Fortress Investment Group (FIG) said Monday its Fortress MSR Opportunities Fund II is now closed, reaching its cap of $1.1 billion.
The fund is a successor to the investment firm’s MSR Fund I and the next phase of its ongoing commitment to investing in the $10 trillion mortgage-servicing segment of the market.
Fortress became an active investor in the MSR space using a co-investment structure alongside its publicly-traded REIT New Residential and portfolio company Nationstar (NSM), one of the largest U.S. mortgage servicers.
Fortress and its affiliates have invested in $315 billion in unpaid principal balance MSRs in the past two years alone.
"This is a transformative period for the servicing market that we believe will present substantial opportunities in the coming years," said Wes Edens, Fortress co-chairman and head of private equity.
"As one of the earliest and largest investors in the servicing space, with significant experience as an owner/operator of major servicing platforms, we’re confident we can capitalize on those opportunities on our investors' behalf."
