Fortress has formed a “strategic alliance” with Mount Kellett creating an investment company with more than $75bn (£49bn) in assets under management.
The move came as Mount Kellett, formed by former Goldman banker Mark McGoldrick in 2008, struggled to recover from a fall in value of investments made in the oil industry.
McGoldrick and co-founder Jason Maynard have a long history of working with the Fortress management and McGoldrick is a close friend of Fortress co-chairman Peter Briger.
The deal sees an affiliate of Fortress become co-manager of its investment accounts and related accounts with Mount Kellett.
What will happen to staff and assets in the EMEA side of the business is unclear. While the addition of Fortress’ balance sheet will help the business, it is unclear how the company’s expertise, which is very similar to those at Fortress, will fit within the new group.
Staff at Mount Kellett expect more information to be announced in the near future.
McGoldrick, said: “We are very pleased to be partnering with Fortress. Our investors will benefit from the access and support of a global operational platform and the combined asset management expertise of the Mount Kellett and Fortress teams across the distressed and special situations spectrum.”
The deal is expected to close on 30 June for an undisclosed amount.
