,010 $ 6,047 $ 6,047
Third Party Originated Funds23 815 837 821 840 840 831 706 743 743
Japan Income Fund 116 123 125 114 114 143 161 163 163
Asset-Based Income Fund - - - - - - - 128 128
Co-Managed Funds24   2,589     2,078     1,838     1,696     1,696     1,605     1,433     1,371     1,371  
AUM - Ending Balance $ 9,336   $ 8,966   $ 8,804   $ 8,803   $ 8,803   $ 8,633   $ 8,310   $ 8,452   $ 8,452  
 
Third-Party Capital Raised $ 272   $ 27   $ -   $ -   $ 299   $ 13   $ 54   $ 242   $ 309  
 
Segment Revenues
Management fees $ 37 $ 37 $ 39 $ 37 $ 150 $ 37 $ 38 $ 37 $ 112
Incentive income   7     33     44     47     131     32     15     28     75  
Total 44 70 83 84 281 69 53 65 187
 
Segment Expenses
Operating expenses (26 ) (29 ) (25 ) (27 ) (107 ) (27 ) (28 ) (27 ) (82 )
Profit sharing compensation expenses   (3 )   (11 )   (16 )   (20 )   (50 )   (13 )   (6 )   (13 )   (32 )
Total (29 ) (40 ) (41 ) (47 ) (157 ) (40 ) (34 ) (40 ) (114 )
                 
Fund Management DE (before Principal Performance Payments)   15     30     42     37     124     29     19     25     73  
 
Principal Performance Payments (1 ) (5 ) (8 ) (5 ) (19 ) (2 ) (3 ) (2 ) (7 )
                 
Fund Management DE $ 14   $ 25   $ 34   $ 32   $ 105   $ 27   $