Fortress Investment Group and its Influence in the Investment Sector

Fortress Investment Group and its Influence in the Investment Sector

Fortress Investment Group was founded in 1998 as a private equity firm. Since its formation it has been a pacesetter. It was the first sizable private equity firm to go public on the New York Stock Exchange raising its profile significantly. Moreover, the firm specializes in: operations management, asset-based investing, capital markets, corporate mergers and acquisitions, sector-specific knowledge of companies and institutions.

Background Information

Currently, Fortress is a varied universal investment management firm that directs over $43 billion of assets for over 1750 investors in private equity, hedge funds and permanent capital vehicles. With its headquarters in New York, it employs over 900 people.

History of Fortress Investment Group

Other than that, it is critical to note that Fortress Investment Group was founded by Randal Nardone who is a serving principal, Wes Edens and Rob Kauffman who retired in 2012. When they came together to establish this company, their ambition was to set up a new type of investment firm. In 2002, Michael Novogratz joined the partners from Goldman Sachs as a fund manager. He left the firm in 2015 to focus on the cryptocurrency sector. Other than that, the famous Peter Briger who is based in San Francisco also joined as a principal the same year. He still holds this title to date.

Growth

It is critical to note that Fortress acquired American General Financial Services in 2010. Later into the years, the firm became Springleaf Financial Services. Its values shot up under Fortress gaining more than 27 times in value to $3.5 billion. In 2011, it opened a second U.S branch in San Francisco and two in Asia; Shanghai and Singapore.

The Major Acquisition

Because of the impressive performance the company registered over time, it was bought in February 2017 by SoftBank Group Corporation, a Japanese multinational based in Tokyo, at $3.3 billion. However, it continues to operate independently. Fortress’s new owner is focused on developing an influential position in the unfolding information revolution. The purchase was a strategic move to add investment expertise on the management of its flagship investment fund.

The General Observation

At present, Fortress Investment Group’s operations are divided into three principal sectors: Credit, Private Equity and Permanent Capital Vehicles. Launched in 2002, the credit sector is led by Briger while the Private Equity division is led by Nardone and Edens. The Permanent Capital Vehicles division is dictated by the board of five publicly traded indissoluble capital vehicles.