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April 2013

1 post from January 2013

Fortress Investment Group Moving Into Chinese Bad Debts through D.B. Zwirn

According to Financial Times report on January 8, Fortress Investment Group is buying an asset management firm specialized in soured debts and distressed assets in China. The firm's name is the Fan Ya Tai Asset Management (International) Ltd. Fan Ya Tai's English website indicates that, "Fan Ya Tai Asset Management Company (International) Limited ("FYT"), is a PRC based commercial mortgage, commercial finance and residential mortgage special service consulting company. Majority shareholders are D.B.Zwirn funds managed by Fortress Investment Group(NYSE:FIG)." Its Chinese website says that the transfer of majority shares to D.B. Zwirn completed in December 2007. Starting from 2006, D.B. Zwirn's problems were disclosed, and in 2007 D.B. Zwirn was undergoing extensive investigations and audit. What is difficult to understand, why did Fan Ya Tai still went ahead and let D.B. Zwirn take the company over. When Dan Zwirn started winding down his fund due to poor internal control in 2008 he transferred $2.8 billion of illiquid assets to an affiliate of Fortress Investment Group (FIG). In this case, can we interpret that part of the overseas assets such as those of Fan Ya Tai were also folded under FIG. If this is the case, FIG is only officially claiming... Read more →