Nassau Financial secures $130m investment from Fortress Investment Group

Nassau Financial Group, L.P. (“Nassau”), a leading name in fixed annuities and asset management, and Fortress Investment Group LLC, a top-tier global investment management firm, have announced a transformative strategic partnership. The partnership not only serves as a significant milestone for both organizations but also paves the way for new avenues of growth and close collaboration. The deal officially closed on September 1, 2023, following all required regulatory approvals.

Investment Management Agreement Grants Nassau Financial Group Full Access to Fortress’ Credit Strategies

In a move to further solidify the strategic partnership, Fortress Investment Group has made a $130 million minority non-voting common equity investment in Nassau Financial Group. This substantial investment aims to strengthen Nassau’s balance sheet while accelerating the firm’s growth strategy. This includes opportunities for organic growth as well as acquisitions. As part of the partnership, Nassau entered into a long-term Investment Management Agreement (“IMA”) with Fortress. The agreement allows Nassau’s insurance subsidiaries to gain full access to Fortress’ credit investment strategies. Nassau plans to invest alongside Fortress credit funds targeting direct lending and ABS investment opportunities.

Leadership Offers High Praise for Groundbreaking Strategic Partnership

Phil Gass, Chairman and CEO of Nassau Financial Group, expressed enthusiasm about the partnership, stating, “We are thrilled to partner with Fortress. They not only bring a significant equity investment to the table but also offer extensive experience and an impressive track record in multiple credit investment strategies that align well with our investment portfolio.” Jack Neumark, a Fortress Managing Partner and co-head of global specialty finance, also weighed in, praising Nassau’s business and team, and expressing excitement for Nassau’s future growth.

Fortress to Own 7.7% of Nassau; Golden Gate Capital Remains Majority Shareholder

Following the transaction, Fortress now owns approximately 7.7% of Nassau, with Golden Gate Capital continuing as Nassau’s majority controlling shareholder. Nassau was initially founded in 2015, with both initial and subsequent growth capital provided by Golden Gate Capital.

Advisors for the Transaction: From Goldman Sachs to Deutsche Bank

Goldman Sachs served as the financial advisor to Nassau Financial Group for this landmark deal, with Sidley Austin LLP providing legal counsel. On the other side, Deutsche Bank acted as the financial advisor to Fortress Investment Group, while Wachtell, Lipton, Rosen & Katz and Skadden served as transaction and investment management counsel, respectively.

With this strategic partnership, Nassau Financial Group and Fortress Investment Group set the stage for a mutually beneficial relationship, unlocking unprecedented growth opportunities and strengthening their positions in the asset management and investment sectors.