Fortress Investment Group: From An Idea To The Alternative Investment Firm

Fortress investment group was founded in 1998 by three investment experts Randal Nardone, Wes Edens, and Rob Kaufman. The primary aim of starting the company was to create a new type of investment firm specializing in private equity and modern investment vehicles. The leaders were able to manage managed to grow the assets from 400 million dollars to 3.9 billion dollars within the first five years. By the time the company went public in 2007, the assets under management had hit the $40 billion mark.

Expanding operations and going public

Under the leadership of Wes and Randal, the company grew its returns and created a lot of attention from other investors. In 2002 Peter Briger joined the company as a principal and Michael Novogratz as a fund manager. Before joining Fortress, Peter Briger worked at Goldman Sachs for 15 years. To increase its profitability, the company made a series of acquisitions including the Intrawest, Florida East Industries, and the Penn National Gaming. This saw the company go public list with the New York Stock Exchange in 2007 making it the first private equity firm to trade shares publicly.

After the IPO the company’s profile rose significantly and expanded its presence in the United States. The business extended its services internationally focusing on Italian NPL and Asian oriented funds. In 2010 fortress investment group purchased spring leaf Financial Services and managed to increase its value to 27 times its initial worth. Other notable acquisitions include Graticule Asset Management, Mount Kellett, and Logan Circle Partners.

Awards and recognitions

Fortress investment group has received several recognitions for its success. For instance, the investment firm was in 2012 recognized as the Discretionary Macro-focused hedge fund manager of the year. It had also scooped the credit-focused investment firm of the year in 2010 and 2011 consecutively. In 2014 it was named the hedge fund of the year and also the management firm of the year.

Softbank acquisition

In 2017, the Fortress Investment Group made headlines when Softbank made its intentions of buying the company public. This would result in the company delisting from the stock exchange market and revert to its privatized state. Softbank is a Japanese multinational investment company that specializes in finding technological startups all over the world. It will nonetheless continue to operate as an independent branch of the Tokyo based banker while maintaining its top leadership, the New York headquarters, and its client base.

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