Fortress Investment Group LLC has acquired a 7.7% stake in Nassau Financial Group, L.P., a Hartford, Connecticut-based provider of fixed annuities and asset management, as part of a strategic partnership between the two firms. The transaction, which involved a $130 million minority non-voting common equity investment from Fortress, closed on Friday, September 1, 2023.
This partnership is expected to strengthen Nassau's balance sheet and accelerate its growth strategy, including organic growth and acquisitions. As part of this strategic agreement, Nassau entered into a long-term Investment Management Agreement (IMA) with Fortress. This will allow Nassau's insurance subsidiaries full access to Fortress' credit investment strategies.
Nassau plans to begin investing alongside Fortress credit funds targeting direct lending and asset-backed security (ABS) investing opportunities. "We are thrilled to partner with Fortress to support the next phase of growth," said Phil Gass, Chairman and CEO of Nassau.
The transaction also marks a significant milestone for both organizations as it opens new avenues for growth and collaboration. "We are pleased to invest in, and partner with, Nassau's exceptional business and team," said Jack Neumark, a Fortress Managing Partner and co-head of global specialty finance.
Nassau was founded in 2015 with an initial capital commitment along with subsequent growth capital provided by Golden Gate Capital. Despite this recent transaction, Golden Gate Capital remains Nassau's majority controlling shareholder. At present, Nassau manages $23 billion in assets.
Founded in 1998, Fortress is a leading global investment management firm managing $44.7 billion of assets under management as of June 30, 2023. The firm serves over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
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