Fortress Investment Group: The Shining Star out New York
Fortress Investment Group is considered the largest management firm for private equity. Fortress’s main offices are in New York, USA, and the company has been operational since 1998. Its founding figures are Randal Nardone, Rob Kauffman, and Wesley Edens.
Fortress Group operated for a while as a private equity firm before being listed on the New York Stock Exchange in 2007. The listing made it the largest private equity firm to be listed on the bourse in the US.
From its founding to 2006, the company posted significant growth. By 2006, the company’s private equity has seen a 39.7% growth. The company would continue to grow but was undercut by the market crash in 2008. The firm was significantly affected but recovered to profitability afterward with a projected $45.5 billion worth of assets under its management as of 2020.
Fortress Investment Group is considered an investor of the sick by many. The company is known to invest in illiquid, undervalued companies in distress and turn them around. Fortress Group has tailored its financial solutions to suits its wide array of clients. Rather than following traditional asset management, the company uses its experience in acquiring assets using debt and private equity-styled credit-focused funds and hybrid hedge fund structures.
Fortress Investment Group has a vast portfolio ranging from real estate, companies, hedge funds, and credit. Fortress Investment Group, however, inked a $3.3 billion deal in 2017 with Softbank Group. It has also acquired several companies, including Intrawest and RailAmerica, which has significantly increased its portfolio.
Despite the success, Fortress Group has had its fair share of losses and controversy. In 2015, the company reported a$125 million loss in a deal involving fraudulent promissory notes. Its purchase of Intrawest also courted controversy after Fortress Group reneged on its debt obligation leading to the compulsory divestment of Intrawest by creditors.