Fortress Investment Group Dominance in Investment Management
Fortress Investment Group is a publicly owned global investment manager that manages approximately over $70 billion in assets for over its 1750 investors and institutional clients. The assets they manage include hedge funds, permanent capital investments, and private equity. Headquartered in New York City, the company has offices in Singapore, Los Angeles, Philadelphia, and Italy. The company’s goal is to provide alternative investment options that will generate risk-adjusted returns over the long term. The company has a massive team of experts who include over 200 professionals and over 950 asset management employees distributed across the world.
From a private equity firm formed in 1998, Fortress Investment Group has grown to become a force to reckon with in the Industry. The three principals who founded the private equity firm are Randal Nardone, Wesley Edens, and Rob Kauffman. The principals had previously worked with financial powerhouses such as Goldman Sachs, Blackrock Financial Management, Union Bank of Switzerland and Lehman Brothers. With their combined knowledge and experience they were able to expand to hedge funds, debt security, and investments in real estate. Their main areas of engagement include operations management, capital markets, asset investing and corporate mergers & acquisitions.
In their bid to expand and conquer new territories Fortress Investment Group acquired several companies such as Florida East Coast Industries, RailAmerica, Penn National Gaming, and Canadian company Intrawest. They also had partnerships with companies like Graticule Asset Management Asia, Logan Circle Partners, and Mount Kellett. One of Fortress Investment Group significant moves was the acquisition of SpringLeaf Financial services which was previously American General Finance Services. From a small amount, they had used to purchase the company the value ballooned to $3.5 billion, more than 27 times their initial investment.
In 2007, Fortress Investment Group became the first hedge fund company to be listed in the New York Stocks Exchange when they launched their Initial Public Offering. This IPO resulted in the principals of Fortress to be named in the 2007 Forbes list of Billionaires. In 2017 SoftBank Group from Japan acquired Fortress at a price of $3.3 billion. The acquisition was a big boost to the investors as the shares were bought for $8.08 when they were trading for $5.83. The group has been recognized severally for their outstanding performances. Institutional Investor awarded them “Hedge Fund Manager of the Year.” HFMWeek accorded them “Management Firm of the Year,” in the same year. In 2012 they were also recognized by Institutional Investor as the “Discretionary Macro-Focused Hedge Fund of the Year.”