Fortress, Ares Face Total Loss on Platinum Equity Toilet Deal

Three Wall Street heavyweights are poised to suffer a total loss on a deal for a portable-toilet company orchestrated by Platinum Equity, spotlighting the hazards of a controversial strategy that’s gained traction across private equity.

Fortress Investment Group,Ares Management Corp. and Blackstone Inc. are among the money managers set to lose a combined $1.4 billion on United Site Services Inc. as Platinum prepares to hand control of the company to lenders, according to people with knowledge of the matter, who asked not to be identified discussing a private transaction.

United Site Services

Photographer: Smith Collection/Gado/Getty Images

The funds were among the anchor investors ...