DUBAI, United Arab Emirates, Oct. 27, 2015 /PRNewswire/ -- After a rocky start to the quarter, Fortress Prime (http://www.fortressprime.com), a division of Fortress Capital Investments, today executed its second round of funding. The expected $200 million capital injection, coupled with strategic restructuring, will allow the Dubai-based clearinghouse to continue expanding its market share and get back on track following several months of disappointing results and uncertainty.
Despite having taken a beating in recent months - with an unsuccessfully aggressive credit program, spiked client withdrawals amid unfavorable market conditions and an inability to enforce and recover funds from counter-parties who were part of "Risk Share Agreements" - Fortress Prime continues to have the backing of its shareholders, including members of the UAE Royal Family. These issues were understandably met with deep concern by Company's Partners and Shareholders. However upon thorough and lengthy internal review with some key operational and organizational changes, Partners and Shareholders agreed to execute on a second round of funding equating to $200 million in paid capital commencing months end to bring the UAE firm back in strong stride.
"Fortress Prime is fortunate to have the support of our shareholders and partners when needed. Our ability to succeed relies heavily on the relationship and the trust we have built with our investors and backers," said Moustafa Gamaledine, newly appointed Senior Executive of Fortress Prime. "We are rectifying our credit issue with stronger than normal underwriting guidelines in this lucrative industry and taking a more stringent approach to credit default management. As far as our operational issues are concerned we are implementing some key organizational restructuring that will be critical in eliminating current AML and cash management issues effectively diminishing any kinks in Fortress Prime's armor."
There has been a great deal of speculation on Fortress Prime's current state of economic health and stability. Curious industry insiders and media outlets have been patiently observing the young UAE firm waiting for any sign of a turnaround or collapse. The company anticipates today's news will quiet some of the chatter with the unwavering support of its esteemed Partners and Shareholders while making clear its unrelenting commitment to safety and security of clients' funds.
"We hope Fortress Prime's realignment will satisfy some of the curiosity surrounding the company," Gamaledine explained. "Fortress Prime is focused and committed to smart, sustainable growth."
About Fortress Prime
Fortress Prime is a division of Fortress Capital Investments. The company was founded in 2010 and now operates as both a clearinghouse and a highly diversified investment house. Combining deep capital reserves with an ownership stake by the Abu Dhabi ruling family, Fortress Prime provides its broker clients with best-in-class liquidity, scalable technology, and credit solutions. The Fortress Prime leadership team, composed of industry veterans, focuses on building deep client relationships and partnerships based on trust, transparency, and integrity. Fortress Prime volume reaching 58.6 billion at the end of the fiscal 2015 third quarter ending September 30, 2015. This is a 49.50% increase over fiscal 2015 second quarter ending June 30, 2015, where average monthly trading volume reached 39.2 billion.
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SOURCE Fortress Prime