Nassau Financial Group and Fortress Investment Group Enter into Strategic Partnership
• Common equity investment by Fortress accelerates Nassau’s growth plans
• Provides full access to Fortress investment strategies through a long-term IMA
HARTFORD, Conn., and NEW YORK, September 5, 2023 – Nassau Financial Group, L.P. (“Nassau”), a leading provider of fixed annuities and asset management, and Fortress Investment Group LLC (“Fortress”), a global investment management firm, today announced they have entered into a strategic partnership. This strategic partnership marks a significant milestone for both organizations and opens new avenues for growth and close collaboration. The transaction closed on September 1, 2023, after receiving regulatory approvals.
As part of this strategic partnership, Nassau received a $130 million minority non-voting common equity investment from Fortress. This investment will provide additional primary capital to both further strengthen Nassau’s balance sheet and accelerate the firm’s growth strategy, including organic growth and acquisitions. Nassau entered into a long-term Investment Management Agreement (“IMA”) with Fortress, whereby Nassau’s insurance subsidiaries will have full access to Fortress’ credit investment strategies. Nassau intends to begin investing alongside Fortress credit funds targeting direct lending and 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. “In addition to Fortress’ significant equity investment, they bring extensive experience and an impressive investment track record across multiple credit investment strategies that fit well with our investment portfolio. Through this strategic partnership, Nassau will benefit from new investment capabilities, improving our competitive position as we continue capitalizing on attractive growth opportunities and creating value for all our stakeholders.”
“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. “We believe our deep experience across the credit spectrum is extremely well aligned with Nassau’s portfolio and investment objectives, and we very much look forward to contributing to Nassau’s continued growth and success.”
Nassau was founded in 2015 with an initial capital commitment along with subsequent growth capital provided by Golden Gate Capital. With this transaction, Fortress owns approximately 7.7% of Nassau, with Golden Gate Capital remaining Nassau’s majority controlling shareholder.
Goldman Sachs served as financial advisor and Sidley Austin LLP served as legal advisor to Nassau. Deutsche Bank served as financial advisor, Wachtell, Lipton, Rosen & Katz served as transaction counsel, and Skadden served as investment management counsel to Fortress.
About Nassau Financial Group
Based in Hartford, Connecticut, Nassau Financial Group is a growth focused and digitally enabled financial services company with three distinct and closely connected businesses: insurance, reinsurance, and asset management. Nassau currently has $23.0 billion in assets under management, $1.4 billion in adjusted GAAP equity, and 390,000 policyholders. For more information, visit nfg.com
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $44.7 billion of assets under management as of June 30, 2023, on behalf of over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies. For more information, visit fortress.com.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with over $19 billion in cumulative committed capital. With a long-term investment philosophy, the principals of Golden Gate Capital have a long history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. For more information, visit www.goldengatecap.com.
Danya Al-Qattan/David Isaacs/Akash Lodh, FGS Global
Alice S. Ericson, Nassau Financial Group
Gordon Runte, Fortress Investment Group