Fortress (FIG) Higher Ahead of RailAmerica IPO

Shares of Fortress Investment Group LLC (NYSE: FIG) are jumping higher today ahead of Tuesday's expected IPO for RailAmerica (NYSE: RA), a company Fortress took private in 2007. Shares of FIG are up 8% today in active trading.

RailAmerica is planing to offer 21 million shares at a price between $16.00 and $18.00 per share, with Fortress selling half and the company selling the other half. After the offering, Fortress will continue to own approximately 57.7% of RailAmerica common stock.

RailAmerica is the largest owner and operator of short line and regional freight railroads in North America, measured in terms of total track miles, operating a portfolio of 40 individual railroads with approximately 7,500 miles of track in 27 U.S. states and three Canadian provinces.

RailAmerica generated total operating revenue of $508.5 million and net income of $16.5 million for the year ended December 31, 2008 and total operating revenue of $206.5 million and net income of $19.2 million for the six months ended June 30, 2009.

In addition to the pending RailAmerica IPO, today it was reported that rival private equity firm Blackstone (NYSE: BX) may list up to eight of its companies. Fortress will likely follow-suit with more IPOs of their portfolio companies.

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