Fund Liquidity Solutions

The Fortress Fund Liquidity Solutions business provides custom financing and preferred equity capital solutions to private equity funds, hedge funds, private credit funds, special situations funds, non-traded real estate investment trusts and other pooled investment vehicles.

We offer a variety of differentiated products, partnering with general partners and limited partners to support, grow and protect underlying portfolio assets and provide liquidity to GPs and LPs for a wide range of purposes. Our target investment size is typically between $50 million and $1 billion.



Our emphasis is on the complex end of the GP-led market, and we seek to invest in companies with limited debt, high margins, high free cash flow and the ability to drive early return of capital prior to an ultimate exit.
  • Fortress is a value-added partner, seeking to bring our deep industry experience to GPs and their underlying portfolio companies

  • We partner with GPs and can act as lead investor in GP-led buyouts of existing portfolio companies from older vintage year funds, accelerating liquidity to LPs, resetting GP economics and extending holding periods

  • We primarily target market leading companies with high margins, strong cash generation and low leverage in defensive industries

Fund Liquidity
Solutions & Secondaries

We assist in the provision of custom financing and capital solutions to funds across the capital structure under flexible terms to satisfy a wide range of uses.
  • We are able to provide senior fund-level debt or preferred equity to preserve, protect and support growth initiatives of underlying investments and to make new accretive investments
  • Fortress can offer capital to provide liquidity to investors, including LP margin loans and buyouts
  • We can extend loans to GPs to support GP and management company needs, GP co-investments and liquidity facilities
  • We are able to offer bespoke structures that are flexible on PIK / cash pay, delayed draw, accordion, amortization schedules and revolvers

“After a decade of low interest rates, high leverage and multiple expansion, the private equity industry is seeking alternative liquidity structures, which we believe will lead to multi-year opportunities in certain niche areas including GP-led opportunities and bespoke capital solutions for funds.”

Greg Getschow

Managing Director, GP-Led Opportunities

Fundamental Industry Shift

Structural Dislocation Potential Advantages of GP-Led Opportunities Potential Advantages of Liquidity Solutions
Higher Interest Rates May allow companies to maintain existing low-cost leverage at the company level (generally no need to refinance, which is typical in a traditional sale) May allow funds and assets to maintain existing
low-cost leverage and optimize their capital structure
Disrupted Exit Markets 
GPs and LPs Seeking Liquidity Provide liquidity to LPs as well as execution in challenging exit markets Eliminate the need for asset disposals in challenging exit markets and provide a host of liquidity options and opportunities for GPs and LPs
Margin Compression
Valuation Compression Ability to extend hold period of best assets Ability to provide GPs and LPs with liquidity and hold period extension options
Difficulty Raising New Funds Provide a lifeline for GPs who are unable to raise new funds Provide fresh liquidity to existing funds for opportunistic new asset acquisitions, follow-on investments and LP distributions
Fund Performance Challenged 
With Some Funds Performing
 Below Hurdle Rates Reset / new economics Fresh liquidity can allow GPs to execute on strategy and exit assets in a more fitting market

GP-Led Opportunities: Key Differentiators

Active Management

We are positioned in the market between direct PE investors and traditional secondary investors, bringing our industry experience to underlying portfolio companies as a value-ended partner

Focus on Value

We focus on buying at better value, seeking opportunities with market leading, middle market companies with lesser-known GPs that operate in complex industries where Fortress has deep experience

Equity Investing with a
Credit Mindset

We invest with a focus on capital preservation and cash flow while seeking to achieve strong risk-adjusted returns. Our credit approach to asset selection allows Fortress to identify opportunities with potential for early return of capital before exit

GP-Led Opportunities: Investments Generally Fall Within Four Categories

Transportation / Logistics
Financial Services

GP-Led Opportunities: Target Investment Attributes

Value Entry Price

Core criteria is a transaction with a value entry point into a high-quality company

Market Leadership

Typically seek #1 or #2 market leader, providing potential for relative out-performance in difficult economic climates and generating greater interest from buyers at exit

Near-Term Growth Catalyst

Seek investments with identifiable opportunities to increase profitability within 12 - 24 months

Strong Balance Sheet

Conservative debt levels provide more flexibility and downside protection; we avoid relying on leverage for returns

High Free Cash Flow

We prioritize cash generation (high margin / low capital expenditures) over high top line growth / low free cash flow investments

Fortress Advantage

We focus on industries in which Fortress has significant in-house industry knowledge and underwriting experience

Fund Liquidity Solutions & Secondaries: Bespoke Solutions to Address a Wide Range of Needs

Financing to stabilize fund / assets

Curing debt covenant breaches at fund or asset level, paying margin calls, optimizing repo debt and stabilizing assets


Asset / liability mismatches resulting from investor redemptions or a fund reaching its end of life


Managers looking to leverage existing portfolios to take advantage of current market opportunities (follow-on capital, GP led tenders, co-investor buyouts and secondaries, debt optimization, buyout of GP or LP interests)

GP / management co-management or takeover

Performance, loss of AUM, difficultly raising new capital, high water mark and illiquidity all contribute to an increased number of economically unviable GPs looking to exit

Liquidating funds

Capital solutions and buyouts of funds that are winding down, have orphaned assets, and/or side pockets

Project financing or development capital

Follow-on investments

Capital injections into underlying fund assets to support growth initiatives and acquisitions


Co-investor buy-outs in portfolio companies

Portfolio Holdings Investments

Protective investments in portfolio holdings requiring more time and/or balance sheet clean up prior to exit

Liquidity for Existing LPs

Early (partial) liquidity to existing LPs without premature sales of portfolio companies.

LP stake acquisitions of exiting LPs

GP management company related working capital or acquisition financing

Bridge to close secondary pe deals, especially fund restructurings

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