A lesson on investment based on Fortress Investment Group

Institutional Investor magazine awarded Fortress Investment Group “Credit-Focused Fund of the Year” two years in a row that was in 2010 and 2011 this would later be followed by the “Discretionary Macro-Focused Hedge Fund of the Year” in 2012. Other publications would also recognize its extraordinary achievements and in 2014 HFMWeek awarded them with the “Management Firm of the Year” distinction before closing the year with a “Hedge Fund Manager of the Year” award from the Institutional Investor. This was just but a recognition of the milestones the group has been able to achieve since it was founded in 1998 becoming one of the fastest growing alternative investment vehicles by growing its asset base from a combined 400 million to 3.2 billion within five years. This was no mean task as it meant that it was growing its private equity at a rate of more than 39 percent year on year.

The Fortress Investment Group had a strong team at the helm and was able to diversify into various fields from the moment it was launched. Today it has been able to be more specialized as the industry continues to grow and has chosen to focus on the following areas capital markets, operations management, sector-specific knowledge of companies and institutions, corporate mergers and acquisitions and asset-based investing. This has been made [possible through credit funds as well as private equity funds. This financing model has helped it build assets, including capital, real estate, and financial vehicles that will see the Fortress Investment Group grow both its long-term as well as short-term revenue over time.

Its day to day affairs are mostly managed by Randal Nardone and Wes Edens, who are focused on the New York region while Peter Briger focuses on San Francisco. This has ensured that all regions are under the direct management of an equally capable member of the Board of Directors. Peter Briger joined Fortress in 2002 from Goldman and has been with the group since then joining the board in 2006 and becoming Co-Chairman in 2009 this was just a year and a half after the group went public listing on the NYSE. The other two were part of the founding team of three. Intrawest the largest ski resort owner in Canada was acquired by Fortress Investment group some time back and has proved to have been a worthwhile investment. This was also true for AIG’s American General Financial Services which gained as much as 27 times its initial value.

Investment Diversification with Fortress Investment Group

Since its inception as a private equity firm in 1998, Fortress Investment Group has been a force to reckon with innovation and investment. Currently, the group is an entirely diversified worldwide investment management company, which directs more than $43 billion worth of assets for its over 1,750 investors in permanent capital vehicles, private equity and hedge funds. The firm leverages the “strong risk-adjusted returns” risk for investors for the long term. With its headquarters in New York, the firm currently has more than 9,000 people in its payroll. To further its investment interests, the firm has three personnel that work as a team including; San Francisco-based Peter Briger, Wes Edens, and the New York-based Randal Nardone. Over the two decades that the firm has been operational, Fortress Investment Group has established various core areas of expertise, which include capital markets, asset-based investing, corporate mergers and acquisition, as well as sector-specific knowledge of institutions and companies.

Under operations management, the firm has established robust tools and strategies for extracting value from the inherently intricate investment it carries out. Besides, its asset-based investments, both via credit funds and private equity, are comprised of a broad range of diversified assets, including capital, financial vehicles, and real estate that create long-term cash flow. The firm’s personnel are well endowed with expertise in mergers and acquisitions and have relationships with a full range of management professionals, corporate board members, and other corporate stakeholders. Randal Nardone and Wes Edens, both current principals, founded the Fortress Investment Group alongside Rob Kauffman who retired in 2012. These three principals leveraged deeply engraved experienced from positions in various entities such as the UBS, Goldman Sachs, Lehman Brothers, and BlackRock Financial Management.

The founders’ goal was to develop a new kind of investment firm. Within the first five years, the assets under their management grew astonishingly from $400 million to about $3.9 billion. By last year, 2017, they had assets worth $32.6 billion.The first decade of the firm’s operation was hard driving and dramatic. By 2006, the entity had expanded its Fortress Investment Group; one with two versions three and four. Later, various others came online, including the Drawbridge Global Macro Fund, the Fortress Partners Fund, the Fortress Brookdale Investment Fund and the Drawbridge Special Opportunities Fund. The group has made several notable acquisitions, including a Canadian firm Intrawest, which is North America’s largest ski resort operator. Later on, between 2006 and 2007, the firm purchased Penn National Gaming, RailAmerica and Florida East Coast Industries. In 2011, in a move to globalize and expand, the entity opened a second headquarter in U.S.’s San Francisco and Asia’s Singapore and Shanghai.