Fortress Investment Group, a listed private equity and hedge fund, has replaced D.B. Zwirn & Co., L.P. as the manager of D.B. Zwirn's funds and accounts. The fund will be renamed the Fortress Value Recovery Funds I, the company said in release. The deal would add approximately $2 billion of assets under management to Fortress and has been approved by D.B. Zwirn investors.
DB Zwirn was rocked by disclosures of improper accounting last year, after which it decided to liquidate. DB Zwirn's investments in India include Quippo Telecom Infrastructure Ltd and Chennai-based NBFC Dhandapani Finance. While DB Zwirn holds a 51% stake in Dhandapani, it has a 3.28% stake in Quippo, India's largest independent telecom tower
A Fortresss' statement added that certain members of D.B. Zwirn's management team and approximately 100 of its professionals have joined it or will be providing services. Fortress has around $26.5 billion in assets under management.
Daniel Zwirn, who founded the firm in 2001, decided to shut down its flagship D.B. Zwirn Special Opportunities Fund LP in February last year. The fund makes loans to companies including those that have trouble getting financing elsewhere.