Fortress files for an initial offering

Fortress Investment Group, which manages investments such as private equity funds and hedge funds, has filed with the Securities and Exchange Commission to raise as much as $750 million though an initial public offering.

Fortress, which says it would be the first global investment manager to be listed on the New York Stock Exchange, has seen rapid growth since its inception in 1998. The company’s pretax distributable earnings jumped to $240.1 million last year from $54.8 million in 2003, a 109% compounded annual growth rate. Assets also rose sharply, to about $26 billion at the end of the third quarter from $1.2 billion at the end of 2001.

Fortress, which expects to trade under the symbol FIG, didn’t say how many shares would be offered.

The company plans to pay out a “significant portion” of the income it earns through quarterly dividends. Fortress didn’t specify what percentage of earnings would be paid to the new Class A shareholders.

The New York company said it planned to go public in part to be able to use stock to help finance acquisitions and as an incentive for current and future employees. Fortress also plans to expand its strategies and participate in new asset classes. As examples, the company cited infrastructure funds, real estate funds and structured debt products.

Fortress said its five principals would retain 90% of the voting power through Class B shares.