Fortress, Lighthouse Team Up to Build Multistrat Hedge Fund (1)

Fortress Investment Group and Lighthouse Investment Partners agreed to merge their global multistrategy hedge funds and tap each other’s talent to capitalize on the explosive growth of such money pools.

The firms reached a preliminary agreement to co-manage the combined fund under the leadership of Lighthouse Chief Executive Officer Sean McGould and Jeff Runnfeldt, the chief investment officer of Fortress Multi-Manager Group, according to an internal Lighthouse memo seen by Bloomberg.

Their new fund will replace the existing multimanager strategy at Fortress. The memo didn’t reveal financial details of the partnership, which is expected to be finalized in the ...