Delaware | 20-5837959 | |
(State or other jurisdiction of incorporation | (I.R.S. Employer Identification No.) | |
or organization) |
1345 Avenue of the Americas, New York, NY | 10105 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
PAGE | |||
Consolidated Balance Sheets as of September 30, 2013 (unaudited) and December 31, 2012 | |||
Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2013 and 2012 | |||
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2013 and 2012 | |||
Consolidated Statement of Changes in Equity (unaudited) for the nine months ended September 30, 2013 | |||
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2013 and 2012 | |||
Notes to Consolidated Financial Statements (unaudited) | |||
(i) | the capital commitments or invested capital (or net asset value, "NAV," if lower) of our private equity funds and credit PE funds, depending on which measure management fees are being calculated upon at a given point in time, which in connection with private equity funds raised after March 2006 includes the mark-to-market value of public securities held within the funds, |
(ii) | the contributed capital of our publicly traded alternative investment vehicles, which we refer to as our “Castles,” |
(iii) | the NAV of our hedge funds, including the Value Recovery Funds and certain advisory engagements which pay fees based on realizations (and on certain managed assets and, in some cases, a fixed fee); and |
(iv) | the NAV or fair value of our managed accounts, to the extent management fees are charged. |
• | should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; |
• | have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; |
• | may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and |
• | were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. |
September 30, 2013 (Unaudited) | December 31, 2012 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 311,114 | $ | 104,242 | |||
Due from affiliates | 165,801 | 280,557 | |||||
Investments | 1,263,392 | 1,211,684 | |||||
Investments in options | 100,123 | 38,077 | |||||
Deferred tax asset | 370,944 | 402,135 | |||||
Other assets | 146,259 | 124,798 | |||||
$ | 2,357,633 | $ | 2,161,493 | ||||
Liabilities and Equity | |||||||
Liabilities | |||||||
Accrued compensation and benefits | $ | 305,361 | $ | 146,911 | |||
Due to affiliates | 343,495 | 357,407 | |||||
Deferred incentive income | 287,182 | 231,846 | |||||
Debt obligations payable | — | 149,453 | |||||
Other liabilities | 99,850 | 59,226 | |||||
1,035,888 | 944,843 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Class A shares, no par value, 1,000,000,000 shares authorized, 239,568,798 | |||||||
and 218,286,342 shares issued and outstanding at September 30, 2013 and December 31, 2012 respectively | — | — | |||||
Class B shares, no par value, 750,000,000 shares authorized, 249,534,372 | |||||||
and 249,534,372 shares issued and outstanding at September 30, 2013 and December 31, 2012 respectively | — | — | |||||
Paid-in capital | 2,121,595 | 2,119,102 | |||||
Retained earnings (accumulated deficit) | (1,431,944 | ) | (1,486,578 | ) | |||
Treasury shares (2,082,684 Class A shares held by subsidiary at December 31, 2012) | — | (3,419 | ) | ||||
Accumulated other comprehensive income (loss) | (1,928 | ) | (2,634 | ) | |||
Total Fortress shareholders’ equity | 687,723 | 626,471 | |||||
Principals’ and others’ interests in equity of consolidated subsidiaries | 634,022 | 590,179 | |||||
Total equity | 1,321,745 | 1,216,650 | |||||
$ | 2,357,633 | $ | 2,161,493 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | |||||||||||||||
Management fees: affiliates | $ | 121,593 | $ | 112,806 | $ | 388,957 | $ | 336,935 | |||||||
Management fees: non-affiliates | 15,361 | 10,762 | 45,531 | 32,534 | |||||||||||
Incentive income: affiliates | 40,934 | 5,976 | 103,176 | 38,994 | |||||||||||
Incentive income: non-affiliates | 1,907 | 788 | 4,770 | 1,564 | |||||||||||
Expense reimbursements: affiliates | 49,301 | 49,214 | 149,308 | 136,615 | |||||||||||
Expense reimbursements: non-affiliates | 1,904 | 977 | 4,752 | 2,864 | |||||||||||
Other revenues (affiliate portion disclosed in Note 6) | 1,019 | 1,000 | 2,954 | 2,723 | |||||||||||
232,019 | 181,523 | 699,448 | 552,229 | ||||||||||||
Expenses | |||||||||||||||
Interest expense | 778 | 3,375 | 4,856 | 11,877 | |||||||||||
Compensation and benefits | 146,457 | 181,421 | 539,591 | 537,267 | |||||||||||
General, administrative and other | 33,315 | 31,004 | 99,970 | 93,365 | |||||||||||
Depreciation and amortization | 3,501 | 4,982 | 10,094 | 11,718 | |||||||||||
184,051 | 220,782 | 654,511 | 654,227 | ||||||||||||
Other Income (Loss) | |||||||||||||||
Gains (losses) (affiliate portion disclosed in Note 3) | 7,503 | (2,228 | ) | 45,578 | 29,542 | ||||||||||
Tax receivable agreement liability adjustment | — | — | (7,739 | ) | (6,935 | ) | |||||||||
Earnings (losses) from equity method investees | 60,508 | 52,034 | 125,515 | 110,417 | |||||||||||
68,011 | 49,806 | 163,354 | 133,024 | ||||||||||||
Income (Loss) Before Income Taxes | 115,979 | 10,547 | 208,291 | 31,026 | |||||||||||
Income tax benefit (expense) | (14,794 | ) | (3,881 | ) | (42,236 | ) | (34,251 | ) | |||||||
Net Income (Loss) | $ | 101,185 | $ | 6,666 | $ | 166,055 | $ | (3,225 | ) | ||||||
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | $ | 58,804 | $ | 5,958 | $ | 111,421 | $ | 20,698 | |||||||
Net Income (Loss) Attributable to Class A Shareholders | $ | 42,381 | $ | 708 | $ | 54,634 | $ | (23,923 | ) | ||||||
Dividends declared per Class A share | $ | 0.06 | $ | 0.05 | $ | 0.18 | $ | 0.15 | |||||||
Earnings (Loss) Per Class A share | |||||||||||||||
Net income (loss) per Class A share, basic | $ | 0.17 | $ | — | $ | 0.23 | $ | (0.12 | ) | ||||||
Net income (loss) per Class A share, diluted | $ | 0.12 | $ | (0.04 | ) | $ | 0.21 | $ | (0.13 | ) | |||||
Weighted average number of Class A shares outstanding, basic | 239,404,587 | 220,641,776 | 234,750,585 | 212,297,285 | |||||||||||
Weighted average number of Class A shares outstanding, diluted | 502,091,166 | 520,039,541 | 499,562,470 | 517,431,334 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Comprehensive income (loss) (net of tax) | |||||||||||||||
Net income (loss) | $ | 101,185 | $ | 6,666 | $ | 166,055 | $ | (3,225 | ) | ||||||
Foreign currency translation | (46 | ) | 168 | (1,862 | ) | (884 | ) | ||||||||
Comprehensive income (loss) from equity method investees | (1 | ) | (1,066 | ) | 4,135 | (1,157 | ) | ||||||||
Total comprehensive income (loss) | $ | 101,138 | $ | 5,768 | $ | 168,328 | $ | (5,266 | ) | ||||||
Comprehensive income (loss) attributable to principals’ and others’ interests | $ | 58,772 | $ | 5,331 | $ | 112,842 | $ | 19,462 | |||||||
Comprehensive income (loss) attributable to Class A shareholders | $ | 42,366 | $ | 437 | $ | 55,486 | $ | (24,728 | ) |
Class A Shares | Class B Shares | Paid-In Capital | Retained Earnings (Accumulated Deficit) | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Total Fortress Shareholders’ Equity | Principals’ and Others’ Interests in Equity of Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||
Equity - December 31, 2012 | 218,286,342 | 249,534,372 | $ | 2,119,102 | $ | (1,486,578 | ) | $ | (3,419 | ) | $ | (2,634 | ) | $ | 626,471 | $ | 590,179 | $ | 1,216,650 | ||||||||||||||
Contributions from principals’ and others’ interests in equity | — | — | — | — | — | — | — | 55,543 | 55,543 | ||||||||||||||||||||||||
Distributions to principals’ and others’ interests in equity (net of tax) | — | — | (112 | ) | — | — | — | (112 | ) | (116,647 | ) | (116,759 | ) | ||||||||||||||||||||
Dividends declared | — | — | (41,896 | ) | — | — | — | (41,896 | ) | 66 | (41,830 | ) | |||||||||||||||||||||
Dividend equivalents accrued in connection with equity- based compensation (net of tax) | — | — | (428 | ) | — | — | — | (428 | ) | (685 | ) | (1,113 | ) | ||||||||||||||||||||
Conversion of Class B shares to Class A shares | 10,333,334 | (10,333,334 | ) | 10,143 | — | — | — | 10,143 | (10,143 | ) | — | ||||||||||||||||||||||
Net deferred tax effects resulting from acquisition and exchange of Fortress Operating Group units | — | — | 12,067 | — | — | — | 12,067 | (30 | ) | 12,037 | |||||||||||||||||||||||
Director restricted share grant | 127,533 | — | 372 | — | — | — | 372 | 398 | 770 | ||||||||||||||||||||||||
Capital increase related to equity-based compensation, net | 8,738,905 | 10,333,334 | 14,075 | — | — | — | 14,075 | 15,049 | 29,124 | ||||||||||||||||||||||||
Dilution impact of Class A share issuance | — | — | 12,711 | — | (15 | ) | (146 | ) | 12,550 | (12,550 | ) | — | |||||||||||||||||||||
Reissuance of treasury stock | 2,082,684 | — | (4,439 | ) | — | 3,434 | — | (1,005 | ) | — | (1,005 | ) | |||||||||||||||||||||
Comprehensive income (loss) (net of tax) | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 54,634 | — | — | 54,634 | 111,421 | 166,055 | ||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | (645 | ) | (645 | ) | (1,217 | ) | (1,862 | ) | ||||||||||||||||||||
Comprehensive income (loss) from equity method investees | — | — | — | — | — | 1,497 | 1,497 | 2,638 | 4,135 | ||||||||||||||||||||||||
Total comprehensive income (loss) | 55,486 | 112,842 | 168,328 | ||||||||||||||||||||||||||||||
Equity - September 30, 2013 | 239,568,798 | 249,534,372 | $ | 2,121,595 | $ | (1,431,944 | ) | $ | — | $ | (1,928 | ) | $ | 687,723 | $ | 634,022 | $ | 1,321,745 |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Cash Flows From Operating Activities | |||||||
Net income (loss) | $ | 166,055 | $ | (3,225 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||
Depreciation and amortization | 10,094 | 11,718 | |||||
Other amortization and accretion (included in interest expense) | 704 | 1,467 | |||||
(Earnings) losses from equity method investees | (125,515 | ) | (110,417 | ) | |||
Distributions of earnings from equity method investees | 53,576 | 32,621 | |||||
(Gains) losses | (45,578 | ) | (29,542 | ) | |||
Deferred incentive income | (50,262 | ) | (36,931 | ) | |||
Deferred tax (benefit) expense | 53,048 | 32,107 | |||||
Adjustment of estimated forfeited non-cash compensation | 43 | (1,705 | ) | ||||
Options received from affiliates | (36,470 | ) | (21,524 | ) | |||
Tax receivable agreement liability adjustment | 7,739 | 6,935 | |||||
Equity-based compensation | 28,648 | 162,372 | |||||
Options in affiliates granted to employees | 7,757 | 3,378 | |||||
Allowance for doubtful accounts | 590 | 485 | |||||
Cash flows due to changes in | |||||||
Due from affiliates | (88,276 | ) | (66,183 | ) | |||
Other assets | 1,950 | 601 | |||||
Accrued compensation and benefits | 204,718 | (4,276 | ) | ||||
Due to affiliates | 5,737 | 1,404 | |||||
Deferred incentive income | 105,753 | 43,382 | |||||
Other liabilities | 32,197 | 23,061 | |||||
Net cash provided by (used in) operating activities | 332,508 | 45,728 | |||||
Cash Flows From Investing Activities | |||||||
Contributions to equity method investees | (25,885 | ) | (52,573 | ) | |||
Distributions of capital from equity method investees | 257,829 | 137,015 | |||||
Proceeds from sale of direct investments | 9,951 | — | |||||
Purchase of equity securities | (19,460 | ) | — | ||||
Purchase of fixed assets | (7,777 | ) | (7,367 | ) | |||
Net cash provided by (used in) investing activities | 214,658 | 77,075 | |||||
Cash Flows From Financing Activities | |||||||
Repayments of debt obligations | (149,453 | ) | (80,722 | ) | |||
Payment of deferred financing costs | (2,367 | ) | — | ||||
Repurchase of RSUs (Note 8) | — | (7,522 | ) | ||||
Dividends and dividend equivalents paid | (43,168 | ) | (32,803 | ) | |||
Principals’ and others’ interests in equity of consolidated subsidiaries - contributions | 391 | 429 | |||||
Principals’ and others’ interests in equity of consolidated subsidiaries - distributions | (145,697 | ) | (81,620 | ) | |||
Net cash provided by (used in) financing activities | (340,294 | ) | (202,238 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 206,872 | (79,435 | ) | ||||
Cash and Cash Equivalents, Beginning of Period | 104,242 | 333,166 | |||||
Cash and Cash Equivalents, End of Period | $ | 311,114 | $ | 253,731 |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Supplemental Disclosure of Cash Flow Information | |||||||
Cash paid during the period for interest | $ | 3,586 | $ | 10,198 | |||
Cash paid during the period for income taxes | $ | 2,990 | $ | 5,623 | |||
Supplemental Schedule of Non-cash Investing and Financing Activities | |||||||
Employee compensation invested directly in subsidiaries | $ | 52,105 | $ | 23,598 | |||
Investments of incentive receivable amounts into Fortress Funds | $ | 206,455 | $ | 74,636 | |||
Dividends, dividend equivalents and Fortress Operating Group unit distributions declared but not yet paid | $ | 3,255 | $ | 7,876 |
1) | Private equity: |
2) | Liquid hedge funds that invest globally in fixed income, currency, equity and commodity markets, and related derivatives to capitalize on imbalances in the financial markets. In addition, this segment includes an endowment style fund, which invests in Fortress Funds, funds managed by external managers, and direct investments; and a fund that seeks to generate returns by executing a positively convex investment strategy. |
3) | Credit funds: |
a) | Credit hedge funds, which make highly diversified investments in direct lending, corporate debt and securities, portfolios and orphaned assets, real estate and structured finance, on a global basis and throughout the capital structure, with a value orientation, as well as non-Fortress originated funds for which Fortress has been retained as manager as part of an advisory business; and |
4) | Logan Circle Partners, L.P. (“Logan Circle”), which represents Fortress's traditional asset management business providing institutional clients actively managed investment solutions across a broad spectrum of fixed income and growth equity strategies. Logan Circle's core fixed income products cover the breadth of the maturity and risk spectrums, including short, intermediate and long duration, core/core plus, investment grade credit, high yield and emerging market debt. In April 2013, Logan Circle launched a growth equities investment business focused on investing and managing concentrated portfolios of publicly traded U.S. equities. |
5) | Principal investments in the above described funds. |
FINANCIAL STATEMENT GUIDE | ||||
Selected Financial Statement Captions | Note Reference | Explanation | ||
Balance Sheet | ||||
Due from Affiliates | 6 | Generally, management fees, expense reimbursements and incentive income due from Fortress Funds. | ||
Investments and Investments in Options | 3 | Primarily the carrying value of Fortress’s principal investments in the Fortress Funds. | ||
Deferred Tax Asset | 5 | Relates to potential future tax benefits. | ||
Due to Affiliates | 6 | Generally, amounts due to the Principals related to their interests in Fortress Operating Group and the tax receivable agreement. | ||
Deferred Incentive Income | 2 | Incentive income already received from certain Fortress Funds based on past performance, which is subject to contingent repayment based on future performance. | ||
Debt Obligations Payable | 4 | The balance outstanding on the credit agreement and promissory note. | ||
Statement of Operations | ||||
Management Fees: Affiliates | 2 | Fees earned for managing Fortress Funds, generally determined based on the size of such funds. | ||
Management Fees: Non-Affiliates | 2 | Fees earned from managed accounts and our traditional fixed income asset management business, generally determined based on the amount managed. | ||
Incentive Income: Affiliates | 2 | Income earned from Fortress Funds, based on the performance of such funds. | ||
Incentive Income: Non- Affiliates | 2 | Income earned from managed accounts, based on the performance of such accounts. | ||
Compensation and Benefits | 7 | Includes equity-based, profit-sharing and other compensation to employees. | ||
Gains (Losses) | 3 | The result of asset dispositions or changes in the fair value of investments or other financial instruments which are marked to market (including the Castles and GAGFAH). | ||
Tax Receivable Agreement Liability Adjustment | 5 | Represents a change in the amount due to the Principals under the tax receivable agreement. | ||
Earnings (Losses) from Equity Method Investees | 3 | Fortress’s share of the net earnings (losses) of the Fortress Funds resulting from its principal investments. | ||
Income Tax Benefit (Expense) | 5 | The net tax result related to the current period. Certain of Fortress’s revenues are not subject to taxes because they do not flow through taxable entities. Furthermore, Fortress has significant permanent differences between its GAAP and tax basis earnings. |
Selected Financial Statement Captions | Note Reference | Explanation | ||
Principals’ and Others’ Interests in (Income) Loss of Consolidated Subsidiaries | 6 | Primarily the Principals’ and employees’ share of Fortress’s earnings based on their ownership interests in subsidiaries, including Fortress Operating Group. | ||
Earnings Per Share | 8 | GAAP earnings per Class A share based on Fortress’s capital structure, which is comprised of outstanding and unvested equity interests, including interests which participate in Fortress’s earnings, at both the Fortress and subsidiary levels. | ||
Other | ||||
Distributions | 8 | A summary of dividends and distributions, and the related outstanding shares and units, is provided. | ||
Distributable Earnings | 10 | A presentation of our financial performance by segment (fund type) is provided, on the basis of the operating performance measure used by Fortress’s management committee. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Private Equity | |||||||||||||||
Private Equity Funds | |||||||||||||||
Management fees: affil. | $ | 34,281 | $ | 29,891 | $ | 100,781 | $ | 89,148 | |||||||
Management fees: non-affil. | 123 | 112 | 345 | 283 | |||||||||||
Incentive income: affil. | 6,433 | 708 | 21,742 | 1,815 | |||||||||||
Castles | |||||||||||||||
Management fees: affil. | 13,289 | 13,744 | 42,040 | 38,427 | |||||||||||
Management fees, options: affil. | — | 8,298 | 36,470 | 21,524 | |||||||||||
Management fees: non-affil. | 643 | 359 | 2,959 | 3,563 | |||||||||||
Incentive income: affil. | 4,178 | — | 5,378 | — | |||||||||||
Liquid Hedge Funds | |||||||||||||||
Management fees: affil. | 24,313 | 14,783 | 61,373 | 47,946 | |||||||||||
Management fees: non-affil. | 6,324 | 3,395 | 18,008 | 9,592 | |||||||||||
Incentive income: affil. | 10,886 | 563 | 17,350 | 1,436 | |||||||||||
Incentive income: non-affil. | 1,138 | 188 | 3,625 | 312 | |||||||||||
Credit Funds | |||||||||||||||
Credit Hedge Funds | |||||||||||||||
Management fees: affil. | 25,455 | 24,688 | 75,284 | 76,005 | |||||||||||
Management fees: non-affil. | 26 | 58 | 151 | 313 | |||||||||||
Incentive income: affil. | 10,756 | 466 | 31,330 | 1,749 | |||||||||||
Incentive income: non-affil. | — | — | — | 130 | |||||||||||
Credit PE Funds | |||||||||||||||
Management fees: affil. | 23,633 | 21,402 | 71,115 | 63,885 | |||||||||||
Management fees: non-affil. | 35 | 36 | 104 | 108 | |||||||||||
Incentive income: affil. | 8,681 | 4,239 | 27,376 | 33,994 | |||||||||||
Incentive income: non-affil. | 769 | 600 | 1,145 | 1,122 | |||||||||||
Logan Circle | |||||||||||||||
Management fees: affil. | 622 | — | 1,894 | — | |||||||||||
Management fees: non-affil. | 8,210 | 6,802 | 23,964 | 18,675 | |||||||||||
Total | |||||||||||||||
Management fees: affil. | $ | 121,593 | $ | 112,806 | $ | 388,957 | $ | 336,935 | |||||||
Management fees: non-affil. | $ | 15,361 | $ | 10,762 | $ | 45,531 | $ | 32,534 | |||||||
Incentive income: affil. (A) | $ | 40,934 | $ | 5,976 | $ | 103,176 | $ | 38,994 | |||||||
Incentive income: non-affil. | $ | 1,907 | $ | 788 | $ | 4,770 | $ | 1,564 |
Distributed-Gross | Distributed-Recognized (A) | Distributed-Unrecognized (B) | Undistributed net of intrinsic clawback (C) (D) | ||||||||||||
Deferred incentive income as of December 31, 2012 | $ | 894,278 | $ | (662,432 | ) | $ | 231,846 | $ | 527,432 | ||||||
Fortress Funds which matured (no longer subject to clawback) | (2,180 | ) | 2,180 | N/A | N/A | ||||||||||
Share of income (loss) of Fortress Funds | N/A | N/A | N/A | 397,018 | |||||||||||
Distribution of private equity incentive income | 106,709 | N/A | 106,709 | (106,709 | ) | ||||||||||
Recognition of previously deferred incentive income | N/A | (50,262 | ) | (50,262 | ) | N/A | |||||||||
Changes in foreign exchange rates | (1,111 | ) | — | (1,111 | ) | N/A | |||||||||
Deferred incentive income as of September 30, 2013 | $ | 997,696 | $ | (710,514 | ) | $ | 287,182 | $ | 817,741 | ||||||
Deferred incentive income including Fortress Funds which matured | $ | 1,051,352 | $ | (764,170 | ) |
(A) | All related contingencies have been resolved. |
(B) | Reflected on the balance sheet. |
(C) | At September 30, 2013, the net undistributed incentive income is comprised of $903.5 million of gross undistributed incentive income, net of $85.8 million of intrinsic clawback (see next page). The net undistributed incentive income represents the amount that would be received by Fortress from the related funds if such funds were liquidated on September 30, 2013 at their net asset values. |
(D) | From inception to September 30, 2013, Fortress has paid $433.6 million of compensation expense under its employee profit sharing arrangements (Note 7) in connection with distributed incentive income, of which $27.9 million has not been expensed because management has determined that it is not probable of being incurred as an expense and will be recovered from the related individuals. If the $903.5 million of gross undistributed incentive income were realized, Fortress would recognize and pay an additional $370.3 million of compensation expense. |
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date Capital Invested | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||
NIH (1998) | In Liquidation | $ | 415,574 | $ | (823,588 | ) | $ | — | $ N/A | $ | — | $ N/A | $ | — | $ | 94,513 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Fund I (1999) (K) | Closed May-13 | 1,015,943 | (2,847,929 | ) | — | N/A | — | N/A | — | 344,939 | — | — | — | ||||||||||||||||||||||||||||||||
Fund II (2002) | Feb-13 | 1,974,298 | (3,299,244 | ) | 125,849 | 1,450,795 | — | N/A | — | 287,985 | 27,288 | 2,490 | 1,594 | ||||||||||||||||||||||||||||||||
Fund III (2004) | Jan-15 | 2,762,992 | (1,576,429 | ) | 2,830,089 | 1,643,526 | 1,687,083 | 43,557 | — | 66,903 | 66,903 | 66,903 | 45,108 | ||||||||||||||||||||||||||||||||
Fund III Coinvestment (2004) | Jan-15 | 273,649 | (178,272 | ) | 118,548 | 23,171 | 204,272 | 181,101 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Fund IV (2006) | Jan-17 | 3,639,561 | (587,014 | ) | 4,388,567 | 1,336,020 | 2,226,991 | 890,971 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Fund IV Coinvestment (2006) | Jan-17 | 762,696 | (138,625 | ) | 583,800 | (40,271 | ) | 477,142 | 517,413 | — | — | — | — | — | |||||||||||||||||||||||||||||||
Fund V (2007) | Feb-18 | 4,103,713 | (143,711 | ) | 4,387,576 | 427,574 | 1,925,595 | 1,498,021 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Fund V Coinvestment (2007) | Feb-18 | 990,480 | (155 | ) | 652,927 | (337,398 | ) | 508,968 | 846,366 | — | — | — | — | — | |||||||||||||||||||||||||||||||
GAGACQ Fund (2004) (GAGFAH) | Closed Nov-09 | 545,663 | (595,401 | ) | N/A | N/A | N/A | N/A | N/A | 51,476 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
FRID (2005) (GAGFAH) | Apr-15 | 1,220,229 | (570,599 | ) | 540,433 | (109,197 | ) | 818,454 | 927,651 | — | 16,447 | 16,447 | 16,447 | 10,041 | |||||||||||||||||||||||||||||||
FRIC (2006) (Brookdale) | May-16 | 328,754 | (17,462 | ) | 226,547 | (84,745 | ) | 235,031 | 319,776 | — | — | — | — | — | |||||||||||||||||||||||||||||||
FICO (2006) (Intrawest) | Jan-17 | 724,525 | (5 | ) | (59,651 | ) | (784,171 | ) | 482,939 | 1,267,110 | — | — | — | — | — | ||||||||||||||||||||||||||||||
FHIF (2006) (Holiday) | Jan-17 | 1,543,463 | (63,178 | ) | 2,287,924 | 807,639 | 938,698 | 131,059 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FECI (2007) (Florida East Coast / Flagler) | Feb-18 | 982,779 | (165 | ) | 962,051 | (20,563 | ) | 592,246 | 612,809 | — | — | — | — | — | |||||||||||||||||||||||||||||||
$ | — | $ | 862,263 | $ | 110,638 | $ | 85,840 | $ | 56,743 | ||||||||||||||||||||||||||||||||||||
Private Equity Funds in Investment Period | |||||||||||||||||||||||||||||||||||||||||||||
WWTAI (2011) | Jun-24 | $ | 208,442 | $ | (15,304 | ) | $ | 209,767 | $ | 16,629 | $ | — | N/A | $ | 1,564 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
MSR Opportunities Fund I A (2012) | Aug-22 | 313,554 | (19,325 | ) | 322,868 | 28,639 | — | N/A | 2,765 | — | — | — | — | ||||||||||||||||||||||||||||||||
MSR Opportunities Fund I B (2012) | Aug-22 | 75,946 | (4,680 | ) | 78,111 | 6,845 | — | N/A | 684 | — | — | — | — | ||||||||||||||||||||||||||||||||
MSR Opportunities II A (2013) | Jul-23 | 28,139 | — | 27,141 | (998 | ) | 25 | 1,023 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
MSR Opportunities II B (2013) | Jul-23 | 401 | — | 387 | (14 | ) | — | 14 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
MSR Opportunities II MA I (2013) | Jul-23 | 6,461 | — | 6,232 | (229 | ) | 6 | 235 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
$ | 5,013 | $ | — | $ | — | $ | — | $ | — |
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date Capital Invested | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | ||||||||||||||||||||||||||||||||||
Credit PE Funds | ||||||||||||||||||||||||||||||||||||||||||||||
Long Dated Value Fund I (2005) | Apr-30 | $ | 267,325 | $ | (65,011 | ) | $ | 303,409 | $ | 101,095 | $ | 122,540 | $ | 21,445 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Long Dated Value Fund II (2005) | Nov-30 | 274,280 | (124,635 | ) | 200,810 | 51,165 | 98,575 | 47,410 | — | 412 | — | — | — | |||||||||||||||||||||||||||||||||
Long Dated Value Fund III (2007) | Feb-32 | 343,156 | (252,561 | ) | 217,333 | 126,738 | — | N/A | 18,166 | 5,042 | — | — | — | |||||||||||||||||||||||||||||||||
LDVF Patent Fund (2007) | Nov-27 | 45,466 | (41,354 | ) | 41,465 | 37,353 | — | N/A | 2,884 | 461 | — | — | — | |||||||||||||||||||||||||||||||||
Real Assets Fund (2007) | Jun-17 | 359,024 | (275,723 | ) | 193,582 | 110,281 | — | N/A | 11,912 | 5,285 | — | — | — | |||||||||||||||||||||||||||||||||
Credit Opportunities Fund (2008) | Oct-20 | 5,493,685 | (6,366,576 | ) | 1,422,116 | 2,295,007 | — | N/A | 189,682 | 260,973 | 99,291 | — | — | |||||||||||||||||||||||||||||||||
Credit Opportunities Fund II (2009) | Jul-22 | 2,162,162 | (1,770,179 | ) | 1,240,221 | 848,238 | — | N/A | 120,831 | 45,490 | 8,460 | — | — | |||||||||||||||||||||||||||||||||
FCO Managed Account (2010) | Jun-22 | 549,492 | (380,679 | ) | 391,695 | 222,882 | — | N/A | 34,532 | 7,784 | — | — | — | |||||||||||||||||||||||||||||||||
SIP Managed Account (2010) | Sep-20 | 11,000 | (28,768 | ) | 8,295 | 26,063 | — | N/A | 1,659 | 3,554 | — | — | — | |||||||||||||||||||||||||||||||||
Japan Opportunity Fund (2009) | Jun-19 | 1,073,051 | (951,289 | ) | 568,551 | 446,789 | — | N/A | 41,512 | 51,526 | 20,277 | — | — | |||||||||||||||||||||||||||||||||
$ | 421,178 | $ | 380,527 | $ | 128,028 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Credit PE Funds in Investment Period | ||||||||||||||||||||||||||||||||||||||||||||||
Credit Opportunities Fund III (2011) | Mar-24 | 1,446,817 | (565,323 | ) | 1,177,666 | 296,172 | — | N/A | 49,826 | 8,135 | 8,135 | — | — | |||||||||||||||||||||||||||||||||
FCO Managed Accounts (2008-2012) | Oct-21 to Mar-27 | 2,948,653 | (2,141,672 | ) | 1,683,258 | 876,277 | — | N/A | 104,626 | 69,067 | 38,773 | — | — | |||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Yen) (2011) | Dec-21 | 419,069 | (125,469 | ) | 347,117 | 53,517 | — | N/A | 8,761 | 1,963 | — | — | — | |||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Dollar) (2011) | Dec-21 | 354,099 | (85,249 | ) |