Fortress Funds to Purchase CW Financial Services
Company Release - 7/1/2010 10:00 AM EDT
Franchise Includes US $183.6 Billion Servicing, Special Servicing and Investment Management Portfolio
NEW YORK--(BUSINESS WIRE)-- Fortress Investment Group LLC (NYSE: FIG) announced today that affiliates of certain Fortress managed funds have agreed to acquire CW Financial Services (branded as “CWCapital”), a market-leading provider of servicing, special servicing, investment management, advisory and origination capabilities with a specific focus on commercial and multifamily real estate debt. Fortress has agreed to acquire CWCapital from majority shareholder Otéra US Holding Inc. Terms of the transaction were not disclosed. Closing of the transaction is expected during the third quarter subject to regulatory approvals and closing conditions. Beekman Advisors, Inc. served as advisor to CWCapital.
Founded in 1972, CWCapital manages, invests in, originates, and advises on commercial and multifamily real estate debt products. Over the past eight years, the company has grown organically and through strategic acquisitions to become one of the leading commercial and multifamily real estate debt platforms in the U.S. As of April 30, 2010, CWCapital was the investment manager, servicer or special servicer for a portfolio of US $183.6 billion of loans and securities. With over US $160 billion of named special servicing assignments, CWCapital is the second-largest special servicer in the United States and is a significant Fannie Mae, Freddie Mac, and FHA lender servicing over $11.5 billion of multifamily and commercial loans.
Fortress has broad, global capabilities in real estate, credit and structured finance. These capabilities, combined with CWCapital’s origination, servicing and special servicing expertise, result in a unique capacity to participate in, and benefit from, the real estate market’s recovery and reconstitution.
Fortress is a leading global investment manager founded in 1998. Fortress offers alternative and traditional investment products. For more information regarding Fortress Investment Group LLC or to be added to our e-mail distribution list, please visit www.fortress.com.
About CW Financial Services
CW Financial Services is a unique, vertically integrated commercial real estate debt platform comprised of CWCapital LLC, CWCapital Investments LLC and CW Capital Asset Management LLC. Offering a full range of products and services including multifamily lending, servicing, special servicing, consulting and investment management, CW Financial Services employs approximately 350 professionals in 14 offices nationwide. For more information, visit www.cwcapital.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the closing of the proposed transaction; difficulties relating to the integration of the CWCapital and Fortress businesses may be greater than expected and may adversely affect our results of operations and financial condition; our ability to participate in, and benefit from, the real estate market’s recovery and reconstitution as a result of the acquisition of CWCapital may take longer than anticipated to achieve and may not be achieved entirely or at all; developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, the business and profitability of Fortress. These statements are not historical facts, but instead represent Fortress’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of Fortress’s control and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Fortress’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and its Annual Report on Form 10-K, which are, or will be, available on Fortress’s website (www.fortress.com). 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 contained in any forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. 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 press release. 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.
Source: Fortress Investment Group LLCContact:
Fortress Investment Group LLC
Lilly H. Donohue, 212-798-6118
Gordon E. Runté, 212-798-6082