Sustainable Finance Disclosure Regulation Information

Certain affiliates of Fortress Investment Group LLC (Fortress, and such affiliates, Fortress Affiliates) are financial market participants, as defined under the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (the “SFDR”) by virtue of serving as the alternative investment fund manager (AIFM) of certain alternative investment funds offered or to be offered within the European Union (collectively, the “AIFs”).

Pursuant to the SFDR, financial market participants are required to publish on their website certain disclosures. The disclosures which apply to the Fortress Affiliates serving as AIFMs are set out below.

1. Integration of sustainability risk

This disclosure is made for the purposes of Article 3(1) of the SFDR, which requires all financial market participants to publish on their websites information about their policies on the integration of sustainability risks in their investment decision-making process. “Sustainability risk” is defined in the SFDR as “an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.”

Fortress recognizes that environmental, social and governance (“ESG”) issues can affect the performance of its sponsored AIFs (to varying degrees across companies, sectors, regions, asset classes and through time) and ESG considerations can help Fortress better understand, evaluate and anticipate certain non-financial risks. On behalf of the firm, its employees and its investors, Fortress identifies, considers and assesses sustainability risks alongside other factors while seeking to achieve attractive risk adjusted returns for its sponsored AIFs.

Fortress has adopted an ESG policy that is informed by principles that are principally consistent with those set forth in the U.N. Principles for Responsible Investment. Fortress investment professionals generally adopt the process of assessing sustainability risks and issues as follows: (i) identify material ESG issues that may affect the investment; (ii) analyze the relative importance of, and risks posed by, any such identified ESG issues; (iii) consider the costs and benefits of potential remedial measures; and (iv) assess Fortress’ ability to influence changes in the context of overall investment performance.

Based on the assessment, Fortress may seek to foster changes in some circumstances or to forego investments in others. As a global investment manager, Fortress invests on behalf of clients in a wide range of asset classes, including distressed debt, asset‐backed securities, orphaned assets, corporate debt, convertible securities, real estate and listed equities. Fortress’ ability to assess and influence the ESG issues in practice will vary significantly by strategy and investment. Strategies where Fortress has access to full due diligence and where Fortress obtains majority equity ownership or control may allow it to better detect and address the ESG issues identified, as compared to strategies where Fortress may be limited to publicly available information or have a non‐controlling investment.

Generally, in considering a potential investment, Fortress’ responsible investment professionals may conduct a high‐level assessment of the investment’s ESG profile and are also expected to consult with their colleagues and the Fortress Legal and Compliance Department for purpose of such assessments. A high‐level assessment of a potential investment’s ESG profile is not expected to involve a formal process or documentation, but rather a general review of material factors that may be relevant to sustainability risks.

In addition, because Fortress’ primary investment focus is the generation of superior risk‐ adjusted returns, it may make or maintain investments even in the face of existing ESG issues as it deems appropriate for its investors.

2. No consideration of adverse impacts of investment decisions on sustainability factors

This disclosure is made for the purposes of Article 4(1)(b) of the SFDR.

Fortress does not consider the adverse impacts of investment decisions on sustainability factors at the present time in respect of the AIFs which it sponsors or markets into the European Union. “Sustainability factors” are defined by SFDR as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.

Fortress is currently considering the sufficiency and accuracy of the data available to it in respect of the investments made by the AIFs. If, in the future, Fortress determines that sufficient information and data is available to make an adequate assessment, Fortress expects to update its approach and policies accordingly, which information shall be made available via this website.

Fortress may revisit its processes to ensure they are informed by industry practice and, as such, may edit this page from time to time to ensure that it accurately reflects its practices.

3. Transparency of remuneration policies in relation to the integration of sustainability risks

This disclosure is made for the purposes of Article 5(1) of the SFDR.

The remuneration schemes in place for investment professionals and executives contain a discretionary element, which takes into account a range of considerations. This may include sustainability risks, where appropriate.

Fortress’ remuneration policies are reviewed on a periodic basis.

This page was last updated on 24 October 2022.