Fortress Investment Group (FIG), which just announced plans to bring a new residential mortgage-backed securitization deal to market, reported a much narrower first-quarter loss Thursday.

The hedge fund posted a net loss of $24 million, or 16 cents a share, in the first quarter, compared to a net loss of $255 million, or 58 cents a share, for the same period a year earlier.

The company attributes the sharp improvement to the sunset of a principals agreement, which will impact compensation levels within the firm.

Fortress' results were impacted by a $32 million cut in total compensation and benefits.

The company finished the first quarter with $46.4 billion assets under management, while also raising $2.9 billion in third-party capital in alternative businesses.

HousingWire reported in April that Fortress is bringing a new residential mortgage-backed securitization to market through its Springleaf Financial subsidiary. In April, a form filed with the Securities and Exchange Commission showed that S&P would rate the $473 million transaction, which is named Springfield Mortgage Loan Trust 2012-1.

kpanchuk@housingwire.com